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ORGANIZATION STUDY OF

KERALA KAUMUDI (P) LTD, PETTAH

A report submitted in partial fulfillment of requirement for the

award of

degree of

Master of Business Administration of Kerala University

Submitted by

JASEENA.J

Roll No: MGT0905016

Under the guidance of Faculty guide Project guide

Ms. AMBILI.G.S VISAKH.M.S

Faculty IMK H.R. Manager

INSTITUTE OF MANAGEMENT IN KERALA

UNIVERSITY OF KERALA, SENATE CAMPUS

THIRUVANANTHAPURAM

July 2010

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DECLARATION

I declare that the project report entitled “Organization Study of

Kerala Kaumudi (P) Ltd, pettah” submitted by me for the award of the degree of

Master of Business Administration of the University of Kerala is my own work.

The report has not been submitted for the award of any other degree of this University

or any other University.

Place: THIRUVANATHAPURAM

JASEENA.J

Date: Roll No: MGT0905016

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ACKNOWLEDGEMENT

I would like to express my sincere thanks to Dr. K.S Chandrasekhar professor and,

Head of the Department, Institute Of Management In Kerala, University of Kerala, for

inculcating me the correct spirit of mind through his valuable advice for doing the

training.

I hereby express my profound gratitude to Ms Ambili G.S, Faculty, IMK palayam,

for her valuable guidance throughout the course of the study.

My sincere thanks to Mr. M S Visakh, HR manager, Kerala Kaumudi (P) Ltd., for

his valuable cooperation and timely guidance, without which this Organization Study

would be an impossible one.

My special thanks to Mr. S L Praveen, System Administrator for his valuable

support throughout the study. Thanks are also due to Mr. Hari, the HR executive.

Last but not least, I wish to express my heart felt thanks with pleasure to my

parents and all my friends for their goodwill and constructive ideas which helped me a

lot in bringing out this work successful.

JAS

EENA.J

MGT0

905016

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Contents

SL. NO. TOPIC Page No.

1. Introduction

Objectives of the study

Scope of the study

Methodology

Limitation of the study

Chapterisation

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3

3

3

3

2. Industry profile 4

3. Company profile 10

4. Organizational Structure 16

5. Data Analysis – PESTLE Analysis– PORTER’S Analysis– SWOT Analysis

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6. Findings 61

7. Suggestions 62

8. Conclusions 64

9. Bibliography 65

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List of charts and diagrams

Sl.No. Description Page No.

1 Organization Structure 16

2 Editorial Department-daily

21

3 Editorial-Flash 22

4 Editorial-Magazine 23

5 Production Department 25

6 DTP section 30

7 Space Marketing Department

35

8 Product marketing Department

39

9 Debtors management Department

43

10 Finance Department 45

11 HR Department 50

12 Systems Department 53

13 Porter’s Five Force Model

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Date…..

CERTIFICATE

This is to certify that the project report entitled “Organization Study of Kerala

Kaumudi (P) Ltd pettah” submitted here is an bonafide record of the work done by

Ms Jaseena.J under my guidance in partial fulfillment of the requirement for the

award of Degree in Master of Business Administration of the University of Kerala

and this work has not been submitted by her for the award of any other degree,

diploma or title of recognition earlier.

Director: Faculty Guide

Dr. K.S Chandrasekhar M.sAmbiliG.S

Professor and Head of Department Faculty IMK

IMK

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CHAPTER I

INTRODUCTION

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Introduction

A newspaper is regularly scheduled publication containing news, information

and advertising. By 2007 there were 6580 daily newspapers in the world selling 395

million copies a day. The worldwide recession of 2008, combined with the rapid

growth of web-based alternatives, caused a serious decline in advertising and

circulation, as many papers closed or sharply retrenched operations. General-interest

newspapers typically publish stories on local and national political events and

personalities, crime, business, entertainment, society and sports. Most traditional

papers also feature an editorial page containing editorials written by an editor and

columns that express the personal opinions of writers. Other features include display

and classified advertising, comics, and inserts from local merchants. The newspaper is

typically funded by paid subscriptions and advertising. A wide variety of material has

been published in newspapers, including editorial opinions, criticism, persuasion and

op-eds ; obituaries; entertainment features such as crosswords, sudoku and

horoscopes; weather news and forecasts; advice, food and other columns; reviews of

movies, plays and restaurants; classified ads; display ads, editorial cartoons and comic

strips.

Newspaper and newspaper advertising has been the most important tool in

shaping the growth and development of any society in the modern world. More than

anything, they have been very instrumental in bridging the communication gap

between people that contributes to the air of awareness in a society. Newspapers are

an important media for spreading both national and international news. It plays crucial

role in the society. The news paper industry in every country stands out as an

influential body contributing to the development of the modern society by acting as

one of the most potential platform for exchange of thoughts and opinions. One of the

most crucial tasks of newspaper industry is its contribution towards the economic and

industrial development of a country through its assimilation of the people’s voice.

The Indian newspaper industry has passed various stages of evolution to reach

the status that it enjoys today - that of a leading press arena in the world. There are

hundreds of newspapers that reach out to the people of this vast country in enormous

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numbers every morning. A typical Indian, daily newspaper is the staple diet for a

typical Indian, bringing him/her news from all over the globe.

This organization study has been conducted in Kerala Kaumudi (P) Ltd.

Kerala Kaumudi, the greatest growing Malayalam daily, owes its genesis in 1911, to

the visionary, Shri C V Kunjuraman. Kerala Kaumudi became a daily news paper on

1st November 1940. From its humble beginning as a single edition news paper of

Thiruvananthapuram, Kerala Kaumudi has spread out to cover other parts of the state

and the country with editions from Kollam, Alappuzha, Kottayam, Cochin, Thrissur,

Kozhikodu, Kannur, Bangalore and Gulf.

Kerala Kaumudi is a Malayalam daily which provides truthful news. Kerala

Kaumudi (P) Ltd consists of all functional departments and thereby gets an idea about

all departments. So an organization study was conducted at Kerala Kaumudi (P) Ltd

with an aim of getting awareness of their functioning and final procedures of that

organization.

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1.1 OBJECTIVES OF THE STUDY

1. To identify the functions, duties, responsibilities and maintenance of each

departments.

2. To verify how far the organization structure is successful in accomplishing the

objectives of Kerala Kaumudi (P) Ltd.

1.2 METHODOLOGY

The study is primarily descriptive and analytical in nature. For conducting the

study both primary and secondary data were used. Primary data was collected by

observation and personal interviews with the managers and other staffs in the

organization.

Secondary data was collected from company records, previous studies

conducted in the organization and company website.

1.3 SCOPE OF THE STUDY

The study helps in bridging gap between the theory and practice of

management. It offers great scope to Kerala Kaumudi (P) Ltd in some areas where

they are considered weak. The scope of the study also extends to other media

companies and future researchers.

1.4 LIMITATIONS OF THE STUDY

1. An in-depth study was not possible because the time limit was the main

constraint.

2. Since Kerala Kaumudi (P) Ltd, is a private sector company, access to some

important information was restricted. This made some difficulties during the

time of analysis.

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2.1 NEWSPAPER INDUSTRY

When newspapers and magazines are combined, print is the world's largest

advertising medium. An increase in the newspaper sale has been witnessed in almost

all continents including Asia, Europe, Africa and South America except North

America, which registered a decline in the sales. Global newspaper sales rose 2.3% in

2006, India grew 13 %. Advertising revenues in paid dailies had been found up 3.77

per cent. China, Japan and India account for 60 of the world’s 100 best-selling dailies

while the five largest markets for newspapers are China, India, Japan, the US and

Germany.

2.2 HISTORICAL BACKGROUND OF NEWSPAPERS IN INDIA

Indian journalism on modern lives began in 1780 at Calcutta with the

publication of ‘Bengal Gazette’ by J.A. Hicky in England. This was followed by a

number of periodicals in English; mostly for the benefit of English people in India.

Vernacular journalism was slow on the uptake. Nevertheless, a number of periodicals,

most of them short lived appeared in India, in latter half of 19th century. Most of the

vernacular journals owned their origin to the national consciousness awakened by the

revolution of 1857 against British rule in India. Naturally the tone and the temper

displaced the British administration. The result was vernacular press act, 1878 which

strictly controlled Indian papers. With the growth of national movement drastic press

legislation followed one another such as the newspaper incitement Indian state act,

1922, official secrets act, 1923 and Indian states protection act, 1934 During the

second world war, when administrators wanted the cooperation of Indian people, a

gentleman’s agreement was concluded between the government and the press, which

resulted in the press advisory committee at the entire states. This give press a

consultative status.

