Basis for Business Operation Initiatives
This study utilized event organizers based in Batangas, a southern popular province, which also is a great popular destination for many types of events. Findings showed that the event management business in Batangas City is generally a personal event type of business whose year of operation ranges from one to three years, mostly link to church or reception venues and usually offers on the day coordination. In the assessment of its perceived viability, it was found out that this type of business is moderately viable in terms of market, technical, business model, management model, economic and financial, and exit strategy.
Among all the dimensions tested, only market, management model, economic and financial, and exit strategy showed significant relationship with the profile variables of the event management business. From the enumerated problems encountered, those that got the highest rate were demanding clients, overbooking of reservation/exceeding number of guests and failure to meet spectators and/or competitors expectations. And, the recommended business operation initiatives were based on the weaknesses discovered using Thompson’s Dimension of Business Viability Model.
Viability of Event Management Business in Batangas City: Basis for Business Operation Initiatives Event management is a multi-million dollar industry, growing rapidly, with mega shows and events hosted regularly. The recent growth of festivals and events as an industry around the world means that the management can no longer be ad hoc. Ad hoc generally signifies a solution designed for a specific problem or task, non-generalizable, and which cannot be adapted to other purposes.
Thus, a standard in managing events should be designed as a general guide. Events and festivals, such as the Asian Games, have a large impact on their communities and, in some cases, the whole country. These impacts generally include economical, socio-cultural and environmental impacts, and should be seriously considered. The industry now includes events of all sizes from the Olympics down to a breakfast meeting for ten business people. This means, from an event with millions of people to an event for small group only (Goldblatt, 2004).
For a flourishing industry such as events industry, it is vital to assess whether it is a viable business in a specific place, so as to make sound decisions in the allotment of investments. One tool that most investors rely upon is a business feasibility study which specifically discusses the various dimensions of business viability. The examination of viability is very vital for the future decisions of present and prospect entrepreneurs in the event industry. In the Philippines, demand for special service in the hospitality industry rged many entrepreneurs to specialize on this aspect. They range from large companies to those small-scale entrepreneur who uses only their creativity, connections and time to make an event extra special for their clients. Their skills in organizing, technical knowledge, personal relation, marketing, advertising, catering, logistics, decor, glamour identity, human relations, study of law and licenses, risk management, and budgeting are just some of the requirements for these companies and entrepreneurs to be successful in this industry (Devney, 2001).
The rapid growth of event industry has been evident in the Philippines particularly those companies targeting the market of special and corporate events. Batangas is known to be one of the most famous tourist destinations near Metro Manila. Batanguenos are also known for celebrating every little event. Such a mindset makes it a good venue for events, thus a potential market for event organizers. For the past years, catering businesses have bloomed rapidly in this province and more locals are already patronizing the service of caterers managing the preparations of their events.
Past researches predicted the growth of this business and concluded its positive prospects; however, catering business is simply a branch of a greater industry, which is the special event industry. Currently, there are already few entrepreneurs who are venturing to event management business in Batangas. Some of them are owners of famous catering businesses, while some are independent small-scale entrepreneurs. Most of them work in teams, contributing their special skills in planning, marketing, and implementing events.
The demands for a more unique, themed celebration make event organizers more preferred by Batanguenos. However, it has been observed that this industry has not yet deeply penetrated Batangas City in particular. Many people are not yet aware of event organization as a profession and a sound business idea. There is also a dearth of research on event management that gives information on the present status and viability of this particular business. This study aimed to determine the viability of event management usiness in Batangas City to serve as the basis for business operation initiatives. The researcher deemed it important to find out whether this new industry has the capacity to survive and progress in the same growing city of Batangas in the years to come. Using Thompson’s (2005) Dimension of Business Viability as the instrument, this research investigated the core dimension of market viability, technical viability, business model viability, management model viability, economic and financial viability, and exit strategy viability.
By examining these aspects and considering the common problems encountered by existing firms, it can be determined whether a business, particularly event management business, can survive and continue growing. The output of this research is the possible business operation initiatives that can be suggested to present and future entrepreneurs venturing on this kind of business. Findings of this study could help present event organizers in improving their business.
