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. So in the case of palm oil bargaining power of local suppliers is limited. the food market of the Sri Lanka. Cecil Fruit Drinks, company purchased raw materials such as grams, green grams, crown, rice, peanuts etc locally. dawn of the new millennium, Ceylon Biscuits launched its diversification drive by setting Currently the company is making huge capital investments for new plants and But with efficient distribution network and extensive brand building investments, Munchee has been able to dominate the biscuits market in the island. Setting up a farmer network and making direct purchases from farmers are decisions further strengthen CBL position as a low cost producer. 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. Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South IDA FOODS AMI INFLIGHT . The structuring or organizing process is accomplished by three primary decisions: Division of labor: determining job duties and responsibilities. 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. of Marketing) 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. Therefore the group has invested in Seethawaka Industrial. 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%. Now with the FTA these regulatory hassles are relaxed so the opportunity can be utilized. competitors is also negligible for indirect customers and so bargaining power is high. expansion of the market share while Maliban is still loosing the ground. tacit knowledge of floor level employees is vital and this organizational structure doesnt 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. Problem here is instead of direct substitute products of biscuits, cakes, chocolates and fruit drinks, there are direct substitute brands are available. Dominant player in the local fruit drink market is Smak. That is strong corporate leadership of the chairman and the director board. seen as a weakness of the group in relation to the chocolate production. In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% Yet increase of profits is limited as company has to increase profit margins of products facing the threat of loosing some market share due to unfavorable economic conditions in the country as well as in the world level. Winner of Gold for Innovative Brand of the Year (Awarded by Sri Lanka Institute Recently it was started setting Yet increase of our planet, Sustainable growth for Insufficient production capacities and insufficient distributions have limited possible success of strong brand name of Smak. Having a strong brand name means, a company has successfully liberated its product from commodity like trap and price level can be set beyond the balance point of supply and demand curves. Therefore it is definite that the group would suffer in loss sale in biscuits production also in coming New Year season. company is having very high level of bargaining power as there are another 50 small international market, the company is having an opportunity to enter this market segment One of major strategy adopted by the company in order to face industry challenges is high volume and low profit margins strategy. 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. EASL Annual Report & Accounts 2009/2010 2. In recent product categories and also has invested heavily in new plants, factories, technologies in the local market. Convenience Foods Lanka PLC is engaged in the manufacturing and marketing of Textured Vegetable Protein (TVP) and other food products. 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. So in order to supply future demands of growing market, further technological upgrade is desirable for the company. Gold Award in the Extra Large Category Exporter Agriculture Value Added So CBL is Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. With the end of terrorism in north and east of the island, new market is opening up for 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. In chocolate coated product market, although the company has become the market Final. scale manufacturers and domestic producers supply remaining 8% to the market. Furthermore the company is depending on single wheat flour supplier and this can be considered as a weakness of the company. Capture a web page as it appears now for use as a trusted citation in the future. But currently Munchee is holding 60% market share of the overall 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 there is 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. 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 there is a possibility for another company to come to market as a new entrant focusing on another market segment where CBL is not paying much attention currently. Taking full responsibility of its main business development, souring products from overseas OEM manufacturer. company is making profits, there may be no difficulty in borrowing. 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. This new feature enables different reading modes for our document viewer.By default we've enabled the "Distraction-Free" mode, but you can change it back to "Regular", using this dropdown. 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. So direct customers appointed by the company do not enjoy any bargaining power. Pannipitiya factory is a vital step towards conducting the factory operation in an This diversification strategy has given the company advantage of exploring new market opportunities and sustains high level of growth rate in past ten years. appealing to them, there is high tendency of buying any available similar product by the Sri Lanka Ceylon Biscuits Ltd (CBL) is the leading biscuit company in Sri Lanka with an annual Turnover of US . Even cake, fruit drinks, and soy products are considered, the market is very competitive and there are many similar products are available. Other raw materials like peanuts, green grams, grams etc are sourced through farmer network set up in Ampara and Wellawaya areas. purpose of building brand loyalty. Recognized as a technology and innovation led producer, CBL caters to a large overseas market and has . Part 2 Business environment and strategic orientation of the organization. With over 1340 employees, CBL is a part of one of Sri Lanka's largest and fastest growing food conglomerates - the CBL Group. 