DILMAH TEA COMPANY

OUR TEAM MEMBERS

KAVUNDU RANDULA – 21UG0344
BMG2304-Managerial Economics
NAYANI PRIYADARSHANI – 21UG0067

ANUKA SANDAWIMAN – 21UG0343

ASENDRA CHARITH -21UG0162

SUJAN VIKUM – 21UG0348

 About Dilmah
DILMAH is a Sri Lankan family tea company, founded by Merrill J.
Fernando, regarded as the world's most experienced tea maker for
championing quality, authenticity and variety in tea. The name DILMAH
was coined by combining the first names of Fernando's sons Dilhan and
Malik. Today, DILMAH is available in over 100 countries around the
world.

As the first producer-owned tea brand, Dilmah is the only fully

vertically integrated tea company with presence along the entire
value chain including ownership in several of Sri Lanka’s finest tea
gardens, factories, printing and packaging facilities. Dilmah
products are sold in over 100 countries supported by an extensive
global distribution network.

COMPANY VISION
Their vision is to provide
consumers with the finest teas
while also offering an equitable
bargain for tea producers
throughout the world through
better operations and a higher
quality of life by leading the
way toward sustainability
while remaining a fair and
equal enterprise.
field of connectivity conservation and
Objective of the Dilmah
In 2007, Dilmah Conservation was
established as a business objective
with the aim of protecting the
environment by encouraging a
harmonious co-existence between
man and nature.
Dilmah aims to adopt a landscape
approach to the management of its
estates centered on the emerging
seeks to link the tea estates within
the wider context of natural and
productive lands to adopt a more
integrated approach.
MISSION
For Dilmah, sustainability is a
core business imperative that
underpins our strategy to build a
more valuable enterprise. We
believe that business is a matter
of human service and thus their
mission is to build value through
operational excellence and
leading the transition to a
sustainable planet and society.
Their environment and society are
currently confronted with significant
difficulties. Climate change is the
single greatest danger to
development, and its far-reaching,
unprecedented effects
disproportionately affect the poor
and disabled.

Market structures define an industry’s
characteristics in relation to the number of
businesses in the industry and how they
compete. Perfect competition, monopolistic
competition, oligopoly, and monopoly are the
four market structures.  dilmah Ceylon tea co.plc in oligopoly market is an oligopoly leader in
HIGH BARRIERS TO ENTRY
The market share acquired by the top companies in an industry
becomes an obstacle for new companies to enter the market. dilmah
Ceylon tea co.plc uses several strategies to prevent other companies
from entering the market.
the Sri Lankan social market ahead of several other companies, which
means that dilmah Ceylon tea co.plc can easily set prices even in the
oligopoly market.

THIS DILMAH CEYLON TEA COMPANY BELONGS TO THE OLIGOPOLY

MARKET STRUCTURE.

The most important feature of oligopoly is the interdependence of several

companies in the industry in decision making. This is because when the
number of competitors decreases, a company's change in price, output,
product, etc. will have a direct impact on the luck of its rivals, and it will
retaliate to change their own price, output or products as the case may be.

Therefore, dilmah Ceylon tea company considers not only the market
demand for the product, but also the response of other companies in the
industry to any action or decision it may take. Since more than one reaction
pattern can be obtained from other companies, dilmah Ceylon tea co.plc
makes some assumptions about the reaction of other organizations before
providing a definitive and definitive solution for pricing under oligopoly.
EXAMPLE OF DECISION MAKING

 The primary objective of the organization is to maximize profits and other objectives included market
share, and revenue growth etc. when organizations seeking to achieve its objectives the business
decision making problems are arise in any organization.

 Dilmah tea is a branded tea made in Sri Lanka that sells tea to the international market. And its
available for sale in locally, supermarkets around Colombo too. Because of goodwill of the Dilmah
tea company the demand is high for their products

 As business grows and demand increases worldwide, for satisfy its international demand and profit
maximization The Dilmah tea company will have to increase production capacity.
 The decisions that making for the increase production capacity can
be considered as the practical example of decision making of the
Dilmah tea company.
 Identify Goal
Decision making procedure and who
made decisions Gather information for weighing
options

First of all, it is necessary to decide which product should incresed by

Consider the consequences
how much, to satisfy the international demand. For that need to review
the effectiveness of the company’s labor, equipment, warehouse and the
distribution process too. Considering all this information, the pros and Make decisions
cons of increasing production capacity are should considered to make
the decision. Risks such as Changes in demand and supply conditions,
technology changes and exchange rate changes should also be Evaluate decision
considered when making decisions. And then make the decision and
execute it. At last should evaluate the decision that makes.
The chairman and board of
directors and top level managers
and executives participate for the
decision making process to make
top decisions such as increasing
the production capacity of
Dilmah Tea company. Decision
making process also created by
those parties.
Decision making – managerial economics

Dilmah tea company has to make large number of decisions in running its
day to day operations. Managerial economics is very important to get the
optimal solution for these managerial decision making problems.

Managerial economics gives the statistical and analytical tools that

need to solve business decision making problems. And managerial
economics also guides the managers in the decision making
procedure.

Dilmah tea company has also been used managerial economics in their
decision making process to make logical and effective decisions
DILMAH is a Sri Lankan family tea company, founded by Merrill J. Fernando. Today, DILMAH is
available in over 100 countries around the world. Their vision is to provide the best tea to consumers
while also providing fair bargaining to tea producers around the world leading to sustainability. We
believe that business is a matter of human service and thus their mission is to build value through
operational excellence and leading the transition to a sustainable planet and society.

Market structures define an industry’s characteristics in relation to the number of

businesses in the industry and how they compete. Perfect competition, monopolistic
competition, oligopoly, and monopoly are the four market structures
This dilmah Ceylon tea co.plc belongs to the oligopoly markert structure.

The chairman and board of directors and top level managers and executives participate for the
decision making process to make top decisions such as increasing the production capacity of
Dilmah Tea company. Decision making process also created by those parties.

Management decision making problems can be solved by the application of economic theory
and the tools of decision science

THANK YOU!