11.

ABS – CBN CORPORATION STRATEGIC GLOBAL MARKETING There are no

seasonal aspects that may have a material effect on the financial condition or results of
operations. There are no significant elements of income or loss that did not arise from
the issuer’s continuing operations.  The Company’s business may be affected by the
general condition of the economy as well as adverse change in political policies.
Nonetheless, this risk is supplemented and managed with the Company’s engagement in
diverse industries.  ABS-CBN’s financial performance depends largely on the ability to
sell airtime for advertising, sell various goods and services, and to collect subscription
fees from its subscribers.  There are no known cash or credit risks, arrangements,
obligations (including contingent obligations), and other relationships of the company
with unconsolidated entities.  There are no known events that will trigger direct or
indirect financial obligation that is material to the company, including any default or
acceleration of obligation.  There are no known trends, demands, commitments, events
or uncertainties that will have a material impact on ABS-CBN’s liquidity. REPORT
RECOMMENDATION AND FINDINGS

RISKS RELATING TO THE COMPANY

The Company’s results of operations may be negatively affected by adverse economic conditions
in the Philippines and abroad since its operations depend on its ability to sell airtime for
advertising, to sell various goods and services, and to collect subscription fees from its
subscribers. Historically, the advertising industry, relative to other industries, has been
particularly sensitive to the general condition of the economy. Also, the ability of consumers to
pay for the Company’s services or goods depends on their disposable income at any given time.
Consequently, the Company’s business may be affected by the economic condition of the
country and of the territories where it conducts its business. ABS-CBN’s Board of Directors and
management are mindful of the potential impact of various risks to the Company’s ability to
operate a viable business. Strategy formulation and decision-making always take into account
these potential risks and the Company ensures that it takes all the steps necessary to minimize, if
not eliminate, such risks. ABS-CBN ensures that it has the proper control systems in place, and
to the extent possible, adopted global best practices, to identify access, analyze and mitigate
market, operating, financial, regulatory, community, reputational, and other risks.
STRENGTHS are the internal attributes and resources that support a successful outcome.

1.) Experienced Business Units – long time existing in the business industry. Based on history,
ABS CBN was founded in June 13, 1946; 71 years ago. It has more experience in the business
field compare to its competitors.

2.) Existing Distribution And Sales Networks- in longer year of providing services to its
customers, Abs-Cbn become well- known in terms of TV production and maintain to grow their
business and revenues like expanding distribution and sales network.

3.) Skilled Workforce- hired highly experience workforce.

4.) High Profitability and Revenue- because they operate business all over the world they earned
high revenue

5.) Innovation- they always introduce something new; ideas, methods and devices. (E.g. ABS-
CBN TV Plus, ABS-CBN Mobile & ABS-CBN is putting up an experience store to better
connect with audiences as it continues to grow its consumer business.)

6.) Local and International Market – not only operate business here in the Philippines but also
abroad. Through these they have a communication in foreign markets. (E.g. On September 24,
1994, ABS-CBN signed a historic deal with PanAmSat to bring the first trans-Pacific Asian
programming to some two million Filipino immigrants in United States. This deal would later
give birth to The Filipino Channel which is now available globally.)

WEAKNESSES are internal attributes resources that work against a successful outcome.

Competitive Market – increases number of its competitors.

OPPORTUNITIES are external factors the project can capitalize on or use to its advantage.

1.) Income level is at a constant increase – since there is a growth in economy, the wages of the
workers also increases. They can afford to buy what they want.

2.) Growing economy and Demand – because of increase in income of individual’s cause of the
economic growth, demand also increases. They have a direct relationship.

3.) New Markets New Products and Services - Another major cause of economic growth is the
introduction of new products and services and the improvement of existing products. New
products create demand, which is necessary to offset the decline in employment that occurs
through labor saving technology
THREATS are external factors that could jeopardize the project.

1.) Unexpected Problems – fortuitous events- An unforeseen event that occurs

by chance or accident from natural or man-made forces over which an affected person has
no control.

2.) Growing Competition and Lower Profitability – increase and raise business that is the offers
the same services of the company.

3.) Transfer of Talented Individuals - decrease number of competitive individual that cater their
company

4.) Consumers ability to pay the services or goods – even there’s a growth in the economy; we
can’t deny that there are still persons who cannot afford to pay some services.

5.) Political Policies – because of change of administration, new policies introduce.