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B.Sc.

(Hons) in Business & Management

Bachelor of Science in Business Management

BSP 6000- Strategic Management

Name - Kaveesha Peiris

University Student No: st20118118

ICBT Student No: CL/CBABM/14/94

Submission date: 22 January 2017


B.Sc. (Hons) in Business & Management

Table of content

Table of Contents
Table of content..........................................................................................................................2
Task 01.......................................................................................................................................2
Introduction.............................................................................................................................2
1.2 External Environment Analysis.......................................................................................2
1.2.1 PESTEL Framework......................................................................................................3
1.3 SWOT Analysis for Royal Ceramics................................................................................5
1.4 Porter’s five forces............................................................................................................6
1.5 Conclusion........................................................................................................................7
Suggestions to Retain Competitiveness and Sustainability of Munchee Company............7
Task 02.......................................................................................................................................8
2.1 Introduction.......................................................................................................................8
2.2.1 How the PLC influence for the apple I PHONE 6.........................................................9
2.3 Conclusion......................................................................................................................11
Task 03.....................................................................................................................................12
3.1 Introduction.....................................................................................................................12
3.2 How Toyota adopted the strategies to manage the situation and what would TOYOTA
have done for a better overcome...........................................................................................12
3.3 Conclusion......................................................................................................................13
References................................................................................................................................14
Plagiarism Report.....................................................................................................................15
Table 1PLC influence for the apple I PHONE 6......................................................................11

Y
Figure 1 product life cycle_____________________________________________________9

Task 01
B.Sc. (Hons) in Business & Management

Introduction

Munchee Company is scone produce in Sri Lanka. Munchee organization having great brand
name in Sri Lanka and have extensive piece of the overall industry. Munchee organization is
taking after vital techniques to flourish in business. Additionally this report outlines the
PESTEL examination that demonstrates the conditions encompassing the business and
demonstrates the best approach to achievement. Also, encourage it portrays the Porter's five
powers hypothesis and SWOT examination for Munchee Company and procedures that
organization can take after to hold their aggressiveness and manageability in the business.

1.2 External Environment Analysis

Natural examination is a vital device. It is a procedure to distinguish all the outer and interior
components, which can influence the association's execution. The examination involves
surveying the level of danger or opportunity the variables may show. These assessments are
later converted into the basic leadership handle. The investigation adjusts methodologies to
the association's surroundings.

The full scale environment examines the elements outside the association that can essentially
influence to the execution of the association. The PESTEL apparatus is utilized to dissect key
concerns and difficulties associations confront so that the techniques can be proposed to
defeat those issues, difficulties and furthermore to get adjusted to the open doors effectively
to hold their aggressiveness and supportability. PESTEL remains for political, monetary,
social, innovative, natural and legitimate situations.

To apply the PESTEL variables, Munchee scone organization will pick as the chose
organization.

1.2.1 PESTEL Framework


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POLITICAL
With the ending of the war in north and east territories, new market opportunities are arising
in the north and east. So there can be optimistic about future possible growth due to this
expansion of market opportunities. 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.
So there is an opportunity for moving production facilities into these areas for a low cost
production in the future with the ending of the war in north and east territories, new market
opportunities area rising in the north and east. So there can be optimistic about future possible
growth due to this expansion of market opportunities. 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. So
there is an opportunity for moving production facilitiesinto these areas for a low cost
production in the future

ENVIRONMENTAL

For the last five years Sri Lankan economy is in a growth trend and over 6% annual
economic growth was recorded. The growth in national economy is 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 opportunities
locally as well as regionally.

SOCIAL

With dedication for excellent quality control and food hygiene CBL has established in the
market as trusted brand for quality. CBL products coming under brand names such as
Munchee, Ritzbury and Tiara are widely accepted in the market and also are recognized as
brands of the year for few consecutive years. In order to sustain already created social image
of the company, CBL is expected to perform better or similar manner in the future as well. In
the local society also there is a growing concern over natural or organically
processed food products. Therefore in the future, this social tendency should beconsidered.Cu
rrently target market of the CBL is young crowd in the market. Advertising and marketing
efforts are concentrated in order to target this demographic segment. 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. Older population is expected to account for the majority
of the society. So company should be conscious to address requirement of this emerging
market segment as well.