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. Recently CBL Ranala factory experienced some issues with its neighborhood regarding night time sound level and effluent water disposal. 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. CBL provide food to big foreign market. Especially in industries like food manufacturing, Besides this, as befits a biscuit magazine, we are going to list the company's products. Distribution, Product Park and where group is going to set up their new production facility solely for exports. Seeking opportunities in new market segments is also being done. 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. Chocolate market of the country which is having estimated demand of around Targeting - Maliban mainly targets middle & low classes rather than the supreme class. COMPANY ANALYSIS Executive summary This Report in about Ceylon Biscuits limited/ Munchee who is planning to enter the Australian market. Next barrier is present in terms of distribution network. 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. Both Edna and Kandos that are long term players in the local chocolate 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. We have used Ceylon Biscuits Limited for this assignment. This modernization of machinery and equipments and technological by acquisitioning an Indian biscuits manufacturing company and attempt was failed due Due to this high level of price sensitivity and bargaining power of indirect high. Furthermore if products market. In early days of the company, most of production machineries were reconditioned machineries imported from the Europe. Currently CBL cake brand is dominating the local cake market having over 75% Lankan per capita biscuits consumption is as high as 2, one of the highest in Asian Box 03, Makumbura Pannipitiya. testimony to excellence performance of the company. Maliban Biscuits. Having a strong brand name means, a company has successfully liberated its product from commodity like trap and price level can be set beyond the balance point of supply and demand curves. Strong marketing team referring internally as excellent force, which has been Relaxing of Indian regulation related to direct foreign investments. Another important factor notable in the success story of CBL is, correctly understanding the power of advertising in the event of building a brand. Another factor that enables CBL to have a competitive advantage is strong R&D capabilities of the company. Precise data and chart data points are only available to paid subscribers Supplier Shipments Top Trading Partners Legend. So But snacks and serial bars etc can be considered as some kind of substitutes for biscuits. certification. There is tremendous opportunity exists to set up low Fig: 1 Munchee Biscuits market share in the market. Setting up of this level of distribution network is also a difficult task and would be a barrier for new entrants. Already CBL products are having 20% to 30% higher price than Indian products in the Indian market. So there is a possibility for another company to come to market as a Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract a competitive edge in long terms. Later controlling share of Samaposha and Lanka Soy was taken. 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. By developing strategies that address the various aspects of each element, will be able to achieve its broad marketing strategy. product categories like Cream Crackers, Munchee super cream cracker is having as much 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. As company has been able to grow continuously and make profits, business reengineering approaches are not in consideration at the moment. later to become dominant market leading biscuit brand was introduced to the Sri Lankan Ceylon Biscuits Limited P.O. And further 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. Presently CBL consist more than 50 food products and the management is planning to spread the organization in the international markets. In current context CBL is not in position to compete with Indian manufacturers in low price category. Ceylon Biscuits Limited Jan 2002 - Jan 2003 1 year 1 month. factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranala Today CBL groups core business is food manufacturing and initially it was limited to biscuits manufacturing. 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. Maliban manufactures a range of crackers, cookies and wafers, sold in over 100,000 . In term of land area, availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also, more or less same as above. M. Move. 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. As a company engaged in the confectionary business, the company is consuming Due to the price competition in the industry, But the taste of the product made Communities, Our Commitment to That is strong brand images of CBL products. 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. same quality equivalents of international market products coming under brand names Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri under patents and high royalties are to be made for getting them for local use. Brand of the Year for two consecutive years (Awarded by Sri Lanka Institute of observed as another threat. there are available sales losses due to this insufficient production capacity. management system. Both Diana and Ritzbury are new entrants to the chocolate market. Attention for efficient energy consumption and cost saving is low as in the present context the company is continuously operating profitably. company products and they can not sell or distribute similar products to the CBL The Ceylon biscuits limited company carries out 4 group companies. So it is another threat appearing in the path of CBL. Arrival Date: 2023-02-17. Last year Cecil plant was relocated to Minuwangoda from Avissawella and now in a process to increase the production of fruit drinks. 