Before partition, Lahore was the hub of print media and almost all the

newspapers of the United Punjab were published from there. After the holocaust

partition, the press shifted to Jalander and stated afresh with limited means. When

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India became independent, there was no longer any antagonism between the

government and the people. The press was free to play an entirely new role. In March

1947, the government appointed a press laws enquiry committee as a result on which

the urbanism provision of co operation between the government and the press was

inaugurated. Newspaper was published from all the starts and Union territories except

from Arunachal Pradesh and Lakshadweep. UP, claimed the top position with 3879

newspaper/ periodicals published from the states.

The Indian print media consists of 36 centenarians. Newspapers were brought

out in 93 languages and dialects. Apart from the sixteen principle languages, the

highest circulated newspaper ‘Yomini Shim bun’ founded in 1874 of Japan which

attained a figure of 14474573 on April 1, 1988. This has been achieved by totaling the

figures of editors published in various centers with a morning circulation of 5017984.

The bulkiest or the largest newspaper is the New York Times. Sunday edition dates in

1965 which had around 946 pages.

Newspapers in 1990 are an interesting thing to watch. It is filled with

information that ranges from cryogenic to cattle feeding, biotechnology to ladies

fashion to suit people in all walks of life. Newspapers have played an important role

in public affairs throughout the world, whether it is in USA or in India or anywhere.

Newspapers help citizen to these countries to know what is going on in their country

and in rest of the world as well. The growing electronic media is catching the

importance of newspaper. With the advent of satellite televisions the world has

contracted to our fingertips. Even then the newspapers role will not be much change.

It will continue as a society’s primary instrument for mass communication. In India,

newspapers are published in about 100 regional languages and dialects other than

Hindi and English. Over the years, the number of dailies has steadily increased. Their

number increased to 5638 in 2001 from 5364 in the previous year, i.e. by 5.11 per

cent. The total circulation of daily newspaper was 5,78,44,236 in 2001.

In 2001, The Hindu, an English daily, published from Chennai was the largest

circulated single edition daily with claimed circulation of 9,37,222 followed by

Hindustan times, English Daily, published from Delhi with a circulation of 9,09,278.

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Anand Bazar Patrika, Bengali daily, came third, whereas The Times of India, English

daily, was fourth.

With such a huge number of newspapers and such enormous circulation, the

supply chain model for the newspaper industry is a challenge in itself. Moreover, due

to the perishable nature of the product, its distribution needs all the more importance.

A newspaper industry consist five major functional areas include editorial,

advertising, production, administration, and circulation. Editorial supplies the raw

material, which is transformed to the finished product through printing. The

marketing function is performed by advertising and management is done by

administration. The key area of sales of the product is dealt by circulation. The

distribution channel plays an important role in newspaper industry.

Newspapers are those goods which are perishable to both the manufacturer

and the customer. Newspaper companies cannot print the news sections of the

newspaper in advance because of the requirement that news be timely. Additionally,

with the increase in commuting times, especially in the large, metropolitan markets,

later delivery is also not entertained. Therefore, newspaper production or distribution

is the problem of distributing highly perishable products under severe time

constraints.

The newspaper industry is becoming very competitive with the national

players competing with the regional players. Newspaper is a perishable commodity

and in order to cater to needs of the customer in various geographical locations, a

newspaper has to publish from various locations. This helps in achieving a strategic fit

between the supply chain and customer needs.

The consumers are primarily looking for a national newspaper giving regional

news as well. Consumers also demand faster response because of the perishable

nature of the product. In order to economize on the costs of the supply chain, the

newspaper needs to have regional publication units with both national and regional

news varieties in the same newspaper.

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As has been shown by various studies, newspaper readers do not want to spend more

on reading a newspaper. Thus an economy of scale is very important factor for a

newspaper. Newspaper should achieve a critical mass of customers to achieve

economies of scale. The main drivers of supply chain are inventory, transportation

facilities, and information.

Newspapers are very important in many ways. They give us lots of

information about various matters at various levels that are available anywhere.

Though magazines and books also give lots of information, the scope of the news

there is limited to a few selected topics. Television and internet connections while

provide news faster than the newspapers, it cannot have the width, breadth and depth

of the newspapers and do not provide the comfort of the repeated references at our

leisure and comfort apart from harming our eyes because of the glare and being the

source of health hazards because of radiations.

2.3 International Newspapers

There is also a small group of newspapers which may be characterized as

international newspapers. Some, such as Christian Science Monitor and The

International Herald Tribune, have always had that focus, while others are repackaged

national newspapers or “international editions” of national-scale or large metropolitan

newspapers. Often these international editions are scaled down to remove articles that

might not interest the wider range of readers.

As English has become the international language of business and technology,

many newspapers formerly published only in non-English languages have also

developed English-language editions. In place as varied as Jerusalem and Bombay

(Mumbai), newspapers are printed to a local and international English-speaking

public. The advent of the Internet has also allowed the non-English newspapers to put

out a scaled-down English version to give their newspaper a global outreach.

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Features of a newspaper may include:

Editorial opinions

Comics strips and other entertainment, such as Crosswords, Sudoku and Horoscopes

weather news and forecasts

Advice, gossip, food and other columns

Critical reviews of movies, plays, restaurants, etc.

Classified ads

While most newspapers are aimed at a broad spectrum of readers, usually

geographically defined, some focus on groups of readers defined more by their

interests than their location: for example, there are daily and weekly business

newspapers and sports newspapers. More specialists still are some weekly

newspapers, usually free and distributed within limited areas; these may serve

communities as specific as certain immigrant, or the local gay community.

2.4 NEWS PAPER BUSINESS IN KERALA

Kerala has a rate of newspaper readership that is among the highest in the

world. In Kerala, there are approximately 1576 newspapers in circulation! Among

these, only a few newspapers are widely circulated with a good number of readers.

2.5 LEADING MALAYALAM NEWSPAPERS

Malayala Manorama:

First appeared on 14th March 1890, as a weekly, currently has a readership of

over 15 million, with a circulation base of over 7.4 million copies.Manorama is

Kerala's largest selling and most widely read newspaper.

Mathrubhumi:

The first copy of Mathrubhumi went to press on 18th of March 1923.

Mathrubhumi today is the second most circulated newspaper in Kerala. It is published

from Calicut, Thiruvananthapuram, Kottayam, Ernakulam, Thrissur, Kannur,

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Palakkad, Malappuram and Kollam besides from Chennai, Bangalore, Mumbai and

New Delhi It has a circulation of over 13 lakhs and its readership is around 75 lakhs.

Deshabhimani:

A Malayalam newspaper run by Communist Party of India (Marxist). Started

as a weekly in 1942 and converted to a daily in 1946. Deshabhimani now has six

different editions: Kozhikode, Kochi, Thiruvananthapuram, Kannur, Kottayam and

Trichur.

Kerala Kaumudi:

A popular Malayalam newspaper, founded in 1911. Published from

Thiruvananthapuram, Kollam, Alappuzha, Kochi, Kozhikode, Kannur in Kerala and

Bangalore, Kerala Kaumudi is the fourth most circulated Malayalam daily. The paper

has online editions in Malayalam and English that are updated twice daily.

Deepika:

One of the oldest newspapers published in India. The first issue came out on

1887 April 15. Deepika publishes editions from Kottayam, Kochi, Kannur, Thrissur,

Thiruvananthapuram and Kozhikode

Other dailies in circulation include Madhyamam, Thejas Mangalam,

Janayugam, Varthamanam, Chandrika, Janmabhumi, Sirajdaily, and

Grihasree.

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Company Profile

Kerala Kaumudi, the fastest growing Malayalam daily, owes its genesis in

1911, to the visionary, Shri C V Kunjuraman, a man of letters and a teacher. He was

also a reversed intellectual, social reformist and a true revolutionary in both letter and

sprit. Under his inspiring leadership, Kerala Kaumudi has set high standards in

journalism. Kerala Kaumudi shot into limelight following the Quit India Movement.

The term “Kaumudi” implies ‘moonlight’ that blossoms the water lily. In other words,

“Kerala Kaumudi” enlightens the entire keralites. Truly speaking, Kerala Kaumudi

spearheaded with a missionary zeal to enlighten the underprivileged and downtrodden

masses in the society. Shri K Sukumaran became the embodiment of Kaumudi-the

full moon in enlightening the masses in the moon balanced green of Kerala. This is

an apt interpretation of Kerala Kaumudi.

Because of its fearless unbiased editorials and relentless dedication, the term

“Kerala Kaumudi” becomes immortal and permanently etched in the minds of

common man. And it is precisely these qualities that prompted the nation to confer on

the founder Editor P Sukumaran, one of its highest civilian honours, the prestigious

Padmabhushan. The Kerala Kaumudi legacy has been its constant pursuit for truth

and unparalleled excellence in Journalism.

