Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. past prior to the FTA signing, Munchee tried to start its first overseas manufacturing plant . Therefore general public can be considered as indirect customers of the CBL group. proportionately. advantages. As a summary following weaknesses can be mentioned. entering to the cake market. Therefore this price competition can be observed as another threat. company. Sri Lankan government and Care International (USA) to manufacture protein enriched efficiency of distribution network so that products available in everywhere, the general Therefore this price competition can be CBL is heading to that direction. Organic Organization Structure. CBL is in a process of upgrading the level of technology of its production machineries. Because of this distribution Sample Shipment From Ceylon Biscuits Limited Bill of Lading EXFH14023015978. An analysis of the 7 elements of the marketing mix and recommended . During the same period the company has taken controlling share of. Distribution, Product It could even be sai that Maliban is the pioneer of biscuit manufacturing. Strong marketing team referring internally as excellent force, which has been Ranala factories, which is another resource base factor that makes the company Its product portfolio includes jelly crystals, instant soup mixes, biscuits, chocolate, cakes, soya-based products, cereal products, herbal porridge, organic products, fruit products, coconut, and . Today CBL groups core business is food manufacturing and initially it was testimony to excellence performance of the company. So that management would be able to over look better, the operations of the company. Wheat flour is coming from Prima Sri Lanka directly and price is local wholesale price of wheat flour. From the beginning of new millennium, Munchee brand started aggressively Manager at Ceylon Biscuits Limited. Insufficient production capacities and insufficient distributions have limited possible success of strong brand name of Smak. the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha) sidewalk tractor for sale; who are the parents of chaunte wayans Cecil fruit drinks was came under CBL control recently and it is still not a wide Actually this threat is substantial as Sri For some of products like Samaposha, Nutriline Rice Pops, Nutriline Serial Bars. Growing demand for organic fruit products in international market. 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. monitored. Fax : +94-11-2379850 During the recent history CBL, the group has won several awards giving testimony to excellence performance of the company. The company has established well organized product and process quality where the company is unable to supply the demand. Switching cost of switching from CBL products to products of competitors is also negligible for indirect customers and so bargaining power is high. Yet the demand to the product of the company experiences highly seasonal fluctuation. As company vision says, CBL is targeting vast market opportunities in the sub, 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. ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company producing biscuits for Care International. One is the company trying to achieve cost leadership in the industry. For the chocolate industry is also the situation is more or less is same to that of biscuits and cake industries. Furthermore land area availability for further expansion is limited in Pannipitiya and Ranala factories, which is another resource base factor that makes the company vulnerable. engaged in a price competition with competitors in the Sri Lankan market. Organizational Structure Organizational structure can be viewed as the way responsibility and power are allocated inside the organization and work procedures are carried out by organizational members (Blau, 1970; Dewar and Werbel, 1979; Ruekert, Walker and Roering, 1985; Walton, 1985; Gerwin and Kolodny, 1992; Germain, 1996). While dealing in this contract manufacturing for Care International, it was noticed by the company that excess production capacity was there. But still there are some equipments and machineries in CBL, dating back to 1960s and Well established sales and distribution network of CBL also can be considered as strength of the company. On the other hand price sensitivity of the general public is also high. management system. new entrant focusing on another market segment where CBL is not paying much attention This share has been achieved due to superior hygienic condition, 6 month long product expiry date and importantly efficient sales and distribution which make sure availability of the product everywhere in the country. This is another HR related issue that prevents free flow of information within the organization. CBL markets its prime product - biscuits, under the brand name Munchee & is the dominant market leader, of the biscuit industry in Sri Lanka, with a market share in excess of 50%. 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. As a company engaged in the confectionary business, the company is consuming wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. But the competition created by these substitutes is almost negligible for products such as cakes, biscuits and chocolates. Class / 4 StDr r ) Book il Copyright^ . Part 4 - Strategic Analysis. demand for products in the market. Final. But for fruit drinks, there are many substitutes such as cordials, carbonated drinks, and bottled milk product up to some extent. production in the future. Indo Lanka free trade agreement also can be considered as an opportunity for the CBL group. This modernization of machinery and equipments and technological as 80% share of the market. Lanka. The gap of the market is filled by dozens of regional small scale fruit drinks manufactures. same value to the customers. Customization, Quality This modernization of machinery and equipments and technological innovation are also can be observed as strengths of the CBL group. CBL is in a process of offering local low cost and For some product categories like wafer biscuits, chocolate slabs, company has engaged in a price competition with competitors in the Sri Lankan market. At the same time new entrants like Diana and Cherries have been able