company products and they can not sell or distribute similar products to the CBL So that management would be able to over look better, the operations of the company. CBL distributes its products through 60 agencies and 400, dealers located island wide and products are available in over 80000 sales outlets island, wide. Insufficient profit margins of some products also can be seen as a weakness of the company. Both Edna and Kandos that are long term players in the local chocolate slab market are having strong brand names in the local market. This shows how the business diversification went on. L.N.Gumilyov Eurasian National University, Jomo Kenyatta University of Agriculture and Technology, Kwame Nkrumah University of Science and Technology, Accounting Principles by Kieso 13th Edition (BAF 1101 B-2), Bachelor of Business Administration (B.B.A.) CBL group is already the market leader in biscuits, chocolate and cake product categories. Currently CBL cake brand is dominating the local cake market having over 75% 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. When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged in production of bottled fruit drinks mainly for the Sri Lankan market. 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 . organic organization Definition Organizational structure characterized by (1) Flatness: Communications and interactions are horizontal, (2) Low specialization: Knowledge resides wherever it is most useful, and (3) Decentralization: great deal of formal and informal participation in decision making. So company should be conscious to address requirement of this emerging market segment as well. But Mucnhee considered this customer insight into consideration and the result was Munchee Real Lemon Puff of which biscuits part is also having the taste of lemon cream and biscuits dont have to be thrown away. product market and serials and snacks markets of the country. Originally the profit margin was 250% and now it is around 17%. So it can be concluded, that in areas of biscuits, cake and chocolate markets, CBL has been market leader in the, Sri Lankan market for past few years and most likely the company would be able to, Fig: 1 Munchee Biscuits market share in the market. Food Science Internship Maliban Milk Pvt Ltd. Dharshika Selvaraj Company Description Company History Maliban is one of the most trusted and respected brands in Sri lanka. Other generic strategy followed by the CBL group is diversification of the business as well as products. 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. supplier and this can be considered as a weakness of the company. Taking full responsibility of its main business development, souring products from overseas OEM manufacturer. As the company is making profits, there may be no difficulty in borrowing. 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. product categories and also has invested heavily in new plants, factories, technologies in 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 demand in order to make sizable presence in the Indian/Bangladesh markets. and palm oil, other raw materials are imported from the international market where the Till that time from the starting of the Ceylon Biscuits, the company was engaged Specially developing formulas locally, for products CBL provide food to big foreign market. China. is over 10tons and daily production of chocolate is around 10tons as well. 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 Organization, USA, and the Sri Lankan Government. In this case, food processing capacity of Cecil and established farmer network 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. Certifications, Key Land areas in CBL ranala and CBL Pannipitiya are almost occupied with Solutions Manual for Automation, Production Systems, and Computer-Integrated Manufacturing, Bodie Essentials of Investments 11e Chapter 01 PPT, Kotler Chapter 11 MCQ - Multiple choice questions with answers, Kotler mm14 tif13test bank for marketing management Koter, Financial and managerial accounting chapter 2 solution, Th Calculus 13th(Thomas Calculus 13th edition), Managerial Accounting 15th edition Garrison, Pdf-areas-sombreadas compress ejercicios resueltos, Assignment 1. Problem here is instead of direct substitute products of biscuits, cakes, chocolates For an instance earlier, biscuit like Lemon Puff of which there is yellowish cream inside the biscuits sandwich was fun part of kids and usually biscuits covering the cream were thrown away. Strong marketing team referring internally as excellent force, which has been product market of the country. entering to the cake market. 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 company is in the process of value chain integration and already an ERP system has set up in the Ranala factory and further expansion of the ERP system covering the entire group of companies is in progress. as follows. Asia with a global presence and recognition. So there is a price competition in the industry. . | Misc | 26 pages | 8316 words | 3278 views. Well established sales and distribution network of CBL also can be considered as strength of the company. So in despite with the fact that production volume of those categories continuously rising, it can not be observed that significant growth in profits. But the competition created by these substitutes is almost negligible for products such as cakes, biscuits and chocolates. Till that time from the starting of the Ceylon Biscuits, the company was engaged in contract manufacturing for Huntley and Palmer of associated biscuits UK other than producing biscuits for Care International. CBL Ranala factory is also working towards obtaining ISO 14000 environmental quality OFFICE BEARERS 2009/ 2010. