CARL VINCENT A.

TAPIL 18 JUNE 2021

BSME III-1 BES-EM

Case 9. GOOD MUSIC BROADCASTING CORPORATION: Ebb tide

a. STATEMENT OF PURPOSE

Good Music Broadcasting Corporation owned and operated ten radio stations located in
various parts of the country, each were managed by a station manager. Its headquarters and
sales office were located in Makati. The company whose general manager was Engineer
Panganiban derives its income thru advertisements payed by companies including San
Miguel Corporation, Ayala Life, and more. Its total advertising income consists of the credited
account from the head office and from the local advertisers.
Meanwhile, Engineer Panganiban read and reviewed the advertising sales report handed
to him by his assistant as shown in exhibit A. He wants some improvement in operations so
there shall be increase with the overall income. He was still doubtful with the sales report
and believes that other data may help him make a better decision. However, Engineer
Panganiban was not sure about what data are these and what engineering management will
he follow in order to increase the overall income of the corporation. If not, the decrease of
the income shall continually decrease if those data that are not controlled increases which
decreases their overall income.

b. RECOMMENDATION

Engineer Panganiban must see and track objective attainments of the company,
otherwise, must be able to determine necessary steps to achieve those in the future.
Controlling is an engineering managerial function that he must follow in order to met his
expectation.
The data of the overall income of the corporation from exhibit A is not enough to
assure accomplishment of the objectives of the company. It is recommended for the company
to have a strategic control system including financial analysis and a more elaborate financial
ratio analysis. Data like their assets, liabilities (taxes, debt, etc.), profits, and capital accounts
must be included in the exhibit A and not just solely the income for the deviation might be
due to any of these. Furthermore, this shall help in comparing previous years’ financial
reports, wherein, the management shall be able to determine if the performance of the
company did well.

c. RATIONALE

A more elaborate data shall be useful in order for Engineer Panganiban to propose
strategic plans, which is more likely to be budget plans in his case he finds out any deviations
such as a decrease of their advertising income from ₱ 134, 758.00 in 1996 to ₱ 134, 602.00
in 1997. The decrease of income from Exhibit A is not enough to reveal which aspect does
the company is experiencing that cause the deviation. Hence, by acknowledging their assets,
liabilities, profit, and income, will help Engineer Panganiban in controlling the situation and
shall be able to either increase or maintain their income from ₱ 134, 602.00.