In addition, it will also aid future entrepreneurs who may want to engage in this particular business, which may later on contribute to the development of the economy, particularly in Batangas City. In the view of the Graduate School, this study could serve as a springboard for the future researchers who are inclined to analyzing the viability of their chosen business because they could use the same tool which was Thompson’s Dimension of Business Viability. Objectives
The present study determined the perceived viability of event management business using Thompson’s Model as to Market, Technical, Business Model, Management Model, Economic, Financial Model, and Exit Strategy. It also identified possible relationship of the business profile variables in terms of type of event business, year of operation, business linkages, and type of coordination to the perceived viability. In the operation of the business, problems were also discussed in order to propose programs for further improvement.
Business operation initiatives based on the assessment of perceived viability were also designed to enhance the sustainability of event management business in Batangas City. Hypothesis There is no significant relationship between the perceived viability of the event management business and the profile variables of the event management business. Event Management. The Event Industry, particularly those pertaining to event management businesses, encompasses a very wide range of issues if viewed in a worldwide perspective.
Due to the unusual fragmentary nature of the events ‘industry’, an over-all assessment of the market size of the business is a difficult process. It is preferable to look at individual events, or groups of the same kinds of events, to assess their scope, impacts and extent; although it is possible to make some estimates for certain sectors of the events business; this is not sufficient to provide a picture of the whole (Shone and Perry,2004). Event management has become an industry in its own right, featuring specialist event companies and event managers.
Special events are part of our history and culture and have been so for thousands of years in countries around the world. It was observed that people have always celebrated or marked special occasions in their lives: births, deaths, tribal initiations, marriages, seasons, spring times, harvests, full moons. The history of many other nations has been catalogued with dates of victories, celebrations, festivals, and special events from the time they were founded up to the present time. He further noted that the range of events is so wide that there is no one definition which encompasses all (Torkildsen,2005).
Event Management is the capability and control of the process of purpose, people, and place. It follows that events are happenings with objective. Event objective components can help analyze the full range of international events currently being staged. It is the building blocks of the event objectives. Public assembly is events managed by professionals who typically bring people together for a purpose. There is no point in being particular about the number of people but it should be emphasized that the size and type of the group will determine the level of skills required by the professional event manager.
Moreover, it should be accentuated that the term purpose was included in the definition because the professional event managers begin with a purpose in mind and direct all activities towards achieving this specific purpose (Goldblatt, 2004). Four attributes should be taken into account regarding the peculiarities of the event marketplace. These include size and volume of output, complexity and variety of services or products offered to the consumer, uncertainty of numbers attending, cost, time schedule and technical requirements, and interaction with the consumer and degree of consumer/customer contact (Tum,2006).
Planned events are created to achieve specific outcomes, including those related to the economy, culture, society and environment. Event planning involves the design and implementation of themes, settings, consumables, services and programmes that suggest, facilitate or constrain experiences for participants, guests, spectators and other stakeholders. Every event experience is personal and unique, arising from the interactions of setting, program and people (Getz,2007).
Professional event coordination is the integrated implementation of all the operational and logistical requirements of an event, based on the scope of event elements included in the event design. An event, any type of event, is held for a purpose. Public or private, commercial or charitable, celebratory or commemorative—event bring people together to share an experience and produce a measurable outcome (Silvers,2007). Several external factors also affect the growth of the event management industry. Some of these factors are the rate of the growth of economy, lifestyle, and changing characteristics of the people living in the area.
Tourism and branding activities like festivals and corporate activities such as conferences, product launches, award ceremonies, and gala dinners are under the scope of event management business. Key factors for the success of an event management business are reputation, network, service promotion, links with the suppliers, and high quality managerial skills (Gordon,2010). There are a number of companies hosting and organizing events on a regular basis. These range from the small time private events to the large-scale international events.
Yes, the large scales one do happen far rarer, but then the amount of returns they churn out is far beyond expectations. However, in the past there have been events that have also resulted in losses to the hosts and sponsors for varied reasons. But then, all said and done, event management is about organization and execution, and that is precisely where the money lies. Those in the field are paid for these services. Today, there are number of people who have entered the field because they realize the potential of the market where demand and supply is concerned.
In fact, the most profitable aspect of this field is the need for creativity. And that is how and where one earns. The management of events calls largely for coordination from stage one. The first thing required is to get the orders for the event. This process is also known as pitching for an event. Usually, whether it is for small time events (birthday parties and weddings) or then for larger ones assigned by companies (exhibitions and trade fairs), or then the international concerts; the event manager/company is asked to submit a project report, with the finances involved.
