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PURE EVENT MANAGEMENT &

HOSPITALITY LIMITED
Business Strategy 2018 - 2023

GROUP: Friday Dinner

Members:
Tadeusz Zbiniew Nagalski
Quynh Anh Nguyen
Lynne Lin
Jiahao Liang

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Executive Summary

Pure Event Management & Hospitality Limited, founded by Charlotte Wilson, is an


UK event organiser which locates its head office in London. Established since 2005,
the company gradually gained its reputation as a professional organiser in Conferences
& Meetings and other company events by always putting clients’ objectives at first
place and offering profession service at the best price. In the development of Pure Event,
there are factors considered as its internal strengths and weaknesses and external threats
and opportunities, which all affects the performance of the company in the future. Pure
Event has opportunities to improve its performance due to a more favourable
environment in the UK. However, it also means that increasing competition in the
industry can somehow be predicted. The company has advantages in its human
resources which helps them to get the best deal from suppliers and pass it to customers.
However, Pure Event lacks a Marketing and PR plan and human resources who can
professionally implement it. Successfully implementing such plans can improve its
overall financial performance by getting more new clients. Therefore, a strategic
business plan is necessary at the moment.

A detailed analysis on all the factors that Pure Event is facing will be made at the first
part of this paper, following by the strategic plans for Marketing & PR and Human
Resources recommended for the company. In the 5-year period from 2018 – 2023, two
new staff will be hired as well as company policies about staff incentives and benefits
will be improved. This will require the company to invest more money, however, it
aims to increase Pure Event’s turnover and annual growth rate to £5.9m and 22%
respectively in 2022.

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Table of Contents
1. Introduction .................................................. 1
1.1. Key details about the company................................... 1
1.2. Key factors as to why a new strategy is needed .................. 1

2. Strategic Analysis ............................................ 2


2.1. External Environment Analysis ................................... 2
2.1.1 Political Environment ......................................... 2
2.1.2 Economic Environment .......................................... 3
2.1.3 Socio-cultural Environment .................................... 4
2.1.4 Technological Environment ..................................... 5
2.1.5 Environmental Environment. .................................... 7
2.1.6 Legal Environment ............................................. 8
2.1.7 Competition ................................................... 9
2.2. Internal Analysis ............................................. 11
2.2.1 Resources & Core Competences ................................. 11
2.2.2 Organizational Performance ................................... 12
2.2.3 Product/service evaluation ................................... 14

3. SWOT Analysis ................................................ 14

4. TOWS Analysis ................................................ 16

5. Mission ...................................................... 17

6. Objectives ................................................... 17

7. Strategy 2018-2023 ........................................... 19


7.1. Strategy overview ............................................. 19
7.1.1 Strategy Type Statement ...................................... 19
7.1.2 Directions ................................................... 20
7.1.3 Methods ...................................................... 20
7.2. Strategic Implementation ...................................... 20
7.2.1 Organizing and Resourcing .................................... 20
7.2.2 Monitoring Change ............................................ 24

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1. Introduction

1.1. Key details about the company

Pure Event Management & Hospitality Limited (P.E) was incorporated by Charlotte
Elizabeth Penelope Wilson in 2005 in London, UK. The company's previous
honours were ‘Best Internal Engagement’ and ‘Best Outdoor Event’ at EVCOM
Live Awards in November 2015. According to C&IT’s top 50 UK agencies ranked
by event-based turnover (2017), P.E was ranked 49 with £2.7 million turnover. The
team is young, dynamic, creative, professional, friendly and globalize. The services
area includes global incentives, global conferences, experiential events, company
events, project launches and team-building events.

Pure Event has three previous company’s names, which respectively are
Personallies Limited (July 2000 - July 2001), Personal Allies Limited (July 2001-
September 2005) and Charlotte Wilson Consulting Limited (September 2005 –
October 2005). In addition, the company was nearly insolvency in 2009, because
Pure Event faced the financial crash leading to enter a company voluntary
agreement (CVA), and some consumers left with it. Although the staff scale was
reduced from five to two and the company had to pay the debt, Pure Event still
survived. Since 2010, the company has three shareholders, Charlotte Elizabeth
Penelope Wilson (80%), Drake Investments (10%) and Phillip Ashley (10%). In
18th April 2017, the registered office address was changed to 71 Queen Victoria
street London England EC4V 4BE.

1.2. Key factors as to why a new strategy is needed

Henry (2008) indicates that an effective business strategy is a factor which can help
an organization to be more successful in a complicated business environment.
Business strategies are not invariable, because the change of external environment
and internal environment affect the commercial rules of game, so companies need
to apply different strategies to adapt the environment or use resources, leading to
increase the probability of survival (Edgar & Campbell, 2011). The new strategy
may lead to more commercial profit margins and promote sustainable development
of the company (Crowther, Güler, etc., 2012). Therefore, in a drastic competitive

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environment, P.E should recognize and analyze the external environment of the
whole UK economy and event industry, as well as its own internal environment in
order to develop new strategies.

