CASE 9: GOOD MUSIC BROADCASTING CORPORATION: Ebb Tide

I.

Statement of the Problem

Engineer Frederick Panganiban reviewed the consolidated sales report. He wants some
improvement in operations so that 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. How will
Engr. Panganiban make improvements in operations to increase their overall income?

II.

Causes of the Problem

III.

Methodology

Various methods were considered to improve GMBCs operations to increase their

overall income. Strategic Planning can be used in solving this problem. In order to attract
more advertisers, the radio station can have a comprehensive branding campaign. For
example, GMBC can launch a specially-composed song as their station ID. Long-range
Financial Plan, this financial plan is needed to ensure the growth of the company for many
years to come. Depreciation of assets has to be considered. Lastly, Operating Budget must
be used to have planned account of expenditures, revenues or profits in the future. Proper
budgeting implies savings for the company.

IV.

V.

Alternative Courses of Action

Take necessary action.
- For the operations of GMBC, the type of control has to be identified to facilitate
activities. Identification of control problems is needed. Also, an organizational control
system has to be installed. Considerations: Types of Control, Identification of Control
Problems, Components of Organization Control System, and Strategic Control
Systems
Feedback Control
- There is feedback control because information in the past has been gathered.
Corrective actions are aimed at improving income for future years.

Implementation and Justification

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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.

VI.

References

Medina, R. Engineering Management. Manila, Philippines: Rex Book Store, Inc.,

1999.
Scribd.com

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Executive Summary
Engineer Frederick Panganiban was reading the advertising sales report handed to
him by his assistant. The report contains information from the ten radio stations owned and
operated by Good Music Broadcasting Corporation (GMBC). GMBS derives income from
advertisements; the advertisers are billed depending on the frequency of exposure of their
messages. A certain portion of the advertising income is credited to the account of the
individual stations depending on what GMBC gave to them while the total advertising income
of a station consists of the credit account from the head office plus whatever income from
local advertisers is derived. Each station is managed by a station manager who reports
directly to Engineer Panganiban, the general manager. Engineer Panganiban is now
reviewing the consolidated sales report. He wants some improvement in operations so that
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.
How will Engineer Panganiban make improvements in operations so that overall
income will increase? Objectives are to make improvements in operations and to apply
controlling in GMBC. The type of control appropriate for the situation is feedback control
since there is previous data available and corrective actions need to be done.
An organizational control system is required. Thus, its components have to be
satisfied. The components are the strategic plan, the long range financial plan, and the
operating budget. And the alternative course of action cited in this situation is identifying the
type of control needed and this is feedback control.

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