CASE 9: GOOD MUSIC BROADCASTING CORPORATION: Ebb Tide

SUMMARY

Engineer Frederick Panganiban, the general manager of Good Music

Broadcasting Corporation (GMBC), was reading the advertising sales report handed to
him by his assistant. The report contains information consolidated from the ten radio
stations located in different parts of the country, owned and operated by GMBC. The
headquarters and sales office of GMBC are located in Makati. They derive income from
advertisements lodged by some companies (San Miguel Corporation, Ayala life, etc.).
The sales office receives the cassette tapes and written text containing the advertising
messages of the client companies which should not exceed by 1 minute. The tapes are
meant to be played and the written text is an alternate advertising form read by the
radio announcers, both at regular intervals in all of the ten radio stations. The
advertisers are billed depending on the frequency of exposure of their messages. Each
station is managed by a station manager who reports directly to the general manager.
A certain portion of the advertising income is credited to the account of the individual
stations depending on the assignments sent to them by the GMBC headquarters.
Engineer Panganiban is now reviewing the consolidated sales report. He wants some
improvement in operations so that the overall income will increase. He feels that the
sales report is useful, but he believes some other data may help him make a better
decision.

Exhibit A
GOOD MUSIC BROADCASTING CORPORATION
Consolidated Advertising Income
For the Three-Year Period, 1995-1997 (P000)
Station Advertising Income 1995 1996 1997
DAGUPAN P 15,450 P 16,998 P 17,038
SANTIAGO P 12,338 P 11,465 P 10,308
CABANATUAN P 10,440 P 12,444 P 14,486
SAN PABLO P 8,988 P 7,676 P 6,493
NAGA P 11,048 P 12,121 P 8,788
DUMAGUETE P 11,540 P 10,001 P 9,494
TACLOBAN P 12,490 P 12,500 P 12,606
CEBU P 20,465 P 22,030 P 24,848
DAVAO P 16,370 P 17,017 P 18,644
ZAMBOANGA P 13,466 P 12,506 P 11,897
TOTAL P 132,595 P 134,758 P 134,602

I. The Problem
 Engr. Panganiban desires the improvement of the operations
of the GMBC and increase its overall income. He needs an
additional data other than the consolidated sales report for him
to be able to provide a better decision.

II. Statement of the problem

 The sales report that is being consolidated has been held and reviewed
by Engr. Panganiban, the general manager of the company. After he
review the said report he sees that the report can be useful and he
believes that some other data may help him make a better decision.

This study seeks for the answer of the following question/s:

1. What kind of improvements must Engr. Panganiban can apply to

increase their overall income?

III. Alternative Courses of Action

1. COMPREHENSIVE INTERNAL AUDIT

 This can be done to detect dysfunctions in each radio station operation
before they become bigger.
2. STRATEGIC PLAN
  The company can have a comprehensive branding campaign, like
launching a specially-composed song as their station ID.
3. PERFORMANCE APPRAISALS
 Implementing a friendly atmosphere of competition between radio
stations can be a way to increase ratings and therefore
advertisements.
4. TAKE NECESSARY ACTION
 Engr. Panganiban should identify what type of control he must use to
facilitate activities.
 He also needs to identify the control problems.
 And he must assure that Organizational control system is properly
installed.

IV. Implementation and Justification

Engineer Frederick Panganiban needs Strategic Planning, Long-range
Financial Plan, and Operating Budget to increase the overall income of their
company. The type of control appropriate for the situation is feedback control
since there is previous data available and corrective actions need to be done.