On the basis of this is the assignment given to them (Maligalig,2010). Special Events. On one of the focus group discussions conducted by Goldblatt (2002), one of the old ladies said that when he reached the age that she was in, he will forget everything, but the only things that will remain in his memories are the special events and milestones that had passed through her life just like her daughter’s wedding and their fiftieth anniversary. That’s why he affirmed that more people are hiring companies that would organize such special events.
This basic anecdote about special events has been the prime reason why the special event industry is continuously growing and innovating. Research showed how people value special events in their life to the point that they are willing to pay high price to those people who can make it less stressful and more creative for them. Special events are widely recognized as being a growth sector of the tourism industry with potential to generate substantial economic benefit for the city, township or region involved.
This wider recognition of events tourism has also heralded a continually expanding number of new events in many regions as community leaders, clubs, and local and regional tourism industry representatives have identified opportunities to tap into the visitor market (Tonge,2010). Special event is a phenomenon arising from those non-routine occasions which have leisure, cultural, personal or organizational objectives set apart from the normal activity of daily life, whose purpose is to enlighten, celebrate, entertain or challenge the experience of a group of people.
A special event is a unique moment in time celebrated with ceremony and ritual to satisfy specific needs. In the view of event organizers, it is a one-time or infrequently occurring event outside normal programs or activities of the sponsoring or organizing body. On the other hand, in the view of the customer or guest, a special event is an opportunity for leisure, social or cultural experience outside the normal range of choices or beyond everyday experience.
A special event is a gathering of human beings, generally lasting from a few hours to a few days, designed to celebrate, honor, discuss, sell, teach about, encourage, observe, or influence human endeavors. There are some characteristics of special events as a service. Among them are uniqueness, perishability, labour-intensiveness, fixed timescales, intangibility, personal interaction, ambiance, and ritual or ceremony. Special events are “special” because they target an external market; they bring people from outside the inner circle of your organization nto contact with your cause (Goldblatt,2002; Getz,2002; Matthews,2008; Levy,2001; Shone and Perry,2004). The term ‘special event’ has been coined to describe specific rituals, presentations, performances or celebrations that are consciously planned and created to mark special occasions and/or to achieve particular social, cultural, or corporate goals and objectives. Type of Event Business. There are many different types of events. Wedding is a union between two people who wish to spend their lives together.
A wedding can be small with two people plus a person to officiate the ceremony such as priest, rabbi, justice of the peace or minister. It can also be enormous, elaborate events involving a few hundred of people or more. Gala events take place at large venues and often involve a few hundred guests. The occasion for a gala may be to celebrate milestone events such as anniversaries or birthdays or to raise money for various causes. The menu varies from cocktail-party fare to a million-course dinner. Cocktail or formal attire is required for a gala.
Large casual event is a business or casual gathering involving at least one hundred guests. These events are less formal than gala and takes place in the afternoon as well as the evening. It may be a company picnic, bar or bat mitzvah, or a family reunion. Corporate events and dinners include meetings, in-house catering, and dinner with clients. Intimate dinners can be held in private residence or the private room of a restaurant or hotel. Thirty guests or less meet the requirement for an intimate dinner. Cocktail party take place during evening hours, and it can work well at a wedding, gala, business or social event.
A typical cocktail party provides seating for about half the guests and serves a menu of passed hors d’ oeuvres and appetizers with some stationary items (Mancuso,2007). Corporate event management involves managing various corporate events that can be a special media event, an internal event or event open to the public such as a fundraising gala. They are usually managed by a professional planner whose specialty is corporate events. An experienced event planner has the expertise to research and plan a successful event from start to finish.
Some of the common examples of corporate events are launching a product, road show, galas and media event with corporate sponsorship. The events are managed according to their respective nature, keeping in mind the aim of the event, the audience to be reached and the content of the message to be transferred. Launching a new consumer product is a good example of what a planner does to manage this type of corporate event. Launching a product involves consumer conviction as an ultimate goal. The customer has to be convinced to buy the product by using innovative ideas.
A corporate event manager might set up a convention to launch the product. This would involve planning all pre-convention meetings, working with graphic artists, writers and printers for all printed materials, choosing a location for the convention, selecting food and entertainment, etc. (Cole,2010). The event planning service business is a $500 billion business worldwide today, with lots of growth opportunities. The profit margin has gone up from 15% to 30 to 40%. People hire event planners because they don’t have the time and expertise to organize events themselves.
