biscuits markets which has been estimated as a 10billion worth industry. For some product categories like wafer biscuits, chocolate slabs, company has engaged in a price competition with competitors in the Sri Lankan market. Literature Review 2.1. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. activities can be mentioned as strengths of the company. In term of land area, availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also, more or less same as above. So there is an opportunity to widen dealer network of the company to north and east of the country and make use of market opportunities for further production expansion. Switching to diesel or LP gas mean cost saving is tremendous. Furthermore value innovation is playing crucial role in CBL strategy. . Description. Although the Name of the brand Smak has. are other rival biscuits manufacturers who directly compete in the market with the CBL By using a framework for remedy industry structure, the Porter's Five Forces Model, we can have a better understanding of the industry context in . customers are appointed by the company, they are bound to purchase and distribute For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. Taking full responsibility of its main business development, souring products from overseas OEM manufacturer. Other than this, international and Indian biscuits companies as well as dozens of local small scale biscuits manufacturers are also competing in the biscuits market in the island. When it comes to consider threats facing the CBL group, major threat is coming with Indian free trade agreement. dozens of local small scale biscuits manufacturers are also competing in the biscuits We produce 25 million packs of biscuits every month in our state-of-the-art manufacturing facility under stringent hygienic conditions. ST (strengths-threats) Strategies. (business & personal). Services, What we look permit ways for tapping the tacit knowledge related to production processes. Setting up of this level of distribution network is also a difficult task and would be a barrier for new entrants. following proper legal procedures of the country in the event of doing its businesses. company is having very high level of bargaining power as there are another 50 small proportionately. Location. Sample Shipment From Ceylon Biscuits Limited Bill of Lading EXFH14023015978. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Cbl Corporation Limited. considered as strengths of the company. Here is a summary of financial information of CEYLON BISCUITS INDIA PRIVATE LIMITED for the financial year ending on 31 March, 2011. Plenty Foods (Pvt) Ltd is a subsidiary company of Ceylon Biscuits Ltd (CBL) located in Pallekele mixed residential area. In recent As a privately owned group of companies, CBL group has no clearly explicit mission. It is clear that although CBL products are dominating the market, CBL product are in a price competition with rivals in the market. now the company is producing around 45000 tons of biscuits annually. So in this way as a part of corporate strategy, as the market leader in the biscuits, cake and chocolate markets in the island, CBL group is trying to position on all market segments while paying special attention to the young crowd segment. Part 2 Business environment and strategic orientation of the organization, Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract, manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake, and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in, the world. Furthermore the giant global player Coca-Cola is also trying to enter Sri Lankan fruit drinks market with its brand name called Minute Maid. market share by almost whipping out other competitors in the market. producing biscuits for Care International. So in order to supply future demands of growing market, further technological upgrade is desirable for the company. Then they entered in to chocolate manufacturing. continental Indian region, the group has already bought land in Bangladesh for its first, So far the group has been operating as a privet limited company which is now, almost 12billon Rupees Company, is in the process of considering to become a public, limited company as company has grown too big already and also huge investments are in. Therefore Export distribution is also done through export distributors in India and Singapore. CBL is strategically employing advertising for value creation and changing mindset of customers. Part 2 Business environment and strategic orientation of the organization Product Brand of the Year for four consecutive years So it is another threat appearing in the path of CBL. Throughout the journey of CBL from a small biscuits manufacturer to a diversified leading business group in the country, one of major remarkable major strength can be observed. CBL distributes its products through 60 agencies and 400, dealers located island wide and products are available in over 80000 sales outlets island, wide. failed. Winner of Gold for Innovative Brand of the Year (Awarded by Sri Lanka Institute Generally it can be observed that the CBL group is following two generic strategies explained in the literature. well as in the world level. With the high level of product innovations With this FTA, there is a threat of entering of Indian big So company should be conscious to address requirement of this emerging market segment as well. CBL group has no clearly explicit mission. Therefore the group has invested in Seethawaka Industrial Park and where group is going to set up their new production facility solely for exports. Therefore the group has invested in Seethawaka Industrial. Ceylon Biscuits Limited also produces a whole range of organic and natural products. As the vision of the company targets, becoming the leader of confectionary manufacturing would be a long journey for the company. Selection of strategies, making investment wisely and building up of the efficient sales and distribution network, island wide by the corporate management are definite causes for achieving competitive advantage by the company. Customization, Quality Looking for a particular Ceylon Biscuits Limited employee's phone or email? Land area of Pannipitiya plant was fully filled with plant buildings and, no further building expansion is possible there. In chocolate coated product market Ritzbury is having over 70% market share of competitive brands. 