2. Strategic Analysis

2.1. External Environment Analysis

2.1.1 Political Environment


As the World Bank's governance indicators illustrate, the UK is one of the most
successful nations in terms of the application of the rule of law, control of corruption,
government effectiveness, and regulatory quality (Marketline, 2016).

Current strengths:

• Strong democratic setup and effective governance


• Political stability
• Strong position in global politics
• Taxation changes: Corporation Tax was reduced from 20% to 19% from 1 April
2017 to support investment, growth and job creation. The main rate of corporation
tax will be cut again to 17% by 2020, by far the lowest in the G20 and benefitting
over 1 million businesses (Marketline, 2016).

Current challenges:

• Brexit can have adverse effects on the company’s plan to go abroad to the Europe
market where some of their projects taken place. Brexit could also lead to losing
foreign staff and talents as well as foreign investment (Marketline, 2016).

Future prospects:

• Stronger ties with China: China – UK’s relationship has improved after Chinese
Premier’s visit to the UK, resulting in investment deals worth £14 billion in the
fields of infrastructure, financial services and clean energy. The warming of ties is
a big boost to the economic environment of the UK, as with the improved ties, the
UK could experience an increase in capital inflows (Marketline, 2016).

Future risks:

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• Terrorism: The number of terrorist attacks across the world rises at an alarming
rate and events are the preferred target of terrorists’ attack. A large number of
people are increasingly being targeted. Some terrorist attacks targeted at events
can be listed, for example, the Manchester Arena attacks on 22 May 2017, Las
Vegas shooting at a country music festival on 1 October 2017, Berlin Christmas
market attack on 19 December 2016, Nice firework terror attack on 14 July 2016.
However, according to a 2016 EventHuddle poll, 93% of UK event organisers do
not feel adequately trained for an incident. 48% of events professionals expect
costs to rise because of the need for greater security, according to MPI
Meetings Outlook (Event Manager Blog, 2017; Raconteur, 2016).

2.1.2 Economic Environment


Current strengths:

• Highly developed economy and favourable investment climate: The UK is one of


the largest economies in the EU and one of the strongest in terms of social welfare
and standard of living. Among the EU nations, the UK has one of the highest levels
of GDP per capita in terms of purchasing power parity (Marketline, 2016).

• Excellent environment for doing business: According to the World Bank's Doing
Business indicators for 2017, the UK is the 7th best country in the world to do
business. The country ranks 20th in “Getting credit”, which indicates that any
company wishing to enter the UK faces fewer hurdles in terms of meeting working
capital and long-term capital requirements. The UK has a favourable business
environment in terms of the availability of skilled professionals, a central time
zone perfectly positioned between the east and the west, a flexible regulatory
environment to start a business, and a leading global financial center in London
(Marketline, 2016).

Current challenges:

• Brexit and general political uncertainty: Brexit affected the UK economy in many
ways. Fluctuating currencies and potential visa issues were both identified as areas

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of specific concern. The country is suffering a 'notable slowdown' as GDP rises by
just 0.3% in Quarter 2, 2017 (The Guardian, 2017). When being asked about the
biggest challenge facing the wider events industry is, a quarter (26%) of agencies
cited Brexit, and a further 14% said general political uncertainty (C&IT, 2017).
• Increasingly competitive marketplace: many new start-ups while several notable
agencies, e.g. AddingValue and Bluehat UK Ltd, went into liquidation. (C&IT,
2017).
• Talents shortage: 47% of highly skilled workers from the EU were considering
leaving the UK in the next five years. 36% of non-British workers in the UK said
they were thinking of leaving within the same period, representing 1.2m jobs out
of 3.4 million migrant workers in the UK (The Guardian, 2017). More than half
(55%) of event agencies said that recruiting/retaining talent is more challenging
than previous years. (C&IT, 2017).
• The global competitive landscape: Competition from other countries and
destinations takes many forms. Huge investments have been made and continue to
be made in facilities and infrastructure by many countries, e.g. Persian Gulf, Abu
Dhabi Qatar, Dubai. In January 2013, the Malta Tourism Authority announced a
new annual subvention fund of €100,000 to attract international association
meetings. Malaysia has a conference subvention budget of US$ 7.5 million a year
to help increase the Conferences and meetings sector’s turnover (Business Visits
& Events Partnership, 2014).

Current Opportunities:

• Increasing client budgets for events: 40% of event agencies reported that they have
seen budgets increase in 2017. 71% of corporate planners expect to organise more
events in 2017 than 2016 (C&IT, 2017).

2.1.3 Socio-cultural Environment


• Higher education impact on incomes
There is a relation between level of achieved education and annual incomes. The
majority of graduated people earn £20,000 yearly. There are differences between
females and males in each group, however, people with first level of higher
education are more likely to earn more money than unqualified blue-collars

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workers. The gender content contained in this model give a lot information about
earnings of each group and potentially can help with defining their capacity of
spending money for their needs.