Some of the events for which event planners are hired are: Celebrations (fairs, parades, weddings, reunions, birthdays, anniversaries), Education (conferences, meetings, graduations), Promotions (product launches, political rallies, fashion shows) and Commemorations (memorials, civic events) (Dilliard, 2010). Various authors have their own topology of events used to categorize events. One topology splits events into four broad categories based on the concept of events having leisure, cultural, personal or organizational objectives.
Leisure events include events for the purpose of leisure, sport and recreation. Cultural events, on the other hand, involve ceremonial, sacred, heritage, art and folklore. Personal events consist of weddings, birthdays and anniversaries. Lastly, organizational events are those for commercial, political, charitable and sales. However, the authors emphasized that in this typology, there are frequent overlap. Cited example is the graduation of a student from a university could be a personal event for his or her family and an organizational event for the university (Shone and Perry,2004).
This study will be using the typology of events made by Shone and Perry (2004) to categorize the type of event management business that the subject of the study may fall into. This classification may be broad but it will give a clear view of their business type. Business Linkages. No event takes place in isolation and each event involves a set of interdependent and interacting elements within a system: the event product with event participants, the audience or customer, and the sponsor (Tassiopoulos, 2005). We should be aware that an organization does not operate in isolation.
The event operations management model shows in the first stage that there are different environments that have an influence on it and should be analyzed. These are the internal and external environments. Following analysis of these, it is then possible to develop the planning process. All organizations should work in partnership with their suppliers, customers and competitors (Thompson,2001). An immediate impact is made on an organization by suppliers and customers, on whom it depends, and its competitors—both existing ones and new ones joining the industry.
The influencers in the inner circle of the figure may be easier to control and manage than those in the in the outer circle (Tum, 2006). Often within an event company there is not a specific purchasing officer, many of the staff may create buyer/supply relationships with different companies. Some products may be bought outright and owned by the organization, and others will be used for only one event. In the case of some of the purchase agreements, for example the caterers or pyrotechnic suppliers, it is the whole service and system that is purchased and the contracted company will bring their own products and staff.
To be successful, these relationships and method of purchasing or leasing must be managed effectively since they all provide vital supply chains throughout the operation (Tum, 2006). The emergence of an association in Great Britain named In Any Event has greatly helped event organizers in their area. In Any Event is a collaboration of eight event companies. The association will check on the quality of the services offered by the members using a given standard. According to the members, an effective trade body is all about quality and trust (Skeith, 2009).
The emergence of the industry has also led to the formation of professional associations providing networking, communications and liaison within the industry, training and accreditation programmes, codes of ethical practice and lobbying on behalf of their members. Event managers should identify the associations that best suits their individual situation and the needs of their organization, as some associations promote individual membership, whilst others promote membership on an organizational basis.
Some of the main trade and professional associations covering the events industry are associations, conference/meetings, exhibitions, incentive travel, festivals, corporate hospitality, music events/events production, venues, and miscellaneous/suppliers (Bowdin, 2006). Food, beverage and celebration are inextricably connected. From social life cycle events to mega events such as the Olympic Games, the relationship between food and frivolity has been a close one. This is not to suggest that it is not serious business as well (Goldblatt,2001).
The hotel contract plays one of the most significant roles in the planning of the conference. The hotel layout, logistics, room rates, audio visual, and of course meals can financially make or break your organization (Oliver,2005). Events are organized by several different actors with individual interests. In order to perform the project task at hand, actors form relationships aimed at cooperation. Relationships involve political processes, which can be understood from a consensus and a conflict perspective. From the consensus perspective, mutual commitment, trust, and onversation are important to build fruitful relationships. From the conflict perspective, tensions, conflicts, and power games are considered unavoidable aspects of social interaction, which create change and renewal (Larson,2001). In the tourism business, linkages with hotels, travel agencies, transportation companies, schools, restaurants and other agencies appear very important if the tourist operators would like to stay long in the business. It seems that being alone in the business without any linkage with other establishments would not mean much in terms of survival.
In other words, establishing linkages with other types of business firms help tourist operators maintain their position in the market (Festijo,2010). Identical to Festijo’s study, the present study will also make use of business linkages as one of the profile variables that could affect the perception of the respondents regarding the viability of events management business. Type of Coordination. Services should be provided to conform to given factors. This includes specification, consistency, timeliness, flexibility, right price, and added value and little extras.
The first and crucial issue is the specification. Unless the service fulfills the requirements of the customer, it will not be used. The second important issue is consistency. Customers expect service to be at the same level, or better, each time it is experienced. Once a level of quality of service has been promoted, or actually provided, customers will be quick to notice if it is not achieved or sustained. There is no point in setting a high standard of service if the operation cannot consistently meet the standard. The third issue is timeliness.