1. Under the farsighted corporate leadership of the company, the company has aggressively expanded its operation, has achieved dominant market shares in its all major product categories and also has invested heavily in new plants, factories, technologies in order to sustain and improve current level of aggressive market performance of the company. That is strong corporate leadership of the chairman and the director board. Company Ceylon Biscuits Limited. Originally CBL was a local biscuits producer. GCD210267, Watts and Zimmerman (1990) Positive Accounting Theory A Ten Year Perspective The Accounting Review, Subhan Group - Research paper based on calculation of faults, Sri Lanka Institute of Information Technology, Well established sales and distribution network, Strong brand images and excellent sales force, Well established quality/environmental management systems, Setting up of a management information system, Opening of north and east market after the war. Therefore this price competition can be Box 03, Makumbura Pannipitiya. Throughout the journey of CBL from a small biscuits manufacturer to a, diversified leading business group in the country, one of major remarkable major strength, can be observed. So it is another weakness of the company. So there is the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha) company. In the mid eighties the company ventured aggressively into commercial operations and recorded one of the highest growth rates in any industry . Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in the world. CBL is enjoying technological superiority over its fellow competitors in the local market. So there are times where the company is unable to supply the demand. Due to this high level of price sensitivity and bargaining power of indirect customers, the company is investing heavily for advertising of its products for the purpose of building brand loyalty. This farmer network also can be considered as strength of the, In early days of the company, most of production machineries were reconditioned, machineries imported from the Europe. Furthermore annual growth rate in India is even higher and expansion of Indian middle class population is expected to exceed that of Europe by 2016. vulnerable. Instead what the company CBL does is, adapting set of marketing objectives, like increasing market share of a certain brand by, Today CBL groups core business is food manufacturing and initially it was, limited to biscuits manufacturing. For an instance, munchee is having 60 agencies and 400 dealers distributing products to over 80000 sales outlets in the island. international market, the company is having an opportunity to enter this market segment When it comes to consider threats facing the CBL group, major threat is coming with Therefore in terms of capital investment required, barriers for new entrants for entering into the market are high. So the company is mass producing its products through capturing the biggest market share and continuously pressing harder to increase its market share while keeping prices of products in line or slightly higher to the competitors and thus CBL has been able to achieve high sales volumes while continuously capturing market share of competitors. 2. Insufficient production capacities and insufficient distributions have limited possible success of strong brand name of Smak. Highlights, Our Besides this, as befits a biscuit magazine, we are going to list the company's products. seen as a weakness of the group in relation to the chocolate production. region. EASL Annual Report & Accounts 2009/2010 2. So in the case of palm oil bargaining power of local suppliers is limited. Problem here is instead of direct substitute products of biscuits, cakes, chocolates and fruit drinks, there are direct substitute brands are available. CBL group is in the process of business diversification also. power. Ceylon Biscuits Limited does not solely focus on biscuits, rather, they produce other products as well, such as cakes, cereals, porridge and soups. In order to source these agricultural raw materials in required quality and quantity, company has set up farmers network in Ampara and Wellawaya area. Land areas in CBL ranala and CBL Pannipitiya are almost occupied with of the group where there is no unionized environment available. 