The event company selected for organizing the event is “Trinity Event Solutions” based from London, UK. The company was founded in 2006 by person named Jacqui Kavanagh. The company was originally started with seven employees and now has grown with 29 employees and at the same time able to expand its market share as well. The company is also offering sourcing too international venues which supports event management, accommodation booking and procurement function (Trinity Event Solutions, 2017). The company is investing hugely on technology as well as venue knowledge. The members of company are visiting more than 100 venues in year to get edge over venue knowledge. Its clients vary from different industries and get 30% business from pharmaceutical industry.
The company is organizing a new product launch for BMJ a London based company deals in health care sector. The event is mainly focussed to introduce new products related to medical sector that can help the patients to get appropriate information related to medicines and best healthcare advices on the new product that will be launched by BMJ in the event.
The event will be held at Banqueting House, London on 15th April, 2017. The venue is selected because of its capability to handle more than 300 guests. There is separate parking area for more than 500 guests and escorts are also available to make guests comfortable to reach to the desired event location (Trinity Event Solutions, 2017). There is complete security arrangement with cameras at all the locations of venue as well as surveillance through drone will also be done. The safety passages are also available at the location to relocate guests effectively in case of any emergencies or accidents.
From the market analysis, it is analysed that there are so many other competitor event management companies which are organizing events in London. The companies like Penguins, Evolve-events, Oxygen events, and First agency, We Are Ultimate or the Events Company are some other companies which have organized the same events in recent times as will be organized by the Trinity event solutions (Printsome Insights, 2017).
All the events which are organised by the companies are very much commercial viable and makes these companies more popular among their clients. All the events are become so successful and profitable for these companies that also enhances their clients in the other parts of UK as well. The events are so much economically feasible for their clients and innovativeness as well as sustainability to use all the financial resources in efficient manner also makes these types of event’s significance more among other persons (Event industry news, 2017). The quality guest services, parking facilities, food and beverages, technology used for the events, security, enough entertainment space, advertising factors are several factors which were the highlights of these events recently organised in London. All these events are also eco friendly and also got huge applause from the environmentalists on such event organization.
From all the above experiences Trinity Event Solutions will also try to organize an event which can be economically feasible for their clients and at the same time, innovativeness and sustainability also needs to be considered for significant event. The company also needs to finance more on advertisements so that the event will become more popular in other parts of UK as well (Printsome Insights, 2017). The company also needs to focus on providing quality guest services with appropriate food or beverage facilities to all guests. There should be enough parking facility available at the venue of event with proper arrangement of security needs to be there to avoid any accident at the event.
The financial sources include internal and external sources for the above event. These are the sources which are based on factors like ownership, control, time period or generation sources of finance (Brigham and Ehrhardt, 2013). The internal sources are not requiring any external support and can be generated internally in company’s structure. Retained earnings, selling of assets or working capital are some internal sources which can be used by the company for the event.
This source can be used to accomplish all future requirements by the companies to organize an event (McKinney, 2015). This source will remains with companies after they pay all their dividends or taxes to shareholders. This represents shareholder’s equity in company’s balance sheets.
This source existed for shorter duration and will be calculated by difference on current liabilities with the current assets that will give the value of working capital of the companies.
This source includes properties of the companies in terms of tangibility and intangibility. This source gives cash ownership to the sellers and assets ownership to the buyers (Drury, 2013). This reduces all risks of assets, cash flow improves and all liquidation requirements for companies are also fulfilled.
The external sources are generated outside the organizational structure and all sources expect internal are called external sources.
This source provides loans to the companies by providing their business related documents to the banks (Petty et al, 2015). But interest rates for getting loans are very high expect easier process to get loans.
This source provides financial credits to the companies by its creditors or suppliers (Jones, 2014). This helps the companies to delay their payments for some time and this period depends on terms of companies with their suppliers.
This source provides companies a written contract to grant possession of specific assets to the other party for some time in return of some lease payments or rents during that period.
Foods and Beverages:
The company can obtain income by selling maximum number of food or beverage products to their guests in order to get maximum profits or revenues (McKay, 2015). The prices and quality of products needs to be considered by companies to get maximum income benefits.
The tickets need to be differentiated in categories according to position get during the events. The closer position to centre stage needs to have high costs as compared to other positions. By selling tickets to larger and significant persons will help the company to generate more income.
The company needs to get sponsorship from popular organizations in terms of products or services to get financial support in order to organize the events in successful manner (Weick and Sutcliffe, 2015). The renowned persons or celebrities can also helps to sponsor the events.
