case study

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 and operated by Good Music Broadcasting Corporation (MBC). These stations are located in the various parts of the country. GMBC headquarters and sales Office are in Makati. GMBC derives income from advertisements lodged by companies like San Miguel Corporation, Life, and others. The sales office receives the cassette and written text containing the advertising messages of the client companies The tapes are meant to played at regular intervals in all of the ten radio stations operated by GMBC The written text is an alternate advertising 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 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 their local advertisers is derived. 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 Periods 2015, 2016, 2017(In Thousands) STATION Advertising income 2015 2016 2017 1. Dagupan PHP 15,540 PhP 16,998 PHP 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 13,456 12.506 11,897 TOTAL PhP 132,595 PhP 134,758 PhP 134,602