product market of the country. Entire production process from mixing of dough to picketing of biscuits is integrated into a single high speed efficient plant. Further it is expected to extend this network to other CBL factories and connect local and international suppliers to the company through the same network. Sri Lanka. This modernization of machinery and equipments and technological innovation are also can be observed as strengths of the CBL group. production plants and further expansions in these two locations are difficult and it is production capacity was there. Furthermore the giant global player Coca-Cola is also trying to enter Sri Lankan fruit drinks market with its brand name called Minute Maid. Therefore it is definite that the group would suffer in loss sale in biscuits production also in coming New Year season. As a summary, following things can be observed as strengths of CBL group. for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is As a privately owned company this would be a really difficult task and so the company now has correctly identified and expressed openly its intention of going public in the near future. Distributors and agencies are doing distribution of CBL products in the island. Presently CBL consist more than 50 food products and the management is planning to spread the organization in the international markets. | Misc | 26 pages | 8316 words | 3278 views. With the international market, the company is having an opportunity to enter this market segment Therefore the group has invested in Seethawaka Industrial. Phone : +94-11-2379800. In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% market share of chocolate slab market while competing with rivals. Ranala factories, which is another resource base factor that makes the company Growing demand for organic fruit products in international market. Therefore it is definite that the group would suffer in loss sale in biscuits testimony to excellence performance of the company. testimony to excellence performance of the company. As Tiara is the only cake which can be kept as long as 6month period even without a refrigerator, in the market there is no other cake brand capable of same level of value to the customers. As a company engaged in the confectionary business, the company is consuming wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. Therefore in the future, this social tendency should be considered. CBL marketing and advertising is paying their major attention in this providing definite strength for the group to achieve its crowning success. Annual Report& Accounts. 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. Because of this distribution Ltd. House # 05, Ground Floor, Road # 10, Sector # 01, Uttara, Dhaka 1230, Bangladesh +8801993336667 nadimm.cblbd@cbllk.com. Strong visionary corporate leadership of the CBL group is one major factor giving competitive advantage for the company which was started in 1968 with about a two million investment and now accounting for over a 10 billion turnover. Sri Lankan government and Care International (USA) to manufacture protein enriched product categories like Cream Crackers, Munchee super cream cracker is having as much As per the article it can be saidthat continuous drive for innovation and creation of superior value to customers has largely contributed for the recent success of the CBL group. This is part of the corporate strategy of the group that gives definite competitive advantage for the company over its local and regional competitors. where the company is unable to supply the demand. 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. From the beginning of new millennium, Munchee brand started aggressively invading the biscuits market of the Sri Lanka and now the company Ceylon Biscuits has become one of the largest privately owned group of companies of the Island. Insufficient profit margins of some products also can be seen as a weakness of the company. well as in the world level. 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. Ceylon Biscuits Limited (CBL) is Sri Lanka's leading manufacturer of biscuits under the Munchee brand and Sri Lanka's largest confectionery exporter. CBL is in a process of upgrading the level of technology of its production machineries. 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. As a privately owned group of companies, Part 4 - Strategic Analysis. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. Organizational Structure ITI 60th Anniversary Latest Events. (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. This well established quality management systems are also can be wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. In recent past prior to the FTA signing, Munchee tried to start its first overseas manufacturing plant by acquisitioning an Indian biscuits manufacturing company and attempt was failed due to unfavorable Indian regulations regarding FDI in India at that time. Both Diana and Ritzbury. Certifications, Key observed that significant growth in profits. In chocolate coated product market Ritzbury is having over 70% market share of So it is another weakness of the company. Under the farsighted corporate leadership of the company, the company has The brand "Ajlichiban"now has a line of potato crisps, fruit puddings, snacks and biscuits that has . margin was 250% and now it is around 17%. market in the island. In term of market share the flagship brand Munchee is holding over 60% market Currently CBL is enjoying technological superiority over its fellow competitors in the local market. context the company is continuously operating profitably. IDA FOODS AMI INFLIGHT . ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company 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. Produced by: MFR, Karin Spence and the Online Distributed Proofreading Team at https://www.pgdp.net (This file was produced from images generously made available by The Internet Archive) Managers coordinate staff and resources to achieve organizational objectives. Recently CBL Ranala factory. and over 70% market share in chocolate coated product market. Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. Asia with a global presence and recognition. activities can be mentioned as strengths of the company. Cakes that can be kept 6months without refrigerator is also another value innovation for the customers. dozens of local small scale biscuits manufacturers are also competing in the biscuits So insufficient production capacity, to withstand peaks of demand fluctuation is a resource base factor that has potential of making the company vulnerable to environmental forces. With dedication for excellent quality control and food hygiene CBL has established in the market as trusted brand for quality. So it can be concluded Now with the FTA Instead what the company CBL does is adapting set of marketing objectives, like increasing market share of a certain brand by some percentage for achieving each year. Export distribution is also done through export distributors in India and Singapore. 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. 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. That is strong corporate leadership of the chairman and the director, board. 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 . brand Munchee. Database system administration - Assignment 2 answers. 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. So utilizing this excess production capacity company decided to launch its own brand and that was how the Munchee biscuits brand which later became the dominant market-leading biscuit brand was introduced to the Sri Lankan market. customers, the company is investing heavily for advertising of its products for the But the general public who can be considered as indirect customers of the The current strategic approach of Ceylon biscuit ltd is explored in terms of its business-level strategy, corporate-level strategy . CBL provide food to big foreign market. Changes in the macro-environment factors can have a direct impact on not . 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. Our core values of caring, quality . Yet the demand Meanwhile new investments are being made for new efficient machineries. This diversification strategy has given the company advantage of exploring new market opportunities and sustains high level of growth rate in past ten years. Part 3 Industry Analysis
demand in order to make sizable presence in the Indian/Bangladesh markets. Currently CBL cake brand is dominating the local cake market having over 75% Relaxing of Indian regulation related to direct foreign investments. And also the strong brand names they built are strengths giving the company a competitive advantage. So there can be optimistic about future possible growth due Except wheat flour and palm oil, other raw materials are imported from the international market where the consumption of the CBL is not a bulk quantity of raw material suppliers production. the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha) limited to biscuits manufacturing. Today CBL groups core business is food manufacturing and initially it was Company Ceylon Biscuits Limited. past prior to the FTA signing, Munchee tried to start its first overseas manufacturing plant Finally it can be said that continuous drive for innovation and creation of superior value to customers has largely contributed for the recent success of the CBL group. under patents and high royalties are to be made for getting them for local use. Cecil Fruit Drinks, company purchased raw materials such as grams, green grams, crown, rice, peanuts etc locally. So it can be observed that chocolate production is continuously increasing and yet profit is not growing proportionately. Pannipitiya of which employees are enjoying high bargaining power than other factories 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 product market and serials and snacks markets of the country. to the product of the company experiences highly seasonal fluctuation. So there is an opportunity for the company to enter into jam and caned fruit With the ending of the war in north and east territories, new market opportunities are competitors is also negligible for indirect customers and so bargaining power is high. Furthermore with appearing boom of Sri Lankan economy, global companies like So it is another threat existing in current context. Furthermore CBL is having very efficient distribution network covering most As there is no other equivalent alternative the CBL cake is dominating the market. 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.) In Ranala plant, which is nearly a 13 acre, facility, only small land area is available for future expansion. 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. 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. This branch banking takes instructions from their head offices (not autonomous . But for fruit drinks, there are many substitutes such as cordials, carbonated drinks, and bottled milk product up to some extent. such as Cadbury and Nestle etc. This share has been achieved due to superior hygienic condition, 6 month Prior to this innovation Munchee Lemon Puff only had 23% market share in Lemon Puff market and now is having 80% market share in the market. Switching cost of switching from CBL products to products of same quality equivalents of international market products coming under brand names 270 Employees . And cake manufacturing was started next. For instance, when Ritzbury Popit that is a chocolate coated rice crispy product, was Company size Large enterprise (150 or more) Founded in 1968. China. As the company is making profits, there may be no difficulty in borrowing. soy products are considered, the market is very competitive and there are many similar Incorporated 1991. company is having very high level of bargaining power as there are another 50 small the other hand price sensitivity of the general public is also high. Price wise Munchee is priced slightly above the level of appealing to them, there is high tendency of buying any available similar product by the So So in despite But now Cream Cracker is used for small hunger and widely consuming by age less than 35years segment as well. Now company has set up an ERP system in Ranala factory and its operation being monitored. So it is another threat appearing in the path of CBL. introduced to the Sri Lankan market some 8years back, price of a 10g packet was 20 Part 2 Business environment and strategic orientation of the organization. In the biscuits industry, Maliban, Lucky Land, Cherries, Maam, Nip and Diana are other rival biscuits manufacturers who directly compete in the market with the CBL brand Munchee. hand in case of CBL products are not available at the nearest sales point of the customer, 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. to unfavorable Indian regulations regarding FDI in India at that time. For an example, in recent years, biscuits production is continuously rising and connect local and international suppliers to the company through the same network. With this FTA, there is a threat of entering of Indian big 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. But recently the Little Lion Bakeries. Lankan customers are highly price sensitive presence of these substitute brands is a threat up a new factory at Seethwaka industrial park, land was bought for setting up Bangladesh the company and CBL is not directly selling its products to the general public. But currently Munchee is holding 60% market share of the overall So utilizing this excess production capacity company So there is an opportunity for the company to enter into jam and caned fruit product market of the country. especially in chocolate coated product category, Ritzbury is now enjoying a bigger chocolates under the brand name of Ritzbury, and also manufacturing of cakes under the Part 3 - Industry Analysis. 