Technological University of the Philippines

Ayala Blvd. cor. San Marcelino St., Ermita, Manila

College of Engineering
Civil Engineering Department

BES 4 – M
Engineering Management

Case No. 9:
GOOD MUSIC BROADCASTING CORPORATION: Ebb Tide

Submitted by:
Verzosa, John Daeniel C.
BSCE-3A
TUPM-19-1389

Submitted to:
Engr. Arnolfo Arcibal

Date of Submission:
December 10, 2021
Case 9: GOOD MUSIC BROADCASTING CORPORATION: Ebb Tide

Engineer Frederick Panganiban was reading the advertising sales report

handed to him by his assistant. The report contains information consolidated from
the ten radio stations owned and operated by Good Music Broadcasting Corporation
(GMBC). These stations are in the various parts of the country.

GMBC headquarters and sales office are located in Makati. GMBC derives
income from advertisements lodged by companies like San Miguel Corporation,
Ayala Life, and others. The sales office receives the cassette tapes and written text
containing the advertising messages of the client companies.

The tapes are meant to be played at regular intervals in all of the ten radio
stations operated by GMBC. The written text is an alternate advertising form read
by the radio announcers at regular intervals. An advertising message does not exceed
one minute. 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 Engineer

Panganiban, the general manager. The stations are allowed to accept local
advertisements subject to availability of slots after accommodating the national
advertisers.

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. The total advertising income of a station consists of the credited
account from the head office plus whatever income from local advertisers is derived.

Engineer Panganiban is now reviewing this 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 data may help him make a
better decision.
EXHIBIT A

GOOD MUSIC BROADCASTING CORPORATION

Consolidated Advertising Income
For the Three-Year Period, 1995, 1996 and 1997
(P000)
Station Advertising Income

1995 1996 1997

1. Dagupan ₱ 15, 450 ₱ 16, 998 ₱ 17, 038

2. Santiago 12, 338 11, 465 10, 308

3. Cabanatuan 10, 440 12, 444 14, 486

4. San Pablo 8, 988 7, 676 6, 493

5. Naga 11, 048 12, 121 8, 788

6. Dumaguete 11, 540 10, 001 9, 494

7. Tacloban 12, 490 12, 500 12, 606

8. Cebu 20, 465 22, 030 24, 848

9. Davao 16, 370 17, 017 18, 644

10. Zamboanga 13, 466 12, 506 11, 897

Total ₱ 132, 595 ₱ 134, 758 ₱ 134, 602

Case Analysis
Introduction
Engineer Panganiban was the general manager of Good Music Broadcasting
Corporation, which is an advertising firm that gets its money through advertisements
placed by other significant corporations. Engineer Panganiban was reading the Good Music
Broadcasting Corporation's consolidated advertising sales report one day when he saw that
there had been no revenue increase. As a result, he wants the company's processes to alter
in order to increase total income. He feels the sales report is useful, but he believes he
would make a better judgment if he had additional information.
Problem
The arising problems in this case are:
1. He wants to see some improvements in the company's operations in order to boost
total revenue. He also needs extra information in addition to the consolidated sales
report in order to make better decisions.

Solution
To enhance the GMBC's overall performance, a variety of methods should be
examined. To tackle this challenge, they can use strategic planning. To attract additional
sponsors, the radio station may embark on a full-fledged "branding" campaign. For
example, GMBC's station ID may be a custom-written song. Long-Term Financial
Strategy: This plan is necessary to ensure the company's long-term growth. Depreciation
of assets must be taken into account. Finally, the Operating Budget is utilized to track future
expenses, revenues, and profits. Correct budgeting results in cost savings for the company.
They can come up with innovative show ideas that will entice more people to listen to the
radio. Keep up with the newest trends by hiring more new and exciting announcers and
DJs. Make a better sector for those who enjoy various top 10 music genres, and add
additional segments for people to join so that more people would want to participate. It is
possible that enhancing this will have an impact on the firms' future earnings.
Conclusion
This is when the strategic value of planning comes into play. As a manager, they
must be prepared for such a situation. The issue at a firm is not just related to the employee.
There are situations where the revenue does not improve. That is why, in order to make the
best decisions possible, a manager must think thoroughly and without pressure.