MGMT489_Donnelley_A - Justin Ribeiro MGMT 489 R.R Donnelley Sons The main problem with R.R Donnelley and the digital division has nothing really to

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Justin Ribeiro October 21, 2001 MGMT 489 The main problem with R.R. Donnelley and the digital division has nothing really to do with the digital division at all, or at least not as much as first seems apparent. The real problem inside R.R. Donnelley is the fact that their incentive pay structure is undermining how business units and sales work, which in turn is dividing the business units among themselves. This is causing each unit to duplicate other functions within, and adding high cost equipment to their own plant, running their own version of software, and in turn depriving what could possibly be sales for that particular unit, and depriving sales to the corporation by possibly turning what could be a large job done correctly by one group, that can only be done on a smaller scale by another group. Another issue that is apparent to me from the onset of the case, is that fact that the Digital Division is not being welcomed into the rest of the organization. The fact that some in the company think that digital printing is still looking for a market allows me to speculate that they are resistant to the change in technology that no doubt in the future will lead to lower costs and higher profits. Taking into account that fact that the Digital Division is in the best position to offer digital printing services to existing and potential customers, each company (including the Book Publishing Services) is considering adding digital printing to their own plants, to maintain their own sales and revenue. It all comes back to the way the company is handling it’s incentive plans, which are causing management to mismanage in my view, for their own personal gain. While this is happening, they are looking at shifts in the market and technology to be only a thought if they have to make there group more profitable, instead of making the company more
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profitable. This in turn will only hurt them, with competition coming from the flanks, and the printing business changing as a whole. I’ll take a look at that changes that had occurred inside Donnelley, including the fundamental change in processes at the corporate level, as well as shifting ideas in the business itself. The first problem that Donnelley faced really was the fact that technology development
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This note was uploaded on 07/31/2011 for the course MGMT 489 taught by Professor Smith during the Spring '11 term at Miami Dade College, Miami.

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MGMT489_Donnelley_A - Justin Ribeiro MGMT 489 R.R Donnelley Sons The main problem with R.R Donnelley and the digital division has nothing really to

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