Kerala Kaumudi became a daily news paper on 1st November 1940. From its

humble beginning as a single edition news paper of Thiruvananthapuram, Kerala

Kaumudi has spread out to cover other parts of the state and the country with editions

from Kollam, Alappuzha, Kottayam, Cochin, Thrissur, Kozhikodu, Kannur,

Bangalore and Gulf. Now Kerala Kaumudi is celebrating its 99 years of publication

Pioneer

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Kerala Kaumudi is the first newspaper to introduce ‘Investigative Journalism’

under the dynamic leadership of its Founder-editor, Padmabhushan K Sukumaran. It

was the first among the newspapers in Kerala to introduce new technologies like

photo type setting, cable transmission and computerized accounting. It was also one

among the first few news papers to launch an internet edition.

CORPORATE OFFICE

The registered office of the company named “Kaumudi Buildings” is located

at “Pettah”, a developed part in Thiruvananthapuram city. It is the place where the

administration of the company is being carried out.

3.1 VISION AND MISSION

Shri C V Kunjuraman started Kerala Kaumudi as a weekly in 1911 with a

vision to spread over the principles of Sreenarayana Guru. Kerala Kaumudi

spearheaded with a missionary zeal to enlighten the underprivileged and downtrodden

masses in the society. Kerala Kaumudi has always worked for the development of

society with its Forth right news and fearless views. “Stress on credibility and

unbiased reporting” which is the motto of the Kerala Kaumudi since 1911.

3.2 OBJECTIVES OF THE COMPANY

1. To carry on business of proprietors and publishers of news paper, journals,

magazines, periodicals, books and pamphlets and other literary works and

undertakings.

2. To understand and execute any trusts or to act as trustees or to do any other such

act as may seen desirable or beneficial whether with or without consideration.

3. To establish, maintain and promote any agency or branch offices of the company

in India or elsewhere and to regulate the same or discontinue the same.

4. To promote any other company or companies for the purpose of acquiring any

privilege, concession, property or assets of any person, firm or undertakings or

other rights and liabilities of such other company or companies or concerns or

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business as the case may be as conductive to or beneficial for the purpose of the

company.

3.3 CIRCULATION AND READERSHIP

Total circulation of Kerala Kaumudi daily comes around 1.5 lakhs and flash

around 2.5 lakhs. Today Kerala Kaumudi has 2.5 million strong readerships.

3.4 SHARE CAPITAL

The authorized capital of the Company is Rs 30,00,000 (Thirty Lakhs) divided

into 3000 Equity shares of Rs.1000 each. Shares shall be under the control of the

Directors who may issue, allot or dispose of same to such persons and for such

consideration and upon such terms and conditions as they may think fit.

The company may form time to time by ordinary resolution increase its share

capital by such amount as it thinks expedient by issuing new shares of such amounts

as it thinks fit.

3.5 GROWTH AND PROFITABILITY

The Kerala Kaumudi has been working in profit ever since in its

establishment. Profits are essential for the survival of the business. They cover the

risks and cost of staying in business. Profits maintain the revenue generating capacity

of the business.

3.6 RAW MATERIALS

Materials constitute a significant part of cost of products. The important raw

materials needed for the company are

1. News print

2. Ink

3. Plate

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News print is allocated based on requirements of newspaper by Registrar of

News papers of India, New Delhi and supplied mainly by STC of India. The STC

supplies the imported news print Canadian, Russian etc.

3.7 SISTER CONCERNS

1. Kalakaumudi Printers and Publications

2. Ravi Printers and Publications Pvt Ltd

3. Kaumudi Investment Pvt Ltd

3.8 COMPETITORS TO KERALA KAUMUDI

1. Malayala Manorama

2. Mathrubhumi

3. Deshabhimani

4. Mangalam

5. Deepika

3.9 SOCIAL RESPONSIBILITY OF THE COMPANY

The specialty of Kerala Kaumudi Products is that they are offered at fair prices,

which is affordable to the common man. Their contribution towards the development

of local community life is a notable one and it is working in public interest. Kerala

Kaumudi (P) Ltd has brought many sensitive news like Palmoil case, SSLC question

paper leak out etc. Kerala Kaumudi has been obsessed with truth over 96 years.

Kerala Kaumudi has always worked for the development of society with Forth right

news and fearless views. “Stresses on credibility and unbiased reporting”, which is the

motto of the Kerala Kaumudi since 1911.

Kerala Kaumudi‘s crusading journalism has made a class of its own in the lives

of Malayalees. The newspaper’s constant effort to safeguard the policy of communal

reservation in Kerala is a shinning example Kerala Kaumudi’s strong commitment to

the welfare of the state. Kerala Kaumudi is the mastermind behind innumerable scoop

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stories, which demolished the ivory towers of many unparallel “icons” of Kerala

politics.

3.10 FUTURE PLANS OF THE COMPANY

The company is planning to start two media channels from 2011, the 100th anniversary

year, namely kaumudi news channel and kaumudi entertainment channel which will

be launched from February 2011 most probably.

The company has many plans for its future. More editions are to be launched in near

future as part of Kerala Kaumudi’s ambitious plan to expand its coverage to more

areas.

The company wants to impart some new equipments and machineries for speedy and

smooth production. The company needs more efficient technicians and to compete

with others. The company wants to conduct training programmes for employees.

The company wishes to provide more effective and efficient labor welfare facilities to

its employees. It provides many employment opportunities.

3.11 PRODUCT PROFILE

PRODUCTS OF KERALA KAUMUDI

1. Kerala Kaumudi publications

1. Kerala Kaumudi daily

2. Kerala Kaumudi Flash

3. Kerala Kaumudi weekly

4. Kerala Kaumudi Panchangam

5. Kerala Kaumudi Calendar

6. Kerala Kaumudi Onam special

7. Kerala Kaumudi Sabarimala Special

8. Career Directory

9. Sree Narayana Guru Directory

10. Magic Slate

2. Kerala Kaumudi Communications

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Kerala Kaumudi Communications focuses on audio entertainment creations. The

Kerala Kaumudi “GEETH” series compiles melodious mixes of old and new numbers

sung by all-time favorite Malayalam singers. A group of musical experts carefully

select the combinations to ensure that each release is sensitized to suit the tastes of a

unique segment.

3. Kerala Kaumudi Events wing

A team of eminent professional organizes, conducts, and concludes all kinds of

promotional events with a touch of class. This wing also organizes variety of shows,

shoots; arrange sponsors and broadcasts stage events on leading Malayalam channels

worldwide.

4. Online publications

Kerala Kaumudi leaped into internet 1997 in their business in online publications

are a natural growth into cyber age of Kerala Kaumudi. Kerala Kaumudi internet

division or cyber studio has emerged as one of the leading web publishers of Kerala.

24 hour data updation is done here. It is the chief source of information for NRIs from

Kerala. Kaumudi sites growth and success spring from their conscious awareness of

the huge expatriate malayalee population and their abiding interest in their home land.

1. www.keralakaumudi.com {Malayalam Daily)

2. www.kaumudi.com (English Daily)

3. www.kaumudijalakam.com (bilingual news magazine)

4. www.sundaykaumudi.com (web tabloid).

5. www.kaumudiclassifieds.net

6. www.kaumudiusa.com (the newest addition to Kerala Kaumudi galaxy of

websites)-bilingual multicultural site

Kaumudiusa.com is an exclusive bilingual North American Malayali targeted

site, kaumudi jalakam, an innovative Malayalam net weekly and Kaumudi online, a

net-only English daily, have proved to be big draws with expatriate keralites.

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CHART NO.1

Organization Chart of Kerala Kaumudi

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Managing Director or Joint Managing Director

Chairman/ Editor in Chief

Board of Directors

Chief General Manager Marketing director

Corporate Administration

Business Units Administration

Corporate Heads

Human Resource Management

Production Head

AGM (Marketing)

Chief Manager (Finance & Accounts)

Unit Chief

Unit Manager

Managing Editor

Editorial Department

Associate Editor

Chief News Editor

General Editor

Chief Manager (Special Projects)

General Manager

Company secretary

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The above organization chart provides a bird’s eye-view of relationships

between different departments or divisions of Kerala Kaumudi (P) Ltd. As far as

Kerala Kaumudi (P) Ltd is concerned Chairman/ Managing Director is at the top of

the Organization structure. Mr. M S Mani is the Chairman of the company. He also

holds the position of the Chief Editor of the company.

Kerala Kaumudi (P) Ltd is a private sector company which is registered under

Indian Companies Act, 1913. At present board of directors includes Shri M S Mani,

Shri M S Madhusoodhan, Shri M S Sreenivasan, and Shri M S Ravi.

Shri M S Sreenivasan is the present M.D and Joint Managing Director of the

Company. Chief General Manager, Company Secretary and Managing Editor are

directly controlled by the Managing Director.

Smt Anju Sreenivasan is the Chief General Manager. Shri Deepu Ravi is the

Managing Editor of the company. The Editorial Department is under the control of

Managing Editor.