The timing on when to grant the service should also be considered because it may be the reason why a customer may be upset and never comes back again. However, timing is of lesser importance when customers make appointments in advance. Fourth, flexibility is important in the service industry. The moment the event is delivered, it is consumed. Immediately, of course, event organizers may come across difficulties. In these scenarios, the event manager has to be flexible to accommodate the changing situations. Customer expectations still have to be fulfilled despite changes in circumstances.
Fifth, determination of the right price can be agreed once the marketing team is satisfied that they know what the customer wants—the specification. This will determine the price that can be charged. This concerns the ability of the team to supply the specifications that can increase customer satisfaction, and at the same time, bring profit to the business. In the sixth position is added value and little extras. Once the event has met the basic requirements, then all the other ‘extras’ will add to the perception of quality and could provide the edge in a competitive environment (Tum,2006).
Kandampully (2002) believes that service quality can be defined as the extent to which a service meets the expectations of customers. He divides customers into four broad group: internal customers (employees and managers of the firm), external customers (a firm’s end customers), competitors’ customers (those who the firm would like to attract, and ex-customers (those who are going elsewhere and therefore are no longer our customers). Most of the independent event coordinators are offering three types of services. These includes the Full Event Coordination, the Partial Coordination and the On the day Coordination.
In Full Event Coordination, consultation begins within an allowable time frame convenient for the client and coordinator. It involves actual conceptualization, budget planning, sourcing of suppliers (with final approval of client), venue, physical, arrangement, conceptualization of the program, and continuous coordination with the client and supervision during the actual date of the event. In Partial Coordination, consultation begins few months before the event where it is assumed that 40% of the preparation has been completed.
Previous accomplishments of the client are then handed over to the coordinator for continuation of plan and additional support. The coordinator takes on bringing together the concept and confers it with the suppliers that the client has already chosen. Continuous coordination with the client and supervision on the actual date of the event is granted. In On the Day Coordination, consultation begins after confirmation of client as to the services to be provided by the coordinators. The coordinator completes the concept and program and works together with the suppliers for final arrangements.
The coordinator also straightens out matters on deliveries, venue, physical arrangement, program briefing with the host, and supervision on the actual day of event. The present research will make use of these three types of coordination to categorize the services offered by the event management businesses. Business Viability. The viability of a business is measured by its long-term survival, and its ability to have sustainable profits over a period of time. If a business is viable, it is able to survive for many years, because it continues to make a profit year after year.
The longer a company can stay profitable, the better its viability. A business feasibility study is an analytical tool that includes recommendations and limitations, which are utilized to assist the decision-makers when determining if the Business Concept is viable (Thompson,2005). Analyzing the prospects for this type of business, it was noted that its commercial sector has developed rapidly during the last fifteen years and will continue to do so. The market for events has expanded to the point where the need for a much better professional infrastructure is evident.
The increasing number of events management companies and professional event organizers is an indication of this demand (Shone and Perry,2004). While real viability can affect perceived viability, there are other (possibly irrational) influences on perceived viability that have nothing to do with real viability. Conversely, the effect of perceived viability on real viability is at best indirect (perhaps by affecting morale or the cost of capital) – but any causal link in this direction cannot be taken for granted and should be explained.
In order to measure the viability of events management business in Batangas City, the researcher opted to use the Dimensions of Business Viability Model created by Thompson (2005). This model has long been used by many entrepreneurs to test the viability of their business and business idea. Thus, the result of this study will be limited to the aspects determined by this model. The Dimensions of Business Viability Model is a generic framework that assists entrepreneur in identifying individual tasks (decisions) in validating the Business Concept.
The model also aligns the findings with functional processes of an enterprise which an audience can easily understand. It is a decision weighting model that provides a benchmark framework for measuring the Business Concept’s viability. The model allows the entrepreneur to weigh the over-all and segmented viability of Business Concept (Thompson,2003). The Dimensions of Business Viability Model will validate the Business Concept by the core dimension of market viability, technical viability, business model viability, management model viability, economic and financial viability, and exit strategy viability.
Each dimension of the business viability model will contain components which evaluate individual characteristics of the enterprises business venture’s viability. In developing the model to best fit the business under examination, the entrepreneur will need to structure each dimension. Market Viability includes the components of market environment (e. g. size, sustainability, potential market, target market, potential value), competitors, similar products, pricing, packaging, distribution to markets, and promotion/advertising (Thompson,2005).