• Lifestyle
Last surveys show that the UK people’s wellbeing and lifestyle-change has
increased. Consumers needs have changed. People are happier and like to spend
their spare time outside, prefer healthy food and physical activities more than ever
before. It is noticeable that since Brexit has become an official fact and has started
be proceeded, people’ happiness in the UK increases.
2.1.4 Technological Environment
Current strengths:
• R&D Development
The government has invested a lot of money in R&D and effective intellectual
property rights. R&D expenditure increased by 3.10% (27.84 billion) from 2012
to 2013. R&D is encouraged by government policies, for example, government
investments 2 billion per year in R&D to keep the country at the forefront until
2020.
• Mobile Users Increase
According Mobile Ticketing in 2017, there are over 45 million smartphone users
in the UK. According to event industry 2017, Mobile event apps rank 2nd at
technology trends in event.
• Diversification of Existing Technology in Event Industry
In the event industry, technology is being applied in many forms of APIs, Email
& Marketing automation, real time intelligence, live streaming, Omni-channel
experiences, wearables, RFID, gesture control, AI, Robots, cashless payments, 3D
scanning and printing, VR (virtual reality), biometric data technology, AR, Drones,
facial recognition (2017), 3D projection mapping, iBeacon/Bluetooth or other
sensors, mobile event Apps and big data analytics. According Mobile Ticketing in
2017, there are over 45 million smartphone users in the UK. Social media is not
the best platform for promote festivals as event marketers have to spend a lot for
ads on social networking sites. RFID technology has been used by festivals such
as V, White Island, Reading, and AIF member Bestival and Rhythm & Vine, and
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is often used in the process of admission.
• Sufficient Technology in P.E
According to P.E’s website, P.E has used a number of technologies, including
website registration, event apps, voting systems, virtual reality & augmented,
reality content, 3D Holograms, multi-touch screen tablets, Interactive Touchscreen,
gesture control software, NFC enabled content, videos production, event
photography, PowerPoint and Keynote design & support, Motion Graphics
creation. The company’s technology use is somewhat lacking in comparison with
the number of existing technology in the industry, however, it is now cooperating
with tech suppliers who can provide technological tools for set-up, staging and
audio-visual production. Therefore, at present, the technology is sufficient to
support in business development.

Current challenges:

• R&D is facing a shortage of technicians


R&D currently lacks skilled personnel and regulatory control over indigenous
innovation in the UK.

Future prospects:

• Technology Progress
Events’ quality will be improved by future technology. Technology is constantly
changing. Event creators have many choices for their events, from 3D printing,
biometric data technology, drones, facial recognition (for payment and ticketing),
to Google’s smart glasses, live-streaming video, VR, AR, 360-degree, social
media technology, remote translation, 5G, big data and analytics, Feedback via
chatbots and mobile event Apps.

3D printing will become more mainstream in recreational events as it is getting


more affordable and compact. MasterCard’s selfie pay will be applied in events.
VR, AR version technologies and Holograms are popular in recent years.
According to event industry report 2017, these technologies are still in its early
stage of application in the event industry, as event creators has only few awareness
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about them, but it is believed that these technologies will be used more widely in
the near future. At the end of 2017, the government will consider how to
implement and cover the 5G network after the Ofcom submission. Remote
translation will reduce the cost of equipment, but requires strong Wi-Fi system to
support. Chatbots will be more effective than real people as participants feel more
comfortable, leading to more shared personal thoughts.

Future risks:

• Increasing Cyber-Attack
There is a rise in cyber-attack, for instance, in 2014, there are 2.46 million
cybercrimes in UK, with about 2.11 million victims, and the cost of hacking is
£34.0 billion every year. The companies may spend more fund in IT security.
Therefore, cyber-attacks affect the companies’ impeding innovation in the future.
• Rising Technology Costs in Events
In terms of investment in tools and technology, the average activity broker
invested £4,431 pounds per activity, an increase of 25% from that of the previous
year (£3535). Professional event organizers have the highest average expenditure
on the technology of the (£88,536), and the average budget of the small and
medium enterprises is £7623. 23% of activity agents said the budget would
increase next year.
2.1.5 Environmental Environment.
Big events sometimes affect local environment very badly. Sustainable approach,
therefore, should be considered when organizing events. Below are few tips for
potential event managers about how to properly proceed being eco-friendly event
creators.
• Start early: embed waste management and resource efficiency into all event
planning and contracting. Remember to plan early and not leave this to the end.
• Know your waste: what it is, where it comes from, where it can go and what level
of streaming is best for your event. This will help you identify what can be reduced
and recycled.
• Procure wisely: think about what you are sourcing: Where does it come from?
Who made it? What is it made of? What is it wrapped in? What will happen to it