52232605 Strategic Management Practices at Munchee, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. production. management system for which company has received ISO 9001 certification. Certifications, Key ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company Although CBL group is performing well in the Sri Lankan market in its all most all product categories, still there are observable weaknesses in internal environment of the company. So it is another threat existing in current context. able to build the strongest brand name in Sri Lanka for four consecutive years, is another Yet increase of profits is limited as company has to increase profit margins of products facing the threat of loosing some market share due to unfavorable economic conditions in the country as well as in the world level. Then the company moved to manufacturing of Already CBL products are having 20% to 30% higher price than Indian products in the Indian market. In term of market share the flagship brand Munchee is holding over 60% market, share in the biscuit market of the country and cake brand Tiara is holding around 80%, market share by almost whipping out other competitors in the market. This is part of the corporate strategy of the group that gives definite competitive advantage for the company over its local and regional competitors. This expertise steers the group towards its sustainable growth goals and towards building brands that win in the marketplace. Indian market opened up with the free trade agreement signed with the India. Ceylon Biscuits Limited employs 223 employees. the other hand price sensitivity of the general public is also high. That is strong corporate leadership of the chairman and the director Ceylon Biscuits Limited Business details. The Ceylon Biscuits Limited Marketing - Assignment, Ceylon Biscuits Ltd was founded in late nineteen sixties by under taking contract from, Sri Lankan government and Care International (USA) to manufacture protein enriched, biscuits for Sri Lankan school children as a mid day meal. It is considered to have 10% share of the fruit drink In the biscuits industry, Maliban, Lucky Land, Cherries, Maam, Nip and Diana CBL Ranala factory, have to be sent back to India and now dismantling of plants are product market and serials and snacks markets of the country. This is another HR related issue that prevents free flow of information within the organization. Products (Awarded by National Chamber of Exporters) The company has established well organized product and process quality Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in the world. Although this segment is accounting for the majority in the Sri Lankan market, social trend in the Sri Lanka is that, population of the country is ageing. It would be a threat for CBLs chocolate barnd Ritzbury. When the organizational culture in the group is considered, within the group hierarchical, relationships are supposed to be maintained during decision making as well as daily, operations. of loosing some market share due to unfavorable economic conditions in the country as Insufficient profit margins of some products also can be seen as a weakness of the company. So for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is high. Lankan customers are highly price sensitive presence of these substitute brands is a threat Ceylon Biscuits was founded in 1968 to manufacture high-protein biscuits to supplement mid-day meals for school children under a joint programme of Care . 2023 | A2Z Pte.Ltd. But now Cream Cracker is used for small hunger and widely consuming by age less than 35years segment as well. In order to sustain already created social image of the company, CBL is expected to perform better or similar manner in the future as well. As it is possible to obtain product formulas from international market, it is also a costly option and developing them locally is a long term process. Maliban is the leading biscuit manufacturer of Sri Lanka. our planet, Sustainable growth for It can be observed that company is well aware about its value chain. In this case, food processing capacity of Cecil and established farmer network can be utilized for organic fruit exports. slab market are having strong brand names in the local market. When the organizational culture in the group is considered, within the group hierarchical relationships are supposed to be maintained during decision making as well as daily operations. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. Price wise Munchee is priced slightly above the level of competitive brands. | All rights reserved. With the dawn of new millennium CBL started its drive towards, technological upgrade of its plant and machineries and in the context of Sri Lanka, now the company is having more efficient and modern machineries than its rivals reducing its production costs thus giving important competitive advantage for the CBL to enjoy over industry average profit margins. Obtaining ISO 14000 environmental management system certification by CBL Added on - 2021-09-10. Little Lion cake can be considered as only competitor Furthermore greater emphasis is paid for increasing the efficiency of distribution network so that products available in everywhere, the general public seeks them. This modernization of machinery and equipments and technological innovation are also can be observed as strengths of the CBL group. Expert Assignment Help on Ceylon Biscuits Limited SWOT Analysis Internal environment analysis of Ceylon. But still there are some equipments and machineries in CBL, dating back to 1960s and are technically out dated. Part 2 Business environment and strategic orientation of the organization, Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract, manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake, and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in, the world. The company has appointed an agro technologist to coordinate closely with these farmers networks and provide necessary technology and guidance from selecting seeds and preparing of farming lands to collecting and storing harvests in a way that both company as well as farmers is benefited, so that quality and price standards of raw materials are maintained. 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