Perera and Sons
(Pvt) Ltd
17th October, 2023
Group Members
1) Y.R.C.Ariyathilaka -SC/2019/10865
2) R.N.T.Rathnayake -SC/2019/10750
3) G.I.I.N. Gammanpila -SC/2019/10740
4) S.R.C.D. Senavirathna -SC/2019/10906
5) W.R.H.D.Dasanayake -SC/2019/10888
6) G.D.G.Umayangana -SC/2019/10855
7) S.K.P.S Jayawardana -SC/2019/10898
8) E.H.I.Madhushani -SC/2019/10910
9) K.M.A.S.Karunanayake -SC/2019/10873
10) J.D.T.G.Jayakodi -SC/2019/10992
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1.1 Introduction
Internal business relationships refer to the connections and interactions
between various individuals, teams, and departments within a single
organization. These relationships are essential for the smooth functioning of
the business, as they involve collaboration, communication, and coordination
among employees who work together to achieve common objectives. Strong
internal business relationships are vital for employee satisfaction,
productivity, and the overall success of the organization.
External business relationships refer to the connections and interactions that
an organization has with entities outside of the company. These external
relationships are critical for the organization's success and can include
relationships with customers, suppliers, partners, regulatory bodies, and other
external stakeholders. They play a fundamental role in achieving business
objectives and often impact an organization's reputation and profitability.
Effective management of both internal and external business relationships is
vital for the long-term success and sustainability of an organization. Balancing
the needs of internal stakeholders with the demands of external ones is a
critical aspect of business management and strategy.
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1.2 Introduction about the Perera and Sons
Perera and Sons is a well-known and highly regarded bakery and confectionery
chain in Sri Lanka. Founded in 1902, it has a rich history that spans over a
century. The company was established by a Sri Lankan entrepreneur named
Don Carolis Perera in Colombo, Sri Lanka. Don Carolis Perera started the
business as a small bakery, producing a range of baked goods and
confectionery items.
Over the years, Perera and Sons has grown and evolved, becoming a beloved
brand in Sri Lanka. The company has not only expanded its product range but
has also gained a reputation for its commitment to quality, traditional recipes,
and customer satisfaction.
Perera and Sons' legacy includes a wide variety of Sri Lankan and international
bakery items, pastries, cakes, and savory snacks. They have maintained their
traditional recipes while also introducing new and innovative items to cater to
changing consumer preferences.
Throughout its history, Perera and Sons has continued to provide Sri Lankans
with delicious and freshly baked goods, making it a household name in the
country. Its enduring success is a testament to its dedication to delivering
high-quality products to its customers while embracing the rich culinary
traditions of Sri Lanka.
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2. The micro environment of the company
In the ever-evolving world of business, a deep understanding of the micro
environment is vital for any company's success. Perera and Sons, a renowned
bakery and food company in Sri Lanka, is no exception. To effectively navigate
the challenges and opportunities in its industry, Perera and Sons must conduct
a thorough analysis of its micro environment, which consists of factors and
influences in close proximity that directly impact its operations and
competitiveness. Here, we will delve into the various aspects of Perera and
Sons' micro environment and how these factors shape the company's
strategies and decision-making.
Customers: The heart of any business lies with its customers. Perera and Sons
recognizes the importance of understanding the preferences and changing
tastes of its customer base. Through the collection and analysis of sales data,
customer feedback, and surveys, the company keeps a finger on the pulse of its
patrons. This customer-centric approach allows Perera and Sons to adapt and
innovate its product offerings to meet customer demands, ensuring continued
loyalty and repeat business.
Suppliers: The relationships Perera and Sons maintains with its suppliers are
pivotal to its product quality and cost structure. By fostering strong ties with
its suppliers, the company can secure high-quality ingredients at competitive
prices. This is particularly essential in the food industry where the quality and
consistency of ingredients directly affect the end product.
Competitors: The bakery and food industry in Sri Lanka is highly competitive,
and Perera and Sons must constantly evaluate its competitive landscape.