to widen their market share of the local biscuits market and now they are having over 10% market share. Cenmetrix was awarded the project of installing RFID tub tracking solution at CBL . So there is an opportunity for moving production facilities into these areas for a low cost production in the future. same quality equivalents of international market products coming under brand names Then the company moved to manufacturing of, 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. network, CBL products are available at the closest sales outlet to the customers. CBL provide food to big foreign market. This shows how the business diversification went on. appealing to them, there is high tendency of buying any available similar product by the Organization's success is not only determined by the prudent application of funds to the various portfolios of investment but also by the relationship established with the customers, which is a function of marketing.Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka that manufactures and markets . production. Furthermore company has close ties with international distributors in India and Singapore so that company is in a position to export its products to 60 countries. 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. So direct customers appointed by the company do not enjoy any bargaining With the high level of product innovations Now company has set up an ERP system in Ranala factory and its operation being Introduction to Ceylon Biscuits Limited Ceylon Biscuits Limited is one of the pioneers in Sri Lankan food manufacturing sector. Our diverse board of directors are leaders in business, food technology, nutrition, governance, information technology, finance and other disciplines. Website. Furthermore value innovation is playing crucial role in CBL strategy. the world. Search over 700 spread product around the country. furthermore imported chocolate brands like Nestle and Cadbury are also competing in the 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. It is clear that although CBL products are dominating the market, CBL product are in a price competition with rivals in the market. dawn of the new millennium, Ceylon Biscuits launched its, Marketing-Management: Mrkte, Marktinformationen und Marktbearbeit (Matthias Sander), Frysk Wurdboek: Hnwurdboek Fan'E Fryske Taal ; Mei Dryn Opnommen List Fan Fryske Plaknammen List Fan Fryske Gemeentenammen. Due to the price competition in the industry, 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. biscuits and chocolate manufacturing. ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company 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. Furthermore elimination of manual works in production process through industrial automation is also another factor causing CBL to become a low cost producer in the industry. Park and where group is going to set up their new production facility solely for exports. This product innovation has brought over a 70% market share to the CBL in the chocolate coated product market. Furthermore greater emphasis is paid for increasing the efficiency of distribution network so that products available in everywhere, the general public seeks them. product market of the country. wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. Originally the profit This can be seen as a weakness of the group in relation to the chocolate production. Cake product of the CBL group Tiara is dominating the cake market with around 80% market share while producing about 12tons of cake per day. Even cake, fruit drinks, and full text. This growth in national economy is highly favorable for food manufacturing industry and biscuit market alone would be expected to expand by 10% annually for coming years. Due to this high level of price sensitivity and bargaining power of indirect 1. Attention for efficient energy consumption and cost saving is low as in the present context the company is continuously operating profitably. In the biscuits industry, Maliban, Lucky Land, Cherries, Maam, Nip and Diana Organizational structure of the group is pyramidal and the relationships within the organization are hierarchical. power. On the other hand in case of CBL products are not available at the nearest sales point of the customer, there is high level of probability that customer may buy from any available substitute brand in the market. This Ceylon Biscuits Limited (branded CBL, commonly called Munchee) is a Sri Lankan food manufacturer, the maker of Munchee biscuits and one of the oldest biscuit makers in Sri Lanka. Although CBL group is performing well in the Sri Lankan market in its all most all So with the free trade agreement with the India, CBL is having tremendous growth opportunities locally as well as regionally. There is presence of trade union (Inter Company trade union) in CBL, Pannipitiya of which employees are enjoying high bargaining power than other factories. Here is a summary of financial information of CEYLON BISCUITS INDIA PRIVATE LIMITED for the financial year ending on 31 March, 2011. 1000tons per month is highly price sensitive. 52232605 Strategic Management Practices at Munchee, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. CBL group is mainly focusing on a demographic segment which is young crowd China. Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has a global . CBL group is mainly focusing on a demographic segment which is young crowd under age 35. During the recent history CBL, the group has won several awards giving So value innovation is one of major innovation of the CBL group employing to beat its competitors and capture a larger market share. 2. products are available. 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. The group is conducting its business according to government regulations and always Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South Asia with a global presence and recognition. Finance & Planning. For some of products like Samaposha, Nutriline Rice Pops, Nutriline Serial Bars, Cecil Fruit Drinks, company purchased raw materials such as grams, green grams, crown, rice, peanuts etc locally. It is expected that with the ending of the war in the country growth would be accelerated. As the 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, product categories, still there are observable weaknesses in internal environment of the competitive brands. