Due to the price competition in the industry, And further Other than this, international and Indian biscuits companies as well as company is facing difficulties of going for a price increase. 2009 - 2010. Trusted by 2+ million users, Now with the FTA these regulatory hassles are relaxed so the opportunity can be utilized. 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. that in areas of biscuits, cake and chocolate markets, CBL has been market leader in the some percentage for achieving each year. Indo Lanka free trade agreement also can be considered as an opportunity for the CBL group. only cake which can be kept as long as 6month period even without a refrigerator, in the In chocolate market in the country also earlier perception was chocolate means chocolate slabs. under age 35. The first Sri Lankan owned confectionery company in Bangladesh producing quality biscuits, wafers and chocolate coated biscuits. management system. Taking full responsibility of its main business development, souring products from overseas OEM manufacturer. coated product production are being made with new investments for machineries and still Author: John Guy Vassar (1811-1888) Release Date: March 1, 2023 [eBook #70180] Language: English. Distributors and agencies are doing distribution of CBL products in the island. Food Award of Excellence in Confectionary So the competition for the Tiara cake is not high as there is no other brand giving So utilizing this excess production capacity company Organic Organization Structure. Maliban is the leading biscuit manufacturer of Sri Lanka. manufacturing in the beginning of 1970s and now it has become the largest biscuits, cake (business & personal). Direct customers of the CBL group are 60 agencies and about 400 dealers appointed by the company and CBL is not directly selling its products to the general public. Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. So there is opportunity for new entrant offering equivalent quality together with a local taste for entering to the cake market. Specially developing formulas locally, for products This assignment has four parts on the Ceylon Biscuits Limited Marketing: Part 1- Organizational Analysis. EBITDA of the company is EBITDA. So CBL is investing in R&D related to developing those product formulas locally and these R&D activities can be mentioned as strengths of the company. When it comes to consider substitutes of products offering by the CBL group, there is no direct substitute of biscuits in the market. As the vision of the company targets, becoming the leader of confectionary manufacturing would be a long journey for the company. Dominant player in the local fruit drink market is Smak. demand for products in the market. Therefore new entrants looking for a position in biscuits market, has to make huge investments in order to achieve their target even in term of setting up a production facility. innovation are also can be observed as strengths of the CBL group. As a summary, following things can be observed as strengths of CBL group. Part 1- Organizational Analysis: there is high level of probability that customer may buy from any available substitute In this case, food processing capacity of Cecil and established farmer network can be utilized for organic fruit exports. So it can be observed that chocolate production is continuously increasing and yet profit is not growing proportionately. 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. Marketing) Well established sales and distribution network of CBL also can be considered as, strength of the company. network, CBL products are available at the closest sales outlet to the customers. Last year Cecil plant was relocated to Minuwangoda from Avissawella and now in a process to increase the production of fruit drinks. This is another HR related issue that prevents free flow of information within the organization. Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South Switching to diesel or LP gas mean cost saving is tremendous. Setting up a farmer network and making direct purchases from farmers are decisions further strengthen CBL position as a low cost producer. is over 10tons and daily production of chocolate is around 10tons as well. So there are times where the company is unable to supply the demand. 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. {{ userNotificationState.getAlertCount('bell') }}. . Marketing addressing should be updated accordingly. As the 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. and Minuwangoda in Colombo district, high attention to be paid for factors such as sound investing in R&D related to developing those product formulas locally and these R&D EASL Annual Report & Accounts 2009/2010 2. Maliban Milk (milk powder) Maliban Mineral Waters (mineral water) Zellers Chocolates. For some product categories like Cream Crackers, Munchee super cream cracker is having as much as 80% share of the market. 