Business Ethics and Environment - Assignment PDF

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Ceylon Biscuits Limited

By P.H.J.C.NAWARATHNA ADVANCED DIPLOAMA IN BUSINESS MANAGEMENT KUADBM181F-032 2018

1 Business Ethics & Environment Assignment

Acknowledgement

I am very thankful to everyone who all supported me, for complete this assignment effectively. I am equally grateful to my lecturer Mr. Cyril Gunarathna . He gave me moral support and guided me in different matters regarding this assignment. He had been very kind and patience while suggesting me the outlines of this assignment and correcting my doubts. I thank him for his overall supports. I would like to thanks NIBM for giving me this tremendous opportunity to develop my skills in the field of Business Ethics and Environment and helping to improve my knowledge further. Last but not the least; I would like to thank my parents who helped me a lot in gathering different information and guiding me from time to time in making this Assignment.

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Contents Acknowledgement ......................................................................................... 2 Introduction................................................................................................... 4 Company Introduction ................................................................................... 5 The early years - Perseverance and determination ............................................... 5 The joint venture - national Welfare..................................................................... 5 Entering commercial scale manufacture - Strategic direction and growth ............. 5 Developing innovation and export - Research and going global ............................ 5

Profile of the Organization ............................................................................. 7 Vision .................................................................................................................. 7 Mission ................................................................................................................ 7 Logo .................................................................................................................... 7

PESTEL Analysis.............................................................................................. 8 PESTEL Analysis for Ceylon Biscuits Limited .......................................................... 9 Political Factors of Ceylon Biscuits Limited ........................................................ 9 Economic Factors of Ceylon Biscuits Limited ................................................... 10 Social Factors of Ceylon Biscuits Limited .........................................................11 Technological Factors of Ceylon Biscuits Limited .............................................12 Environment Factors of Ceylon Biscuits Limited ............................................... 13 Legal Factors of Ceylon Biscuits Limited ........................................................... 14

Recent Changes in Ceylon Biscuits Limited ................................................... 15 Opportunities .............................................................................................. 16 Threats ........................................................................................................ 16 Strategies and Action ................................................................................... 17

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Introduction

Ceylon Biscuits Limited is a well establishing company in Sri Lanka. Presently CBL have more than 50 food products and export the international market. In this assignment according to given scenario in, I have selected company and done PESTEL analysis for this company. These include the identification of the treats and opportunities of this company. And strategic plans and action to these. It also recent changes in this company.

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Company Introduction The early years - Perseverance and determination William’s Biscuit factory, Sri Lanka’s first biscuit factory owned by Mr. Williams was a small scale handmade biscuit venture. In 1939, Mr. Simon Arthur Wickramasingha (1902-1984) acquired this factory, launching ‘Williams Confectionery’ with just 10 employees. It was mechanized in 1957 with Baker Perkins lines from the UK.

The joint venture - national Welfare In the 1960’s, ‘Williams’ together with the Sri Lankan Government and CARE of USA, manufactured high-protein biscuits to supplement mid-day meals for school children, based on a proposal by Mineka Wickramasingha, current Group Chairman, to improve the nutritional standard of Sri Lankan children. For this purpose a biscuit factory was built on eight acres of rubber land surrounded by green paddy fields in Pannipitiya in 1968.

Entering commercial scale manufacture - Strategic direction and growth CBL’s commercial operations in the 1980’s recorded highest growth rates in any industry in Sri Lanka. CBL ventured into India setting up manufacturing plants and acquiring related companies while also acquiring several companies in the food industry and thereby establishing CBL Foods.

Developing innovation and export - Research and going global The group’s innovative product range, high quality standards and aggressive marketing strategies have allowed many of CBL’s brands to become market leaders in their respective categories, while enabling an ever expanding global presence.

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Ceylon Biscuits Limited (Branded CBL, Commonly Munchee) is a Sri Lanka food manufacturer, the makers of munchee biscuits, and one of the oldest biscuits makers in Sri Lanka. The company owns 60% of domestic market share in Sri Lanka.

Industry

Food

Founded

1939 (Dehiwela)

Funder Area Served Group Chairman Products

Simon Arthur Wickramasingha International Mineka Wickramasingha Biscuits Chocolate Jelly Snacks Soya based product Cereal product Organic products Soups

Brands

Munchee(Biscuits) Ritzbury (Chocolate) Tiara (Cake) Lanka soy (Soya ) Nutriline (Breakfast Cereals) Go Jelly (Jelly) Samaayu (Herbal Porridge) Rasa hari (Soups) Cecil (Fruits and nuts) Hi Tapper (Treacle and Jaggery) Ramba (Snack food)

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Profile of the Organization Vision Becoming the No.1 biscuit, chocolate and confectionary manufacturer and marketer in Asia, while developing a global presence and recognition.

Mission To win the Hearts and Minds of Consumers by delivering food propositions with exceptional quality, safety & value whilst being environmentally & socially responsible, creating employee satisfaction and returning optimum value to stakeholders.

Logo

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PESTEL Analysis PESTLE Analysis is an analytical tool for strategic business planning. PESTLE is a strategic framework for understanding external influences on a business. There are many macro-environment factors that affect strategic planning: New laws, tax changes, trade barriers, demographic change. Macro-environment factors includes all the factors that influence an organization, but are out of its direct control. Macro-environment factors tend to have a long term impact. PESTEL is used for business and strategic planning, marketing planning, organizational change,

business

and

product

development

and

research

reports.

By understanding these external environments, organizations can maximize the opportunities and minimize the threats to the organization.

