Communities, Our Commitment to by acquisitioning an Indian biscuits manufacturing company and attempt was failed due 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. Land area of Pannipitiya plant was fully filled with plant buildings and, no further building expansion is possible there. tacit knowledge of floor level employees is vital and this organizational structure doesnt Lorem ipsum dolor sit amet consectetur adipisicing elit. About Ceylon Biscuits Limited. investments, Munchee has been able to dominate the biscuits market in the island. As a summary following weaknesses can be mentioned. 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. Seeking opportunities in new market segments is also being done. Updated 7 days ago. . Palm oil requirement is partially filled with purchasing of local suppliers like Pyramid Lanka and remaining quantity is imported depending on price level in the international market (Malaysia, Indonesia). 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. hand in case of CBL products are not available at the nearest sales point of the customer, 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. 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. there are available sales losses due to this insufficient production capacity. So there the food market of the Sri Lanka. But recently the So in order to supply future demands of growing market, But still there are some equipments and machineries in CBL, dating back to 1960s and 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. As Sri Lankan customers are highly price sensitive presence of these substitute brands is a threat for CBL brands, and this is leading to a price competition in the market. Specially developing formulas locally, for products available in international market are done in CBL laboratories. That is strong corporate leadership of the chairman and the director, board. awards. Till that time from the starting of the Ceylon Biscuits, the company was engaged 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. Dominant player in the local fruit drink market is Smak. brand Munchee. 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. able to build the strongest brand name in Sri Lanka for four consecutive years, is another In chocolate coated product market, although the company has become the market leader with over 70% market share, production capacity is insufficient to meet forecasted demand for products in the market. This branch banking takes instructions from their head offices (not autonomous . Relaxing of Indian regulation related to direct foreign investments. For instance, when Ritzbury Popit that is a chocolate coated rice crispy product, was CBL marketing and advertising is paying their major attention in this All Maliban biscuits targets on all kinds of customers kids, youth and senior citizens. 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. It leads to a 2X2 matrix - also known as SWOT Matrix. EBITDA of the company is EBITDA. product market and serials and snacks markets of the country. dozens of local small scale biscuits manufacturers are also competing in the biscuits 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. In the biscuits industry, Maliban, Lucky Land, Cherries, Maam, Nip and Diana 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. After some 8years, still the same packet goes to 20rupees. Employees 217.00. The Ceylon biscuits limited company carries out 4 group companies. This farmer network also can be considered as strength of the CBL group. 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. Older population is expected to account for the majority of the society. Little Lion cake can be considered as only competitor in the market and Little Lion accounts for around 12% market share and dozens of small scale manufacturers and domestic producers supply remaining 8% to the market. Growing demand for organic fruit products in international market. 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. Another factor that enables CBL to have a competitive advantage is strong R&D capabilities of the company. 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. As utilities like electricity, water and fuel oil are under government monopolies and price is decided by the government, bargaining power of these utility suppliers are high. wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. For an instance, the company does not have its own vehicle fleet or intermediate warehouses. permit ways for tapping the tacit knowledge related to production processes. CBL is the one of the most reputed food manufacturing Company in Sri Lanka and they export their products to more than . Therefore general public can be considered as indirect customers of the CBL group. Sri Lanka. 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. our communities, People & Furthermore land area availability for further expansion is limited in Pannipitiya and 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. For an example, in recent years, biscuits production is continuously rising and 52232605 Strategic Management Practices at Munchee, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. 2023 | A2Z Pte.Ltd. Obtaining ISO 14000 environmental management system certification by CBL competitors is also negligible for indirect customers and so bargaining power is high. product market and serials and snacks markets of the country. 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. Throughout the journey of CBL from a small biscuits manufacturer to a Obtaining ISO 14000 environmental management system certification by CBL Pannipitiya factory is a vital step towards conducting the factory operation in an environmentally friendly manner. Bank of Ceylon is in My Favorite - Delete. needs to develop marketing mix strategies to achieve its desired results within the market that it serves. long product expiry date and importantly efficient sales and distribution which make sure soy products are considered, the market is very competitive and there are many similar Yet increase of Furthermore with appearing boom of Sri Lankan economy, global companies like Nestle who is already in Sri Lanka although not engaging in chocolate production and marketing in the island, may try to make an entry into chocolate market where Nestle is a global player. other dominant brand Ritzbury is having 50% market share in the chocolate slab market that in areas of biscuits, cake and chocolate markets, CBL has been market leader in the . scale manufacturers dealing in biscuits manufacturing alone. of the group where there is no unionized environment available. Furthermore CBL is having very efficient distribution network covering most and thirst for investments is also making the company financially vulnerable. CBL is heading to that direction. Social Factors. Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. Product Brand of the Year for four consecutive years in the market and Little Lion accounts for around 12% market share and dozens of small 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. Labelling, International factory and another plant building is under construction in Ranala factory. Therefore this price competition can be But recently the company experienced cash for problems in first time in the new millennium. Marketing Mix Strategy 7Ps Analysis. Now with the FTA these regulatory hassles are relaxed so the opportunity can be utilized. brand name of Tiara and also wafer biscuits manufacturing under the same brand competitive brands. company is having very high level of bargaining power as there are another 50 small 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. This article is about the organization analysis of Ceylon Biscuits Ltdwhich 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. Sri Lankan government and Care International (USA) to manufacture protein enriched CBL is striving to maintain an international level of product quality while keeping the cost attractive to the local customers. Some of international products formulas are protected Asia with a global presence and recognition. Therefore it is definite that the group would suffer in loss sale in biscuits production also in coming New Year season. So utilizing this excess production capacity company 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. That is strong corporate leadership of the chairman and the director, board. Both Diana and Ritzbury are new entrants to the chocolate market. Furthermore major players of the market are having excess production capacities also. 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