Chee Wah Corporation Berhad has existed for more than 50 years and they primarily focuses on the manufacturing and distribution of a wide range of premium quality paper-based stationery items. Overtime, Chee Wah Corporation Berhad expanded and their subsidiaries today supplies and distributes non-paper stationery, gift paper, pre-school educational materials as well as stationery, school and office supplies retailing. Chee Wah Corporation Berhad is also the integrated supplier to hypermarkets, wholesalers, retailers and consumers (Chee Wah Annual Report, 2011).
Under Chee Wah Corporation Berhad there are a few subsidiaries which include Campap Distributor Sdn. Bhd., Sun Paper Bag & Packaging Sdn. Bhd, Chee Wah Resources Sdn, Bhd, Camel Paper Products Sdn. Bhd (Chee Wah Annual Report, 2011).
Like being in any industry, Chee Wah Coporation are also affected by uncertainty and fluctuation of paper prices that impairs the performance of the other paper trading subsidiaries as they were thwarted by higher paper cost. Furthermore, Chee Wah
Corporation’s retailing subsidiary has also reported lowered revenue of RM1.8 million, which is equivalent to the fall of 16.4% between 2011 and 2010. The fall of revenue is due to the closure of under-performing retail outlets and the reduction in the production range of non-paper stationery and also the reduction of administrative expenses. (Chee Wah Annual Report, 2011)
2.0 Remote Environmental Analysis
PESTE analysis is very important for an organization considers its environment before beginning the marketing process. In fact, the environmental analysis should be continuous and fit all aspects of planning. The organization’s remote environment is made up from PESTE analysis which stands for Political, Economic, Social, Technological and Ecological analysis and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
The