TECHNOLOGY

CBL is in a process of upgrading the level of technology of its production machineries.


Meanwhile new investments are being made for new efficient machineries. Currently CBL is
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enjoying technological superiority over its fellow competitors in the local market. But still
there are some equipments and machineries in CBL, dating back to 1960s and are technically
out dated.
So in order to supply future demands of growing market, further technological upgrade is
desirable for the company. Now company has set up an ERP system in factory and its
operation being monitored. 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. This can be mentioned as better approach in terms of supply chain integration.

ECONOMIC

Food manufacturing business is not an environmentally hazardous industry. Yet as CBL


factories are located in highly residential areas such as Pannipitiya, Ratmalana, Ranaland
Minuwangoda in Colombo district, high attention to be paid for factors such as
soundlevels, effluent treatment and solid waste disposal. Recently CBL Ranala factoryexperie
nced some issues with its

Neighborhood regarding, night time sound level and effluent water disposal. Obtaining ISO
14000 environmental management system certification by, CBLPannipitiya factory is a vital
step towards conducting the factory operation in an environmentally friendly manner. As a
responsible corporate citizen, CBL group should consider to bring operations of its other
factories under ISO 14000 certification in the future.

LEGAL
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.

From breaking down the outer environment, it can be recognized key issues and difficulties
that the manchee is confronting. To hold their intensity and maintainability munchee ought to
utilize a few procedures, for example, SWOT and Porter's five strengths.
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1.3 SWOT Analysis for Royal Ceramics

STRENGTHS –

Recipes
Client Demand
Piece of the pie
Mark name
Magnificent deals staff with solid information of existing administrations

OPPORTUNITIES

Loyal customers
New consumer trends

WEAKNESSES

High rental cost


Cash flow problems

THERATS

Contender's new promoting effort


Showcase change
Contenders have a comparative administration
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1.4 Porter’s five forces

Bargaining power of customer

The quality of client haggling force is frail to the treats is low in munchee organization.
Purchasers are putting weight on organizations. To inspire them to give unrivaled items,
better client administration and lower costs. Illustrations that influence dealing energy to
clients include: restricted purchaser decision and extensive number of clients.

Bargaining power of suppliers

In munchee, there are such a large number of providers. While providers to high costs may
require. On the off chance that they do they will lose their purchasers.

Illustrations that influence bartering energy to providers include: volume is basic to providers
and there are various dissemination channels

Threat of substitutes

Dangers are low with respect to substitute in the bread rolls industry. There was a period that
was individuals tend to purchase substitute, yet bit by bit diminished due to not having a long
life for substitute, for example, bread rolls.

Threat of new entry

For Munchee Company, risk of new passage is low. One purpose behind this is the capital
prerequisite for section into industry is high. And furthermore now Sri Lankans are
propensity purchase bread rolls by looking brands. In here there are numerous scones sorted,
which are delivered with various innovations.

There are few scone organizations in Sri Lanka. Hence it's hard to access for new industry.

Ex: Munchee Company's real rival in Sri Lanka is Maliban bread organization.

Competitive rivalry

There is couple of rivals in the business to contend with munchee organization. The primary
contender is Maliban Biscuits Company. The accompanying business valuing technique,
which is the item quality high, yet the cost is low. It is moderate for every level customer.
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1.5 Conclusion

Munchee organization ought to have a superior comprehension about the environment that
they are working in light of the fact that all the natural elements do an extensive impact to the
business whether it's great or not.

Munchee organization can do a PESTLE investigation to become acquainted with the outer
environment. and furthermore They can make contrasts in their product offering as needs be.
With regards to mechanical components, current innovation is so created and progress.
Utilizing outside gear, labs and processing plants can be points of interest without a doubt.
Likewise a SWOT examination is another truly helpful to embrace as indicated by the
challenges of evolving environment.

Suggestions to Retain Competitiveness and Sustainability of Munchee


Company.

Munchee Company is as of now a main organization in the Sri Lanka on account of its
quality items. Furthermore, it is one of the best organizations to representatives to work. So
on the off chance that they can base the association's position as the business' ease maker it
will be a colossal favorable position.