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afterwards?
• Minimise waste: prevention is cheaper than disposal, so reduce the amount of
waste that will be created and look for ways to re-use, recycle and compost before
other disposal options.
• Use contracts and set targets: set realistic, measurable targets and include them in
contract procurement specifications. This will share the load and ensure suppliers
are working with you.
• Have a shared vision: engage all levels of the organisation from the beginning,
making sure you have buy-in from senior management.
• Form partnerships: between organisers, venues, contractors and suppliers;
investigate community activity for re-use opportunities too.
• Communicate: make sure you tell people what you are planning and what you
want them to do (internal and external). Provide training and pre-event
communications to engage your workforce, suppliers and contractors and start the
ball rolling on the in-event communication for event-goers. This will all help
ensure waste is streamed most effectively.
• Review progress: provide update reports at regular intervals to let everyone know
how well you are doi.ng. Embed reporting requirements within contract conditions.
This will help you learn what works and what doesn’t for the future.
2.1.6 Legal Environment
Current strengths:
• Improvement of Business Environment
Freedom: The government continues to improve the business environment to
promote commercial development, such as commercial freedom, labor freedom,
free trade, investment freedom and financial freedom. According to the 2016
Economic Freedom Index, Britain ranked 10th in the world and Europe fourth in
Europe.
Tax Low: The Government offer an efficient regulatory business environment and
low total tax rate and tax compliance cost. For example, it takes only 4.5 days for
the UK to start a business, and the process is far less than twice as fast as it is,
because it improves efficiency by simplifying its business. The UK's total tax rate
has been 32% that is lower than the EU's 8.6%. In addition, the EU's average tax
time is 173 hours, while the UK's tax time is lower than the EU's 63 hours. The
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lower burden of taxation will promote the development of business, as well as the
development of P.E.
Competition Law: The competition law protects consumers benefit, because it
avoids market monopolies, price fixing and collusion, so entrepreneurs should
follow fair competition and put customers first.
Other: The government has enacted various laws to protect the legitimate rights
of merchants, such as trademarks, patents, designs and copyright. For example,
event is a services industry, which means employees’ work time can be more than
48 hours a week.

Future prospects:
• Severe Punishment of Tax Evasion
The British government has stepped up inspections of tax evasion, and recruited
more criminal investigators. There is a decline in tax rates from 8.3% (2005) to
6.5%(2015).
• Reduction of Product Market Regulations
Product market regulations are reduced, which helps to develop a harmonious
competitive market. Therefore, the pressure of event agencies could decrease,
especially in cost.
• National Market Protection
There is a lack of legal incentives for foreign investment, as well as it will affect
the development of domestic economies.
2.1.7 Competition
There are a few companies can be identified as Pure Events company’s main
competitors, including "All Wrapped Up" Events Management Ltd, "Neil'S Party"
Limited, "A.B.J.Z Driver Hire " Ltd and "B" Cool Limited. All these companies
focus on administrative and support activities which means office administrative,
other support and other business support activities so that it is similar to the main
service of Pure Event. In this situation, these companies are the most direct
competitor of P.E. Base on the analysis of a comparison between P.E and these
companies, it is shown that the Pure Event’s net assets in 2016 is £328,416,
£10,524 for "B" Cool Limited, and the net assets of "A.B.J.Z Driver Hire " Ltd is
£134; on the other hand, the net assets of "All Wrapped Up" Events Management
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Ltd is £-2,267. It can be seen that Pure Event performs better than other companies
in terms of financial performance. The credit score, which contains 5 level of
Secure, Stable, Normal, Caution and High risk, was also compared among these
companies. "All Wrapped Up" Events Management Ltd and "A.B.J.Z Driver Hire
" Ltd are between the Caution and High risk level, and Pure Event is in the Secure
level with the highest credit score when compared with its competitors.

In addition, other two companies can be considered as the key competitors of Pure
Event. P.E is a company with less than 10 employees or turnover of under £2
million. Sharing these same features with P.E, Xsem and Communique Promotions
are the key competitors to the company. Xsem is a company which focus on
exhibitions & conference, incentives, and Golf service Corporate Hospitality.
Xsem’s total assets is £1.59 million in 2016, which then increased 60.71% over
last year, but the net assets were decreased 36.38% so that it’s net assets in 2016
come down to £99.13k. On the other hand, Communique Promotions mainly offers
service in small meeting & large conference, a one-off exhibition summer long
experiential roadshow. The company did not perform well in finance as its total
assets decreased by 0.08% to £1.36 million in 2016. Based on these data, Pure
Event is evaluated as better than its competitors because it had earned more net
assets, approximately £328.42k in 2016, with the growth rate of 55.59%.
Conference Care is different from these companies in terms of size, with between
50 to 250 employees and turnover of between £10 to 250 million, and only focus
on the corporate event management service. Conference Care has increased its
total assets and net assets to £3.15 million (+20.08%) and £983.99k (+38.66%).

Communique Conference
Accounts Pure Event Xsem
Promotions Care

Total assets £1.11m (2016) £1.59m (2016) £1.36m (2016) £3.15m (2016)

£328.42k £536.67k £983.99k


Net assets £99.13k (2016)
(2016) (2016) (2016)
Table 1. Financial performance of the competitors

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2.2. Internal Analysis

2.2.1 Resources & Core Competences


Current strengths:
• Young, qualified and experienced staff
• MD Charlotte Wilson
Competences:
• The MD of this corporate, Charlotte Wilson plays an important role in transferring
some contacts which she got from her previous work experience at DTB Sports,
for example, notable contracts with Red Bull.
• Majority of Pure Events’ event managers are under 30 which is very rare in this
sector. They create harmonious team which is appreciated by their customers and
build up agency's reliability. Their past experience is quite wide. They have
experiences with organizing events in big sport venues; they served customers
from different market sectors like telecommunication, automotive and healthcare
provider. They have knowledge about how to conduct conferences, gala,
international events like in South Africa, Singapore, the United States, London,
Madeira or Vienna. Some of them have skills like negotiation and suppliers
selection. Some had directed their own companies before and most of them have
an experience in team building processes, which leads to their success in building
a good team.

