Case Study in

Business Organization
And Management.
“The Pezlo group of Companies”

A Brief History…
The Pezlo group of Companies is a pioneering Multi-group Company. The
company’s First Corporation was Manila Electric Railway Corporation (Merailco), An
Electric railway system way back in 1940’s as now it evolves and focuses into an Electric
Distribution Company. It is followed by the Alto Broadcasting Group-Cojuangco
Benigno Network (ABG-CBN) on 1953, a pioneering Broadcast Television Network in
the Philippines. And The Pezlo Group Companies Grew as the year and decades past.
Through the years The Pezlo Group of Companies Establish the most pioneering
Companies in the Country like A Cable TV distributor (Essky Cable), Telecommunication
Company (BaryoTel), Coal-Fired Power Plants, A movie Outfit (Bituin Cinema) same as
A Recording Studio (Bituin Records) And also A Water Distribution Company Called
Mañliñeo-lad.

The organization of the Pezlo Group of Companies is consisted of one President,

one CEO per Company, and Each Company has One CFO (Chief Finance Officer), COO
(Chief Operations Officer) and a CIO (Chief Information Officer) just below the CEO.
Under CFO is all about the financial aspect of the company, while under the COO is
about mainstream operations, this one may vary according to company’s nature of
business and needs, and lastly under the CIO is about the regular office organization

CEO

CIO COO CFO

Workers Workers Workers Workers Workers Workers

The Problem of the Organization…
As the year pass, the government develop a keen eye on the multi-group
company. This is because the Broadcast TV Network exposes government corruption, a
dirty political feud, and many more. To cut the story short, the government sequester
many companies (mostly include in the Public Utility Sector) including The Pezlo Group
of Companies Electric distribution Company and Broadcast Television Network When
the President Declare the Martial Law.

The Company had a huge lost. But when the Martial law ends, the government
dutifully gave backed the sequestered companies. And the company regains the huge lost.
Yet from 1990’s up to the present, most of the companies of The Pezlo Group of
Companies have suffered occasional problems like the lost of control on the Mañliñeo-
lad, pilferage in Electric (Merailco), Cable TV (Essky Cable), and Water (Mañliñeo-lad)
distribution company, low performance of its telecommunication company, and many
more.

Now, the Multi-Group Company faces the most difficult problem. Especially
Merailco. When bulk of problems put the company on the brink of lost of control or
worse on the brink of closure. The company lost due to illegal activities such as pilferage
of distributed electricity, stolen electric wires and its costly restoration of it, non-payment
of bills of its customer, high and fluctuating price of oil in the world market which is
inevitable, and the most recent and most damaging is when one of its board member acts
like he wants to takeover the whole company.

It started when he didn’t have the majority of shares as he just holds only
diminutive amount of the shares. Which the majority of it is on The Pezlo Group of
Companies and secondly by the government with the shares of 39% and 24%
respectively and the remaining 37% is distributed as common shares. This board member
namely Phillip “The Luck Strike” Miller Garcia, decide to a dirty job. He brought an
issue to the public that the company is mismanage, that the company’s “System Lost
Charge” is illegal, that the company exercise profiteering, an economic act that is
prohibited by the law and many more that is more likely about the management of the
company.

As a drastic negative effect, a week after the sensationalized public appearance,

the price of Merailco stock in the Philippine Stock Exchange Index (PSEi) quickly crash
from Php 69.00 to a Staggering downfall of Php 49.00. This the effect of Garcia’s action.

Now, Merailco is doing all things to boast the Merailco shares and to achieve it’s
bench mark target as soon as possible (in a legal and Appropriate way).
The Objectives…
• To eradicate the problem on pilferage (for Merailco, Essky Cable,
Mañliñeo-lad)
• To use appropriate marketing scheme to pump up the performance
(BaryoTel)
• To background check the common stock holders

The Solutions…
• To eradicate or lessen Pilferage, the company may Implement some
activity…

 With the help of Law Enforcement Groups like the Police

and other Officials such as Baranggay, they can prosecute
the criminals that found out that pilfer electricity or stole
electric wires.
 Lower rates of electricity for marginalized sector or those
who are on and below poverty line, this is to promote for
cheap, safe, reliable and most of all its legal.
 Use Technologies currently available to us. Like that is
being petitioned today which is the use of prepaid Electric
meter. Just like the concept of prepaid cell phones today.
You have enough credits to able to receive or enjoy the
convenience of the Electricity.
 Use other technique or continue the other project/s
previously started. One example is by color coding of wire,
which have implemented in the Key Cities in the Metro
(CAMANVA, Manila…). The process includes the
replacement conventional black copper wire by bright
orange wire to easily see if there’s a splinter or a.k.a.
“Jumper” connected to it.
 Offer other modes of payment Automatic Credit (Credit
Card) or Automatic debit (Savings and ATM Accounts)
enrollment.

• For BaryoTel, Advertisement, Promos, and other strategic events that may
help to boost the performance of the company…

 Offer lower rates to attract potential customer.

 Invest in improvement of the system, for example is wider
coverage for “BaryoTel Wireless Landline”
  Advertisement may help speed up the Market Penetration
and longer retention.

• Have a thorough scanning or Background Checked on the Applying or

someone who is buying a stock in the company.

The Alternatives…

• Conduct seminars about the danger of using a splinter or a “jumper” and

the convenience of having a safe, reliable, trustworthy, and legal
Electrical connection.

• Give rewards to people who can give information that may lead to
downfall syndicates in pilferage of electricity, water, and cable TV.

• Improved Customer service with extensive mode communication

accepted like email, Call Center Hotline, Traditional snail mail, SMS or
personal walk-in complainant.

The Conclusion…

My conclusion includes, for a Multi-Group Company like Pezlo. It is

important to know that you and your company must have Integrity, Honesty, Committed
to Serve to Public, Stand for truth and right, and must have transparency for these to gain
the trust of your Customer and potential Customer, to be trusted by Government. Even
though there some government institution that is not transparent itself. And to respect by
others in business world, not only by the business world but the whole world. Other thing
is to protect your business on pilferage, lost, damage and other threats. It may cost you a
fortune or even your life. Know people your backyard to avoid a Mole in your company.
And lastly do not use the public especially the Masses in your own greedy and selfish
motives.
Case Study in
Business Organization
And Management

Submitted By:
Kimpee M. Enriquez
BSC-IS-3B

Submitted To:
Prof. Carpio