Analyzing the strengths and weaknesses of competitors, identifying emerging
industry trends, and assessing its own competitive positioning are vital. This
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analysis informs strategic decisions, helping Perera and Sons maintain a
strong market presence.
Substitutes: In a world where consumer preferences can change rapidly,
understanding potential substitutes for Perera and Sons' products is
imperative. Whether it's rival bakery chains or homemade alternatives,
recognizing these substitutes allows the company to adapt its product
development and marketing strategies to stay ahead of the curve.
Regulations: Compliance with food safety and health regulations is
non-negotiable. The bakery industry, in particular, is subject to stringent
regulatory standards. Perera and Sons must stay current with evolving
regulations and standards to ensure it continues to meet compliance
requirements.
Local Communities: The social and cultural aspects of the communities Perera
and Sons serves play a significant role in its success. Tailoring products to local
preferences and engaging in community activities can help build a positive
reputation and foster goodwill.
Marketing Channels: The effectiveness of distribution and marketing channels
can make or break a company. Perera and Sons must continually assess these
channels to determine if there are opportunities to expand online sales,
improve the in-store experience, or leverage social media for marketing to
reach its target audience effectively.
Employees: The workforce is a cornerstone of Perera and Sons' micro
environment. Employee satisfaction, training, and engagement are pivotal to
maintaining product quality and providing excellent customer service.
Partnerships: Perera and Sons often collaborates with other businesses,
whether it be event venues, catering services, or suppliers. These partnerships
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must be carefully nurtured and evaluated for their impact on the company's
operations and customer offerings.
Technology: Embracing technological trends is crucial in the food industry.
Utilizing point-of-sale systems, online ordering platforms, and customer
relationship management (CRM) tools can enhance the customer experience
and streamline operations, contributing to greater efficiency and
competitiveness.
Financial Institutions: The company's relationships with financial institutions
play a vital role in its access to capital. Strong ties to banks and other financial
institutions are crucial for investments in expansion, technology upgrades, or
other improvements.
Media and Public Relations: Perera and Sons must maintain a watchful eye on
its image in the media and public perception. Responsiveness to customer
reviews and feedback, as well as adeptly managing public relations issues, is
essential to safeguard the company's reputation.
So, Perera and Sons' success in the bakery and food industry is intrinsically
tied to its ability to understand and respond to the factors and influences in its
micro environment. Through a continuous and in-depth analysis of
customers, suppliers, competitors, substitutes, regulations, local
communities, marketing channels, employees, partnerships, technology,
financial institutions, and media relations, the company can make informed
decisions and develop strategies to maintain and enhance its position in the
market. By aligning its operations and strategies with the ever-changing micro
environment, Perera and Sons can continue to offer its customers the highest
quality products while staying competitive and relevant in the dynamic food
industry.
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3. The macro environment of the company
Macro environment analysis is part of strategic management in many
organizations and involves identifying and analyzing potential opportunities
and dangers that arise in the macro environment.Its main purpose is to
provide management with accurate information to help them make
operational decisions.To analyze the macro environment of P&S Company,
which stands for Political, Economic, Social, Technological, Environmental,
and Legal factors. Here's an overview of how you might analyze each of these
factors.
1).Political Factors:
● Regulations and Compliance: Consider any government regulations that
may impact the production and sale of cakes. This could include health
and safety regulations, food labeling requirements, and import/export
restrictions.
● Taxation Policies: Changes in tax policies can affect the cost structure of
the company.
● Political Stability: Political stability in the regions where P&S food
operates can impact its business operations.
2)Economic Factors:
● Economic Growth: The overall economic health of the regions where P&S
food operates will affect consumer spending on non-essential items like
foods.
● Inflation and Exchange Rates: Inflation rates and currency exchange
rates can impact the cost of ingredients and production.
● Disposable Income: The disposable income of consumers is crucial for a
luxury item like food.
3)Demographics:
● Consider the age, gender, and cultural preferences of the target market
for P&S foods
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4)Technological Factors:
● Automation: Technological advancements in production processes can
affect efficiency and costs.
● Online Presence: The company's ability to leverage e-commerce and
digital marketing.