Weaknesses:
• Apparently, this agency has every people needed and they are ready due to people
experience to design events even on different continents, however, it lacks one
technology expert who could wield to implement new solutions when applicable.
• Regarding insufficient information on the website about the agency, a marketing
manager may be needed for the company.
• Searching for the company’s website on the Internet is another problem due to the
name of the company which is not unique and can lead to misunderstandings. It’s,
therefore, important to employ someone responsible for the website and familiar
with Search Engine Optimization (SEO) and Google AdWords solutions to make
it more effective.

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• It seems reasonable to consider employing a PR manager who would be able to
promote the agency through articles and would be also in permanent touch with
press to promote Pure Events’ new products.

Opportunities:
• Expanding the structure of the company to meet the needs of marketing and PR
can help to attract its potential customers.

Threats:
• As an agency relies on all of its employees, staff retention is an important task,
especially due to the effects of Brexit to the UK workforce. The more employees
gain experience, the more valuable they are on a market and the more risky that
they can go to better paid, bigger agencies.
2.2.2 Organizational Performance
According to Richard et al. (2009) organizational performance encompasses three
specific areas of firm outcomes: (a) financial performance (profits, return on assets,
return on investment, etc.); (b) product market performance (sales, market share, etc.);
and (c) shareholder return (total shareholder return, economic value added, etc.).

In term of financial performance, Pure event’s turnover in 2013 is 1.26m and this
increased to 2.1m in 2014. This led to an increase in the profit before tax, with 140k in
2013 and 175k in 2014. Although 2014 saw a positive development of the company in
its growing turnover and profit, the ratio of profit margin decline 2.8%, which means
that Pure Event did not perform effectively or had to lower their prices to attract new
customers so that the profit they earned on each product or service sold decreased.

Accounts 2013 2014


Turnover 1.26m 2.1m
Profit before tax 140k 175k
Gross Profit margin 11.1% 8.3%
Table 2. Pure Event’s Turnover & Profit in 2013 and 2014

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The period of 2010 – 2016 witnessed a growth of nearly 10 times of the company’s
assets in six years. The company’s current ratio fluctuates during this period, however,
in general, it grows at the end of the period (1.42 in 2016). This is a positive sign to the
company even though the ideal current ratio suggested for a business is 2. In conclusion
of Pure Events company’s performance, the firm is assessed to perform relatively well
in recent years and is in a ‘secure’ situation according to its credit score announced by
FAME. Nevertheless, Pure Events has to implement actions to perform more effectively
and increase its current ratio to 2.

Figure 1. Pure Event’s Cash, Net Worth, Assets and Liabilities

2010 2011 2012 2013 2014 2015 2016


Current
1.06 1.04 1.21 1.13 1.28 1.21 1.42
ratio (%)
Gearing
2.75 0.63 0.48 0.30 0.42 0.01
(%)
Table 3. Pure Event’s Current Ratio & Gearing

In terms of clients, the company's customers are mostly global brands which cover a
variety of business areas, such as IT, investment, legal, and share the same management
philosophy of "globalization" with Pure Event. P.E’s operation principle is putting
clients and their objectives at the first place, which leads to 95% of clients satisfaction
(PureEvent.net).

In terms of clients, the company's customers are basically global brands and cover
different area (IT, investment, legal), which is the same as the "globalization" of its
management philosophy. The operation principle is putting their clients first that make
95% of pure events business is respect.

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2.2.3 Product/service evaluation
Pure Events is the event organiser of a variety types of events, from experiential events,
business conferences to projects. Below are information about some projects that Pure
Events acted as the organiser:
• Croatia: Incentive programme for entire company for four nights with
partners/spouses joining midway through programme.
• Portugal: A fun-filled weekend suitable for families with bespoke activities and
dining experiences
• Switzerland: Organise a fun and engaging client incentive trip to a Ski resort. The
trip needed to offer affordable but luxury alpine accommodation which offered
easy access to skiing for all levels.
• Italy: Two-day interactive conference with arrival drinks reception, onsite dinner
and offsite gala dinner. This was an event which Pure Events can be proud on. It
was conducted in 2015 at Grand Hotel Dino nearby the Lake Maggiore in Italy.
This event was rewarded by Event & Visual Communication Association as the
''Best Internal Engagement'' and ''Best Outdoor Event'' at the same time which was
indeed a quite high achievement. The event's key theme was ''Go on'', shown by
moving scenes looking like the well-known Tetris, settled on the amazing
landscape of Lake Maggiore. The participants were then transferred to the final
gala on an island by speed boat, making this adventure extraordinary and unique.
It is good to realise that this event brought 140 EMEA guests plus hosts/customers.
All of that was designed for WPP which is a world leader in advertising and
marketing services what makes it definitely venture with international nature.
The customer's evaluated Pure Events as fashionable, understanding, good idea,
enjoyment, good service, enthusiasm, friendly, fun and lightly (Pure Events client
testimonials video).