Corporate Administration and Business unit administration wings are controlled

by General Manager, Shri M K Karthikeyan. Corporate Heads include the corporate

department heads of Kerala Kaumudi. The functional departments are Human

Resource Management, Production department, Marketing Department, Finance and

Accounts Department and Special Projects. Assistant General Manager (Marketing)

controls Space Marketing Department, New Product Marketing department and

Debtors Collection Management Department.

4.1 ADMINISTRATION

Kerala Kaumudi (P) Ltd carries out its functions and manages its affairs

through the following managerial personnel.

1. Board of Directors and Managing Director

2. Company Secretary

3. Chief General Manager

4. General Manager and Functional Managers

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5. Unit Chiefs

POWER OF DIRECTORS:

1. To appoint and at their discretion remove or suspend such managers, secretaries,

officers, clerks, agents and servants for permanents, temporary or special services as

they may from time to time think fit.

2. To appoint any person to accept and hold in trust for the company any property

belonging to the company

3. To secure the fulfillment of any contract or engagements entered into by the company

4. To purchase or otherwise acquire for the company any property, rights or privileges

which the company is authorized to acquire

5. To give receipts, releases and discharges on behalf of the company

6. To invest and deal with any moneys of the company not immediately required for the

purpose of its business in such manner as they think fit.

7. To draw, accept, endorse and negotiate all such cheques, bills of exchange, drafts,

promissory notes and government and other securities in connection with the

business.

8. The vacancy occurring in the Board of Directors shall be filled up by the Board of

Director who may fix the period for which such Director shall hold office

Duties of General Manager

1. Leads the administration, marketing and circulation department.

2. Formulate a financial budget and planning in tune with the growth and stability of the

organization.

3. Advise the top management on appropriate steps to be taken to make this a better

organization so that each and every employee feels he is a valuable member in the

organization and develop better a team concept for enabling him to contribute his

best.

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Functions of Company Secretary

Company secretary is an officer of the company, who has certain responsibilities

under the law and under any duties passed to him by the directors. The role of

company secretary is administrative rather than managerial. The functions are..

1. The company Secretary performs all duties that he is required to perform under

the Companies Act.

2. He supplies required data to the company’s advocates in connection with legal

matters.

3. He is directly accountable to Board of Directors.

Functions of Unit Chief

1. Head of unit task force

2. Formulates the task force decisions

3. Coordinates the activities of each unit

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4.2 EDITORIAL DEPARTMENT

Editorial department is considered as the nucleus of every newspaper

company. This department plays a major role of collecting the news till printing.

Teams of experts are working in this department. Each page of the newspaper is

drafted by separate group of people. The selection of news, the headlines and the way

of presentation are all done by the journalists. The life stories of an individual is

always presented in an inverted pyramid i.e., beginning from their death till their time

of birth and the main source of this information is a well equipped library. As name

implies the reporters, general public and correspondents bring the news. The copy

desk handles the general news and local desk handles the local news. The news

bureau gathers the news and the news desk edit and proof reads according to the style

book. There is a deadline for each news. The headings are given by the editors.

MOTTO OF KERALA KAUMUDI

“Stress on credibility and unbiased reporting”

ORGANIZATION STRUCTURE OF EDITORIAL DEPARTMENT

Company has an efficient news team. And its wide network is spread through

out the country. It has 9 editions spreads over Kerala, Bangalore. The newspaper

stresses on credibility and that is the only reason why Kaumudi is still a major player

in the market.

The Editorial Department is headed by the Chief Editor. Under him come

Managing Editor, Executive Editor, Associate Editor, Deputy Editor and Chief News

Editor. Under them come the News Editors, Deputy News Editor, Chief Sub Editor,

and Senior Sub Editors and Sub Editors.

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CHART No.2

Structure of Editorial Department-daily

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Chief Editor

Managing Editor

Executive Editor

Associate Editor

Chief News Editor

Editorial Section

Chief Sub Editor

Senior Sub Editor

Sub Editor

Bureau Chief

Chief PhotographerChief Reporter

Senior Photographer

Special correspondent

Senior Reporter

Reporter Photographer

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CHART NO.3

Structure of Editorial Wing - Flash

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Managing Editor

General Editor

Editor in-charge

Chief Sub Editor

Bureau Chief

Chief PhotographerChief Reporter

Senior Photographer

Special correspondent

Senior Reporter

Reporter Photographer

Senior Sub Editor

Sub Editor

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CHART NO.4

Structure of Editorial wing - Magazine

4.1 DUTIES AND RESPONSIBILITIES

Chief Editor

Chief Editor controls the functions of the editing and reporting sections. Editorial

Policies of News paper are formulated by the Chief Editor.

Executive Editor

Executive editor is responsible for the execution of the policies formulated by the

Chief Editor. He undertakes planning, administration and implementation of the policies

in consultation with the Chief Editor.

Associate Editor

Associate Editor monitors both national and international news

Chief News Editor

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Managing Editor

Sub editors

Trainees

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Works according to the policy of the management

Gives orientation

Gives suggestions for improvement to the Department

Gives overall guidance

News Editors

News Editors edits general news / monitors television channels and internet.

Sub editors

Sub editors engage in news translation and editing activities

4.3 PRODUCTION DEPARTMENT

The hierarchy of production department starts from editorial department. It works

in connection with DTP section and Circulation Department. Edited news from the

editorial department reaches the DTP section through news editors. From DTP section it

is send to proof reading section then again to the DTP section then to the News Editor.

He decides the intensity of the matter and he sets news in different pages. The news

editor also decides upon the different size of caption used for different news. After the

page transfer is done.

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CHART NO.5

STRUCTURE OF PRODUCTION DEPARTMENT

DUTIES AND RESPONSIBILITIES

Electrical Section

Electrical section deals with repairing all electrical equipments, maintenance of

motors in order to avoid any break down during production. It is the duty of electrical

engineers and electricians to make sure the uninterrupted power supply in the department.

Mechanical Section

Mechanical wing deals with the repair maintenance, preventive maintenance and

shut down maintenance for machines. For this minimum numbers of persons employed.

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Editorial department

Production Head

Mechanical section Electrical section Print production

Mechanical engineer

Asst. mechanical engineer

Fitters

Electrician in charge

Asst. electrician

Production manager

Production superintendent

Supervisors

Foremen

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They will try to solve any problem relating to the machines. Assistant Engineer assists

the Mechanical Engineer for maintenance works. Fitters help the Assistant Engineer for

doing maintenance work. They check and maintain the press in good condition.

Print Production

The basic function of production department in Kerala Kaumudi is printing

newspapers. The printing of Kerala Kaumudi newspaper is undertaken by M/s. Ravi

Printers and Publishers Private Limited. Printing is done in accordance with the print

order given to the foreman by the Circulation Department. Raw materials for printing are

issued by the Materials Department. Printing of news paper is after 12.00a.m. Printing of

Flash begins at 11.45 and Magazine printing is on every Monday 3.00 p.m.

The Print Production section mainly handles the following functions.

Pasting

Plate making

Printing and

Despatching

RAW MATERIALS

I. News print

The size of newsprint is 70cm and 45 GSM (Gramage per square meter). As the

GSM increases copies decreases and vice versa.

The main supplier of newsprint Hindustan News print Ltd, Kottayam. Imported

deluxe quality news print are Supplied by Pondar Global Ltd, New Delhi. Low quality,

recycled news print is supplied by V.G.Paper and Boards Ltd, Udumalpet, Sarvalekshmi

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Paper and Boards Ltd, Coimbatore and Vishnupriya Papers, Chennai. These newsprints

are used for the printing of inner pages.

II. Ink

Two types of inks are used for printing.

a. Black ink: Suppliers of black ink are Shalimar Inks and Chemicals, Aluva and

Orient Inks, Kozhikodu

b. Colour Ink: Suppliers of colour ink are Galilia Chemicals, Cochin M.R.

Industries, Calicut. High quality ink which is used for printing advertisement

columns are supplied by Coats Ink, Kalyan Marketing, Cochin.

III. Plates

Aluminum Plates are of three types: long, medium and short run. Long run plates

are used for producing main pages in all editions. From a short-run plate 10,000 to 15,000

copies can be printed. These plates are procured from the dealers of TECHNOVA,

Standard Missionary Sales Company, Patoor, Thiruvananthapuram and dealers of NIRAJ,

News Graphics, Kottayam. The imported plate dealers are TOPAZ.

IV. Chemicals

Chemicals consumed are developers, universal wash, fountain solution, remover and

plate cleaner, Chemicals for film development-developer and fixer.

V. Graphic Art film

Usually films produced by Kodak and Agfa are used. Kodak films are supplied by Trade

Links Ltd, Cochin and Agfa films are supplied by Krishna Agencies, Cochin.

VI. Laser printer films

VII. Tracing paper

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4.4 PROCESS OF NEWS PRODUCTION

Newspapers are usually printed on an off-white paper known as newsprint. Making of

newspapers is called journalism. Much emphasis has been placed upon the accuracy and

fairness of the journalist.