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. This rush and thirst for investments is also making the company financially vulnerable. Box 03, Makumbura Pannipitiya. So it can be observed that Th e Company is a subsidiary of CBL Investments Limited. price 6s. So customers are having the option of choosing some other biscuits brand instead of Munchee, some other cake brand instead of Tiara, or similarly some other chocolate brand instead of Ritzbury. Introduction of chocolate coated products into the local market and introduction of cakes having longer expiry date are two examples for product diversification and innovation. At the same time But for fruit drink industry which is not a capital intensive industry, barriers for new entrants is relatively low and further it can be seen that many small scale players are operating regionally in the fruit drinks market. So utilizing this excess production capacity company, decided to launch its own brand and that was how the Munchee biscuits brand which is, later to become dominant market leading biscuit brand was introduced to the Sri Lankan, market. Convenience Foods Lanka PLC is engaged in the manufacturing and marketing of Textured Vegetable Protein (TVP) and other food products. In chocolate coated product market, although the company has become the market For an example, in recent years, biscuits production is continuously rising and Since direct customers are appointed by the company, they are bound to purchase and distribute company products and they can not sell or distribute similar products to the CBL products. Changes in the macro-environment factors can have a direct impact on not . in north and east areas are much cheaper than that of other areas of the country. 2023 | A2Z Pte.Ltd. Cbl Corporation Limited PESTEL analysis is a strategic tool to analyze the macro environment of the organization. (Source: AC Nielson retail audit). Product; Transit; Company; Container Number: CAIU9499696. So there is an opportunity for moving production facilities into these areas for a low cost production in the future. Yet the demand to the product of the company experiences highly seasonal fluctuation. monitored. names they built are strengths giving the company a competitive advantage. Throughout the journey of CBL from a small biscuits manufacturer to a Another important factor notable in the success story of CBL is, correctly understanding the power of advertising in the event of building a brand. environmentally friendly manner. Here there is an opportunity to identify another major strength of the CBL group. EBITDA of the company is EBITDA. under age 35. dozens of local small scale biscuits manufacturers are also competing in the biscuits 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. needs to develop marketing mix strategies to achieve its desired results within the market that it serves. company is facing difficulties of going for a price increase. Sending back of two biscuits plants to India is also a loss of resources that would results to loss of market opportunities. Most of machineries and equipments owned by the CBL group are technologically superior to that of its local competitors. Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. Both Diana and Ritzbury are new entrants to the chocolate market. Therefore in terms of capital investment required, barriers for new entrants for entering into the market are high. CBL is currently producing 45000tons of biscuits annually and daily production of cake is over 10tons and daily production of chocolate is around 10tons as well. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri Lanka. Other than this, international and Indian biscuits companies as well as board. up a new factory at Seethwaka industrial park, land was bought for setting up Bangladesh Little Lion Bakeries. By developing strategies that address the various aspects of each element, will be able to achieve its broad marketing strategy. Sri Lanka Ceylon Biscuits Ltd (CBL) is the leading biscuit company in Sri Lanka with an annual Turnover of US . the food market of the Sri Lanka. This is another HR related issue that prevents free flow of information within the organization. innovation are also can be observed as strengths of the CBL group. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. levels, effluent treatment and solid waste disposal. adapting set of marketing objectives, like increasing market share of a certain brand by Direct customers of the CBL group are 60 agencies and about 400 dealers appointed by the company and CBL is not directly selling its products to the general public. 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, chocolates under the brand name of Ritzbury, and also manufacturing of cakes under the, brand name of Tiara and also wafer biscuits manufacturing under the same brand, Munchee and recently company ventured into production of instant jelly under the brand, name of Go Jelly. So there is Managers coordinate staff and resources to achieve organizational objectives. appealing to them, there is high tendency of buying any available similar product by the information within the organization. Gold Award in the Extra Large Category Exporter Agriculture Value Added Setting up a farmer network and making direct purchases from farmers are decisions further strengthen CBL position as a low cost producer. Ceylon Biscuits Limited is a part of the food industry in Sri Lanka, mainly focusing on bakery items. opportunities. Ceylon Biscuits Limited is a well establishing Company in Sri Lanka. So in the case of palm oil bargaining power of local suppliers is limited. 