The techniques used to display activities of events or videogames for the children are some merchandising activities helps the companies to get income.
The competitions like tombola or other raffles are common practises to increase revenues for the companies by selling the tickets for such offers (McKay, 2015).
The estimated cost for the entire event was proposed to be $20,355 but the on organizing the event; the actual budget comes as $18,630. These include all the expenses from hotels rooms to the expenses on gifts or trophies during the event.
(Bodie, 2013)
The total revenues during the events were expected around $39,090 but the actual revenue the company avail from the events was comes out as $33,385.
From all the above budget estimation and revenues, it is evident that the company is able to generate profits during the event and has got around $14,755 profits from the entire event.
(Bodie, 2013)
(Summary of profit/loss)
This analysis helps the companies in determining the fact that when their company will able to cover all expenses and then starts to generate profits or more revenues for the company. The total expenses are vital for calculating the sales revenues for the companies (Bardach and Patashnik, 2015). The fixed cost does remain same for the companies no matter amount of output produced for the companies. The variable cost depends on amount of products or services produced by the companies. This may decrease or increase depends on amount of production done by the companies.
From the above budget estimation, average / unit revenue for each customer comes out as $49.83, average / unit cost is $27.80 and fixed cost is $730 (Entrepreneur Media, 2017). Then on calculation, monthly break even units are comes out as 33.1 and similarly, break even for revenues come out as $1,651.20. Further, total profits generated during the event come as $14,755.
The actual budget for the entire event was $18,630 and company also able to generate revenues of $33,385 which indicates that company has gained profits of $14,755 for the organizing the entire event. There are various pricing strategies can be used by the companies. Premium pricing makes the company to set higher prices than their all competitors. Penetration strategy aims to provide services at lower costs for attracting more buyers. Economy pricing attracts customers which are more concerned about the prices (Hollensen, 2015). Skimming pricing helps the companies to maximise their sales on new services or products. Bundle pricing helps the companies to sell multiple products on lower prices than on individual basis. Psychological pricing used by companies focuses more on emotional level of customers than the logical factor to encourage their customers.
The external sources of finance like bank loans, trade credit or leasing are most appropriate financial sources for the event management company “Trinity Event Solutions”. Food & beverages, sales of tickets, merchandising or sponsors can be the best income stream for the event company. The company can adopt bundling pricing strategy for the event as will help in generating profits by selling products or services on lower or higher costs by maintaining the overall profit factor for the event company.
Conclusion:
From the report, it can be concluded that use of financial sources like banks loans or leasing, income streams like food & beverages, sales or tickets or merchandising, appropriate pricing strategies like bundling or penetration and effective market analysis will help the company to organize the event in effective and significant manner.
References:
Bardach, E. and Patashnik, E. (2015) A practical guide for policy analysis: The eightfold path to more effective problem solving.UK: CQ press.
Bodie, Z. (2013) Investments. UK: McGraw-Hill.
Brigham, E. and Ehrhardt, M. (2013) Financial management: Theory & practice. USA: Cengage Learning.
Drury, C. (2013) Management and cost accounting.USA: Springer.
Entrepreneur Media (2017) Break-Even Calculator. [Online]. Available at: https://www.entrepreneur.com/calculators/breakeven.html (Accessed: 09 April, 2017).
Event industry news (2017) Concerts & Tours. [Online]. Available at: https://www.eventindustrynews.com/category/news/concerts-touring-news/ (Accessed: 09 April, 2017).
Hollensen, S. (2015) Marketing management: A relationship approach. UK: Pearson Education.
Jones, M. (2014) Sustainable event management: A practical guide.UK: Routledge.
McKay, G. (2015) The Pop Festival: History, Music, Media, Culture. USA: Bloomsbury Publishing.
McKinney, J. (2015) Effective financial management in public and nonprofit agencies. ABC-CLIO.
Petty, J., Titman, S., Keown, A., Martin, P., Martin, J. and Burrow, M. (2015) Financial management: Principles and applications. AU: Pearson Higher Education.
Printsome Insights (2017) Best UK Event Agencies in 2016. Online]. Available at: https://blog.printsome.com/top-uk-event-agencies/ (Accessed: 09 April, 2017).
Trinity Event Solutions (2017) About. [Online]. Available at: https://trinityeventsolutions.co.uk/index.php/about/about#.WOoVxEV97Dc (Accessed: 09 April, 2017).
Weick, K. and Sutcliffe, K. (2015) Managing the unexpected: sustained performance in a complex world. USA: John Wiley & Sons.
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