The actual content of publications comes from two separate departments. The ads,

whether they be what many refer to as "display" ads (the ones with the borders around

them) or "line" ads (the categorized listings of text ads usually found in the classified

section) are sold and often produced by the Space Marketing Department. Everything

else--the news, features, columns, photos, and stock quotes--all of that comes from the

editorial department and is referred to as "editorial content" or simply "editorial".

1. SOURCES

Agencies like PTI (Press Trust of India), UNI (United News India).

Public Relations Department

Political leaders

Television/Internet

Police Stations

2. REPORTING

Reporting comprises a wide network and an efficient team of reporters. They report the

news in an unbiased manner. The reporting section is headed by Bureau Chief. Under

him comes the Special Correspondents, Senior Photographers, Photographers,

Chief Reporters, Senior Reporters, Reporters and the Trainees. The Bureau is connected

to the desk of editing section. The company has 42 local Bureaus.

3. NEWS STORY

Usually, the stories will run down columns two-and-a-sixteenth inches wide, with an

eighth-inch blank space between the columns. And since ads often appear on the same

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pages as the editorial content, although it would make sense that the column width that

editorial uses always matches up with what advertising defines as a column, occasionally

there are exceptions.

4. EDITING

This section comprises of various desks: Local desk, Main desk, Feature desk, Sports

desk and International desk. Here the selection, editing of news, selection of

photographers, page layout, and coordination is carried out.

Functions of Various Desks

Local Desk

Local desk edits all local news. The desk is headed by Chief Sub Editor, and under him

comes the Senior Subeditor, Subeditors and Trainees.

Main Desk

Main desk edits all general news, political news, science news, national news etc. It is

headed by the Chief main desk and under him comes the News Editor, Chief Editor,

Senior Sub Editor, Sub Editors and Trainees.

Feature Desk

Feature desk edits the editorial page. It is headed by Resident Editor and under him

comes Senior Sub Editor, Sub Editors, and trainees.

Sports Desk

Edits all sports news .It comprises of News Editor and Trainees.

International Desk

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Edits all international news. Headed by Chief Sub Editor, under him comes Sub editor

and Trainees.

4.5 DTP SECTION

DTP is a part of the Editorial Department. DTP manager is the head of the DTP

section. Pre press activities are under taken in this section. Adobe Page Maker 7.0 is the

software used for pagination.

The functions performed in the DTP section can be listed as follows:

Firstly, the advertisement layout is setup with the requirements of advertisement

coordinator by the operator.

The remaining space on the newspaper is devoted for news.

The data supplied from the desk is scanned and entered into the computers by the

operators.

Advertisement in the PDF format from the agencies and the photographers are

entered into computers through scanners.

CHART NO.6

Activities of DTP Section

Composing

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Editorial

Composing Proof section

Page Layout

Laser Print/ film

Film pasting Plate making

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In DTP section, data entry of the matter handed over by the editorial section is

undertaken. All the input materials such as photographic reflections, originals, non-

photographic pictures are converted into digital files and resized as per requirement.

Transmission Section transfers General pages to all editions through ISDN broadband

lines. Almost eighteen staffs are working in this section in 4 rotating shifts.

Proof Section

A miniature printout of A4 size will be send to editorial proof and advertisement

proof section. Corrections are carried out after proof reading by the operators.

Layout

Then each page is made by the concerned desk chiefs with the support of

operators. Matter is sorted again and page order is checked. Layout sheets are marked

with vertical lines that correspond to the column widths of your publication, as well as

horizontal markers that correspond to the units your newspaper uses to measure the

height of the ad, usually inches or centimeters.

Laser Print Output

Black and white pages are printing in laser printer.

Image Setting

The matter pages containing four colours i.e. the primary colors, cyan, magenta,

yellow and black composed in PageMaker are converted to Post script files or pdf format

using Torrent v6.0 SP3 software. These files are transferred to Graphic Art films using

an imported Image setter machine, ‘Scantext Othello’. These graphic art films are

processed in the machine ‘Image Line’. After taking final full sized printout of each page

on LP/ film, these will be handed over to the Production department.

Stripping

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Color negatives are stripped together for each page. A blue-line print is made

from stripped-up negatives and is used to check image position before printing.

Pasting

The prints are pasted on the astronel sheet.

Plate making

The plate is produced by a photo chemical procedure. The astronel sheet is

placed on an Aluminum sheet with a chemical coating and vacuum is applied on it. After

this process it is exposed to an u.v .light of 3000 W for 85 seconds. When the plates are

exposed to light, a chemical reaction occurs that allows an ink-receptive coating to be

activated. This results in the transfer of the image from the negative to the plate. Each of

the primary colors -- black, cyan (blue), magenta (red), and yellow -- has a separate plate.

The light passes through the non-image area and it is developed by using a developer.

Then gum is applied on the plate to avoid oxidation. The next step after plate making is

the printing.

Printing

Offset lithography is the workhorse of printing. Almost every commercial printer

does it. The paper is fed through the press as one continuous stream pulled from rolls of

paper. Each roll can weigh as much as 2,000 pounds (1 ton) Web presses print at very

high speeds and use very large sheets of paper. Even when a 1-ton roll of paper runs out,

the presses do not stop rolling. The press has to maintain a constant balance between the

force required to move the paper forward and the amount of backpressure (resistance)

that allows the paper to remain tight and flat while traveling through the equipment.

Offset process

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Ink and water do not mix -- this is the underlying principle of offset lithography.

The ink is distributed to the plates through a series of rollers. On the press, the plates are

dampened, first by water rollers, then by ink rollers. The rollers distribute the ink from

the ink fountain onto the plates. The image area of the plate picks up ink from the ink

rollers. The water rollers keep the ink off of the non-image areas of the plate. Each plate

then transfers its image to a rubber blanket that in turn transfers the image to the paper.

This process is shown in the following figure. The plate itself does not actually touch the

paper -- thus the term "offset" lithography. All of this occurs at an extremely high speed.

The quality of the final product is often due to the guidance, expertise and

equipment provided by the printer. Print quality is checked frequently by the press

operator.

Bindery

The bindery is where the printed product is completed. The huge rolls of now-

printed paper are cut and put together so that the pages fall in the correct order. These

printed news papers are manually collected, counted and packed into bundles as per the

requirement of the agents and attaches a slip containing number, number of news papers

enclosed etc.

Dispatching

These bundles are sent through different routes to various destinations or

dropping points. Just before reaching the ultimate consumers or readers, the newspaper

bundles are collected by the concerned agents at the dropping points. They in turn take

the newspaper to the readers.

4.6 SPACE MARKETING DEPARTMENT

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Marketing department deals with the space marketing of classified advertisements and

display of its publications. Advertisements have been a major source of revenue for the

newspapers and periodicals. Most newspapers make nearly all their money from

advertising. The portion of the newspaper that is not advertising is called editorial

content. Every ad the Company sell will need to conform to the column widths of the

newspaper. The width of every newspaper page can be broken down into columns of

equal size. How wide a column can be seen by looking at how the editorial copy flows on

a page. Usually in the case of news paper 60% of space in it is meant for news and 40%

of space is meant for advertisement.

FUNCTIONS

Planning, analyzing and implementation of advertising activities.

Monitoring advertisement collection activities.

Coordinating the activities relate with publication of regular and periodical

supplements.

Coordinating the activities of the field executives both inside and outside Kerala.

Research and development activities to update with changes in the industry.

Arranging periodical get together of advertisement agencies and regular clients.

Conducting periodical training programs for Marketing Executives.

CHART NO.7

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STRUCTURE OF SPACE MARKETING DEPARTMENT- Flash & Morning Daily

DUTIES AND RESPONSIBILITIES

42

HariHari

Asst Manager – Debtors Mgmt

Receivablesteam

Assistant General Manager

Manager Corporate Operations

Manager Debtors Mgmt

Manager Flash Corporate

Asst ManagerCorporate Commn.

AAM – DTPOffice Asst.-

Cross CheckingOffice Asst.-

Voucher Billing Dispatch

RM –

RM –

RM –

A/c’s Executive

Bill wise Posting

A/c’s Officer

Billing

AM Weekly

Unit Advertisement Managers Marketing Executives

Customer care executives

Proof Reader 1 DTP Staff 2Proof Reader 2 Proof Reader 3 DTP Staff 1

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Assistant General Manager

AGM is directly accountable to GM.

AGM is the head of Space Marketing Department & Product Marketing

Department

Plans, analyses and implement the entire activities in these departments.

Member of corporate task force.

Coordinates the entire department.

Manager – Corporate Operations

Weekly and monthly evaluation of all units advt head.

Coordinating the Billing Activities of all units.

Settlement of requirements of all unit advt departments

Involved in the work of corporate advt materials like rate cards proposals etc.