In determining the market viability of a product or service, the following steps must be followed: First, compare your offer to a 3-legged stool, which cannot support weight unless all three legs are equal in length and spacing. One leg is the offer itself, which includes price and demand. A top quality offer at a competitive price is still a low fail if the other legs are not balanced. The second leg is the customer list. If you don’t know who wants your product or service, then you have nothing.
The third leg is the process, language and messaging used to convey the value of the offer to the list. Second, determine the mass appeal of your product or service. If only a very select few can benefit from it, then your offer may be too limited to generate enough revenue to justify the investment of taking it into the marketplace. Identifying a specific demographic target is a strategic necessity, but there is a certain volume required to break even and a much larger volume required for long-term profitability.
Third, measure the uniqueness of your offer against all competitors or whoever shares your market niche. The more unique your offer is the more likely it will gain share against your competitors. Fourth, assess the exclusivity of your offer. If your potential customers can get your product or service somewhere else, then you will be forced to find another factor to differentiate your offer from the competition. If your offer cannot be found anywhere else, your business will benefit invariably. Lastly, test the perceived value of your offer.
In order to be successful in business, you must be able to sell your product or service at a price point that is commensurate with what people are willing and able to pay. Ironically, you can under price an offer as well as overprice it. Public relations are of a vital importance to every operator and an increasingly important part of the marketing and sales function, and provide the operator with positive support to sales and promotion activity. In reality, effective public relations are an exacting business requiring particular skills often beyond the capabilities or experience of many operators (Festijo,2010).
This aspect could be taken into consideration when assessing the marketing and promotion efforts of the event management business, since this type of business generally rely on word of mouth and appreciation of their clients. Technical viability will cover capacity, availability and quality of resources, inclusive of raw materials, labour and professional expertise, supply chain implications, manufacturing process, and ability to apply IP (Internet Protocol) (Thompson,2005). Technical Viability pertains to the uniqueness and features of products and services and intellectual property positions (Morgan,2009).
Business model viability entails uniqueness of model in terms of competitive advantage, ability of competitor to duplicate, ability to create value through priority knowledge and process, ability to create wealth, and ability to duplicate and delegate (i. e. documentation of tacit and explicit knowledge) (Thompson,2005). Business model is defined as a description of the operations of a business including the components of the business, the functions of the business, and the revenues and expenses that the business generates.
A business model describes the rationale of how an organization creates, delivers, and captures value – economic, social, or other forms of value. The process of business model design is part of business strategy. In theory and practice the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.
Management model viability includes application of knowledge and skills, training, employee management and recruitment, management of intellectual property, management of risk, ability to delegate to staff, suitable organizational structure, suitability of management and protocols, and ability to measure business process (Thompson,2005). Economic and financial viability will cover start up costs, working capital, operating costs, raw material costs, overall return on investment, overall profitability, breakeven point, sustainability of market versus projected revenue, and ability to generate economic value (Thompson,2005).
Economic viability is characterized by long-term sustainability (profitable over the long-term) and short-term feasibility (sufficient cash flows to meet short-term obligations). Projects/ventures can be either public/community type projects or private enterprise ventures. Four financial measures are particularly useful when examining the viability of a project: Net Income, Cash Flow, Required Operating Loan, and Ending Cash Balance.
Exit strategy may contain ability to create wealth from exit strategy, ability to define exit strategy, ability to relate exit strategy to industry model, ability to identify potential buyers and/or strategies, ability to create capital assets, and ability to schedule exit strategy (Thompson,2005). Planning how you exit your business is just as important as how you start it. The goal is to maximize the value of your company before converting it to cash, and to minimize the amount of time consumed. Getting out of business is a process.
The length of time required to complete the process is directly related to the complexity of the business, and the circumstances underlying this decision to get out of business. It can range from one week for a home-based sole proprietorship to several years for a corporation forced into involuntary bankruptcy. Disputes and litigation add another dimension to the timeframe. Planning and awareness are crucial. The process, timing of events and tasks must be tailored to the type and complexity of the business.
Each case is unique because reasons for dissolution differ, and problems that exist or develop are unique to the circumstance. The process for getting out of business successfully requires the same amount of planning as going into business. While the process should be easier, it is likely to be less enjoyable and more stressful. The best advice for business owners is to think about the future during the early stages of getting into business. Exert managerial influence to ensure that complications and problems which could affect dissolution, and net value, do not develop into roadblocks.
