MBAC 813: The Royal ltd is a Publisher of a Daily Newspapers - Management Assignment Help

Assignment Task:

Task:

Question 1 [40 marks]
Introduction
The Royal ltd is a publisher of a daily newspapers based in Gauteng, South Africa. It also provides web Media to the world wide audience. It has been listed on the Johannesburg stock exchange since 1994. The Royal has three distinct divisions, that is, the Newspapers, Advertising and the web divisions. The divisions are discussed below as follows:
 

The Newspaper division
This division has two printing sites and three offices. The royal publishes one Sunday Newspaper and three daily Newspapers in South Africa. The three offices edit the Sunday Newspaper and the three daily Newspapers. The Newspaper division owns two subsidiary companies namely; Chronicle and Herald. Chronicle and Herald are involved in publishing. Chronicle is based in Botswana within the SADC region and Herald is based in Ghana which is outside the SADC region. All printing for the division’s publications is done at the two printing sites, except for the publications produced by Chronicle and Herald. The two subsidiaries have their own printing sites.
 

The Web division
This division owns 200 websites which it maintains and develops. The development and maintenance of web material has become an important part of the business for “The Royal ltd”. During the past 10 years the division developed online versions of all the newspapers produced by the Newspaper division. Some websites are more popular than others. This is measured by the number of hits they receive.

The Advertising Division
This division handles the sale of advertising space for the whole company (The Royal ltd). That is, the advertisements that appear in the print media and web pages produced by the Newspaper division and the web division are all handled by the Advertising division.

The strategic objectives
In 2015 the board of directors established the following objectives:
1. To provide reliable and well informed news that meets the needs of the readers
2. To reach as many potential website and Newspapers as possible
3. To increase advertising income so that the group moves towards offering as many news titles as possible free of charge to the public.
Financial Objectives
1. Revenue and operating income to grow by 4% per year
2. To have a steady growth in dividends per share
3. To maintain a gearing below 40%

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