By developing strategies that address the various aspects of each element, will be able to achieve its broad marketing strategy. Now with the FTA 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. Strong marketing team referring internally as excellent force, which has been R&D laboratories have been set up as one lab for each subsidiary and in those labs, extensive researches are being conducted to develop and improve various food products. observed as another threat. Unexplored market opportunities in Jam and cordial markets in the country. Munchee is Sri Lanka's No.1 FMCG brand as per the . 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. Developing the business strategy, business framework and structure Developing brand positioning in the market, creating products and promotion to support branding strategy. Therefore the group has invested in Seethawaka Industrial Park and where group is going to set up their new production facility solely for exports. For an example, in recent years, biscuits production is continuously rising and factory and another plant building is under construction in Ranala factory. Customization, Quality So it is another threat appearing in the path of CBL. factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranala power. Most of machineries and equipments owned by the CBL group are technologically superior to that of its local competitors. biscuits markets which has been estimated as a 10billion worth industry. (Source: AC Nielson retail audit). 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. efficiency of distribution network so that products available in everywhere, the general Due to this high level of price sensitivity and bargaining power of indirect As the But snacks and serial bars etc can be considered as some kind of substitutes for biscuits. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. Phone +94 112624408. As Tiara is the So it is another threat existing in current context. Obtaining ISO 14000 environmental management system certification by CBL 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. Manager at Ceylon Biscuits Limited. 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. company. market. 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. 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. now the company is producing around 45000 tons of biscuits annually. Furthermore value innovation is playing crucial role in CBL strategy. In recent times, attempts for increasing chocolate With those awards together with excellent marketing efforts of the company, Munchee the flagship brand of the CBL group has become the strongest food brand currently in Sri Lanka. brand name of Tiara and also wafer biscuits manufacturing under the same brand 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. China. But the taste of the product made CBL initiated its operations in Sri Lanka since the biscuits manufacturing in 1968. But recently the spread product around the country. Final. Commerce). Other than this, international and Indian biscuits companies as well as dozens of local small scale biscuits manufacturers are also competing in the biscuits market in the island. For some of products like Samaposha, Nutriline Rice Pops, Nutriline Serial Bars. The group is conducting its business according to government regulations and always Literature Review 2.1. our communities, People & Both Diana and Ritzbury. parts of the island and now expanding into territories in the north and east and is another and fish, water beans; while prawns are ennobled as Shiva biscuits, but they are eaten all the same. biscuits manufactures into the Sri Lankan market. Process, Export new entrants like Diana and Cherries have been able to widen their market share of the CBL is heading to that direction. Th e Company is a subsidiary of CBL Investments Limited. (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. making the company vulnerable to environmental forces. well as in the world level. 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. But currently Munchee is holding 60% market share of the overall EASL Annual Report & Accounts 2009/2010 2. demand for products in the market. For some product categories like wafer biscuits, chocolate slabs, company has engaged in a price competition with competitors in the Sri Lankan 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. Strong marketing team referring internally as excellent force, which has been able to build the strongest brand name in Sri Lanka for four consecutive years, is another strength that gives competitive advantage for the company. When it is summarized following factors are leading the company to have competitive and Cecil Foods so that the company has now in a position to offer diverse of products to Banking (4914 companies including Bank of Ceylon) market. market share of chocolate slab market while competing with rivals. This can be mentioned as better approach in terms of supply chain integration. Under the farsighted corporate leadership of the company, the company has international market, the company is having an opportunity to enter this market segment Maliban Milk (milk powder) Maliban Mineral Waters (mineral water) Zellers Chocolates. Get contact details including emails and phone numbers 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. . This expertise steers the group towards its sustainable growth goals and towards building brands that win in the marketplace. vulnerable. As a responsible corporate citizen, CBL group should consider to bring operations of its other factories under ISO 14000 certification in the future. 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, During the recent history CBL, the group has won several awards giving, testimony to excellence performance of the company. Generally it can be observed that the CBL group is following two generic strategies explained in the literature. market share by almost whipping out other competitors in the market. MGT-9. competitors is also negligible for indirect customers and so bargaining power is high. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. It is considered to have 10% share of the fruit drink market of the island. So insufficient production capacity, 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. Ranala factories, which is another resource base factor that makes the company While dealing in this contract, manufacturing for the Care International, it was noticed by the company that excess, production capacity was there. biscuits and chocolate manufacturing. Materials, Key That is strong corporate leadership of the chairman and the director, board. 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. Part 3 Industry Analysis as well. 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. 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. So the competition for the Tiara cake is not high as there is no other brand giving same value to the customers. same quality equivalents of international market products coming under brand names Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has . manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake 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. 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. production capacity was there. marketing in the island, may try to make an entry into chocolate market where Nestle is a 2009 - 2010. Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract Nguyen Quoc Trung. CBL is in a process of upgrading the level of technology of its production machineries. Net worth of the company is Net worth. So direct customers appointed by the company do not enjoy any bargaining power. soy products are considered, the market is very competitive and there are many similar In recent times, attempts for increasing chocolate coated product production are being made with new investments for machineries and still there are available sales losses due to this insufficient production capacity. Dehiwala, Dehiwala-Mount Lavinia, Sri Lanka. share in the biscuit market of the country and cake brand Tiara is holding around 80% 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. 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. This shows how the business diversification went on. For an example, earlier Cream Cracker was a product associated with get well soon perception in the society and mostly consumed by over 35years population. Part 2 Business environment and strategic orientation of the organization in the market and Little Lion accounts for around 12% market share and dozens of small (Supply chain), Introduction to business management (BBA 1105), English Comprehension and Composition (HUM100), Students Work Experience Program (SWEP) (ENG 290), Avar Kamps,Makine Mhendislii (46000), Power distribution and utilization (EE-312), Garrison 15 TH Edition CHPT 12 Decision Making Solutions, Theory of Automata and Formal Language - chapter-2 Solved Exercise Questions, Ch02 - solution manual for intermediate accounting ifrs, The beginning and end of Legal personality, Sheets 1 2 3 model ans - Examples for calculating power, energy, voltage and using Kirchhoff's laws, Test Bank AIS - Accounting information system test bank, Chapter 12 - solution manual for managerial economics & business strategy 7th edition Michael, Mikell P. - Groover. Munchee and recently company ventured into production of instant jelly under the brand environmentally friendly manner. 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. company. For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. For some product categories like wafer biscuits, chocolate slabs, company has Currently CBL cake brand is dominating the local cake market having over 75% market share. Some of which can be mentioned But for fruit drinks, carbonated beverages act as a strong substitute. Problem here is instead of direct substitute products of biscuits, cakes, chocolates and fruit drinks, there are direct substitute brands are available. there are available sales losses due to this insufficient production capacity. CBL group is highly engaged in research and development activities related to biscuits and chocolate manufacturing. 52232605 Strategic Management Practices at Munchee, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. Another important factor notable in the success story of CBL is, correctly understanding the power of advertising in the event of building a brand. www .malibanbiscuit .com. Accreditation - Structure the operation by developing, implementing, and evaluating systems, protocols & policies as per primary healthcare accreditation guidelines . The founder of the organization is Mr. Simon . With the dawn of new millennium CBL started its drive towards, technological upgrade of its plant and machineries and in the context of Sri Lanka, now the company is having more efficient and modern machineries than its rivals reducing its production costs thus giving important competitive advantage for the CBL to enjoy over industry average profit margins. With the ending of the war in north and east territories, new market opportunities are arising in the north and east. Therefore the group has invested in Seethawaka Industrial. management system. Insufficient profit margins of some products also can be seen as a weakness of the Food manufacturing business is not an environmentally hazardous industry. 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. brand Munchee. So it can be observed that 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. Today CBL groups core business is food manufacturing and initially it was limited to biscuits manufacturing. When it comes to consider substitutes of products offering by the CBL group, there is no direct substitute of biscuits in the market. a competitive edge in long terms. CBL is striving to maintain an international level of product quality while keeping the cost attractive to the local customers. further technological upgrade is desirable for the company. This modernization of machinery and equipments and technological innovation are also can be observed as strengths of the CBL group. same value to the customers. Capture a web page as it appears now for use as a trusted citation in the future. and over 70% market share in chocolate coated product market. manufacturing for the Care International, it was noticed by the company that excess Added on - 2021-09-10. availability of the product everywhere in the country. With the high level of product innovations So for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is high. Then they entered in to chocolate manufacturing. by acquisitioning an Indian biscuits manufacturing company and attempt was failed due cost and high volume production plants in India in order to get maximum use of the the other hand price sensitivity of the general public is also high. awards. opportunity for new entrant offering equivalent quality together with a local taste for our planet, Sustainable growth for Dominant player in the local fruit drink market is Smak. 