Case Study

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF TOURISM, HOSPITALITY & TRANSPORTATION MANAGEMENT
DEPARTMENT OF TOURISM AND TRANSPORTATION MANAGEMENT
BUMA 20083 OPERATIONS MANAGEMENT
The ABS-CBN Corporation

A. CASE BRIEF
ABS-CBN is considered one of the country’s leading media and entertainment companies, with
service offerings across the different platforms of media, servicing a wide array of customer
segments. Founded in year 1946 by American electronics engineer James Lidenberg as Bolinao
Electronics Corporation. Launched in the year 1953, after setting up a transmitter tower in San
Juan and importing TV sets, Alto Broadcasting System (ABS). As an organization, ABS-CBN
affirms its mission of being in the service of the Filipino and all of its stakeholders worldwide. The
company is driven to pioneer, innovate and adapt as it continues to provide information, news and
entertainment that connects Filipinos with one another and with their community - wherever they
may be. ABS-CBN is firmly committed to pursuing excellence. ABS-CBN Broadcast franchise was
granted on March 30, 1995, 42 years prior to its founding. However, it expired on May 4, 2020 and
was unable to renew due to the unfavourability of the corporation under the President Duterte’s
regime. The National Telecommunications Commission (NTC) headed by Gamaliel Cordoba,
commissioner, issued a cease-and-desist order on ABS-CBN, effectively ceasing broadcast
operations on May 5. Mr. Carlo Katigbak, the current CEO of the Corp on that time proceeded to
file a petition before the Supreme Court of the Philippines on May 7, seeking to nullify the NTC’s
cease and desist order that was rejected due to NTC’s Commission and Solicitor General Jose
Calida who issued two alias cease and desist orders on ABS_CBN TV Plus and Sky Direct,
effectively ceasing operations. On July 10, 2020, members of house representatives, voted 70-11
to deny the franchise application of ABS-CBN, citing several issues on the network’s franchise. In
that very same day, CEO Carlo Catigbak remained committed to public service, hoping to find
other ways to pursue their mission despite of the consecutive lay downs after being forced to
cease the operations on some of its businesses and its workers on august 31, 2020.
Prior to the shutdown of its broadcast operations in 2020, ABS-CBN was the largest television
network in the Philippines.
2nd Floor, Hasmin Hostel, M. H. Del Pilar Campus, Sta. Mesa, Manila Phone: (Direct Line) 715-1426;(Trunk Line) 716-7832 local 313
website: www.pup.edu.ph e-mail: cthtm@pup.edu.ph
“THE COUNTRY’S 1st POLYTECHNICU”

B. POINT OF VIEW
Mr. Carlo Katigbak, who is the current CEO managing the operations of all franchise and
has the highest share in the ABS-CBN Corporation.
C. TIME CONTEXT
In the year 2020, 10th day of September, this will be the point of the day for Carlo Katigbak,
as a current president, facing the future of the corporation after being laid off the frequencies they
were using for decades.
D. STATEMENT OF THE PROBLEM

How will the company effectively recover from the downfall and manage its operations
after shutting down whilst within the pandemic?
E. STATEMENT OF THE OBJECTIVES

 To utilize the situation as a strength in producing services
 To overcome and increase the financial condition of the company.
 To create opportunities to profit despite of shutting down and the pandemic.
F. AREAS OF CONSIDERATION
 INTERNAL ENVIRONMENT
o They are very experienced and already gained the title of the largest
entertainment and media conglomerate in terms of revenue, operating
income, net income, assets, equity, market capitalization and number of
employees.
o Already has the tools, resources, departments, franchises that is
successfully producing profit before the shutting down.
o Professional workers: most employees are with years of experience and
are experts in their field of work
o Unstable profit producing services of the company.
o Reduced employees due to pandemic and after being laid off.

o Utilization of Social media platforms

o Opportunity to open channels and focus in digital mediums.
o Labor shortage
 EXTERNAL ENVIRONMENT
o Consumers demands the franchise to be returned to its services such as
its shows, stations, its artists, news, etc.
o Opportunity for competitors to rise up on the entertainment industries and
to their other franchises as well
o Unfavourability on government officials regarding the renewal of franchise
request.
o Partnership with independent media outlets.
SWOT ANALYSIS
THREATS
STRENGTHS
Opportunity for WEAKNESSES
competitors to rise up on the
They are very experienced and already
entertainment
Unstable industriesservices
profit producing and to of
their
the other
gained the title of the largest entertainment
franchises as well
company.
and media conglomerate in terms of
Unfavourability on government officials
revenue, operating income, net income, Reduced employees due to pandemic and after
regarding the renewal of franchise request.
assets, equity, market capitalization and being laid off.
number of employees. Reduced employees due to pandemic and after
Already has the tools, resources, being laid off.
departments, franchises that is Labor shortage
successfully producing profit before the
OPPORTUNITIES
shutting down.
Professional
Utilization workers:
of Social mostplatforms
media employees are
with years oftoexperience
Opportunity and are
open channels andexperts
focus in
in
their field of work.
digital mediums.
Consumers
Partnership demands the franchise tomedia
with independent be
returned
outlets. to its services such as its shows,
stations, its artists, news, etc.
2 Floor, Hasmin Hostel, M. H. Del Pilar Campus, Sta. Mesa, Manila Phone: (Direct Line) 715-1426;(Trunk Line) 716-7832 local 313
nd