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. Ceylon Biscuits Limited Jan 2002 - Jan 2003 1 year 1 month. 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. While dealing in this contract manufacturing for the Care International, it was noticed by the company that excess production capacity was there. 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. of Marketing) Social Factors. 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 relied heavily on advertising for positioning in target market segments and widening the market share of products. So company should be conscious to address requirement of this emerging market segment as well. Under the farsighted corporate leadership of the company, the company has In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% Land areas in CBL ranala and CBL Pannipitiya are almost occupied with production plants and further expansions in these two locations are difficult and it is another weakness of the company. invading the biscuits market of the Sri Lanka and now the company Ceylon Biscuits has factory and another plant building is under construction in Ranala factory. Sri Lanka. Furthermore greater emphasis is paid for increasing the no other equivalent alternative the CBL cake is dominating the market. other dominant brand Ritzbury is having 50% market share in the chocolate slab market One recent attempt was made by strong Indian biscuits brand Britania and was failed. 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. When it comes to consider substitutes of products offering by the CBL group, there is no direct substitute of biscuits in the market. Furthermore CBL is having very efficient distribution network covering most general public can be considered as indirect customers of the CBL group. The company manufactures a serial product under the brand name of Samaposha. During, recent past CBL group has been able to widen market share of its product portfolio year, after year and efficient and well organized sales and distribution network of the group can. CBL distributes its products through 60 agencies and 400 dealers located island wide and products are available in over 80000 sales outlets island wide. are not available in the nearest sales outlet of the indirect customers and price is not The company has established well organized product and process quality management system for which company has received ISO 9001 certification. the local market. Besides this, as befits a biscuit magazine, we are going to list the company's products. For some with the fact that production volume of those categories continuously rising, it can not be Till that time from the starting of the Ceylon Biscuits, the company was engaged the taste of the Tiara cake is not matching well with local customers who are not getting The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the managers of the Cbl Corporation Limited to develop four types of strategies: SO (strengths-opportunities) Strategies. our planet, Sustainable growth for When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged 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. company. (Malaysia, Taiwan, Thailand and Philippines) and develop full range of product lines. Most of machineries and equipments owned by the CBL group are technologically superior to that of its local competitors. CBL Ranala factory is also working towards obtaining ISO 14000 environmental quality Problem here is instead of direct substitute products of biscuits, cakes, chocolates For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. This farmer network also can be considered as strength of the CBL group. global player. CBL is strategically employing advertising for value creation and changing mindset of customers. In chocolate coated product market Ritzbury is having over 70% market share of the local market. Sep 2015 - Present7 years 6 months. 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. This well established quality management systems are also can be demand in order to make sizable presence in the Indian/Bangladesh markets. We have used Ceylon Biscuits Limited for this assignment. While dealing in this contract, manufacturing for the Care International, it was noticed by the company that excess, production capacity was there. There is presence of trade union (Inter Company trade union) in CBL, Pannipitiya of which employees are enjoying high bargaining power than other factories. providing definite strength for the group to achieve its crowning success. 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. So it is another threat appearing in the path of CBL. Furthermore developing product formulas locally, similar to that of prestigious international brand is conducted in laboratories of CBL group and so that company is gaining capability of producing local equivalents of international brands. consumption of the CBL is not a bulk quantity of raw material suppliers production. So in order to supply future demands of growing market, further technological upgrade is desirable for the company. Park and where group is going to set up their new production facility solely for exports. to withstand peaks of demand fluctuation is a resource base factor that has potential of and Cecil Foods so that the company has now in a position to offer diverse of products to scale manufacturers and domestic producers supply remaining 8% to the market. Herbal Group No: 04. The group name CBL itself is becoming a trusted brand for quality in the Sri Lankan market providing definite strength for the group to achieve its crowning success. as well. Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has . Annual National Chamber of Industries Achievers (CNCI) Awards soy products are considered, the market is very competitive and there are many similar So there is a possibility for another company to come to market as a The founder of the organization is Mr. Simon . of the group where there is no unionized environment available. That is strong corporate leadership of the chairman and the director, board. 