organizational structure of ceylon biscuits limited

Switching cost of switching from CBL products to products of 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. 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This assignment has four parts on the Ceylon Biscuits Limited Marketing: Part 1- Organizational Analysis. testimony to excellence performance of the company. For an example, in recent years, biscuits production is continuously rising and now the company is producing around 45000 tons of biscuits annually. network, CBL products are available at the closest sales outlet to the customers. In early days of the company, most of production machineries were reconditioned machineries imported from the Europe. Because of this distribution network, CBL products are available at the closest sales outlet to the customers. So the CBL is enjoying better margins than their competitors while keeping the prices of products inline with competitors. As a summary, following things can be observed as strengths of CBL group. CBL group is highly engaged in research and development activities related to For an instance, munchee is having 60 agencies and 400 dealers distributing products to over 80000 sales outlets in the island. Part 2 - Business environment and strategic orientation of the organization. around 80% market share while producing about 12tons of cake per day. (Source: AC Nielson retail audit). This diversification strategy has given the company advantage of exploring new market opportunities and sustains high level of growth rate in past ten years. Today CBL groups core business is food manufacturing and initially it was They may specialize in a particular industry or field. This is another HR related issue that prevents free flow of information within the organization. Chocolate market of the country which is having estimated demand of around 1000tons per month is highly price sensitive. This assignment has four parts onthe Ceylon Biscuits Limited Marketing: Part 1- Organizational Analysis 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, limited to biscuits manufacturing. Another important factor notable in the success story of CBL is, correctly understanding the power of advertising in the event of building a brand. same value to the customers. 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. 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.) As a responsible corporate citizen, CBL group should consider to bring operations of its other factories under ISO 14000 certification in the future. Later controlling share of Samaposha and Lanka Soy was taken. Strong marketing team referring internally as excellent force, which has been able to build the strongest brand name in Sri Lanka for four consecutive years, is another strength that gives competitive advantage for the company. In chocolate coated product market, although the company has become the market leader with over 70% market share, production capacity is insufficient to meet forecasted demand for products in the market. Exporters Association of . Even cake, fruit drinks, and soy products are considered, the market is very competitive and there are many similar products are available. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri Lanka. During recent past CBL group has been able to widen market share of its product portfolio year after year and efficient and well organized sales and distribution network of the group can be observed as a major contributor of recent success of the company. having excess production capacities also. Well established sales and distribution network of CBL also can be considered as strength of the company. Presently CBL have more than 50 food products and organization management is planning to enter the international m 184.96 uk pound: rs. Currently CBL cake brand is dominating the local cake market having over 75% ( Ceylon Biscuits Ltd, CBL Exports (Pvt) Ltd), Corporate buildings targeting further expansions of the production. relationships are supposed to be maintained during decision making as well as daily can be observed. 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. maintain its dominance in the market. production capacity was there. 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. So getting maximum use of vast Indian confectionary market is a must for achieving long term company objectives. We produce 25 million packs of biscuits every month in our state-of-the-art manufacturing facility under stringent hygienic conditions. CBL Group is a Sri Lankan conglomerate specializing in the food industry. market there is no other cake brand capable of same level of value to the customers. For some product categories like wafer biscuits, chocolate slabs, company has 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. As there is Munchee is Sri Lanka's No.1 FMCG brand as per the . | All rights reserved. The brand "Ajlichiban"now has a line of potato crisps, fruit puddings, snacks and biscuits that has . In term of land area, availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also, more or less same as above. Fig: 1 Munchee Biscuits market share in the market. Class / 4 StDr r ) Book il Copyright^ . Fax : +94-11-2379850 For some of products like Samaposha, Nutriline Rice Pops, Nutriline Serial Bars, Cecil Fruit Drinks, company purchased raw materials such as grams, green grams, crown, rice, peanuts etc locally. Recently it was started setting availability of the product everywhere in the country. Author: John Guy Vassar (1811-1888) Release Date: March 1, 2023 [eBook #70180] Language: English. One of major strategy adopted by the company in order to face industry challenges is high volume and low profit margins strategy. CBL is enjoying technological superiority over its fellow competitors in the local market. Furthermore if products are not available in the nearest sales outlet of the indirect customers and price is not appealing to them, there is high tendency of buying any available similar product by the general public. 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. limited to biscuits manufacturing. dawn of the new millennium, Ceylon Biscuits launched its diversification drive by setting [1] [2] Maliban is a privately owned limited liability . 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. While dealing in this contract, manufacturing for the Care International, it was noticed by the company that excess, production capacity was there. Part 3 - Industry Analysis. seen as a weakness of the group in relation to the chocolate production. rupees. Labelling, International All Maliban biscuits targets on all kinds of customers kids, youth and senior citizens. Marketing) 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. information within the organization. Clearstream International S.A. (CI) Besides its business activity, CI acts as a holding company for the shareholding in LuxCSD S.A. CI has adopted a one-tier governance structure, which is composed of Board of Directors of the Company (the "Board of Directors") and an Executive Committee (the "Comit Excutif" - referred to as the "ComEx"). market of the island. CBL Ranala factory is also working towards obtaining ISO 14000 environmental quality Currently CBL cake brand is dominating the local cake market having over 75% market share. and fruit drinks, there are direct substitute brands are available. 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. 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. coated product production are being made with new investments for machineries and still At the same time Save Page Now. Currently target market of the CBL is young crowd in the market. . It is expected that with the ending of the war in the country growth would be accelerated. CBL is heading to that direction. Here price level is mutually agreed in a way that both parties are benefited. Currently the company is making huge capital investments for new plants and Therefore the group has invested in Seethawaka Industrial. 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. 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. So insufficient production capacity, And also the strong brand 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. My executives. Although CBL group is performing well in the Sri Lankan market in its all most all product categories, still there are observable weaknesses in internal environment of the company. But in recent times, the company has vastly invested in purchasing brand new state of the art machineries from Japan and Europe for its production process and at the same time company is modifying its old generation of machineries in order to make them more efficient in terms of energy consumption and production. In the case of wheat flour as Prima Company is having government monopoly of selling wheat flour in the country, bargaining power of suppliers is very high. Here there is an opportunity to identify another major strength of the CBL group. Furthermore annual growth rate in India is even higher and expansion of Indian middle class population is expected to exceed that of Europe by 2016. Price wise Munchee is priced slightly above the level of competitive brands. In the local society also there is a growing concern over natural or organically processed food products. Recently CBL Ranala factory. Palm oil requirement is partially filled with purchasing of local suppliers like Pyramid Lanka and remaining quantity is imported depending on price level in the international market (Malaysia, Indonesia). improve various food products. Furthermore the giant global player Coca-Cola is also trying to enter Sri Lankan fruit drinks market with its brand name called Minute Maid. adapting set of marketing objectives, like increasing market share of a certain brand by PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Cbl Corporation Limited. and over 70% market share in chocolate coated product market. CBL brands like Ritzbury and Tiara also have become dominant trusted brands in, their respective product categories. products are available. For an example, still the main competitor Maliban is having electrically heated ovens in their biscuits plants. 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