3. SWOT Analysis

Strengths Ref Weaknesses Ref

1. Better company performance in Reference 1. Digital specialist Referenc


from needed e from

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recent years (shown at financial Internal 2. Ineffective Internal

documents) analysis communication analysis


section and marketing section
2. Young, qualified and practice shown
experienced staff through its lack-of-
information and
3. Clear philosophy: focus on client
confusing website)
objectives 3. Participation in
limited types of
4. MD has potential client contacts
events (only
gaining from previous work
conferences and
experience
company events)
4. Dependency on
5. Reasonable price with best
suppliers
possible deal for customers (get
5. Limited
best deals from suppliers)
partnership
implementation

Opportunities Ref Threats Ref

1. Lower corporate tax means more Reference 1. Economic Referenc

profit from downturn e from


External External
2. Stronger ties with China, which 2. Increasing
analysis analysis
means more potential Chinese competition
section section
clients resulting from

3. Increasing client budgets favourable

4. Innovative technologies and government

R&D policies and

regulations

3. Terrorism and

security issue

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4. Employment issue/

Talent shortage

5. Increasing cost and

expenditure

4. TOWS Analysis

Internal Strengths (S)


1. Young, qualified and Internal Weaknesses (W)
experienced staff 1. Ineffective marketing
2. Reasonable price 2. Limited partnership
3. Recent better company implementation
performance 3. Dependency on suppliers
4. Role of the MD 4. Digital specialist needed

External Opportunities “Maxi – Maxi” Strategy


(O) HR strategy
1. Increasing client • New staff recruitment
budgets • More investment in staff
2. Stronger ties with China training
3. Lower corporate tax • Staff incentives & benefits
4. Innovative technologies increase

External Threats (T) “Mini – Mini” Strategy


1. Increasing competition Marketing strategy
2. Talent shortage • New staff recruitment
3. Increasing cost and • Website update
expenditure • Digital Marketing &
4. Economic downturn PR activities

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5. Mission

Pure Event Management & Hospitality Limited’s mission is to become the leading
event organiser for conferences, meetings and company events in the UK. The company
will continue to place the clients’ objectives at its most important priority, offer
exceptional experiences for all of its clients and event attendees with the most
reasonable price within the industry. Pure Event also promise to create a friendly, fair,
creative and supportive work environment, which respects diversity, new ideas and
hard work.

6. Objectives

Accounts 2013 2014 2015 2016


Turnover (£) 1.26m 2.1m 2.5m 2.7m
Annual growth rate (%) 66 19 8
Table 4. Pure Event’s Turnover & Annual growth rate

Estimated value Estimated value Estimated value


Sector
in 2010 (£ billions) in 2015 (£ billions) in 2020 (£ billions)
Event industry 36.1 42.4 48.4
5-year periodic
17.5 14.2
growth rate (%)
Conferences &
18.8 21.8 25.2
Meetings
5-year periodic
16% 16%
growth rate
Table 5. 5-year periodic growth rate of the UK Event industry

and Conferences & Meetings

The conferences and meetings sector’s growth rate in the period 2015 – 2020 is
forecasted to remain unchanged at 16% while that of the event industry is predicted to
decline by 3.3% from 17.5% to 14.2%. To achieve the mission of this plan as becoming
the leading agency in the conferences & meetings sector, P.E’s annual growth rate in
2022 (the last financial year regarded in this strategy) is set to surpass the sector’s

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growth rate at the end of 2020, which is 16%. Specifically, the targeted annual growth
rate is set to be 10%, 11%, 14%, 18%, 22% in 2018, 2019, 2020, 2021 and 2022
respectively. Pretending that the annual growth rate in 2017 remains constant at 8%,
the company’s turnover for the financial year 2017 would be £2.9million.

The objectives for Pure Event’s strategic business plan is shown in the table and figure
below:

Accounts 2017 2018 2019 2020 2021 2022


Annual growth 8 10 11 14 18 22
rate (%)
Turnover 2.9 3.2 3.6 4.1 4.8 5.9
(£million)
Table 6. Strategic objectives for Pure Event from 2018 - 2023

Figure 2. The Objective of P.E’s strategy

According to C&IT’s report on Top50 event agencies in the UK, Pure Event accounts
for approximately 0.41% of the event market share. By implementing this business plan,
one of the company’s objectives is to increase its market share by 15% after 5 years, to
reach 0.47% in the end of 2022.
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To achieve this goal, a process of Strategy implementation is set as below:

Figure 3. The process of the strategy implementation

7. Strategy 2018-2023

7.1.Strategy overview

7.1.1 Strategy Type Statement


In the 5-year period of 2018 – 2023, Pure Event is going to stay focus on the UK market
to promote itself as a high-quality event service provider which always offers the best
deal for clients. Since the company’s advantage in the event industry currently is
business conferences and company events, this business plan aims to keep businesses
and corporates as P.E’s major target customers. However, client retention and market
penetration strategies will be implemented to with the aims of increasing the number of
clients using Pure Events as their event creator.