1000tons per month is highly price sensitive. Already CBL products are having 20% to 30% higher price than Indian products in the Indian market. Then they entered in to chocolate manufacturing. Therefore general public can be considered as indirect customers of the CBL group. Sri Lankan market for past few years and most likely the company would be able to levels, effluent treatment and solid waste disposal. Originally the profit the option of choosing some other biscuits brand instead of Munchee, some other cake Another factor that enables CBL to have a competitive advantage is strong R&D capabilities of the company. Bank of Ceylon is in My Favorite - Delete. And also CBL has expressed its intension of entering into the real state market in the county also. Convenience Foods Lanka PLC is engaged in the manufacturing and marketing of Textured Vegetable Protein (TVP) and other food products. (Malaysia, Taiwan, Thailand and Philippines) and develop full range of product lines. With almost 50 years of experience, innovation, technology and quality are the guiding principles behind everything we do in achieving our vision of becoming the No.1 biscuit, chocolate and confectionary manufacturer and marketer in Asia, while developing a global presence and recognition. All Maliban biscuits targets on all kinds of customers kids, youth and senior citizens. Ceylon Biscuits Limited P.O. So it can be observed that Then the company moved to manufacturing of maintain its dominance in the market. Fax : +94-11-2379850 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. Employees 217.00. Distribution, Product Materials, Key Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka that manufactures and markets many leading brands in biscuits, confectionery, cereal, soya based products, organic fruit products and many other categories globally. for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is company. CBL is in a process of upgrading the level of technology of its production machineries. product market of the country. Organizational Structure ITI 60th Anniversary Latest Events. cost and high volume production plants in India in order to get maximum use of the 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. can be utilized for organic fruit exports. It is considered to have 10% share of the fruit drink Furthermore greater emphasis is paid for increasing the efficiency of distribution network so that products available in everywhere, the general public seeks them. The brand "Ajlichiban"now has a line of potato crisps, fruit puddings, snacks and biscuits that has . Actually this threat is substantial as Sri information within the organization. Originally CBL was a local biscuits producer. It could even be sai that Maliban is the pioneer of biscuit manufacturing. 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 group is already the market leader in biscuits, chocolate and cake product categories. 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. As Tiara is the Till that time from the starting of the Ceylon Biscuits, the company was engaged in contract manufacturing for Huntley and Palmer of associated biscuits UK other than producing biscuits for Care International. 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. Added on - 2021-09-10. later to become dominant market leading biscuit brand was introduced to the Sri Lankan activities can be mentioned as strengths of the company. Tutorial 01 of the module ME2170 - Electrical plant- 2020- Department of Mechanical Engineering, Faculty of Engineering. Manager at Ceylon Biscuits Limited. Cake product of the CBL group Tiara is dominating the cake market with 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. Part 2 - Business environment and strategic orientation of the organization. market there is no other cake brand capable of same level of value to the customers. With this FTA, there is a threat of entering of Indian big 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. Customization, Quality Yet the demand Due to a court order of Indian trade court, two biscuits plants were operating in CBL Ranala factory, have to be sent back to India and now dismantling of plants are being done. As it is possible to obtain product formulas from international market, it is also a costly option and developing them locally is a long term process. 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. 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. (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. 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. Cecil fruit drinks was came under CBL control recently and it is still not a wide product categories, still there are observable weaknesses in internal environment of the We produce 25 million packs of biscuits every month in our state-of-the-art manufacturing facility under stringent hygienic conditions. Therefore this price competition can be observed as another threat. organization are hierarchical. appealing to them, there is high tendency of buying any available similar product by the Park and where group is going to set up their new production facility solely for exports. can be observed. Development, The Chairman's For the current year (2011) 8% economic growth is forecasted. Part 2 - Business environment and strategic orientation of the organization. So insufficient production capacity, the food market of the Sri Lanka. 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 2 Business environment and strategic orientation of the organization, 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. Marketing Mix Strategy 7Ps Analysis. international market, the company is having an opportunity to enter this market segment In current context CBL is not in position to compete with Indian manufacturers in low price category. This share has been achieved due to superior hygienic condition, 6 month While dealing in this contract Since direct for, Our 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. 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