1.

Introduction

About the Company

Munchee

Purpose of the study

Structure of the Report

2. The analysis of the industry environment and survival / success factors

2.1 Business Environment & Trends

Understanding the business environment is essential to the formulation,

development and maintenance of strategy of a company. The new business
environment is constantly changing and dynamic in nature. To understand the
influence from business environment and trends to Munchee Biscuits Limited
(PTE) Ltd. it is important to do an analysis on all related factors. Successful
businesses adapt their internal environment -- including human and financial
resources, policies, technologies and operations -- to the external environment.
(Nordmeyer, Billie, 2018)

Business environment can be said to be a combination of internal (Micro) and

external (Macro and Task) factors that have a major impact on working of a
business organization. Effects of such environments can be felt in every
operations of the company and its various facets (Fernando, C. A., 2011).

Below diagram shows the environment of Munchee:

Figure 1 – Munchee’s Business Environment

Internal Analysis – SWOT
Strengths
 Been in the field for more than 80
years
 World recognition mother
company
 Sizable market share in Sri Lanka
 Offers variety of products in
different sizes under its brand
 Well established sales and
distribution system
 Large capacity of manufacturing
plants
 Strong Brand image
 Strong cooperate leadership
 Usage of modern machinery and
equipment along with innovative
technology
 Well established Quality
Management System
 Heavy investment in Market
Research
Opportunities
 Economy & Industry Growth in
Sri Lanka – Specially market for
Biscuit currently growing at the
rate of 8%.
 Growing market for healthy,
nutritious instant food in local and
international market
 Free Trade agreement with India
and Singapore
Weaknesses
 Highly depending on
suppliers for all critical raw
materials
 Poor cost saving initiatives
 Poor energy saving initiatives
 Low profit margins
 Limited production capacity
for some product lines
Threats
 Several new entrants to the
market
 New Government Rules &
Regulations
 Price competition in the local
market
 Price fluctuation of raw
materials
 Foreign Investment due to
International Trade
agreements can lead to new
entrance from International
 a.
b.
c.
d.
e.
f.
g.
h.

Porter’s Five Forces – Industry Analysis

i. PLEESTIC – Macro Environment Factors

2.2 Current Trends

Consumers are looking for convenient, less processed products with functional
ingredients. People are more health conscious and will look for food products that fit
their life style and nutritional needs. People have to eat so I don’t expect
 consumption as a whole to change but believe the type of food product consumed
will.

3. The appraisal of the organisation’s strategy

3.1 Business model

3.2 Resources and capabilities

3.3 Value chain

3.4 Culture, structure, systems

 1. Cooperate Strategy

a. Business Acquisition -

2. Business Strategy

1. High volume and low profit margins Strategy

2. keeping with their strategy for innovation

3. Functional Strategy

Need to apply VRIN

Conclusion

References

NORDMEYER, Billie. 2018. What Is an Environmental Analysis for a Business? [online]. [Accessed 30 June
2019]. Available from World Wide Web: <https://yourbusiness.azcentral.com/environmental-analysis-
business-1017.html>

FERNANDO, C. A. 2011. Business Environment. India: Pearson Education.