● Innovation: Any technological innovations in the baking industry that
could impact product development.
5)Nature Factors:
● Sustainability: Consumer preferences for environmentally friendly
products may impact ingredient sourcing and packaging choices.
● Waste Management: Regulations and consumer sentiments regarding
waste disposal can affect the company's operations.
● Climate Change: Changes in weather patterns may affect the availability
and cost of certain ingredients.
6)culture Factors:
● Food Safety Regulations: Compliance with food safety and quality
standards is crucial in the food industry.
● Employment Laws: Regulations related to labor, especially in terms of
working conditions and wages.
● Intellectual Property: Protection of recipes, brand names, and other
intellectual property.
By thoroughly examining these factors, P&S f00ds can anticipate potential
challenges and opportunities in its external environment. It's important to
note that the impact of these factors can vary depending on the specific market
and geographical location of the company. Regular monitoring and adaptation
to changes in the macro environment are essential for long-term
sustainability and success.
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4. The company’s strategies related to both micro
and macro environment
Micro environment
1. The company
● Top management : The people at the highest levels of the
company, like the CEO (Chief Executive Officer) and other senior
executives. They make the big decisions and set the direction for
the company.
● Finance : The department that manages the company's money.
They handle things like how much money the company has, how
much it's spending, and where that money is coming from.
● R&D (Research and Development): This department is responsible
for creating new products or improving existing ones. They do
research to find out what customers might want and then work on
making those ideas into real products.
● Purchasing: This is the team that buys things the company needs,
like materials to make products or things for the office.
● Operations: This is the part of the company that actually makes or
delivers the products. They take care of the day-to-day work that
keeps the company running.
● Accounting: This is the department that keeps track of all the
money coming in and going out of the company. They make sure
all the numbers add up correctly and that the company is following
the rules about money.
2. Suppliers
● suppliers are the people or companies that provide the materials or
products needed for the business to operate. These could be things
like raw materials for manufacturing, ingredients for food
products, or even equipment for the business.
● "Suppliers' strategies in the microenvironment" refers to the
plans and actions that these suppliers take to ensure they can
provide what Pereira & Sons needs, and how they can build a good
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relationship with Pereira & Sons to keep them as a customer. These
strategies might include things like offering good prices, ensuring
consistent quality, being reliable with deliveries, and maybe even
providing special offers or discounts.
● Evaluating "suppliers' strategies in the microenvironment Pereira
& Sons in Sri Lanka follows" means understanding how the
suppliers that Pereira & Sons works with adapt to the local
conditions and what they do to make sure they can keep providing
their products or materials to Pereira & Sons effectively and
efficiently.
3. Marketing Intermediaries
● Distribution Channels: The most efficient ways to get their
products to customers
● Relationship Building: This means they offer them good deals,
provide them with the necessary training, and ensure they have
the support they need to sell Pereira & Sons' products effectively.
● Market Information: sharing important market information with
these intermediaries, such as details about customer preferences,
popular products, and upcoming trends. This helps the
intermediaries make informed decisions about how to best sell
Pereira & Sons' products.
● Marketing Support: giving them advertising materials,
promotional support, or even helping them with marketing
campaigns to ensure the products are effectively promoted to the
target customers.
● Logistics Management: ensuring that the products are delivered to
the intermediaries on time and in good condition. This helps
maintain a smooth flow of products from the company to the end
customers.
4. Competitors
● Pereira & Sons in Sri Lanka likely evaluates their competitors' strategies
by looking at what similar businesses are doing nearby. They might
observe how competitors price their products, what promotions they
run, and how they treat their customers. This helps Pereira & Sons
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understand how to stand out and attract more customers by offering
something unique or better than their competitors.
5. Publics
● engaging with its local community
● understanding its customers' preferences
● fostering relationships with suppliers and distributors.
These strategies help the company build a strong local presence,
tailor its products or services to the needs of its customers, and ensure a
smooth supply chain for its operations.
6. Customers
● the needs and preferences of their local customers
● providing products or services that meet those needs effectively
● offering personalized services
● maintaining good customer relationships
● responding promptly to customer feedback and complaints.