There is something else that the organization can accomplish for a superior rivalry with its
rivals and to build the piece of the overall industry and to procure more benefits. That is to
grow their business further to assembling rolls. To hold their supportability, they ought to
continue building up arrangements, keeping checking appropriate execution by the
overseeing body of the organization.
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Task 02

2.1 Introduction

The hypothesis of item life cycle was produced by Raymond Vernon in 1966. At the point
when another item advances through four phases beginning from prologue to development,
development and decay, this framework is known as the item life cycle.

Every single stages will clarify unmistakably in this part and after that the PLC Curve will be
connected to a chosen item. Apple iPhone 6 will pick as the chose item which has been
presented by Apple Inc. which is an innovation organization established by Steve Jobs,
Ronald Wayne and Steve Wozniak. The organization is headquartered in Cupertino,
California, United States. The four phases will be connected to the item under fifteen
elements (Rawlinson, 2016).

2.2 Product Life Cycle

Figure 1 product life cycle

Introduction Stage

During the introductory phase, the company tries to build product awareness and develop a
Market for the product.

Growth Stage
In growth stage, the company wants to build brand preference and increase the market share.

Maturity Stage
At maturity stage the strong revenue growth decreases. The competition may occur with
similar products. The primary goal at this point is maximize market share and maximize
profits.
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Decline Stage
In this stage sales are declining

2.2.1 How the PLC influence for the apple I PHONE 6

STAGES
Introduction Growth Maturity Decline

FACTORS
Very high High Moderate moderate
Price
High Very high Moderate Low
Technology
high moderate Low Moderate
Risk
Not applicable Low High Very high
Competition
Very high High Moderate Low
Marketing
Low Very high Very High Moderate
Demand
Low Moderate Very high High
Loyalty
Not applicable Moderate Very high Low
Differentiation
Low Low Very high Low
Market share
High Very high Moderate Low
Cost of
distribution
Very high High Moderate Low
Innovation
Moderate High Very high High
Production
Negative Going up Very high Low
Profits
Low High Very high Moderate
Consumers
Very high High Moderate Low
Fixed cost
Table 1PLC influence for the apple I PHONE 6
B.Sc. (Hons) in Business & Management

The hypothesis of item life cycle was produced by Raymond Vernon in 1966. At the point
when another item advances through four phases beginning from prologue to development,
development and decay, this framework is known as the item life cycle.

Every single stage will clarify unmistakably in this part and after that the PLC Curve will be
connected to a chosen item. Apple iPhone 6 will pick as they chose item which has been
presented by Apple Inc. which is an innovation organization established by Steve Jobs,
Ronald Wayne and Steve Wozniak. The organization is headquartered in Cupertino,
California, United States. The four phases will be connected to the item under fifteen
elements (Rawlinson, 2016).

2.3 Conclusion

As it can be seen, more different elements can be utilized to remark on this present Product's
life cycle. The remarks could shift by item to item and for this review, Apple iPhone 6 has
been picked. As it appears innovation, promoting, separation and advancement which are the
most essential components for this item are being going down. Be that as it may, to
recuperate that when iPhone 6 was in the declining stage the organization thought of another
item and it has been discharged as iPhone 7. So it has more mechanical headways and
separations than the past model iPhone 6. So in circumstances like this, PLC Curve may
return. In the event that organizations do PLC investigation effectively, it permits the
organization to take restorative activities faster.
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Task 03

3.1 Introduction

This errand is about an extremely natural situation which each organization experiences
either in an expansive scale or little. Each business has its good and bad times.
"Business procedure is the arrangements, decisions and choices used to control an
organization to more prominent gainfulness and achievement" (Kouradi, 2015).

What previously mentioned is that business procedure is an arrangement or a technique used


to accomplish authoritative objectives and targets effectively?
This exertion is to recognize an organization which needed to experience a noteworthy
emergency in the current past and to plainly clarify how they executed methodologies to
oversee and beat that circumstance.

3.2 How Toyota adopted the strategies to manage the situation and what
would TOYOTA have done for a better overcome

Instead of the systems the organization has received as of now, there are some different
methodologies they would have embraced to guarantee their long haul maintainability.

Partner investigation is utilized to recognize the key publics of the organization and to win
them over.

