A STUDY ON LABOUR RELATIONS AND THE

GROWTH PATTERN OF
RR DONNELEY AND SONS

niranjan
CONTENTS
 INTRODUCTION
 OBJECTIVES
 COMPANY PROFILE
 HISTORY OF THE COMPANY
 SERVICES OFFERED
 HR FUNCTIONS
 GROWTH PATTERN
 UNIQUENESS OF THE COMPANY
 INTRODUCTION
RR Donnelley is a global provider of integrated
communications. Founded more than 146 years ago, the
company works collaboratively with more than 60,000
customers worldwide to develop custom communication
solutions that reduce costs, enhance ROI and ensure
compliance. Drawing on a range of proprietary and
commercially available digital and conventional technologies
deployed across four continents, the company employs a suite
of leading internet based capabilities and other resources to
provide primedia, printing, logistics and business process
outsourcing services to leading clients in virtually every
private and public sector.
 OBJECTIVES
the main objective of this study is to analyse the
growth of the company. The sub objectives are:

1. To do a study about the evolution of the company

2. To concentrate mainly on the employment trends
and HR functions of the company
3. To know about the good practices which are unique
to the company.
 COMPANY PROFILE

President and Chief Executive Officer: Thomas J. Quinlan III

2009 sales: $9,857.4

(million)

Employees: 55,000
(approximately )
 HISTORY OF THE COMPANY

Originally known as RR Donnelley & Sons

Company, was founded in 1864 by Richard

Robert Donnelley. His son, Reuben H. Donnelley, founded
the otherwise unrelated company R. H. Donnelley.
RR Donnelley’s cartographic production facility was
for many years one of the largest in the United States. In
the late 1980s, a division was spun off as its own
company, Geosystems, which in turn became MapQuest.
 The largest commercial printing company in
North America and a dominant player in the
world communications arena, RR Donnelley & Sons Co. began
as a tiny print shop more than a century ago. In the decades
since its first printing job, Donnelley has printed :
 Catalogues
 Magazines
 Books
 Telephone Directories and
 Encyclopedias
in the late 20th century the company diversified its
printing services to capitalize on the seemingly endless
possibilities of the internet and the electronic business
products.
 PRINCIPAL SUBSIDIARIES:

 Alpha Graphics
 American Inline Graphics
 Combined Communication Services
 Meredith/Burda Printing
 Metromail Corp.

PRINCIPLE COMPETITIORS:

 BantaCorporation
 Cadmus Communications Corporations
 Moore Corporation Ltd.
 Quad/Graphics Inc.
 Quebecor Printing Inc.
 World Colour Press Inc.
SERVICES OFFERED
• Capital Markets
• Investment Markets
• Outsourcing Services
• Real Estate Services
• Translation Services

RR Donnelley Roman Financial brings together two

industry experts with over 140 yrs of experience,
making them the largest financial printer in Asia.
 RR Donnelley Roman Financial assets, capabilities
and expertise form a one-stop resource, with a
relentless pursuit of service excellence:

 Stringent confidentiality
 Internal English and Chinese translation & typesetting
 World Class hospitality
 “Client first always!” philosophy
 Experienced multilingual customer service teams
 World wide regulatory expertise
HUMAN RESOURCE MANAGEMENT OF THE
COMPANY

COMMON JOB TITLES:

Account manager
Sales Representative
Customer Service Representative
Account Representative
Manager
SELECTION & RECRUITMENT PROCESS
The company’s selection process includes various
stages which makes the entry to the company not an
easy task. However the main requirement of the
company is excellent communication skill. The procedure
is given below:
Self Introduction
Group Discussion
Interview with the Project Manager
Online examination
This is followed by salary negotiation, orientation
and training.
ORGANISATIONAL STRUCTURE & INITIAL PAY SCALE

FLOOR MANAGER (60,000)

PROJECT MANAGER(45,000)

ASSISTANT MANAGER(35,000)

TEAM LEADER(30,000)

QUALITY ANALYST(22,000)

ASSOCIATES (15,000)
GROWTH PATTERNS
OPERATING RATIOS

PROFITABILITY RATIOS

Free Cash Flow Margin 10.02

Free Cash Flow Margin (5 yrs average) -2.23

Net Profit Margin -0.2

Net Profit Margin(5 yrs average) 0.5

Equity Productivity 4.62

Return On Equity 0.0

Return On Equity(5 yrs average) 1.7

Capital Invested Productivity 1.93

Return on Capital Invested -0.4

Return on Capital Invested(5 yrs average) 0.9

 COTINUATION
Assets Productivity 1.10
Return on Assets -0.2
Return on Assets(5 yrs average) 0.6
Gross Profit Margin 23.8
Gross Profit Margin(5 yrs average) 26.2
Pre-Tax Profit Margin 0.9
Pre-Tax Profit Margin(5 yrs average) 1.7
Effective Tax Rate 123.0
Effective Tax Rate(5 yrs average) 81.5
CONDENSED SONSOLIDATED
STATEMENTS OF INCOME IN MILLIONS
2002 ($) 2001 ($) 2000 ($)

Net Sales 4,754.9 5,297.8 5,764.3

Cost Of Sales 3,887.5 4,387.3 4665.5

Gross Profit 867.5 910.5 1098.5

Selling Expenses 533.7 567.7 597.8

Restructuring Charges 88.9 195.5

Earnings from Operations 244.9 147.3 501.0

Interest expense, net 62.8 71.2 89.6

 RECENT NEWS ABOUT RR
DONNELLEY
Throughout its history, particularly in the 1990s and 2000s, RR Donnelley
purchased a number of other companies outright, steadily increasing in size. In
February 2004, RR Donnelley merged with Moore Wallace Inc., keeping the
name RR Donnelley as the combined name. Then the company purchased
Office Tiger, a major publishing and financial outsourcing
company, as well as printing company Banta Corporations
in 2007.
That same year in 2007, RR Donnelley also
acquired books and educational material printer Von
Hoffmann from Visant Corporations. An additional
purchase that year was Perry Judd’s Holdings Inc., a
private catalog and magazine printer. At the beginning
of 2008, RRD also announced the acquisition of Pro Line
Printing Inc. As of 2007, RR Donnelley
is the World’s largest printer!
WHY IS RR DONNELLEY UNIQUE?
Go Green
Responsible Paper procurement and Printing
Energy conservation
Waste Reduction and Packing Minimization have implemented
practices to proactively reduce or prevent waste.
Strategic relationships
Energy
Electrical demand response programme
Energy Reductions
Energy Efficient Oxidizers
Heat recovery initiatives
Lighting Upgrades
Under a Green Roof
Thank you…

any questions…??