When the time for getting out of business comes, engage the invaluable expertise you will need, and prepare a plan. The Dimensions of Business Viability Weighing Process includes the determination of dimension of viability, determination of measures of dimension of viability, assignment of component weighting to dimension, assigning weighting to key measures, assessing each measure and assigning score, weighing each dimensions overall viability, determining collective viability of business, and articulating viability of business (Thompson,2005).
Problems encountered in event organization. Although there are many successful events, instances occur where hardworking organizing committees see their events generate only limited interest and fail to meet the desired objectives—situations that can leave committees with substantial debts, creating disenchantment in the community and sponsoring organizations. In these cases, the main reasons for failure are usually a combination of two or more of the following factors: failure to allow sufficient planning time, inadequate planning, problems within the organization committee (i. . power struggles, infighting, lack of necessary skills), overly optimistic income projections, inadequate market research, clashing of event dates, an ad hoc approach to marketing (lack of marketing plan), lack of sponsorship plan, inadequate budget and/or poor financial management, failure to meet spectators and/or competitor expectations, or failure to adequately make provision for inclement weather conditions (Tonge,2010). From the viewpoint of people attending local and regional events, recent research has revealed five main complaints.
These include insufficient toilets, overpriced food and beverage, inadequate traffic management and signage, the event program can ran considerably over the scheduled time, and the event failed to meet the expectations created by the promotion (Tonge,2010). It is difficult to imagine an event without a crisis. The ability to handle crises is an important skill for senior staff member in event management. A good event manager faces crises and handles them calmly and effectively.
He should try to avoid crises by careful preplanning and foresight. The staff should be prepared to take appropriate action when crises happen. When crises arise, the steps that should be followed in handling them include analyzing the situation in a cool manner, re-examining the objectives, examining the possibilities, considering the consequences of several solutions, selecting the best alternative, implementing the appropriate action, and continue monitoring to avoid repetition (Cruz,2005).
For decades, every time event organizers plans and executes event, they are always faced with various challenges that are inevitable to the business. According to Tarlow (2002), whenever we bring people together, there is an element of risk. Event risk should not be seen as a single factor, but rather as an accumulation of variables. Depending on the circumstances, these variables would include size of the crowd, size and nature of the event site, time of day, nature of the event, consumables, age of the crowd, weather conditions, and location of the event venue.
A list of some events include family and human life cycle events such as weddings, family reunions and barbecues, community events, such as school picnics, business outings, and holiday celebrations, organized shopping exhibitions, civil and political events, business meetings and conferences, sports events, ranging from Little League to the Olympic Games, concerts, religious gatherings and pilgrimages, local and national political gatherings, fairs and festivals.
He noted that as an event professional, it is important to understand that it is significantly less expensive to manage risk prior to the event than deal with the crisis after is has occurred. He further discusses the importance of risk manager increasing their awareness of the assumptions they make and the potential biases that may influence their decisions. Entrepreneurs are constantly on the lookout for business opportunities and, at the same time, they are keen observers of existing and potential problems in the pursuit of their respective businesses.
These common problems may include those connected with source of funds, source of raw materials, red tape in government, manpower/labor/HR and the lack of information to assist the Pinoy Entrepreneurs. These problems may appear to be obvious. As to sourcing of money with which to start a business, it can be raised in various ways, including personal savings, borrowing from relatives, borrowing from money lenders or “5-6” operators, borrowing from formal sources of credit like banks and other financial institutions.
Borrowing money, however, is not as easy as it they make it sound. As to the existing efforts to address red tape in government, there’s still a lot to be done, but the progress made by some agencies are really noteworthy. Several classification frameworks have been proposed for the categorization of organizational problem types. For example, over 30 years ago, Dearborn and Simon (1958) classified organizational problems into three general types: (1) sales, marketing, or distribution; (2) clarifying the organization; and (3) human relations, employee relations, or teamwork.
More recently, Walsh (1988) proposed that organizational problems can be grouped into five general categories: (1) accounting-finance; (2) human relations; (3) marketing; (4) internal management; and (5) external management. Both of the above studies, however, were narrowly focused on the role of selective perception, or the extent to which affiliation with a specific department in an organization influences the types of problems identified (Terpstra,2004). Business Operation Initiatives. Business operation initiatives refer to the plans or programs of a business with regards to the operation of the business.