Unit wise communications

Dealing with corporate clients and agencies

Asst. Manager – daily

Looks after all the activities connecting to advt. dept

Controls the space marketing activities of Trivandrum unit (billing, collection and

office administration)

Planning meetings,

Follow-up units of customer along with executives,

Monitoring the executives ,

Collection monitoring,

Bureau monitoring,

Conducting evaluation meeting on daily basis

Asst. Advertisement Manager – DTP

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Act as liaison between DTP and Advertisement

Ensuring of scheduled ads to be carried in daily basis

Ensuring timely settlement of ad matters to be present in Daily

Coordinating the entire activity for ad placing in Daily

Customer care executives: handle the clients and explain the schemes and services to

them.

Office Asst: carries out the cross verification of advertisements before dispatch, bills the

advertisements as per the prescribed rates (see appendix) and sends these to the clients.

Sources of Advertisements

1. Marketing Executives

2. Government Organization

3. Stringers

4. Advertising Agencies

Types of advertisements in Kerala Kaumudi

1. Classified Advertisements: Classified advertisements will be shown in one

line or three like accommodation wanted or available, change of name, thanks

giving etc.

2. Matrimonial Advertisements: It is a kind of classified advertisement. Ads like

bride, groom wanted etc are matrimonial advertisements.

3. Ear panel Advertisement: The advertisement is shown on the top position in

the front page on the left or both sides. This is an important source of income

for the newspaper.

4. Display Advertisement: Display advertisement will be shown with in a box

on any page of the news paper. The advertisement is usually given in two or

more

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lines or quarter page or half page or full page .This is also a high income source for the

daily.

Special Position Advertisement

1. Solus advertisement

In the case of solus advertisement only particular advertisement is shown on the

front page and all other advertisements are avoided. For this advertisement, the customer has

to pay a high charge for covering opportunity cost.

2. Strip advertisement

In the lower half of the front page there is only one advertisement is allowed. Here also

the advertiser compensates the opportunity cost.

4.7 PRODUCT MARKETING DEPARTMENT

The Product Marketing Department takes care of everything after the newspaper is

printed. This department is responsible for encouraging people to start or keep reading

the publication Kerala Kaumudi is having fourth position in circulation. The first, second

and third positions are held by Malayala Manorama, Mathrubhumi and Deshabhimani.

Total circulation of Kerala Kaumudi daily comes around 1.5 lakhs and flash around 2.5

lakhs. Today Kerala Kaumudi has 2.5 million strong readerships Product Marketing

Department is concerned with promoting the news paper there by increasing its

circulation. It is a source of revenue for the newspaper. It is mainly concerned with

distribution and collection of amounts from the agents.

FUNCTIONS

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Strengthening agency network

Boost up circulation

Creating awareness

Increase in demand

Supply

Market research

Product Improvement

CHART NO. 8

STRUCTURE OF PRODUCT MARKETING DEPARTMENT- FLASH & DAILY

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Asst General Manager

Chief Circulation Manager

Manager – Corporate Operations Manager – Corporate Operations

Regional Managers

Circulation Managers

Circulation Inspectors

Sales Promoters

Asst: Circulation Managers

Circulation Executives

DAILY FLASH

Regional Managers

Circulation Managers

Circulation Inspectors

Sales Promoters

Asst: Circulation Managers

Circulation Executives

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Chief Circulation Manger is the head of Circulation department both for Morning

daily and Flash. He is directly accountable to AGM. He plans and implements the

circulation strategies for daily and flash. He identifies the weak areas of circulation and

formulates competitive promotional techniques.

Managers–Corporate Operations of daily and flash coordinates directs and

controls the circulation activities of all the three zones viz: North, mid and south.

Circulation Manager checks the circulation figures. He should coordinate

Assistant circulation managers of all units. Morning daily and Flash Circulation Manager

is assisted by Assistant Circulation Manager of all units. Under them come the Sales

officer, Field Inspector, Promoters and Agents. The Assistant Manager is directly

accountable to the circulation manager. His main duties are Collection of cash from

agents using field promoters.

Circulation inspector inspects the promoters and enhances the circulation activity.

Promoters canvas the potential buyers. They resolve agents issue; collect from agents

and resolves issue between agents and subscribers.

Price of Kerala Kaumudi Dailies

Morning daily: Price is Rs.4.00 and on Sundays the price is Rs.4.50

Flash: Price is Rs.3

Schemes for subscription

5 year plan:

As per this plan the actual subscription amount is Rs.7272, Amount to pay is

Rs.6500, Saving is Rs. 772 Including free gifts-onam special panchagam and calendar for

5years

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3 year plan:

As per this plan the actual subscription amount is Rs. 4363. Customer has to pay

Rs.3900 only and he can save Rs. 463. Including free gifts-onam special panchangam and

calendar for 3years

2 year plan:

As per this plan the actual subscription amount is Rs.2909 Amount to pay is

Rs.2650, Saving is Rs. 259 Including free gifts-onam special panchangam and calendar

for 2years

1 year plan:

As per this plan the actual subscription amount is Rs.1454 Amount to pay is

Rs.1350 Saving is Rs. 104 Including free gifts-onam special panchagam and calendar for

1year

Publishers of commercial news papers strive for higher circulation so that

advertising in their newspaper becomes more effective allowing the newspaper to attract

more advertisers and to charge more for the service.

BUSINESS BENEFIT SCHEME

As per this plan the actual subscription amount is Rs.3695 Amount to pay is

Rs.2000 Saving is Rs. 1695 Including free gifts-onam special panchagam and

calendar for 1year.

In addition to 1 year subscription business firms will also get 5x2/10x1 size

black & white split edition free display advertisement.

KAUMUDI CENTENARY SBS

CENTENARY SBS- 1

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As per this plan the actual subscription amount is Rs 5016 the amount to be paid is

2500/- savings is Rs 2516. It includes 1year newspaper 1year weekly and 5x2 cm colour

free display advertisement.

CENTENARY SBS- 3

As per this plan the actual subscription amount is Rs 8549/- the amount to be paid is

5500/- savings is Rs 3049. It includes 3years newspaper 3years weekly and 5x2 cm

colour free display advertisement.

CENTENARY SBS-5

As per this plan the actual subscription amount is Rs12082 the amount to be paid is

8250/- savings is Rs 3832/- It includes 5years newspaper 5years weekly and 5x2 cm

colour free display advertisement.

4.8 DEBTORS MANAGEMENT DEPARTMENT

Debtors Management Department is a part of Marketing Department. The main purpose

of this department is to Streamline and make the debt collection activities efficient. This

department works in connection with the Space Marketing Department and Product

Marketing Department

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CHART NO. 9.

STRUCTURE OF DEBTORS MANAGEMENT DEPT.

FUNCTIONS

1. Know the customer (before and during relationship)

Credit check and monitor

Request additional financial information from customer

Gain intelligence from others in the sector about the customer’s payment record.

2. Define credit limit setting process

Use criteria to determine whether to grant credit to a customer formalize a

procedure to establish customer credit limits. Also put in place a periodic review

procedure.

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Product Marketing Dept

Space Marketing Dept

Assistant General Manager

Debtor manager

Asst. Manager

Sr Executive

Jr Executive

Account Asst.

Sr Executive

Jr Executive

Account Asst.

Collection executives

Collection executives

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Once a credit limit is established only increase limit for a customer by following

the same formal procedure as when the limit was established in the first place.

3. Synchronize the actions and attitudes of the sales and credit control teams.

Maintain a common policy within the company when dealing with debtors

4. Consider other forms of security or credit insurance Using financial instruments to get

paid, Inland Letters of Credit/Bills of Exchange.

5. Ensure the production of timely and accurate management information.

Understand what is happening in our Business Environment

Monthly management of figures to include aged debtor listings and weekly,

monthly review of overdue debtors

6. Assertive debt collection policy

Formalize a graduated sequence of letters/telephone calls

4.9 FINANCE DEPARTMENT

Finance department controls the overall transactions of the company. Kerala

Kaumudi has 11 editions spread over Kerala, Bangalore, Mumbai and Gulf. Kerala

Kaumudi has a centralized accounting system. All these units have to generate their own

funds through circulation, advertisement and other sources. The generated funds are

deposited to their respective bank account (Federal Bank) because the units have no

authority to utilize these funds. Cheque sanctioning process is carried out at corporate

office at Thiruvananthapuram with the approval and signature of MD & Director

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CHART NO.10

STRUCTURE OF FINANCE/ACCOUNTS DEPARTMENT

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Finance Manager

Accounts Manager/Officer

Corporate Accounts Head

Flash Morning daily

Advt.A/c Supervisor All units

Circulation A/cSupervisor All

units

Accounts Assistant

Clerks

Flash

Advt. A/c Supervisor(Corporate)

Circulation A/c Supervisor(Corporate)

A/c SupervisorGeneral A/c (Corporate)

Advt. A/c Supervisor(Corporate))

Head of Finance/Account

Circulation A/c

Supervisor (Corporate)

Accounts Assistant

Clerks

A/c SupervisorGeneral A/c

All units

Morning daily

Accounts Asst.

