PROBLEM STATEMENT         As a result of personal meetings with the owners and local management of W###, and a detailed review of the station’s operating results, it is quite obvious that the lack of expertise in and understanding of how to operate a profitable broadcast station is at the root of the station’s negative financial position.         The property is depressed primarily due to the station being over-staffed and over-programmed while being under-promoted and under-sold. This, coupled with several harmful operating policies and procedures has led to negative operating results. As a result, the revenue potential of this property is immensely greater than past results have indicated. It is, in effect, being operated as a department of the owner's newspaper.         After careful analysis, we have determined that staff reductions and program changes, coupled with an aggressive revamping of the sales department, will result in significant revenue increases. We feel these changes can be made without adversely impacting the station’s local community service effort.         Based on its capital assets list and a tour of the facility, it is obvious that while some of the station’s technical equipment has been upgraded in recent years, a significant amount, possibly a majority, is in need of replacement. An engineering analysis, to be conducted as part of the process of due diligence, will detail this situation in more specific detail. Clearly, some capital expenditures will be necessary in order to bring the facility up to par. Return to CONTENTS | Proceed to MARKETING STRATEGY