G. ALTERNATIVE COURSES OF ACTION
ACA #1. Focus on online platforms that is already existing to further promote retained
services with consumers and to endorse as well upcoming possible services. Find
immediately a reliable, possible platforms that can be used as an alternative to showcase the
services, shows.
ACA #2. Partner with other Media channels that will allow to share frequencies and utilize it
as a way to still proceed with business.
ACA #3. Face and resolve the complaints for the franchise renewal to regain their trust and
the image and reputation of the company and to be back on its previous business.
H. ANALYSIS OF THE ALTERNATIVE COURSES OF ACTION
ACA #1. Focus on online platforms that is already existing to further promote retained
services with consumers and to endorse as well upcoming possible services. Find immediately a
reliable, possible platforms that can be used as an alternative to showcase the services, shows.

ADVANTAGES DISADVANTAGES
Manage all platforms with minimal effort Additional time and expense
and employees
Can cultivate company culture Limited resources and department to

utilize.
Users are using online platforms due to

the pandemic and quarantine
guidelines.
Increase in the financial position of the

company while creating a new franchise
Gain more customers in the future.
ACA #2. Partner with other Media channels that will allow to share frequencies and
utilize it as a way to still proceed with business.
Will continue in providing the same services It may take a long period of time to find the
right company to partner with
Excellent communication and customer Additional expenses

service with the current and future clients
and other employees of the company
Less chance of bankruptcy

ACA #3. Face and resolve the complaints for the franchise renewal to regain their trust and
the image and reputation of the company and to be back on its previous business.
Will slowly gain additional profits Additional time to examine and monitor the
works
The company will continue to run and

provide products and services
I. CONCLUSION
Based on the foregoing analysis, ACA no. 1 is chosen.
J. RECOMMENDATION
The problem of the ABS-CBN Corporation can be traced back to the controversy that
happened regarding the franchise renewal and the history of its relations to politics despite of
it being a media and entertainment conglomerate that is not supposed to be strongly affiliated
with the government, however due to the “alleged” smuggling of campaign funds pushed the
company to be laid off. Despite of its efforts to resolve the problem through legal means, it
was still unsuccessful which then resorted into looking for ways in surviving the company and
much better if it expands. Through our ACA no.1, This is critical yet crucial since it will create
more opportunities to more platforms that was able to utlilize due to the pandemic as well.
The usage of online media platforms skyrocketed, which ABS CBN can use as a jumpstart to
build their services again since it is under media and entertainment. Services will be back on
track and they can offer new products as another way of generating profit, such as opening
online streaming services that can generate profit and entice old and new customers that
demands to consume their services. However, it will take time for people to be used to the
new services created and to market it as well to credible and reliable investors. Nevertheless,

my chosen alternative of action is indeed the best solution for my company. This will not
probably only work in the meantime but for a long period considering the future of technology
and digital media ahead of us.
K. REFERENCES
ABS-CBN (2022). ABS-CBN Corporate Our Company, Our Milestones. Retrieved February 27,
2022, from https://www.abs-cbn.com/who-we-are/our-story
Rappler PH (2020). Cultural vacuum: How ABS-CBN’s shutdown affects media culture Retrieved
February 27, 2022, from https://www.rappler.com/hustle/work/rolando-tolentino-media-culture-
effects-abs-cbn-shutdown/
Malindog-Uy, A., (2020). The ABS-CBN Shutdown Controversy. Retrieved February 28, 2022.
https://theaseanpost.com/article/abs-cbn-shutdown-controversy

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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

The ABS-CBN Corporation

“THE COUNTRY’S 1st POLYTECHNICU”

D. STATEMENT OF THE PROBLEM

E. STATEMENT OF THE OBJECTIVES

“THE COUNTRY’S 1st POLYTECHNICU”

o Utilization of Social media platforms

website: www.pup.edu.ph e-mail: cthtm@pup.edu.ph

“THE COUNTRY’S 1st POLYTECHNICU”

G. ALTERNATIVE COURSES OF ACTION

H. ANALYSIS OF THE ALTERNATIVE COURSES OF ACTION

“THE COUNTRY’S 1st POLYTECHNICU”

Can cultivate company culture Limited resources and department to

Users are using online platforms due to

Increase in the financial position of the

Gain more customers in the future.

Excellent communication and customer Additional expenses

Less chance of bankruptcy

“THE COUNTRY’S 1st POLYTECHNICU”

The company will continue to run and

“THE COUNTRY’S 1st POLYTECHNICU”

“THE COUNTRY’S 1st POLYTECHNICU”

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