Clerks

Advt.A/c Supervisor All units

Circulation A/cSupervisor All units

Accounts Asst.

Clerks

Accounts Asst.

Clerks

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FUNCTIONS

In every month, the corporate office will sanction Rs. 10,000 to Rs. 20,000 in

advance as an imprest to all units for meeting their day-to-day expenses. At the end of the

month each unit will be sending their petty vouchers to corporate office for availing

credit to their imprest account.

COST CONTROL

Kerala Kaumudi is following different cost control measures. Cost control aims at

reducing inefficiencies and wastage and setting up pre determined cost and in achieving

them. Cost control is comparing of actual performance with the standards or targets and

taking corrective action if any deviation is occurred.

BUDGETS

Kerala Kaumudi is following flexible budget. Flexible budget is one which is

designed to change in accordance with the level of activity actually attained. It provides

budgeted cost at different levels of activities. It is prepared after making an intelligent

classification of all expense between fixed, semi variable and variable because the

usefulness of such a budget depends upon the accuracy with which the expenses can be

classified.

In Kerala Kaumudi most of the accounting and technical matters are such as

inventory control, production planning and control through linear programming, pay roll

accounting, sales accounting, budgetary control and standard costing are computerized.

DUTIES & RESPONSIBILITIES

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FINANCE MANAGER

Member of corporate task force.

Accountable to GM.

To give overall guidance to the functioning of the department.

To maintain the finance information system like Financial Analysis, Profit and

loss account analysis, Cash flow analysis, Inventory management, Budget

preparation and Project evaluation.

ACCOUNTS MANAGER

To coordinate all functions of Accounts department.

To supervise maintenance of cash books, ledger, journal etc.

To fulfill statutory requirements like TDS return filing, Advance tax payments,

Sales tax return filing, Fringe benefits tax, RNI return filing

HEAD OF THE FINANCE /ACCOUNTS

ADMINISTRATIVE FUNCTION

To perform the functions and duties of unit chief in the absence of unit chief.

To exercise the role of chief executive officer of a unit, next to unit chief.

EXECUTIVE FUNCTION

To advice the unit chief unit manager and task force in financial matters.

To forecast and estimate the financial requirements of units and to formulate short

term and long term plans, budgets, targets, standards etc.

To meet the financial requirements in time, raise funds from appropriate outside

sources and schedule the repayment.

To prepare monthly profit & loss A/c and to compare the actual with the financial

plans/target and to take control measures.

To monitor the collection of debts to ensure 100% collection.

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To ensure optimum use of resources to reduce cost of production.

To perform such other functions as may be prescribed by the corporate finance

head/top management.

INCIDENTAL FINANCE FUNCTION

Supervision of cash receipts and disbursement.

Proper custody and safeguarding important and valuable papers.

Record keeping and reporting.

Cash management and credit management.

Assist internal auditors/inspectors assigned by CTF members/corporate finance

head.

Verify documentary evidence in support of a transaction.

Exercise reasonable care and skill performing duties.

Disclose full and fair information to the UTF and CTF.

Awareness of financial position as on date.

To ensure proper sequence of work to detect errors and frauds.

Attend training and learning programmes and keep up to date in the area of

accountancy, finance and general business conditions.

ACCOUNTS ASSISTANT

Undertake various reconciliation works.

Ledger scrutiny on monthly basis.

Preparation of monthly Profit & loss A/cs

CIRCULATION ACCOUNTS SUPERVISOR

Monitoring billing and collection activities.

Sanctioning of credit adjustments.

Monthly closing of ledgers.

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Preparation of agents control accounts.

ADVERTISEMENT ACCOUNTS SUPERVISOR

Book adjustments entry

Monitoring billing and payment activities.

Prepare MRV (Monthly Return Verification) statement.

CLERKS

Voucher entry preparation

Filing vouchers and its cross verification

Preparation of receipts

Prepare all working papers and notes made.

Dispatch of bills

4.10 HUMAN RESOURCE DEPARTMENT

The management of Man is a very important and challenging job; important because it is

job, not of managing ‘men’, but of administering a social system. Human Resource

Management involves procedures and practices through which human resources are

organized and directed towards the attainment of the individual, social and organizational

goals.

Policy of HR Department

The policy of HR Department is to render effective administrative support to the

organization both at corporate level and unit level in a systematic and scientific manner

with special emphasis on human resource development and training with the laid down

quality policy of the organization.

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CHART NO.11

Structure of HR Department

Functions

HR manger is responsible for the management of the employees of both Kerala Kaumudi

and Ravi Printers and publishers. The main functions of HR department include:

Employment and placement

Recruitment, selection and placement as per the manpower requirements of the

company are the most important functions of HR Dept.

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General Manager

Human Resource Manager

Executive (HR)

Front Office

Executive

Office Assistants

Drivers Telephone Operators

Security Officer

Clerk/Typist

House Keeping

Canteen Dispatch Supervisor

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Training

It is the responsibility of HR Department to impart Training and development to

employees both at corporate and Units whenever required. The training programmes for

employees include induction, on the job training for non managerial staffs, off the job

training for managerial staffs.

Wage and salary administration

Compensation to employees is fixed as per the Wage rates fixed by the wage boards.

1. Proper allocation of work

2. Developing and maintaining motivation for work

Performance appraisal

Employee health, safety and welfare services

Kerala Kaumudi has a hazard free working environment. No accident has been reported

in the past years.

The welfare schemes include both Statutory and Non statutory schemes.

Statutory welfare schemes consists ESI, PF, EDLI, Profession tax and labor welfare fund.

Non Statutory schemes includes Canteen facility (subsidized rate), Vehicle allowance,

LTA (leave travel allowance), Kerala Kaumudi recreation club, Kerala Kaumudi

employee’s cooperative society, Kerala Kaumudi employee’s welfare forum, Mobile

allowance, Conveyance allowance, Medical allowance and City compensatory allowance.

I. Administering employee turnover and conducting exit interviews

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Employee turn over rate in the previous year was 7%. In some cases exit interviews are

conducted.

II. Industry relations

Maintenance of healthy and peaceful labor-management relations is the responsibility of

the HR Dept. This includes grievance handling, maintenance of discipline etc.

III. Trade Union

The existing trade union in the company is AITUC. Trade union is given management

participation mainly in the areas of recruitment, termination, employee linked insurance

etc.

DUTIES AND RESPONSIBILITIES

HR Manager is responsible for the overall administration of front office, House Keeping,

Drivers, Dispatch, Telephone operators and security officers

► Front Office Executive attends visitors and informs the concerned person. She keeps

attendance register of head office staff.

► House Keeping staffs are responsible for the good maintenance of office

► Dispatch section staffs are assigned to send courier from the corporate office and

prompt maintenance of dispatch register.

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4.11 SYSTEMS DEPARTMENT

Kerala Kaumudi started to implement computerization from 1998 onwards. Since 2006

they have been developing their own ERP (Enterprises Resource Planning) package.

System Department handles maintenance of hardware and development and maintenance

Software. As a part of boosting the implementation of MIS, the works on developing

systems technologies is improving.

CHART NO.12

Structure of system department

Duties & Responsibilities

System Engineer

He is directly accountable to GM.

Network administration.

System assembling.

Maintenance of network connectivity and data communication.

Hardware & system software maintenance.

System engineer

Asst. System Engineer

Programmer Hardware

System executives

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Asst. System Engineer

Developing, testing and implementing required application package.

Trouble shooting and upgrading installed application packages.

Provide training to staffs on the newly installing packages.

The recent achievements of systems departments include:

Decentralized work

Fast collection and payment of bills

Fast and comprehensive generation of MIS reports as per the requirements of top

management.

The computer network system of Kerala Kaumudi includes around 100 machines

and 3 servers. One server is for newspaper and for flash, one is for all periodicals and

other one is for software. The operating system used in servers is Linux and in client

system is Windows. Since 2006 system department has been engaging in the

development of in house ERP package (in Visual Basic) which is named as PRESS

SOFT. The customization of circulation module has already completed. The works on

the customization of advertisement, accounting, inventory and HR are in progress.

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5.1 PEST ANALYSIS

A scan of the external macro environment in which the firm operates can be expressed in

terms of the following factors:

1. Political

2. Economic

3. Social

4. Technological

5. Legal

6. Environmental

The acronym PESTLE is used to describe a framework for the analysis of these macro

environmental factors. A PESTLE analysis fits into an overall environmental scan.

I. Political factors

Political factors include Government regulations and legal issues and definite both formal

and informal rules under which the firm must operate. Some examples include:

Tax policy

The company is liable to all taxes imposed by Government and to the Kerala VAT. It is a

source of income for our Govt.

