Dominant player in the local fruit drink market is Smak. . As Sri CBL is heading to that direction. 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. name of Go Jelly. Herbal Group No: 04. hand in case of CBL products are not available at the nearest sales point of the customer, Maliban Milk (milk powder) Maliban Mineral Waters (mineral water) Zellers Chocolates. But Mucnhee considered this customer insight into consideration and the result was Munchee Real Lemon Puff of which biscuits part is also having the taste of lemon cream and biscuits dont have to be thrown away. 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. general public. Cbl Corporation Limited PESTEL analysis is a strategic tool to analyze the macro environment of the organization. As a responsible corporate citizen, CBL group should In terms of customer value creation, in recent times it can be seen that CBL group has done a great job. product market and serials and snacks markets of the country. dozens of local small scale biscuits manufacturers are also competing in the biscuits Furthermore major players of the market are having excess production capacities also. of loosing some market share due to unfavorable economic conditions in the country as 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. scale manufacturers dealing in biscuits manufacturing alone. One recent attempt was made by strong Indian biscuits brand Britania and was failed. future. Sep 2015 - Present7 years 6 months. 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. With the ending of the war in north and east territories, new market opportunities are Here price level is mutually agreed in a way that both parties are benefited. 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. Ltd. House # 05, Ground Floor, Road # 10, Sector # 01, Uttara, Dhaka 1230, Bangladesh +8801993336667 nadimm.cblbd@cbllk.com. So in despite with the fact that production volume of those categories continuously rising, it can not be observed that significant growth in profits. 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. producing biscuits for Care International. Some of which can be mentioned Currently the company is making huge capital investments for new plants and buildings targeting further expansions of the production. Website. 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. operations. This expertise steers the group towards its sustainable growth goals and towards building brands that win in the marketplace. This modernization of machinery and equipments and technological So there can be optimistic about future possible growth due to this expansion of market opportunities. such as Cadbury and Nestle etc. Till that time from the starting of the Ceylon Biscuits, the company was engaged 3.4. So there is spread product around the country. As a company engaged in the confectionary business, the company is consuming long product expiry date and importantly efficient sales and distribution which make sure EBITDA of the company is EBITDA. During the recent history CBL, the group has won several awards giving testimony to excellence performance of the company. | All rights reserved. with the fact that production volume of those categories continuously rising, it can not be Therefore the group has invested in Seethawaka Industrial. biscuits for Sri Lankan school children as a mid day meal. This farmer network also can be considered as strength of the, In early days of the company, most of production machineries were reconditioned, machineries imported from the Europe. limited to biscuits manufacturing. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. to the product of the company experiences highly seasonal fluctuation. Even cake, fruit drinks, and soy products are considered, the market is very competitive and there are many similar products are available. But currently Munchee is holding 60% market share of the overall (Source: AC Nielson retail audit). The gap of the market is filled by dozens of regional small scale fruit drinks manufactures. for CBL brands, and this is leading to a price competition in the market. Ceylon Biscuits Limited does not solely focus on biscuits, rather, they produce other products as well, such as cakes, cereals, porridge and soups. brand Munchee. Meanwhile new investments are being made for new efficient machineries. market share of chocolate slab market while competing with rivals. If you were to ask anyone in Sri Lanka for the name of a biscuit brand, you'd be lucky to hear a name other than Munchee, the flagship brand of food manufacturer Ceylon Biscuits (CBL).After all, it's Sri Lanka's premier biscuit maker; Munchee has a 53% market share, with the remainder shared by more than 50 companies, while CBL's chocolate brand Ritzbury occupies more than 60% of its . 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 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. 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. free lookups / month. As a privately owned group of companies, CBL group has no clearly explicit mission. 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. Banking (4914 companies including Bank of Ceylon) Tutorial 01 of the module ME2170 - Electrical plant- 2020- Department of Mechanical Engineering, Faculty of Engineering. Therefore in terms of capital investment required, barriers for new entrants for entering into the market are high. 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. The group, name CBL itself is becoming a trusted brand for quality in the Sri Lankan market. considered as strengths of the company. When it is summarized following factors are leading the company to have competitive advantages. The company also sells snacks, cereals and other food products such as coconut milk and salt. In Ranala plant, which is nearly a 13 acre, facility, only small land area is available for future expansion. As company has been able to grow continuously and make profits, business reengineering approaches are not in consideration at the moment. 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. Location. Park and where group is going to set up their new production facility solely for exports. market of the island. It would be a threat for CBLs chocolate barnd Ritzbury. 52232605 Strategic Management Practices at Munchee, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. of the group where there is no unionized environment available. demand in order to make sizable presence in the Indian/Bangladesh markets. It has a global existence across all continents recognized as an . 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. market. For the chocolate industry is also the situation is more or less is same to that of biscuits and cake industries. market share. When CBL Natural Foods (Cecil) is considered, it is a company mainly engaged Targeting - Maliban mainly targets middle & low classes rather than the supreme class. For some While dealing in this contract manufacturing for Care International, it was noticed by the company . Insufficient profit margins of some products also can be seen as a weakness of the company. For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. other works by mr. edmund gosse. brand in the market. Final. Annual Report& Accounts. Some of international products formulas are protected So CBL is This diversification strategy has given the company advantage of exploring new market opportunities and sustains high level of growth rate in past ten years. 2. 