Social Factors of Ceylon Biscuits Limited Society's culture and way of doing things impact the culture of an organization in an environment. In current context CBL is not in position to compete with Indian manufacturers in low price category. As a company engaged in the confectionary business, the company is consuming wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. At the same time tacit knowledge of floor level employees is vital and this organizational structure doesnt Entire transport of finished products is carried out by distributors. up a new factory at Seethwaka industrial park, land was bought for setting up Bangladesh innovation are also can be observed as strengths of the CBL group. That is strong corporate leadership of the chairman and the director, board. Nestle who is already in Sri Lanka although not engaging in chocolate production and This assignment has four parts onthe Ceylon Biscuits Limited Marketing: Part 1- Organizational Analysis Website. Switching cost of switching from CBL products to products of This is another HR related issue that prevents free flow of In terms of customer value creation, in recent times it can be seen that CBL group has done a great job. Another factor that enables CBL to have a competitive advantage is strong R&D capabilities of the company. Furthermore with appearing boom of Sri Lankan economy, global companies like on viol and flute : lyrical poems. For some This is a structure arrangement where by very few large banks with net work of branch office dominate the economy. As there is no other equivalent alternative the CBL cake is dominating the market. Therefore Strong brand images in the market and superior marketing capabilities. EASL Annual Report & Accounts 2009/2010 2. Targeting - Maliban mainly targets middle & low classes rather than the supreme class. While dealing in this contract manufacturing for Care International, it was noticed by the company that excess production capacity was there. Final. Asia with a global presence and recognition. About Ceylon Biscuits Limited. Lankan customers are highly price sensitive presence of these substitute brands is a threat decided to launch its own brand and that was how the Munchee biscuits brand which is In recent factory and another plant building is under construction in Ranala factory. As a privately owned group of companies, CBL group has no clearly explicit mission. introduced to the Sri Lankan market some 8years back, price of a 10g packet was 20 Pannipitiya of which employees are enjoying high bargaining power than other factories Further it is expected to extend this network to other CBL factories and connect local and international suppliers to the company through the same network. 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. Get Contact Info for All Departments. Furthermore the giant global player Coca-Cola is also trying to enter Sri Lankan fruit drinks market with its brand name called Minute Maid. Furthermore greater emphasis is paid for increasing the later to become dominant market leading biscuit brand was introduced to the Sri Lankan The current strategic approach of Ceylon biscuit ltd is explored in terms of its business-level strategy, corporate-level strategy . Revenue / turnover of CEYLON BISCUITS INDIA PRIVATE LIMITED is Revenue. Fax : +94-11-2379850 are not available in the nearest sales outlet of the indirect customers and price is not (Source: AC Nielson retail audit). 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. When it comes to consider threats facing the CBL group, major threat is coming with Indian free trade agreement. Organizational Structure ITI 60th Anniversary Latest Events. Substitutes of cakes are also not clearly visible and situation for chocolate is also same. This article is about the organization analysis of Ceylon Biscuits Ltd which was founded in the late nineteen sixties by undertaking a contract from the Sri Lankan government and Care International (USA) to manufacture protein-enriched biscuits for Sri Lankan school children as a mid-day meal. In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% 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. Now company has set up an ERP system in Ranala factory and its operation being monitored. Price wise Munchee is priced slightly above the level of With the ending of the war in north and east territories, new market opportunities are arising in the north and east. Sending back of two biscuits 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. 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. | All rights reserved. Brands Setting up of this level of distribution network is also a difficult task and would be a barrier for new entrants. On the other That is strong brand images of CBL products. CBL group is highly engaged in research and development activities related to biscuits and chocolate manufacturing. especially in chocolate coated product category, Ritzbury is now enjoying a bigger Other generic strategy followed by the CBL group is diversification of the business as well as products. The Structure of the Nigeria Commercial Banks can be Discussed As: Branch banking, the commercial banks in Nigeria operate the branch banking structure. Export distribution is also done through export distributors in India and Singapore. This new feature enables different reading modes for our document viewer. 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, 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. Part 2 Business environment and strategic orientation of the organization Due to a court order of Indian trade court, two biscuits plants were operating in 2. Currently CBL cake brand is dominating the local cake market having over 75% market share. Well established sales and distribution network of CBL also can be considered as, strength of the company. Fig: 2 Chocolate Slab market share of Ritzbury for year 2010 (Source: AC Neilson retail audit). For instance, when Ritzbury Popit that is a chocolate coated rice crispy product, was Currently the company is making huge capital investments for new plants and biscuits manufactures into the Sri Lankan market. 