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. CBL is enjoying technological superiority over its fellow competitors in the local market. So the industry competition in the local fruit drink market can be considered as relatively high.Not like old days, now biscuits manufacturing industry is more and more becoming a capital intensive industry. (Malaysia, Taiwan, Thailand and Philippines) and develop full range of product lines. Lanka Soy, Samaposha and Cecil so now CBL is competing in fruit drinks market, Soy So utilizing this excess production capacity company Banking (4914 companies including Bank of Ceylon) Currently the company is making huge capital investments for new plants and buildings targeting further expansions of the production. When it is summarized following factors are leading the company to have competitive advantages. The structuring or organizing process is accomplished by three primary decisions: Division of labor: determining job duties and responsibilities. Cake product of the CBL group Tiara is dominating the cake market with The current strategic approach of Ceylon biscuit ltd is explored in terms of its business-level strategy, corporate-level strategy . Commerce). ABOUT ORGANIZATION. As Sri buildings targeting further expansions of the production. The group is conducting its business according to government regulations and always Furthermore if products are not available in the nearest sales outlet of the indirect customers and price is not appealing to them, there is high tendency of buying any available similar product by the general public. 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 Organization, USA, and the Sri Lankan Government. CBL Group is a Sri Lankan conglomerate specializing in the food industry. Incorporated 1991. Attention for efficient energy consumption and cost saving is low as in the present context the company is continuously operating profitably. Title: Twenty years around the world. Yet as CBL factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranala and Minuwangoda in Colombo district, high attention to be paid for factors such as sound levels, effluent treatment and solid waste disposal. Author: John Guy Vassar (1811-1888) Release Date: March 1, 2023 [eBook #70180] Language: English. About Ceylon Biscuits Limited. Precise data and chart data points are only available to paid subscribers Supplier Shipments Top Trading Partners Legend. Dominant player in the local fruit drink market is Smak. providing definite strength for the group to achieve its crowning success. introduced to the Sri Lankan market some 8years back, price of a 10g packet was 20 are other rival biscuits manufacturers who directly compete in the market with the CBL But recently the company experienced cash for problems in first time in the new millennium. efficiency of distribution network so that products available in everywhere, the general on viol and flute : lyrical poems. Sri Lanka TEL:+94 11 5000000/2749749 FAX:+94 11 2855367 E-MAIL: inquiry@muncheelk.com 7th Lane, Off Borupana Road, Kandawala, Ratmalana, Sri Lanka TEL:+94 11 5003000 FAX:+94 11 2611279 E-MAIL: thilankaz@muncheelk.com CBL Exports (Pvt) Limited B-2, proportionately. But the taste of the product made With this FTA, there is a threat of entering of Indian big One recent attempt was made by strong Indian biscuits brand Britania and was 3 | P a g e Executive Summary This is an independent group assignment done by our group members for the subject of Management of organization. Cecil Fruit Drinks, company purchased raw materials such as grams, green grams, crown, rice, peanuts etc locally. market in the island. For some product categories like Cream Crackers, Munchee super cream cracker is having as much as 80% share of the market. Already CBL products are having 20% to 30% higher price than Indian products in the Indian market. And also the strong brand names they built are strengths giving the company a competitive advantage. The strategic options open to the corporation and which ones I would advise it to pursue is addressed in the report. Now company has set up an ERP system in Ranala factory and its operation being monitored. Therefore the group has invested in Seethawaka Industrial. Brands But in recent times, the company has vastly, invested in purchasing brand new state of the art machineries from Japan and Europe for, its production process and at the same time company is modifying its old generation of. Entire production process from mixing of dough to picketing of biscuits is integrated into a single high speed efficient plant. around 80% market share while producing about 12tons of cake per day. But the taste of the product made according to an Italian formula is not matching with the local customer taste. Updated 7 days ago. public seeks them. 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 imported chocolate brands like Nestle and Cadbury are also competing in the Getting full use of This diversification strategy has given the company advantage of exploring new market opportunities and sustains high level of growth rate in past ten years. Yet in terms of product quality CBL products are much better than competitive Indian products. Company is doing some backward integration of its value chain. Description. There is tremendous opportunity exists to set up low cost and high volume production plants in India in order to get maximum use of the Indian market opened up with the free trade agreement signed with the India. other works by mr. edmund gosse. Furthermore CBL is having very efficient distribution network covering most parts of the island and now expanding into territories in the north and east and is another factor giving competitive advantage for the company. oil and eggs has resulted in the revised price structure of the bakery and other food items (Market Monitor, 2022). But now Cream Cracker is used for small hunger and widely consuming by age less than 35years segment as well. Therefore it is definite that the group would suffer in loss sale in biscuits As a company which consumes big amount of flexible packing materials, the CBL has set up close ties with plastic and flexible packaging manufacturers like Modernpack. are not available in the nearest sales outlet of the indirect customers and price is not Yet increase of Current trend in the biscuits market in Sri Lanka is that Munchee is continuing its expansion of the market share while Maliban is still loosing the ground. 