HOME HOW IT WORKS? In chocolate coated product market, although the company has become the market Part 3 Industry Analysis ST (strengths-threats) Strategies. Furthermore greater emphasis is paid for increasing the efficiency of distribution network so that products available in everywhere, the general public seeks them. With over 1340 employees, CBL is a part of one of Sri Lanka's largest and fastest growing food conglomerates - the CBL Group. Cake product of the CBL group Tiara is dominating the cake market with CBL group is mainly focusing on a demographic segment which is young crowd 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. CBL distributes its products through 60 agencies and 400, dealers located island wide and products are available in over 80000 sales outlets island, wide. brand name of Tiara and also wafer biscuits manufacturing under the same brand and palm oil, other raw materials are imported from the international market where the Incorporated 60 years ago by the innovative founder Angulugaha Gamage Hinnyappuhamy, Maliban Biscuit Manufactories (Private) Limited, positions high as one of Sri Lanka"s most reliable and valued brands. particular segment. Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in the world. Tiara cake plant of the CBL, is located inside a bacteria free specially air conditioned room having very high level of air quality, is state of the art high tech production plant capable of producing 14tons of cake per day. And also CBL has expressed its intension of entering into the real state market in the county also. ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company Pannipitiya factory is a vital step towards conducting the factory operation in an 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. That is strong brand images of CBL products. So in despite with the fact that production volume of those categories continuously rising, it can not be observed that significant growth in profits. market share. expansion of the market share while Maliban is still loosing the ground. This farmer network also can be considered as strength of the CBL group. Ceylon Biscuits Limited Jan 2002 - Jan 2003 1 year 1 month. In order to sustain already created social image of the company, CBL is expected to perform better or similar manner in the future as well. invading the biscuits market of the Sri Lanka and now the company Ceylon Biscuits has in the market and Little Lion accounts for around 12% market share and dozens of small order to sustain and improve current level of aggressive market performance of the Process, Export Targeting - Maliban mainly targets middle & low classes rather than the supreme class. 1. With the end of terrorism in north and east of the island, new market is opening up for the company. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. So there can be optimistic about future possible growth due to this expansion of market opportunities. But currently Munchee is holding 60% market share of the overall WO (weaknesses-opportunities) Strategies. according to an Italian formula is not matching with the local customer taste. hand in case of CBL products are not available at the nearest sales point of the customer, For an instance, munchee is having 60 agencies and 400 dealers distributing products to over 80000 sales outlets in the island. Therefore in terms of capital investment required, barriers for new entrants for entering into the market are high. to unfavorable Indian regulations regarding FDI in India at that time. | Misc | 26 pages | 8316 words | 3278 views. 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. Cecil fruit drinks was came under CBL control recently and it is still not a wide availability of the product everywhere in the country. 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. having excess production capacities also. up a new factory at Seethwaka industrial park, land was bought for setting up Bangladesh This is part of the corporate strategy of the group that gives definite competitive advantage for the company over its local and regional competitors. Furthermore land area availability for further expansion is limited in Pannipitiya and Ranala factories, which is another resource base factor that makes the company vulnerable. same quality equivalents of international market products coming under brand names In order to source these agricultural raw materials in required, quality and quantity, company has set up farmers network in Ampara and Wellawaya, area. Direct customers of the CBL group are 60 agencies and about 400 dealers appointed by 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. Capture a web page as it appears now for use as a trusted citation in the future. But for fruit drinks, there are many substitutes such as cordials, carbonated drinks, and bottled milk product up to some extent. Specially developing formulas locally, for products consider to bring operations of its other factories under ISO 14000 certification in the Due to the price competition in the industry, company is facing difficulties of going for a price increase. Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South and fish, water beans; while prawns are ennobled as Shiva biscuits, but they are eaten all the same. 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. We produce 25 million packs of biscuits every month in our state-of-the-art manufacturing facility under stringent hygienic conditions. 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. 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. With this FTA, there is a threat of entering of Indian big For an example, in recent years, biscuits production is continuously rising and In term of land area availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also more or less same as above. CBL is in a process of upgrading the level of technology of its production machineries. Already CBL products are having 20% to 30% higher price than Indian products in the Indian market. operations. of the group where there is no unionized environment available. This well established quality management systems are also can be As the vision of the company targets, becoming the leader of confectionary manufacturing would be a long journey for the company. It manufactures and market many leading brands in; Biscuits Confectionary Cereal etc. In chocolate coated product market Ritzbury is having over 70% market share of For the chocolate industry is also the situation is more or less is same to that of biscuits and cake industries. Switching cost of switching from CBL products to products of Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. Phone : +94-11-2379800. 