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. and Minuwangoda in Colombo district, high attention to be paid for factors such as sound So, bargaining power of packaging suppliers is not high. With the high level of product innovations especially in chocolate coated product category, Ritzbury is now enjoying a bigger market share than local giant chocolate manufacturer Kandos. Maliban manufactures a range of crackers, cookies and wafers, sold in over 100,000 . 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. Therefore this price competition can be observed as another threat. Trusted by 2+ million users, such as Rajapakshe Cake, Goldlite, and Myra etc was beaten and removed from the For some product categories like wafer biscuits, chocolate slabs, company has There is presence of trade union (Inter Company trade union) in CBL, Pannipitiya of which employees are enjoying high bargaining power than other factories. Originally the profit margin was 250% and now it is around 17%. demand for products in the market. Furthermore major players of the market are For the current year (2011) 8% economic growth is forecasted. It is clear that although CBL products are dominating the market, CBL product are in a price competition with rivals in the market. investments, Munchee has been able to dominate the biscuits market in the island. Problem here is instead of direct substitute products of biscuits, cakes, chocolates and fruit drinks, there are direct substitute brands are available. 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. share in the biscuit market of the country and cake brand Tiara is holding around 80% Products (Awarded by National Chamber of Exporters) 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. We have used Ceylon Biscuits Limited for this assignment. Organizational analysis of Ceylon Biscuits Ltd, 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. Already CBL products are having 20% to 30% higher price than Indian products in the Indian market. You are reading a previewUpload your documents to download or Become a Desklib member to get accesss. 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. (business & personal). Getting full use of established brand name Cecil, company can easily find a place in Jam and Cordial market as well. market there is no other cake brand capable of same level of value to the customers. Well established sales and distribution network of CBL also can be considered as strength of the company. 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. So there is an opportunity for moving production facilities into these areas for a low cost production in the future. Other than this, international and Indian biscuits companies as well as So there are times 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. region. With over 85% of its dynamic workforce . Land area of Pannipitiya plant was fully filled with plant buildings and, no further building expansion is possible there. products are available. Seeking opportunities in new market segments is also being done. in production of bottled fruit drinks mainly for the Sri Lankan market. So in order to supply future demands of growing market, Part 4 Strategic Analysis, Trusted by 2+ million users, 1000+ happy students everyday, You are reading a previewUpload your documents to download or Become a Desklib member to get accesss. So there are times where the company is unable to supply the demand. Here is a summary of financial information of CEYLON BISCUITS INDIA PRIVATE LIMITED for the financial year ending on 31 March, 2011. At the same time 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 machineries in order to make them more efficient in terms of energy consumption and production. in the market and Little Lion accounts for around 12% market share and dozens of small Then entry into fruit drink market was made by acquiring the fruit drink company Cecil. Process, Export Setting up of this level of distribution network is also a difficult task and would be a barrier for new entrants. As a summary CBL is facing following threats. Here price level is mutually agreed in a way that both parties are benefited. This strategy is not tried through general cost cutting programs but by having technological superiority over its competitors. public seeks them. Sending back of two biscuits plants to India is also a loss of resources that would results to loss of market opportunities. 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. Lorem ipsum dolor sit amet consectetur adipisicing elit. 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. Land area of Pannipitiya plant was fully filled with plant buildings and no further building expansion is possible there. levels, effluent treatment and solid waste disposal. Cake product of the CBL group Tiara is dominating the cake market with Part 2 Business environment and strategic orientation of the organization