According to the TOWS analysis above, there are 2 strategies recommended for the
company in the period of 2018 – 2023:

• Strategy 1 (Maxi – Maxi): Young, qualified and experienced staff + Increasing


client budgets
High-skilled staff tend to have more potential access to new clients who are expected
to spend more budgets in their events, which means more revenues for the company.
More revenues lead to more profit. Pure Event can use these increasing profit to recruit

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new staff, invest in staff training, and improve their staff benefits to make them feel
more satisfied with their work.

• Strategy 2 (Mini – Mini): Ineffective marketing + Increasing competition


To fight against competitors which is considered the most critical threat, Pure Event
need to focus more on a marketing strategy development, which should be started with
a re-designed and updated website and a company portfolio to increase client awareness
about them. The website should be designed with more details about their practical case
studies and work, written in a number of different languages, such as Chinese, German,
French, Italian and Japanese, where most of their current clients come from. For
designing a new look for their website and ads, Pure Events are recommended to
outsource from Undertone Digital Advertising company, which is one of P.E’s clients.
This enables P.E to keep a long-term cooperative relationship with Undertone in order
to achieve a further win-win strategic partnership.

7.1.2 Directions
Pure Events will undertake the price-based strategy, which means continuing get the
best price from suppliers, and these low costs will be passed on the clients in form of
lower prices. Moreover, a differentiate strategy will also be implemented by providing
loyal clients with extra qualities to their events organised by P.E, as MD Charlotte
Wilson stated that Pure Events care most about the clients’ objectives. This
demonstrates differentiate-based strategy.

7.1.3 Methods
Pure Event company will develop internal growth by new employment for Marketing
& PR and Business Development department, which helps strengthen its ability in
attracting new clients.

7.2. Strategic Implementation

7.2.1 Organizing and Resourcing


Human resources strategy
According to Chow, Teo & Chew (2013), it is found that human resources affect
enterprise performance. Investment in human resources promotes the KPIs (Choi &

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Yoon, 2015). Dunford, Wright & Snell (2001) indicates that staff training is a unique
skills investment attitude and behavior, that can lead organizations to positive impact.
Employee uniqueness is an important resource to improve the competitive advantage
of the organization (Choi & Yoon as cited in Barney, 2015). According to the strategy
of the TWOS analysis, the company needs high-quality employees to reduce threats
and expand their advantages. As a result, in order to ensure the company's staff capacity
and performance, the company creates a series of human investments in every year,
such as employee training, benefit and team building. According to market price
changes, the cost of human resource will be between £438,000 – £624,500 in the next
five years (2018-2022).
• Opportunities for progression
In order to improve staff working performance, since 2018, P.E will select three
employees for training, who efficiently achieve KPIs, as well as company will grant
£6,000 for the training fee. The employee training includes the latest event industry
knowledge, event management skills, event technology, business and law. Training
places could be done in different cities in the UK, even in different countries, such as
China, Italy and Singapore, because it will be broadened their events’ idea and
knowledge. Overseas training can also strengthen international exchanges and lay the
foundation for future market development and customer development.
• Recruitment of New Staffs
Under the new strategy, companies need to recruit new employees to address
ineffective market and more competitors. According to P.E HR analysis, at present, the
company lacks a Digital Marketing & PR Executive and a Business Development
Executive. Since 2018, P.E will recruit a Digital Marketing & PR Executive. This
executive should have two-year experience, strong writing, communication and
marketing skills. In addition, this staff must be able to develop and place articles with
business, financial, national and legal press, as well as maintain and update content on
the company's website, and develop online marketing strategies, such as SEO. In 2020,
a Business Development Executive will be recruited. This staff will assist the Business
Development Manager to seek and contact new and existing clients. The cost for human
recourses strategy in this period (2018 – 2023) is estimated around £348,000 to
£449,500.

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BUDGET FOR STAFF RECRUITMENT

Position Salary (pre-year) £ Years People Number Total (£)

Digital Marketing
30,000-35,000 5 1 150,000-175,000
Executive
Business Development
30,000-45,000 3 1 90,000-135,000
Executive
Running Costs
- - - 48,000-62,000
(holidays etc 20%)
Recruitment Costs
- - - 60,000-77,500
(>25%)

Total - - - 348,000-449,500

Table 7. Budget for staff recruitment

• Improvement of Employee Benefits


Employee benefits are important to enhance employee motivation and loyalty index.
According to Jennifer Paterson (2013), the top five benefits of employees’ expectation
is assurance or death in service, pension scheme, counseling service or EAP, holiday
and income. There are some benefits that can apply to encourage P.E employees’
motivation, for instance, raise salary, reward, gift, vacation, pension scheme, insurance,
comfortable working environment and opportunities for progression. Salary is adjusted
based on their performance and overall market wages. Every year, the company will
grant more fund (£8,000 - £15,000) for employee benefits.