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. Some of which can be mentioned 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. As Tiara is the demand in order to make sizable presence in the Indian/Bangladesh markets. Asia with a global presence and recognition. Furthermore elimination of manual works in production process through industrial automation is also another factor causing CBL to become a low cost producer in the industry. used with the taste of the product. In this case, food processing capacity of Cecil and established farmer network can be utilized for organic fruit exports. CBL marketing and advertising is paying their major attention in this ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company CHAIRPERSON - Mrs. Nirmali Samaratunga Mackwoods Ltd Trusted by 2+ million users, 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 . Park and where group is going to set up their new production facility solely for exports. Little Lion cake can be considered as only competitor Relaxing of Indian regulation related to direct foreign investments. Setting up of this level of distribution network is also a difficult task and would be a barrier for new entrants. As a privately owned group of companies, CBL group has no clearly explicit mission. 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 maintain its dominance in the market. Further it is expected to extend this network to other CBL factories and Furthermore with appearing boom of Sri Lankan economy, global companies like company. But the taste of the product made according to an Italian formula is not matching with the local customer taste. 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. power. the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha) Materials, Key player in the local fruit drink market is Smak. In areas like printed packaging and corrugated cartoons, the company is purchasing bulk quantities from local packaging companies like Expack, Modernpack and Star packaging etc. In Ranala plant, which is nearly a 13 acre, facility, only small land area is available for future expansion. {{ userNotificationState.getAlertCount('bell') }}. 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. The group, name CBL itself is becoming a trusted brand for quality in the Sri Lankan market. At the same time product market and serials and snacks markets of the country. Currently the company is making huge capital investments for new plants and buildings targeting further expansions of the production. 2023 | A2Z Pte.Ltd. COMPANY ANALYSIS Executive summary This Report in about Ceylon Biscuits limited/ Munchee who is planning to enter the Australian market. So customers are having cost saving and efficient energy usage is a weakness of the company. and chocolate manufacturer in Sri Lanka while exporting its products over 60 countries in Dominant player in the local fruit drink market is Smak. And further There is tremendous opportunity exists to set up low as well. Another important factor notable in the success story of CBL is, correctly understanding the power of advertising in the event of building a brand. management system. 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. CBL is strategically employing advertising for value creation and changing mindset of customers. Other raw materials like peanuts, green grams, grams etc are sourced through farmer network set up in Ampara and Wellawaya areas. future. the taste of the Tiara cake is not matching well with local customers who are not getting 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. Furthermore value innovation is playing crucial role in CBL strategy. company. Development, The Chairman's tacit knowledge of floor level employees is vital and this organizational structure doesnt Th e Company is a subsidiary of CBL Investments Limited. One is the company trying to achieve cost leadership in the industry. Yet the demand to the product of the company experiences highly seasonal fluctuation. 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. permit ways for tapping the tacit knowledge related to production processes. Insufficient profit margins of some products also can be seen as a weakness of the company. dawn of the new millennium, Ceylon Biscuits launched its diversification drive by setting 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. 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. of the group where there is no unionized environment available. other works by mr. edmund gosse. 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. 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. 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. Generally it can be observed that the CBL group is following two generic strategies explained in the literature. customers are appointed by the company, they are bound to purchase and distribute Munchee and recently company ventured into production of instant jelly under the brand production plants and further expansions in these two locations are difficult and it is there are available sales losses due to this insufficient production capacity. So the competition for the Tiara cake is not high as there is no other brand giving Avissawella and now in a process to increase the production of fruit drinks. now the company is producing around 45000 tons of biscuits annually. When it comes to consider threats facing the CBL group, major threat is coming with Indian free trade agreement. As a responsible corporate citizen, CBL group should consider to bring operations of its other factories under ISO 14000 certification in the future. Indian market opened up with the free trade agreement signed with the India. organic organization Definition Organizational structure characterized by (1) Flatness: Communications and interactions are horizontal, (2) Low specialization: Knowledge resides wherever it is most useful, and (3) Decentralization: great deal of formal and informal participation in decision making. So there Then they entered in to chocolate manufacturing. Therefore this price competition can be observed as another threat. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri Lanka. new entrant focusing on another market segment where CBL is not paying much attention In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% market share of chocolate slab market while competing with rivals. 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