They might also be focusing on local marketing campaigns to
attract more customers in the area and ensuring that their products or
services are easily accessible and affordable for their target market in Sri
Lanka.
Macro environment
The macro environment refers to broader factors that can affect a
business.Example of these factors include demographic, economic, natural
technological, political and cultural factors.
1. Demographic
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● Perera and Sons could tailor their menu and marketing to appeal
to different age groups.for example they might have more sweet
treats for younger customers and healthier options for health
conscious or older customers.
● Depending on where their stores are located, Perera and Sons
tailors their offerings to the preferences of the local population.
● Therefore their prices and menu selections vary based on the
average income of the people living around each store.
● The bakery could consider creating menu items or marketing
campaigns that are specifically appealing to different genders.
2. Economic
● Perera & Sons would aim to manage their costs efficiently.They try
to spend as little money as possible while still producing
high-quality food. This could involve negotiating with suppliers
for lower prices on ingredients and finding ways to reduce waste in
their kitchen.
● They need to decide how much to charge for their food and
beverages. They may use strategies like setting competitive prices
(not too expensive, not too cheap) or using discounts and
promotions to attract more customers.
● Therefore Ensuring that the food they serve is consistently good in
taste and quality is crucial. If customers like the food, they're more
likely to return and recommend the place to others.
● They may invest in marketing and advertising to promote their
brand and offerings. This can include activities like social media
marketing, running ads, or even sponsoring local events.
3.Natural
● They focus on making delicious and high-quality food, including a
variety of pastries, sandwiches, and beverages.
● They aim to provide excellent customer service to make people feel
welcome and valued when they visit their stores.
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● They frequently introduce new items to their menu to keep things fresh
and exciting.
● Therefore They may run promotions and discounts to attract more
customers.These are some simplified strategies that Perera & Sons use to
be successful in the food and beverage industry.
4.Technological
● They use computers and software to manage sales, helping to keep track
of what's being sold and manage payments.
● They might have an app or website where customers can place orders
online, making it convenient for people to buy their products.
● Perera & son use technology to accept various payment methods like
credit cards and digital wallets for a seamless payment process.
● Therefore they could use social media and digital marketing to promote
their products and engage with customers online.
5.cultural
● This company serves food that reflects the traditional tastes and
ingredients of Sri Lanka.
● Their cafes have a warm and inviting ambiance, making customers feel
comfortable.
● They listen to customer feedback to improve their menu and services.
● They participate in local events and support community initiatives to
connect with the local culture.
6.Political
● They make sure to follow all the rules and regulations set by the
government to run their business legally.
● They might engage with the local community by participating in events
or supporting local causes to build a positive image.
● Maintaining good relationships with local authorities, like the city
council or health department, to avoid any issues.
● They adjust their operations if there are changes in laws or regulations
that affect their business.
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While the specific strategies employed by Perera & Sons may vary,
they adapt to the ever-changing macro environment to ensure their
long-term success.
5. Conclusion and Recommendations
Perera and Sons has a rich history in Sri Lanka and a strong reputation for its
traditional and quality products.
To further enhance their marketing environment, Perera and Sons should
invest in data analytics and market research to better understand customer
preferences and changing trends.
Strengthening relationships with suppliers, ensuring consistent quality, and
exploring partnerships with local farmers for fresh ingredients can be
beneficial.
Leveraging technology, such as mobile apps for ordering and social media for
marketing, can help them reach a wider audience.
Embracing sustainability practices can not only help protect the environment
but also appeal to environmentally conscious consumers.
In conclusion, while Perera and Sons have a strong foundation in their
marketing environment, they can continue to adapt to changing customer
expectations, technological advancements, and sustainability trends to
maintain and grow their market presence. By focusing on these aspects, they
can foster even stronger relationships with internal and external partners and
stay competitive in the evolving market.
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6. References
The company’s website:
https://pereraandsons.com
https://www.facebook.com/PereraAndSons/
https://www.instagram.com/pereraandsons/?hl=en
News articles
Business directories
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