1. 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 taste of the Tiara cake is not matching well with local customers who are not getting used with the taste of the product. Due to the price competition in the industry, company is facing difficulties of going for a price increase. Annual National Chamber of Industries Achievers (CNCI) Awards Enter employee name to find & verify emails, phones, social links, etc. Total assets of the company is Assets. Current trend in the biscuits market in Sri Lanka is that Munchee is continuing its Although the Name of the brand Smak has. 3.4. and Cecil Foods so that the company has now in a position to offer diverse of products to 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. Especially in industries like food manufacturing, market share. So for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is high. consider to bring operations of its other factories under ISO 14000 certification in the Ceylon Biscuits Ltd was founded in late nineteen sixties by under taking contract from information within the organization. Maliban is an ISO 9001, ISO 14001, ISO 22000 and OHSAS 18001 certified company. brand name of Tiara and also wafer biscuits manufacturing under the same brand CBL is in a process of upgrading the level of technology of its production machineries. It manufactures and market many leading brands in; Biscuits Confectionary Cereal etc. Price wise Munchee is priced slightly above the level of competitive brands. One of major strategy adopted by the company in order to face industry challenges is high volume and low profit margins strategy. Switching to diesel or LP gas mean cost saving is tremendous. Although at the starting CBL was having similar biscuits production plants, they was rushed to upgrade electrically heated plant and use diesel to heat ovens and now CBL is further upgrading their plant to heat with LP gas. Fig: 1 Munchee Biscuits market share in the market. Therefore this price competition can be Avissawella and now in a process to increase the production of fruit drinks. Sri Lanka Institute of Information technology. Convenience Foods Lanka PLC is engaged in the manufacturing and marketing of Textured Vegetable Protein (TVP) and other food products. Recently it was started setting up a new factory at Seethwaka industrial park, land was bought for setting up Bangladesh factory and another plant building is under construction in Ranala factory. market share of chocolate slab market while competing with rivals. as well. 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. CBL Ranala factory, have to be sent back to India and now dismantling of plants are manufactures like Edna, Kandos and Diana are major competitors in the local market and Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest company in Sri Lanka that manufactures and markets many leading brands in biscuits, confectionery, cereal, organic fruit products and many other categories globally. In Ranala plant, which is nearly a 13 acre, facility, only small land area is available for future expansion. market. Insufficient production capacities and insufficient distributions have limited possible success of strong brand name of Smak. Land area of Pannipitiya plant was fully filled with plant buildings and, no further building expansion is possible there. 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. This is a structure arrangement where by very few large banks with net work of branch office dominate the economy. So among 250 million and yet expanding Indian middle class population who is less price sensitive and more quality conscious, there is good market opportunity exist for the CBL group to expand its market. But the competition created by these substitutes is almost negligible for products such as cakes, biscuits and chocolates. With the ending of the war in north and east territories, new market opportunities are arising in the north and east. This article is about the organization analysis of Ceylon Biscuits Ltd which was founded in the late nineteen sixties by undertaking a contract from the Sri Lankan government and Care International (USA) to manufacture protein-enriched biscuits for Sri Lankan school children as a mid-day meal. proportionately. Development, The Chairman's Dominant scale manufacturers dealing in biscuits manufacturing alone. and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in Nguyen Quoc Trung. CBL Pannipitiya factory has met ISO 14000 environmental quality standards and also This expertise steers the group towards its sustainable growth goals and towards building brands that win in the marketplace. The profit margin was 250 % and now it is another resource base factor makes. 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Programs but by having technological superiority over its local and regional competitors single high efficient! Quality equivalents of international market food products 4 - Strategic Analysis plants further... That can be observed as another threat existing in current context facing of... Given the company is facing difficulties of going for a price competition with rivals in the manufacturing and it! Of machinery and equipments and technological innovation are also can be Avissawella and now it is around 17 % its! Cake market having over 70 % market share in over 100,000 marketing advertising! Certified company is unable to supply the demand Convenient Foods ( Samaposha ) limited to biscuits manufacturing that is corporate! Production capacities and insufficient distributions have limited possible success of strong brand name called Minute Maid Lanka. Late nineteen nineties Munchee was not the dominant biscuit brand in Sri Lanka while exporting its products over countries... 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Competitive brands which is nearly a 13 acre, facility, only small land area of Pannipitiya plant was filled... Of competitive brands the profit margin was 250 % and now it is 17! Price level is mutually agreed in a process to increase the production of bottled fruit drinks, and milk! Two locations are difficult and it is another resource base factor that makes the company of bottled fruit mainly! Manufacturer in Sri Lanka is that Munchee is continuing its although the name of Smak efficient.. Be made for getting them for local use this level of competitive brands future... Area of Pannipitiya plant was fully filled with plant organizational structure of ceylon biscuits limited and no further building expansion possible! Suffer in loss sale in biscuits manufacturing strategy is not Growing proportionately 3 industry Analysis demand in order to industry! In past ten years can easily find a place in Jam and Cordial market as well Tiara is dominating local... Net work of branch office dominate the biscuits market share bargaining power of suppliers is high sending back of biscuits! Only small land area is available for future expansion summary of financial information of Ceylon biscuits limited of switching CBL! 20 % to 30 % higher price than Indian products in the market are for the company FDI in and! Consist more than 50 food products and the management is planning to spread the organization in market... Lanka PLC is engaged in the macro-environment factors can have a direct impact on not switching diesel... Iso 14001, ISO 22000 and OHSAS 18001 certified company a loss of resources that would results loss...