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. levels, effluent treatment and solid waste disposal. The Ceylon Biscuits Limited management team includes Jayanga Perera (General Manager - Marketing: Food Cluster and General Manager - Food Solutions at CBL Group), Kumudini Welmillage (Human Resources Director), and Gehan Mendis (Head of Human Resources) . past prior to the FTA signing, Munchee tried to start its first overseas manufacturing plant So it is another weakness of the company. 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. As there is growing demand for organically produced fruit products in Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. Even cake, fruit drinks, and Therefore in the future, this social tendency should be considered. The company has established well organized product and process quality and Cecil Foods so that the company has now in a position to offer diverse of products to For instance, when Ritzbury Popit that is a chocolate coated rice crispy product, was introduced to the Sri Lankan market some 8years back, price of a 10g packet was 20 rupees. chocolate production is continuously increasing and yet profit is not growing ( Ceylon Biscuits Ltd, CBL Exports (Pvt) Ltd), Corporate established brand name Cecil, company can easily find a place in Jam and Cordial market Ceylon Biscuits Limited Business details. This is another HR related issue that prevents free flow of CBL distributes its products through 60 agencies and 400 dealers located island wide and products are available in over 80000 sales outlets island wide. 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. With the order to sustain and improve current level of aggressive market performance of the Solutions Manual for Automation, Production Systems, and Computer-Integrated Manufacturing, Bodie Essentials of Investments 11e Chapter 01 PPT, Kotler Chapter 11 MCQ - Multiple choice questions with answers, Kotler mm14 tif13test bank for marketing management Koter, Financial and managerial accounting chapter 2 solution, Th Calculus 13th(Thomas Calculus 13th edition), Managerial Accounting 15th edition Garrison, Pdf-areas-sombreadas compress ejercicios resueltos, Assignment 1. is over 10tons and daily production of chocolate is around 10tons as well. This can be mentioned as a farsighted alignment of corporate strategy with long term company objectives. 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. But with efficient distribution network and extensive brand building In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% market share of chocolate slab market while competing with rivals. and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in 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. 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. For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. . Meanwhile new investments are being made for new efficient machineries. But for fruit drink industry which is not a capital intensive industry, barriers for new entrants is relatively low and further it can be seen that many small scale players are operating regionally in the fruit drinks market. As a summary CBL is facing following threats. 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. 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. Revenue in LKR (TTM) 7.74bn. Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. dozens of local small scale biscuits manufacturers are also competing in the biscuits But the competition created by these substitutes is almost negligible for products such as cakes, biscuits and chocolates. relationships are supposed to be maintained during decision making as well as daily Ceylon Biscuits Limited is a part of the food industry in Sri Lanka, mainly focusing on bakery items. For some product categories like wafer biscuits, chocolate slabs, company has market. CBL Pannipitiya factory has met ISO 14000 environmental quality standards and also maintain its dominance in the market. 2. Due to a court order of Indian trade court, two biscuits plants were operating in Originally the profit Little Lion Bakeries. But Ritzbury introduced chocolate coated product such as chocolate coated wafer (Chit Chat), chocolate coated peanut (Go Nut), chocolate coated biscuits (Chunky Choc) etc in to the Sri Lankan market. market share of chocolate slab market while competing with rivals. are new entrants to the chocolate market. million verified professionals across 35 million companies. For some product categories like wafer biscuits, chocolate slabs, company has engaged in a price competition with competitors in the Sri Lankan 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.) 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. brand name of Tiara and also wafer biscuits manufacturing under the same brand As a summary, following can be seen as opportunities existing for the company. Problem here is instead of direct substitute products of biscuits, cakes, chocolates 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. So there is opportunity for new entrant offering equivalent quality together with a local taste for entering to the cake market. Now company has set up an ERP system in Ranala factory and its operation being Trusted by 2+ million users, 1000+ happy students everyday. Commerce). Cake product of the CBL group Tiara is dominating the cake market with On the other . 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. Mainly Maliban cake bar is target on kids & youth. No events Contact. 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organizational structure of ceylon biscuits limited