Toyota Motor Corporation's non specific system bolsters the organization's worldwide
development. Established in 1937, the firm is currently a worldwide drive in the vehicle
business. This achievement depends on the viable usage of Toyota's bland procedure and
escalated development methodologies. This nonexclusive technique speaks to the general
approach Toyota uses to contend in the worldwide market.

Then again, the serious development techniques characterize the sorts of activities that Toyota
uses to guarantee proceeded with development. The organization's proceeded with
advancement and achievement means that the satisfaction of these methodologies. Toyota is
powerful in the concurrent execution of its non specific procedure and escalated development
techniques.

A vital objective relating to Toyota's nonexclusive system is to limit creation expenses to


accomplish cost authority. The organization does as such through the in the nick of time (JIT)
fabricating technique, which is otherwise called the Toyota Production System (TPS). This
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technique addresses Toyota's bland system by limiting waste, stock cost, and reaction time.
Accordingly, the firm accomplishes most extreme business effectiveness.

Since the late 2009, the well known vehicle make Toyota has endured a serious emergency
because of unintended quality issues in its autos. This had set off Toyota's biggest formally
reviews of almost 9 million vehicles everywhere throughout the world.

From this emergency has undermined the organization's past notoriety of building great
quality and dependable autos, and also harming its image picture developed after some time.
The administrative choices taken by Toyota to manage the emergency is considered as a key
issue to recover the previous notoriety, and to recoup the trust and picture held by the clients.

With the collective inconveniences, Toyota later on has taken dynamic emergency
correspondence procedures to control the strained circumstance and take their full endeavors
to remake notoriety and recuperate purchaser trusts, with an accentuation on client and
quality core interests. In any case, because of its since a long time ago deferred and not as
much as consoling reaction at first, there has been a sense among attention that Toyota
disregarded and denied the issue until it was compelled to make a move. This even harmed its
notoriety and aggravated the emergency circumstance go in North America.

The emergency is influencing Toyota distinctively in USA and in Sweden. In Swedish vehicle
purchasers' sentiments, the effect of the Toyota emergency in Sweden is not as genuine as that
in America; the emergency was quite recently incidental occasions that were accidental or
wild by Toyota. There stays fulfilled and steadfast Toyota's clients who are not influenced by
the negative exposures and frequently hold solid confidences in the recuperation of Toyota's
post-emergency notoriety.

3.3 Conclusion

Toyota Company is one of the best vehicle producing organizations of the globe. This has
effectively vanquished its market through alluring and dependable autos with constant
advancements.

A decent, clear correspondence is truly vital to maintain a business. Truly, practically


everything about a business relies on upon correspondences. So the correspondence,
incorporated correspondence, correspondence without side the world, particularly with clients
is truly vital regardless of what the business is. And furthermore the capacity to Analyses
Company's own.
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References

 Gargasas, A., & Mugiene, I. (2012). Intensive growth strategy development trends in
logistics services for agricultural organization providing companies. Management
Theory and Studies for Rural Business and Infrastructure Development, 34(5), 47-53.

 Johnson, G., Scholes , K. & Whittington, R., 2008. Exploring Corporate strategy. 8th
ed. New delhi: Dorling Kindersley.

 QuickMBA.com, 2010. QuickMBA marketing. [Online]


Available at: http://www.quickmba.com/marketing/product/lifecycle/ [Accessed 17
january 2017].

 Merchant, H. (2014). Configurations of governance structure, generic strategy, and


firm size. Global Strategy Journal, 4(4), 292-309.

 Miller, D. (1992). The generic strategy trap. Journal of Business Strategy, 13(1), 37-
41.

 Parnell, J. A. (1997). New evidence in the generic strategy and business performance
debate: A research note. British Journal of Management, 8(2), 175-181.

 Stewart, T., & Raman, A. (2007). Lessons from Toyota’s Long Drive. Harvard
Business Review.

 Toyota Motor Corporation (2015). Toyota’s Strategy for Environmental Technologies.

 Varadarajan, P., & Dillon, W. R. (1982). Intensive growth strategies: A closer


examination. Journal of Business Research, 10(4), 503-522.
B.Sc. (Hons) in Business & Management

Plagiarism Report
B.Sc. (Hons) in Business & Management

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