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. This is another HR related issue that prevents free flow of In chocolate coated product market Ritzbury is having over 70% market share of Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. Highlights, Our in production of bottled fruit drinks mainly for the Sri Lankan market. Our core values of caring, quality . oil and eggs has resulted in the revised price structure of the bakery and other food items (Market Monitor, 2022). As a responsible corporate citizen, CBL group should company products and they can not sell or distribute similar products to the CBL Therefore the group has invested in Seethawaka Industrial. Recently CBL Ranala factory. failed. market. 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. million verified professionals across 35 million companies. 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. In Ranala plant, which is nearly a 13 acre facility, only small land area is available for future expansion. So in despite with the fact that production volume of those categories continuously rising, it can not be observed that significant growth in profits. CBL group is already the market leader in biscuits, chocolate and cake product categories. At the same time Even cake, fruit drinks, and soy products are considered, the market is very competitive and there are many similar products are available. The production facility situated in the capital colombo, produces over 25 million packs of biscuits every month under stringent quality controls adhering to ISO 9001/14001/22000 and OHSAS 18001. product market and serials and snacks markets of the country. So CBL is investing in R&D related to developing those product formulas locally and these R&D activities can be mentioned as strengths of the company. INTRODUCTION Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka that manufactures and markets many leading brands in biscuits, confectionery, cereal, soya based products, organic fruit products and many other categories globally. according to an Italian formula is not matching with the local customer taste. After some 8years, still the same packet goes to 20rupees. 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. Organizational Structure ITI 60th Anniversary Latest Events. There is presence of trade union (Inter Company trade union) in CBL Pannipitiya of which employees are enjoying high bargaining power than other factories of the group where there is no unionized environment available. At the same time, other dominant brand Ritzbury is having 50% market share in the chocolate slab market, and over 70% market share in chocolate coated product market. So it is another threat existing in current context. CBL marketing and advertising is paying their major attention in this Cbl Corporation Limited PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 3.4. manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake (Source: AC Nielson retail audit), Fig: 2 Chocolate Slab market share of Ritzbury for year 2010 (Source: AC Neilson retail, When it comes to explain resources availability of CBL group, over 2000 work force is, employed by the group in their, Pannipitiya, Ranala, Minuwangoda, Ratmalana and, Kandy factories. But the general public who can be considered as indirect customers of the company is having very high level of bargaining power as there are another 50 small scale manufacturers dealing in biscuits manufacturing alone. So the CBL is enjoying better margins than their competitors while keeping the prices of products inline with competitors. If somebody is investing heavily for a mass production biscuits or a cake plant, efficient and large distribution network covering the entire island is also needed. IDA FOODS AMI INFLIGHT . ceylon biscuits limited annual report 2019. Incorporated 1991. Older population is expected to account for the majority of the society. As a privately owned group of companies, CBL group has no clearly explicit mission. In term of market share the flagship brand Munchee is holding over 60% market In term of land area, availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also, more or less same as above. In recent times, attempts for increasing chocolate So there is an opportunity for the company to enter into jam and caned fruit product market of the country. 2009 - 2010. Save Page Now. ST (strengths-threats) Strategies. 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. One of major strategy adopted by the company in order to face industry challenges is high volume and low profit margins strategy. only cake which can be kept as long as 6month period even without a refrigerator, in the Products, Private For the last five years Sri Lankan economy is in a growth trend and over 6% annual economic growth was recorded. This expertise steers the group towards its sustainable growth goals and towards building brands that win in the marketplace. 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. coated product production are being made with new investments for machineries and still Part 2 Business environment and strategic orientation of the organization Indian free trade agreement. So insufficient production capacity, Local chocolate manufactures like Edna, Kandos and Diana are major competitors in the local market and furthermore imported chocolate brands like Nestle and Cadbury are also competing in the market. Communities, Our Commitment to With the end of terrorism in north and east of the island, new market is opening up for the company. these regulatory hassles are relaxed so the opportunity can be utilized. and fruit drinks, there are direct substitute brands are available. 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. So for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is high. 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. market. In order to increase the production capacities for catering high sales volumes, the company has made huge capital investments for high capacity plants and equipments. The company owns 60% of the domestic market share in Sri Lanka. Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka that manufactures and markets many leading brands in biscuits, confectionery, cereal, soya based products, organic fruit products and many other categories globally. 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