P - Political Factors E - Economic Factors S - Social Factors T - Technological Factors E - Environment Factors L - Legal Factors

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PESTEL Analysis for Ceylon Biscuits Limited Political Factors of Ceylon Biscuits Limited Political factors are important to determine the long term profitability of Ceylon biscuits limited in the country or market .The Ceylon biscuits limited markets many countries and work with different types of political environment and practices. A Ceylon biscuit limited has been able to achieve such success through various countries. Here are the political factors: 

Political stability and importance of marketing sector in the country economic.



Level of corruption- especially levels of regulation food sectors.



Interference in by government.



Legal framework for contract enforcement.

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Intellectual property protection.

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Trade regulations and tariffs related to food market.



Favored trading partners.



Pricing regulations.



Taxation.



Wage legislation-Minimum wages, Overtime

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Mandatory employee benefits

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Product labeling and other requirements in food sectors.

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Employment law



Social and Employment legislation.



Environment and consumer –Protection legislation.



Well skilled employees.



New market opportunities are arising in the north and east.

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Economic Factors of Ceylon Biscuits Limited For the last five years Sri Lankan economy is in a growth trend and over 6% annual economic growth was recorded. For the current year (2011) 8% economic growth is forecasted. It is expected that with the ending of the war in the country growth would beaccelerated. This growth in national economyis highly favorable for food manufacturing industry and biscuit market alone would be expected to expand by 10% annually for coming years. 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. So with the free trade agreement with the India, CBL is having tremendous growth opportunitieslocally as well as regionally. Here are the economic factors: 

Types of economic system in country.



Government intervention in the free market.



Exchange rate.



Comparative advantages.



Skill level in the economy.

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Discretionary income.

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Unemployment rate.

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Inflation rate.

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Interest rate.

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Unfavorable currency rate.

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Labor cost.

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Impact of globalization.

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Likely change in the economic environment.

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Sri Lankan Market leader.

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Strong local and international (CBL other products) distribution network, plants and the sales force.



Strong suppliers chain in the country.

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Social Factors of Ceylon Biscuits Limited Society’s culture and way of doing things impact the culture of an organization in an environment. 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 food industry consumers. Here are the factors: 

Demographics and skill level of population.



Class structure in the society.



Culture



Attitudes.



Income distribution.



Leisure interests.



Education.



Health and welfare.



Labor and social mobility.



World recognition mother company Example: SLIM People's Youth Food Brand of the Year, People's FMCG Brand of the Year etc.



The quality standards of their products. Example: SLS, ISO 9000:2008, ISO 14000 and ISO 22000



Strong charity work. Example: Pannipitiya Nana Madura

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Technological Factors of Ceylon Biscuits Limited Technology is rapidly changing. The technology has various effects on various industries. Increasingly, it’s technically steady. Here are the technological factors: 

Recent technological development.



Technology’s impact on product offering.



Impact on cost structure in food industry.



Rate of technological diffusion.



Teleconferencing.



Fast growing avenue of advertising. Ex ample: Strong marketing campaigns CBL T20 cricket tournament.

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Environment Factors of Ceylon Biscuits Limited Different markets have different norms or environment standards which can impact the profitability of an organization in those markets. Even with country often states can have different environment laws and liability laws. Here are the environmental factors: 

Weather



Climate changes



Laws regulating environment pollutions.



Air and water pollution regulation in food industry.



Recycling



Waste management.



Attitudes toward “green” or ecological products.



Endangered species.



Attitudes toward and support for renewable energy.



Customer value



Market value



Stakeholder value



Management style



Organizational culture

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Legal Factors of Ceylon Biscuits Limited The group is conducting its business according to government regulations and always following proper legal procedures of the country in the event of doing its businesses. When trading in a number of countries, the legal frameworks and the company’s intellectual property, company rights must be protected. Here are the legal factors: 

Anti-trust law in food industry



Intellectual property law



Consumer protection and e-commerce



Employment law



Health and safety law



Data protection



Environment regulation



Industry-specific regulation, competitive regulations

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Recent Changes in Ceylon Biscuits Limited 

Samaposha “NUTRI PLUS” with Kurakkan breakfast cereal launches.



Rasa Hari Instant Noodles launches.



Launches new coconut milk product sera.



CBL start the manufacturing operation in Bangladesh and market leaders in the Maldives with munchee and ritzbury.



Using technological changes, such as artificial intelligence and robotics.



Introduces Munchee Crunchee biscuits for Kids.

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Opportunities Following can be seen as opportunities existing for the company. 

Free Trade Agreement with India.



Unexplored market opportunities for new flavor.



Growing demand for healthy, nutritious instant foods in local and international market.



Opening of north and east market after the war.



Relaxing of Indian regulation related to direct foreign investment.



Growth in Sri Lanka economy.



Unexplored market opportunities in jam and cordial market in the country.



Growing demand for organic fruits products in international market.

Threats CBL group also carrying threats as well as the strengths. 

Because of the international trade agreement foreign investors exploring the local market.



Price competition in the local market.



Competition of other brands with the new products.



Limited market space for new brands and product flavors.



Fluctuations in the price of raw materials.

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Strategies and action 1. Manage raw material risk. 2. Create strategic organization. 3. Recognize the real quantities used. 4. Establish clear terms with suppliers. 5. Offer greater variously flavors. 6. Offer acceptable taste sensations. 7. Offer more excitement. 8. Understand customer’s purpose. 9. Understand customer’s taste. 10. Use flavors as the filter for decision making. 11. Correlate flavors with the brand. 12. Add new features or services by extending your current products. 13. Develop totally new products. 14. Analyze your competitors’ prices. 15. Understand business cost structure and profitability goals.

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THANK YOU

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