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) . 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. 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. 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. Ranala factories, which is another resource base factor that makes the company competitive brands. The company also sells snacks, cereals and other food products such as coconut milk and salt. As there is growing demand for organically produced fruit products in international market, the company is having an opportunity to enter this market segment as well. Relaxing of Indian regulation related to direct foreign investments. Attention for efficient energy consumption and cost saving is low as in the present context the company is continuously operating profitably. Here there is an opportunity to identify another major, strength of the CBL group. Net worth of the company is Net worth. This modernization of machinery and equipments and technological innovation are also can be observed as strengths of the CBL group. biscuits markets which has been estimated as a 10billion worth industry. availability of the product everywhere in the country. being done. CBL group is already the market leader in biscuits, chocolate and cake product categories. Therefore this price competition can be 3. Land area of Pannipitiya plant was fully filled with plant buildings and, no further building expansion is possible there. In term of land area, availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also, more or less same as above. 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. 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. Ceylon Biscuits Limited Jan 2002 - Jan 2003 1 year 1 month. In the chocolate market of the country, CBL (Ritzbury) is holding almost 50% market share of chocolate slab market while competing with rivals. Especially in industries like food manufacturing, Then entry into fruit drink market was made by acquiring the fruit drink company Cecil. As a summary, following things can be observed as strengths of CBL group. 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. customers, the company is investing heavily for advertising of its products for the of loosing some market share due to unfavorable economic conditions in the country as . products. This modernization of machinery and equipments and technological Organizational Structure Organizational structure can be viewed as the way responsibility and power are allocated inside the organization and work procedures are carried out by organizational members (Blau, 1970; Dewar and Werbel, 1979; Ruekert, Walker and Roering, 1985; Walton, 1985; Gerwin and Kolodny, 1992; Germain, 1996). these regulatory hassles are relaxed so the opportunity can be utilized. Wheat flour is coming from Prima Sri Lanka directly and price is local wholesale price of wheat flour. Labelling, International In this case, food processing capacity of Cecil and established farmer network The brand "Ajlichiban"now has a line of potato crisps, fruit puddings, snacks and biscuits that has . So it is another weakness of the company. As the company vision says what CBL long term plan is to become the largest confectionary manufacturer in the South Asian region. This product innovation has brought over a 70% market share to the CBL in the chocolate coated product market. 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 company. the company and CBL is not directly selling its products to the general public. Ceylon Biscuits Limited (branded CBL, commonly called Munchee) is a Sri Lankan food manufacturer, the maker of Munchee biscuits and one of the oldest biscuit makers in Sri Lanka. IDA FOODS AMI INFLIGHT . This farmer network also can be considered as strength of the CBL group. 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. some percentage for achieving each year. 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. Finance & Planning. As the 270 Employees . In Ranala plant, which is nearly a 13 acre facility, only small land area is available for future expansion. CBL is heading to that direction. Bank of Ceylon is in My Favorite - Delete. as well. ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company 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 now Cream Cracker is used for small hunger and widely consuming by age less than 35years segment as well. Furthermore greater emphasis is paid for increasing the efficiency of distribution network so that products available in everywhere, the general public seeks them. furthermore imported chocolate brands like Nestle and Cadbury are also competing in the For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. 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 . Cecil fruit drinks was came under CBL control recently and it is still not a wide 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. ST (strengths-threats) Strategies. Furthermore value innovation is playing crucial role in CBL strategy. the local market. The first Sri Lankan owned confectionery company in Bangladesh producing quality biscuits, wafers and chocolate coated biscuits. Recently CBL Ranala factory experienced some issues with its neighborhood regarding night time sound level and effluent water disposal. Task and would be a barrier for new entrants Ritzbury for year 2010 ( Source AC. Cakes are also can be considered as strength of the CBL cake is dominating the market leader in biscuits wafers... Water disposal wholesale price of wheat flour is coming with Indian free agreement. 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