In this study, this refers to the propose action or scheme for tourism attraction business on how to sustain its business operation to achieve its desired goals and objectives (Celis,2008). Patterned to the dissertation of Celis (2008), this study also sought to recommend business operation initiatives for the subject business. The researcher considered the concept of formulating business operation initiatives as relevant to the assessment of the viability of the business. However, they differ on the type of industry; Celis focused on tourism ttractions while the present study will focus on the events management business in Batangas City. Conceptual Framework The Event Industry, particularly the special events industry, has been a rapidly growing industry not only in the global arena but also here in the Philippines. More entrepreneurs have been showing interest in this new endeavor, though some are still thriving. Batangas City, as one of the rapidly progressing cities in the CALABARZON area, has great potential for investors and entrepreneurs who are willing to venture for new business ideas that will meet the demand of the people.
In order to attract such entrepreneurs, a study on the viability of a business will aid them in their decision makings. This research will determine the present status of the events management business in Batangas City using the profile variables. To determine the viability of the event management business in Batangas City, Thompson’s (2005) Dimensions of Business Viability will be used and will focus on the 1. 2. Market, Technical, Business Model, Management Model, Economic and Financial Model, and Exit Strategy.
Through this, the researcher will also be able to extract possible problems that the entrepreneurs are experiencing during the course of their operation. The result of this viability model will be the basis in drafting recommendations for business operation initiatives that could enhance the prospects and sustainability of event management business in Batangas City. Conceptual Paradigm The figure below shows the items that have been analyzed in this research and their relationships. The profile of event management business n terms of type of event business, year of operation, business linkages and type of coordination has been identified. The researcher then evaluated the viability of event management business using Thompson’s (2005) Dimension of Viability which includes Market, Technical, Business Model, Management Model, Economic and Financial Model, and Exit Strategy. It has been identified whether there is a relationship between the profile variables and their assessment of viability. Problems encountered were also identified and analyzed.
Through this analysis, business operation initiatives have been recommended for the further development of this industry in Batangas City. Figure 1. The profile of Events Management Business in Batangas City, their assessment of its viability, and the problems encountered by this business, altogether, had been the basis for Business Operation Initiatives Methods This chapter presents a discussion of the research design in this study, the respondents of the study, data gathering instruments and procedures, and statistical treatment of data. Design
The study used the descriptive design utilizing a survey questionnaire for the event management business. This study aimed to provide a description of relationships among the following variables: demographic profile and the perceived viability of events management business in Batangas City. This research design was chosen because it can provide essential knowledge about the concepts being used in this study as well as its relationship with each other. This method was deemed appropriate to the present study since this involved assessment of prevailing conditions. Respondents of the Research
The questionnaire was answered by the team leader and team members of the ten identified DTI registered event organizers in Batangas City. Each team composed of not less than three members, thus the researcher is targeting 30 members of the event management business for this study. Procedure The following steps were undertaken in gathering the data to answer the questions in the study. An initial informal interview with the present event organizers was conducted by the researcher to gain reliable and related information that was used in constructing the questionnaire.
In order to obtain the necessary data, the researcher used a constructed survey questionnaire. Modifications were incorporated through the help of experts in the field. A letter of request to conduct the study, together with the three-part questionnaires was sent to the different event management businesses in Batangas City. To measure the concepts relevant in the study, the researcher sought questionnaire from on-line source and modified the versions of instruments used by other studies and collated these to have an instrument appropriate for the study.
The instrument was a modified version of on-line source particularly Thompson’s (2005) Dimension of Business Viability and also the profile variables included in Celis’ (2008) dissertation. These will be used to gather data needed for the study on the viability of events management business in Batangas City. Part I covered the detail on the profile of the existing events management business in Batangas City which included queries on the type of event business, year of operation, business linkages and type of coordination.
Part II conveyed items included in Thompson’s (2005) Dimension of Business Viability such as market, technical, business model, management model, economic and financial model, and exit strategy. Part III enumerated the common problems encountered by the event management business in Batangas City, as formulated through informal interview and from literature review pertaining to problems of event management business. The draft of the questionnaire was submitted for both external and internal validation.
To fully determine the items’ clarity, relevance and appropriateness, the researcher set the questionnaire for external validation by experts in research and event management. The researcher personally distributed the questionnaire and retrieval was done two weeks after the distribution of the questionnaire. Data Analysis The following statistical measures were applied to analyze the data: 1. Frequency and percentage distribution was used to determine the profile of the event management business in Batangas City.