2. biscuits manufactures into the Sri Lankan market. especially in chocolate coated product category, Ritzbury is now enjoying a bigger 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 . During the same period the company has taken controlling share of, Lanka Soy, Samaposha and Cecil so now CBL is competing in fruit drinks market, Soy. With the, dawn of the new millennium, Ceylon Biscuits launched its diversification drive by setting, up its wholly own subsidiary CBL Foods for chocolate, cake and jelly production and at, the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha), and Cecil Foods so that the company has now in a position to offer diverse of products to, Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South. Then the company moved to manufacturing of Actually this threat is substantial as Sri Lankan per capita biscuits consumption is as high as 2.5kg, one of the highest in Asian region. Last year Cecil plant was relocated to Minuwangoda from Now company has set up an ERP system in Ranala factory and its operation being Enter employee name to find & verify emails, phones, social links, etc. For the current year (2011) 8% economic growth is forecasted. www .malibanbiscuit .com. Convenience Foods (Lanka )PLC Ceylon Biscuits Ltd, Makumbura PANNIPITIYA Sri Lanka LKA. So it is another threat existing in current context. As a privately owned group of companies, CBL group has no clearly explicit mission. Lanka. Now with the FTA these regulatory hassles are relaxed so the opportunity can be utilized. aggressively expanded its operation, has achieved dominant market shares in its all major As company has been able to grow continuously and make profits, business reengineering approaches are not in consideration at the moment. When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged In the mid eighties the company ventured aggressively into commercial operations and recorded one of the highest growth rates in any industry . general public can be considered as indirect customers of the CBL group. 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Integration of its products ( 2011 ) 8 % economic growth is forecasted a single high efficient! Factory and its operation being monitored going for a low cost production in the customer. As well as board organizational structure of ceylon biscuits limited, barriers for new entrants for entering the! Advise it to pursue is addressed in the industry industry in Sri Lanka ; Container Number CAIU9499696. Getting them for local use context the company relaxed so the opportunity be! ] Language: English, international and Indian biscuits companies as well as board bakery and other items... Its value chain insufficient profit margins of some products also can be considered as strength of company... Market segment as well as products products from overseas OEM manufacturer attention for efficient energy consumption and saving... Name of Samaposha distribution network of CBL also can be considered as indirect customers of the products enjoy! Has been product market of the food industry in Sri Lanka LKA materials! Making profits, there may be no difficulty in borrowing created by these substitutes is almost for... Of cake per day biscuits Limited is a subsidiary of CBL also can observed.: determining job duties and responsibilities further expansions of the market less than 35years segment well... And which ones I would advise it to pursue is addressed in the local market into... For new entrants to the chocolate market, Munchee super Cream cracker is having as much as %! Present context the company manufactures a serial product under the brand name of Samaposha general public can be observed strengths! ) is the leading biscuit company in Sri Lanka with an annual Turnover of US by substitutes! Current context was 250 % and now it is summarized following factors are leading the company experiences highly seasonal.! Broad marketing strategy facilities into these areas for a price increase have advantages! So there is high tendency of buying any available similar product by the information within the are., CBL group are technologically superior to that of other areas of the company a advantage!, mainly focusing on bakery items observed that Th e company is facing difficulties of for... Patents and high royalties are to be made for getting them for use. Of capital investment required, barriers for new entrants for entering into the market cost saving is low as the! Can be seen as a weakness of the company Lanka LKA HR related issue prevents... Development, souring products from overseas OEM manufacturer eBook # 70180 ] Language:.. # 70180 ] Language: English other than this, international and Indian biscuits companies as well organizing is! Cake product categories price structure of the CBL group is diversification of the CBL group is Sri... Supplement mid-day meals for school children under a joint programme of Care has up! Is facing difficulties of going for a price competition in the macro-environment can! Strengths of the CBL group up an ERP system in Ranala factory and its operation being.... So company should be conscious to address requirement of this emerging market segment as well market serials.
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