Employee Laws

Environment regulations

Trade restrictions and tariffs

Political stability

Political factors won’t affect media much. Kerala Kaumudi is not facing any problems

related to political factors.

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II. Economic factors

Economic factors affect the purchasing power of potential customers and the firm’s cost

of capital. The following are example of factors in the macro economy:

Economic growth

Interest rates

Exchange rates

Inflation rate

Media is the only firm which will not get affected by any recession, global financial crisis

etc. It was not hit by recession

III. Social factors

Social factors include the demographic and cultural aspects of the external macro

environment. These factors affect customer’s needs and the size of potential markets.

Some social factors include:

Health consciousness

Population growth

Age distribution

Career attitudes

Emphasis on safety

The company is trying to focus on the Ezhava Community and urging them to become a

loyal customer

IV. Technological factors

Some technological factors include:

R&D activity

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Automation

Technology incentives

Kerala Kaumudi doesn’t have a R&D department. The company has to bring in more

efforts to technological updation in order to withstand the tight competition

V. Legal Factors

The company is registered under the companies Act and complies with all rules and legal

regulations as laid down by the statutes.

VI. Environmental Factors

The company has no environmental problems as it doesn’t produce any hazardous wastes.

5.2 Porter’s Five Forces Model

The PORTER’S models are:

Bargaining power of suppliers

Bargaining power of customers

Threat of new entrants

Threat of substitutes

Competitive Rivalry between existing players

Porter’s model is one of the structured ways in which the industry

environment is analyzed. He says that the stronger each of these forces is, the more

difficult it will be for the company to raise prices and make more profits. A strong force

is equivalent to a threat; a weak force is equivalent to an opportunity. It is upto the

operations strategy formulators to recognize the opportunities and the threats as they arise

and design an appropriate strategic response from the operations function. As it is a

dynamic world, the strength of each of the competitive forces can change over time due

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to factors external to (ie, beyond the control) of the company. The force of bargaining

power of suppliers can be lessened by removing the bargaining bit. This is done by means

of ’single sourcing’ and by placing tremendous emphasis upon vendor development. The

threat of substitute products can be minimized by providing a variety in the first place.

This requires an appropriate manufacturing strategic response through a cost conscious

yet flexible system of manufacturing. The risk of entry of potential competitors can be

reduced through making / providing a quality product or service as the customer desires

at an affordable price. Also a wider range of product variety and timely services could be

provided. Bargaining power of buyers can be reduced through building long – standing

relationships between the two companies, through an atmosphere of transparency and

through a dedicated service orientation. Operations strategy and consequent action can be

built around these organizational necessities.

CHART NO.13

RISK OF ENTRY BY POTENTIAL COMPETITORS

BARGAINING POWER OF SUPPLIERS

BARGAINING POWER OF BUYERS

THREAT OF SUBSTITUTE PRODUCTS

RIVALRY AMONG ESTABLISHED FIRMS

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5.3 SWOT ANALYSIS OF KERALA KAUMUDI

In SWOT analysis, Strengths and weaknesses are internal factors. Opportunities

and threats are external factors.

\STRENGTH

Credibility of news and unbiased reporting style

Good reputation

Financial stability

Approach of investigative journalism

Units spread all over Kerala with adequate printing facilities

Able, dedicated and specialized workforce.

Good Brand image

Group harmony

WEAKNESSES

Falling circulation lead

Administration lacks a professional touch.

Lacks a strong mission and fails to establish time bound goals for each department

clearly.

Absence of some core departments like R&D and Advertisement

Absence of effective sales promotion and advertisement strategies.

Narrow product line.

Weak societal marketing.

Resistance to change.

Lacks anticipative marketing.

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OPPORTUNITES

Untapped market segments like children, unemployed youth, teenage, job seekers,

farmers, Children etc.

A potential market of literate but unsubscribed to any newspaper.

Diversification of business into TV channels and mobile portals.

Print outsourcing.

THREATS

Fast changing printing technology

Competitor’s strong sales and marketing strategies.

Fast growing Cable and satellite TV

Penetration of Internet media, with no restriction of subscription charges.

Unstable newsprint cost.

Fast changing life style of people

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6.1 FINDINGS

1. Though the company is facing tough competition, comparing to its production

facilities of all units and its strong public image, it has more scope in the market.

Company has to frame more Marketing and sales promotion strategies.

2. Comparing to competitor’s products Kerala Kaumudi’s coverage of national,

international, business and sports news is less.

3. The company is facing a tough competition. Its main publication, daily

newspaper’s position in the market is fluctuating. Till 2005, it was the third

largest circulated daily. In 2006, the position came down to fourth, and from

2007 it is continuing in fifth position. Financial statements from 2001-08 shows

that, Comparing to previous years newspaper revenue has declined. Flash

continues as No.1 mid day daily in the market.

4. Each department performs their routine work well, but these department’s

activities are not well coordinated to a time bound mission.

5. Company lacks a good R &D department

6. Circulation Department has limited subscription plans.

7. For print production, chemicals have been used to remove the non-image

emulsion, but now plates are available that do not require chemical processing.

8. HR department is maintaining good industrial relations. HR dept needs more

systematic approaches to make its main functions viz. recruitment & selection,

performance management, and training procedures more efficient.

9. Editorial Department lacks adequate automation and modernization. Space

Marketing Department requires more office equipments and communication

facilities.

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6.2 SUGGESTIONS

1. When the daily’s circulation lead is falling, it is the time to analyze where the marketing

efforts has failed. To establish circulation lead, more innovative and analytic approach is

needed. Implementation of strategies like TQM will improve the quality of the

organization’s processes, products, services through continuous improvement in all

senses.

2. Increase the coverage of news. More national, international, business and sports news

must be included. Increase the number of pages through value added news but without

any increase in product price. The additional cost would be compensated by operational

efficiency and increase in the ratio of advertisement to editorial.

3. Company has to frame more Market Communication Strategies. More market

penetration strategies are also to be framed. Give advertisements in media having highest

reach to the target market. The effectiveness of advertisement must be conducted

periodically.

4. I suggest implementing Management by Objectives (MBO) as absence of clear cut

objectives leaves unclear standards by which to evaluate the individual as well as

organizational achievements. Establish challenging yet realistic goals in accordance with

the overall company mission. All departments are to translate it into time bound goals

and to implement it.

5. I suggest introducing two designations: R&D Manager and Manager responsible for the

overall planning and implementation of marketing communication of Kerala Kaumudi

products. An efficient research and development team which consists of all department

heads and unit managers must be coordinated under the guidance of R&D Manager.

Future plan must be chalked out through brain storming sessions. Research, develop and

launch innovative and value added products quickly and within the budget and through

operational efficiency.

6. In addition to the existing subscription plans, introduce short-term and flexible

subscription plans.

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7. ‘Establish and maintain circulation lead by satisfying customer needs better than the

competitors through value added products’- that would be the motto of product marketing

department.

8. The company needs an anticipative marketing approach. Ensure and encourage

participation of all members in distribution channel in the framing and implementation of

marketing plans.

9. Kerala Kaumudi has to go at a fast pace towards the implementation of modern

production technologies. Now plates are available that do not require chemical processing

The development of the digital plate setter in the late twentieth century eliminated film

negatives altogether by exposing printing plates directly from digital input, a process

known as computer to plate printing.

10. HR department must encourage and develop an organization culture where innovative

ideas are freely exchanged.

11.Company is admitting project works of professional students from reputed universities.

Admit and coordinate these studies in a fruitful manner. Admissions should be on the

basis of analysis of resume and interview.

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6.3 CONCLUSION

India’s experienced and diverse press is in robust growth mode. We must ensure

that it preserves its elements, its values and its soul. Media has a strong role in nation-

building. Today’s communication is more complex. Competitors are coming up with

more products and increased sales promotion strategies. Customer’s tastes and

preference, life style and quality of life are changing. As the digital tide gathers strength,

it is remarkable that the press in print continues to be the media of preference for the

majority of readers who want to remain informed. What makes newspaper different from

other media is that presents news in more analytical manner. It can influence and change

people’s lives and their societies.

As far as print media is concerned, circulation is mostly considered as the yardstick of

victory. People would always want news, but it should be packaged well according to the

changing needs of the society. Newspapers have to address all sections of the readership

to stay in the business. In a literate state like Kerala, there is more room for the

newspaper companies to grow, as the rural areas are largely untapped. Kerala Kaumudi

has always worked for the development of society with its Forth right news and fearless

views. Kerala Kaumudi spearheaded with a missionary zeal to enlighten the

underprivileged and downtrodden masses in the society. “Stress on credibility and

unbiased reporting” which is the motto of the Kerala Kaumudi since 1911.

To compete with fast emerging TV channels and internet journalism and with the

competitor’s strong sales and promotion strategies, Kerala Kaumudi has to come up with

new plans and strategies.

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