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. competitive brands. The purpose of an organizational structure is to allocate and coordinate the company's resources so that management and employees can work effectively. another weakness of the company. From the beginning of new millennium, Munchee brand started aggressively When the organizational culture in the group is considered, within the group hierarchical, relationships are supposed to be maintained during decision making as well as daily, operations. CBL group is in the process of business diversification also. So there can be optimistic about future possible growth due HOME HOW IT WORKS? Avissawella and now in a process to increase the production of fruit drinks. price 6s. to this expansion of market opportunities. company. are not available in the nearest sales outlet of the indirect customers and price is not to unfavorable Indian regulations regarding FDI in India at that time. advantages. The company has relied heavily on advertising for positioning in target market segments and widening the market share of products. Therefore While dealing in this contract manufacturing for the Care International, it was noticed by the company that excess production capacity was there. As there is growing demand for organically produced fruit products in CBL group is highly engaged in research and development activities related to Furthermore greater emphasis is paid for increasing the efficiency of distribution network so that products available in everywhere, the general public seeks them. Cecil, Samaposha and Lanka Soy factories are also having ISO manufactures like Edna, Kandos and Diana are major competitors in the local market and Save Page Now. 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. Getting full use of Recently it was started setting 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. Originally the profit Export distribution is also done through export distributors in India and Singapore. products are available. CBL is in a process of offering local low cost and 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. In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has a global . Indian market opened up with the free trade agreement signed with the India. ( Ceylon Biscuits Ltd, CBL Exports (Pvt) Ltd), Corporate So in despite Yet in terms of product quality CBL products are much better than competitive Indian 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. Ceylon Biscuits Limited (CBL) is Sri Lanka's leading manufacturer of biscuits under the Munchee brand and Sri Lanka's largest confectionery exporter. Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South Asia with a global presence and recognition. On the other Furthermore it is clear that land and labor cost in north and east areas are much cheaper than that of other areas of the country. Other raw materials like peanuts, green grams, grams etc are sourced through farmer network set up in Ampara and Wellawaya areas. Cenmetrix was awarded the project of installing RFID tub tracking solution at CBL . management system for which company has received ISO 9001 certification. Labelling, International 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. scale manufacturers dealing in biscuits manufacturing alone. be observed as a major contributor of recent success of the company. having excess production capacities also. Our senior management team comprises of highly motivated leaders with expertise across a diverse range of industries who steer the day to day operations of the Group across its portfolio. Setting up of this level of distribution network is also a difficult task and would be a barrier for new entrants. Here price level is mutually agreed in a way that both parties are benefited. order to sustain and improve current level of aggressive market performance of the Therefore this price competition can be observed as another threat. in contract manufacturing for Huntley and Palmer of associated biscuits UK other than Well established sales and distribution network of CBL also can be considered as, strength of the company. 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. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri Lanka. Company is doing some backward integration of its value chain. market. Asia with a global presence and recognition. up a new factory at Seethwaka industrial park, land was bought for setting up Bangladesh free lookups / month. later to become dominant market leading biscuit brand was introduced to the Sri Lankan activities can be mentioned as strengths of the company. So where the company is unable to supply the demand. Lorem ipsum dolor sit amet consectetur adipisicing elit. testimony to excellence performance of the company. GCD210267, Watts and Zimmerman (1990) Positive Accounting Theory A Ten Year Perspective The Accounting Review, Subhan Group - Research paper based on calculation of faults, Sri Lanka Institute of Information Technology, Well established sales and distribution network, Strong brand images and excellent sales force, Well established quality/environmental management systems, Setting up of a management information system, Opening of north and east market after the war. 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