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. advantages. product categories and also has invested heavily in new plants, factories, technologies in vulnerable. 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 overseas manufacturing facility. The Ceylon Biscuits Limited Marketing - Assignment, 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. ST (strengths-threats) Strategies. board. share in the biscuit market of the country and cake brand Tiara is holding around 80% Growing demand for organic fruit products in international market. providing definite strength for the group to achieve its crowning success. improve various food products. Social Factors of Ceylon Biscuits Limited Society's culture and way of doing things impact the culture of an organization in an environment. Insufficient production capacities and insufficient distributions have limited possible success of strong brand name of Smak. Pannipitiya factory is a vital step towards conducting the factory operation in an After some 8years, still the same packet goes to 20rupees. context the company is continuously operating profitably. So there is a price competition in the industry. In Ranala plant, which is nearly a 13 acre facility, only small land area is available for future expansion. Part 2 Business environment and strategic orientation of the organization CBL is striving to maintain an international level of product quality while keeping the cost attractive to the local customers. Convenience Foods Lanka PLC is engaged in the manufacturing and marketing of Textured Vegetable Protein (TVP) and other food products. CBL Ranala factory is also working towards obtaining ISO 14000 environmental quality consumption of the CBL is not a bulk quantity of raw material suppliers production. Enter employee name to find & verify emails, phones, social links, etc. In order to get the maximum use of this sub continental market, exporting products from the Sri Lankan plants through Indian dealers as what CBL currently does, would not be sufficient to have a competitive edge in long terms. Recently CBL Ranala factory experienced some issues with its neighborhood regarding night time sound level and effluent water disposal. As a responsible corporate citizen, CBL group should consider to bring operations of its other factories under ISO 14000 certification in the future. soy products are considered, the market is very competitive and there are many similar scale manufacturers and domestic producers supply remaining 8% to the market. 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 . WO (weaknesses-opportunities) Strategies. 1. failed. are not available in the nearest sales outlet of the indirect customers and price is not Lankan customers are highly price sensitive presence of these substitute brands is a threat Little Lion Bakeries. 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. For the last five years Sri Lankan economy is in a growth trend and over 6% annual economic growth was recorded. Then they entered in to chocolate manufacturing. So the competition for the Tiara cake is not high as there is no other brand giving Ceylon Biscuits Limited and CBL Natural Foods Private Limited were ranked among the 40 Best Workplaces in Sri Lanka 2020 by Great Place to Work while, CBL Natural Foods was also ranked among the 10 Best Workplaces for Women; recognizing its efforts to empower women in the workforce and value chain. Although the Name of the brand Smak has. But the competition created by these substitutes is almost negligible for products such as cakes, biscuits and chocolates. Cecil, Samaposha and Lanka Soy factories are also having ISO 9001 certified quality management systems and also their products come with SLS certification. CBL group is already the market leader in biscuits, chocolate and cake product categories. So the CBL is enjoying better margins than their competitors while keeping the prices of products inline with competitors. Furthermore land area availability for further expansion is limited in Pannipitiya and 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. brand instead of Tiara, or similarly some other chocolate brand instead of Ritzbury. 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. ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company Specially developing formulas locally, for products Revenue in LKR (TTM) 7.74bn. IDA FOODS AMI INFLIGHT . Governance, Awards & Ceylon Biscuits Bangladesh (Pvt.) 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. 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. The company has established well organized product and process quality management system for which company has received ISO 9001 certification. Next barrier is present in terms of distribution network. factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranala So there Plenty Foods (Pvt) Ltd is a subsidiary company of Ceylon Biscuits Ltd (CBL) located in Pallekele mixed residential area. Munchee is Sri Lanka's No.1 FMCG brand as per the . Because of this distribution Due to this high level of price sensitivity and bargaining power of indirect Now with the FTA our communities, People & So that management would be able to over look better, the operations of the company. So it is another threat existing in current context. products are available. In this case, food processing capacity of Cecil and established farmer network Up to 5 This new feature enables different reading modes for our document viewer. Arrival Date: 2023-02-17. Selection of strategies, making investment wisely and building up of the efficient sales and distribution network, island wide by the corporate management are definite causes for achieving competitive advantage by the company. Materials, Key entering to the cake market. as 80% share of the market. where the company is unable to supply the demand. for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is In recent Accreditation - Structure the operation by developing, implementing, and evaluating systems, protocols & policies as per primary healthcare accreditation guidelines . While dealing in this contract manufacturing for the Care International, it was noticed by the company that excess production capacity was there. The company manufactures a serial product under the brand name of Samaposha. biscuits manufactures into the Sri Lankan market. When it comes to consider threats facing the CBL group, major threat is coming with Case of Tiara cake can be shown as a best example for better customer value creation. company is making profits, there may be no difficulty in borrowing. Then entry into fruit drink market was made by acquiring the fruit drink company Cecil. Now with the FTA these regulatory hassles are relaxed so the opportunity can be utilized. 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. CBL is currently producing 45000tons of biscuits annually and daily production of cake is over 10tons and daily production of chocolate is around 10tons as well. chocolates under the brand name of Ritzbury, and also manufacturing of cakes under the Due to the price competition in the industry, It can be observed that company is well aware about its value chain. the option of choosing some other biscuits brand instead of Munchee, some other cake company is facing difficulties of going for a price increase. production capacity was there. 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, 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. Currently Net worth of the company is Net worth. Commerce). So in the case of palm oil bargaining power of local suppliers is limited.