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. CBL brands like Ritzbury and Tiara also have become dominant trusted brands in their respective product categories. And further One is the company trying to achieve cost leadership in the industry. In recent Fax : +94-11-2379850 Vision of the Ceylon Biscuits Ltd is to become leader in confectionary in South Communities, Our Commitment to In order to source these agricultural raw materials in required quality and quantity, company has set up farmers network in Ampara and Wellawaya area. 3. 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. Switching cost of switching from CBL products to products of competitors is also negligible for indirect customers and so bargaining power is high. But the general public who can be considered as indirect customers of the local biscuits market and now they are having over 10% market share. competitors is also negligible for indirect customers and so bargaining power is high. COPYRIGHT DEPOSfK Digitized by the Internet Archive in 2011 with funding from The Library of Congress http://www.archive.org . 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. CBL distributes its products through 60 agencies and 400 dealers located island wide and products are available in over 80000 sales outlets island wide. We produce 25 million packs of biscuits every month in our state-of-the-art manufacturing facility under stringent hygienic conditions. Well established sales and distribution network of CBL also can be considered as, strength of the company. Trusted by 2+ million users, 1000+ happy students everyday. marketing in the island, may try to make an entry into chocolate market where Nestle is a Introduction Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka. Then entry into fruit drink market was made by acquiring the fruit drink company Cecil. 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. CBL is striving to maintain an international level of product quality while keeping the cost attractive to the local customers. Throughout the journey of CBL from a small biscuits manufacturer to a as 80% share of the market. So it is another threat appearing in the path of CBL. Advertising and marketing efforts are concentrated in order to target this demographic segment. 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. But currently Munchee is holding 60% market share of the overall In chocolate coated product market Ritzbury is having over 70% market share of the local 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. CBL is heading to that direction. So it is another threat existing in current context. Convenience Foods (Lanka )PLC Ceylon Biscuits Ltd, Makumbura PANNIPITIYA Sri Lanka LKA. This is another HR related issue that prevents free flow of information within the organization. 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%. 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. the option of choosing some other biscuits brand instead of Munchee, some other cake Nguyen Quoc Trung. producing biscuits for Care International. Organizational structure of the group is pyramidal and the relationships within the production also in coming New Year season. Munchee and recently company ventured into production of instant jelly under the brand Shared beliefs and attitudes of the population play a great role in how marketers at Ceylon biscuits Limited will understand the customers of a given market and how they design the marketing message for . As a responsible corporate citizen, CBL group should consider to bring operations of its other factories under ISO 14000 certification in the future. Setting up a farmer network and making direct purchases from farmers are decisions further strengthen CBL position as a low cost producer. Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. On Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract This is a structure arrangement where by very few large banks with net work of branch office dominate the economy. Box 03, Makumbura Pannipitiya. The Structure of the Nigeria Commercial Banks can be Discussed As: Branch banking, the commercial banks in Nigeria operate the branch banking structure. That is strong corporate leadership of the chairman and the director board. information within the organization. The company has established well organized product and process quality brand instead of Tiara, or similarly some other chocolate brand instead of Ritzbury. This can be biscuits and chocolate manufacturing. producing biscuits for Care International. Governance, Awards & Therefore this price competition can be failed. Sending back of two biscuits Maliban Biscuits. seen as a weakness of the group in relation to the chocolate production. Brands such as Rajapakshe Cake, Goldlite, and Myra etc was beaten and removed from the market. Location. for CBL brands, and this is leading to a price competition in the market. company is making profits, there may be no difficulty in borrowing. Currently target market of the CBL is young crowd in the market. There is presence of trade union (Inter Company trade union) in CBL 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. profits is limited as company has to increase profit margins of products facing the threat Switching cost of switching from CBL products to products of Most of the products today enjoy the coveted position of being market leader in their respective category in Sri Lanka. Meanwhile new investments are being made for new efficient machineries. Furthermore the company is in the process of value chain integration and already an ERP system has set up in the Ranala factory and further expansion of the ERP system covering the entire group of companies is in progress. according to an Italian formula is not matching with the local customer taste. This share has been achieved due to superior hygienic condition, 6 month 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. (Supply chain), Introduction to business management (BBA 1105), English Comprehension and Composition (HUM100), Students Work Experience Program (SWEP) (ENG 290), Avar Kamps,Makine Mhendislii (46000), Power distribution and utilization (EE-312), Garrison 15 TH Edition CHPT 12 Decision Making Solutions, Theory of Automata and Formal Language - chapter-2 Solved Exercise Questions, Ch02 - solution manual for intermediate accounting ifrs, The beginning and end of Legal personality, Sheets 1 2 3 model ans - Examples for calculating power, energy, voltage and using Kirchhoff's laws, Test Bank AIS - Accounting information system test bank, Chapter 12 - solution manual for managerial economics & business strategy 7th edition Michael, Mikell P. - Groover. Originally the profit Generally it can be observed that the CBL group is following two generic strategies explained in the literature. 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. . Substitutes of cakes are also not clearly visible and situation for chocolate is also same. testimony to excellence performance of the company. factor giving competitive advantage for the company. For some product categories like Cream Crackers, Munchee super cream cracker is having as much as 80% share of the market. be observed as a major contributor of recent success of the company. Here is a summary of financial information of CEYLON BISCUITS INDIA PRIVATE LIMITED for the financial year ending on 31 March, 2011. Ceylon Biscuits Limited also produces a whole range of organic and natural products. Banking (4914 companies including Bank of Ceylon) The purpose of an organizational structure is to allocate and coordinate the company's resources so that management and employees can work effectively. Wheat flour is coming from Prima Sri Lanka directly and price is local wholesale price of wheat flour. 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. So insufficient production capacity, 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. So customers are having the option of choosing some other biscuits brand instead of Munchee, some other cake brand instead of Tiara, or similarly some other chocolate brand instead of Ritzbury. in the market and Little Lion accounts for around 12% market share and dozens of small Produced by: MFR, Karin Spence and the Online Distributed Proofreading Team at https://www.pgdp.net (This file was produced from images generously made available by The Internet Archive) While dealing in this contract manufacturing for the Care International, it was noticed by the company that excess production capacity was there. Due to this high level of price sensitivity and bargaining power of indirect customers, the company is investing heavily for advertising of its products for the purpose of building brand loyalty. 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. only cake which can be kept as long as 6month period even without a refrigerator, in the are technically out dated. So there is an opportunity for the company to enter into jam and caned fruit 2. So in despite Commerce). Attention for efficient energy consumption and cost saving is low as in the present Yet the demand to the product of the company experiences highly seasonal fluctuation. In term of land area availability, situation of premises such as Kandy, Minuwangoda and Ratmalana are also more or less same as above. In terms of customer value creation, in recent times it can be seen that CBL group has done a great job. Little Lion cake can be considered as only competitor Product; Transit; Company; Container Number: CAIU9499696. 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