• Team Building
The company regularly organizes team-building events to strengthen employee
relationship, for example, birthday parties, weekend daytrips, holiday trips and
company anniversaries. The budget for team building will be around £10,000/year.

BUDGETS FOR HUMAN RESOURCES


Fee (pre-year) £ Years Total (£)
Employee Training 5,000-10,000 5 25,000 - 50,000

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Recruitment New
- 5 348,000 – 449,500
Staffs
Employee Benefits 8,000 - 15,000 5 40,000 - 75,000
Team Building 5,000 - 10,000 5 25,000 - 50,000
Total - 5 438,000 – 624,500
Table 8. Budgets for Human resources

Marketing strategy
Google AdWords is a tool that helps to place search results on a search engine results
page (SERP) by paying for Google (Econsultancy, 2017). This is an advertising service
from Google and will be implemented in Pure Event’s marketing strategy. All major
search engines such as Google, Bing, and Yahoo have major search results in which
pages and other content (such as videos or local listings) are displayed and ranked
according to what the search engines consider to be the most relevant to users (the
Guardian, 2017). These two methods mean Pure Event should think about the search
habits of its target audience and make sure that the terms they may use to search for its
business. Moreover, P.E can provide some gift and discount to the new customers and
returning customers which might account for 10% of the marketing budget.
Approximately, the Google AdWords will cost P.E around £125 per month for PPC
Management Service, which is a Google premier partner (Dixon, 2017) and £200 per
month (BYPR Ltd, 2017) that can help Pure Event get a good search position in Google.

Organizational Structure
Below diagram illustrates Pure Events' personnel structure. We still reckon as a
reasonable to leave vertical reporting model directly to the Managing Director.
However, this rule will be only regard to the manager position. For instance,
Business Development Manager's subordinate will report their results to her, so
Managing Director receive final work from the manager responsible for entirety.

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Figure 4. Pure Event’s organisational structure

7.2.2 Monitoring Change


KPIs for Marketing and PR

No. Task(s) Target


Update information and articles of the
1 Min. 2 times/month
company onto its website
2 Writing articles for the website Min. 2 articles/month
3 Google AdWords Manage everyday
Contact with newspaper or magazine within Contact min. 2 publishers/ month
4
the event industry for articles publishing Min. 1 published article/ 6 weeks
Evaluate and measure the result of PR
5 activities: Min. 60 contacts gained via PR activities
• The level of awareness of the business

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before and after the implementation of
the PR practice
• The perception of customers and the
public about the image of P.E and its
products
• Collect readers’ opinion and feedback
Evaluate and measure the result of Digital
Marketing activities:
• Number and Ratio of the website’s new
visitors
Reach 20.000 readers and visitors for all
• Number and Ratio of the website’s old
newly made content/year
6 visitors
• Number of pages seen/accessed
Min. 60 enquiries via website/year
• Number of enquiries sent via website
• The turnover gained from clients
knowing P.E via its website and PR
activities
Number of contacts gained through marketing
40 contracts/year
and PR activities
Total event-based turnover gained through 2018 2019 2020 2021 2022
marketing and PR activities £1m £1.11m £1.3m £1.5m £1.8m
Table 9. KPIs for Marketing and PR activities

KPIs for Business Development

No. Task(s) Target


1 Percentage of missing client Max 5%
calls
2 Percentage of timely answer to Min 95%
client emails (within 24 hours)
3 Repeat client rate Min 70%
4 New client rate Min 30%

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5 Percentage of clients lost after Max 20%
the first contract
6 Percentage of loyal clients lost Max 10%
Total event-based turnover gained 2018 2019 2020 2021 2022
through business development
£2.2m £2.5m £2.8m £3.3m £4.1m
activities
Average turnover per staff/year (1
staff in 2018 and 2019, and 2 staff in £2.2m £2.5m £1.4m £1.65m £2.05m
2020, 2021 and 2022)
Table 10. KPIs for Business Development activities

Control Systems
To make it the control system more sufficient, there will be 3 types of control
systems implemented within this strategy: Visual, Procedural, and Embedded.
1. Visual controls includes checklists, dash boards, scorecards, budgets, etc.
Gathered documentation allows to see that the right things are happening. If not is
a signal that further prevent action should be done.
2. Procedural controls. These include things like having 2 unrelated parties
internally check/be involved in the flow of money. This is a standard review
process for all new purchases and transactions. Procedural controls establish a
known pathway to a consistently secure result.
3. Embedded controls. These are the controls that work without someone having
to remember to do something out-of-the-way to use them. These include things
like standardized contracts, automated data backups, and intentionally designed
financial controls that work automatically in the background to protect business
from poor decisions or human factor.

Measurement of performance
Overall to assurance that implemented strategies work efficiently in terms of B2C
relations and internal communication, a measurable system of appraisal is needed.
It is aware about Pure Events' pro-client approach and its main theme which is
putting clients' objectives into the heart of every event. That's why it's need to be
known if indeed our actions bring expected results and customers' satisfaction.
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Above there few tools how agency can reach it in regard to relation with clients.
 Transparency throughout events arrangement process. Clients would be
able to be in touch with details and to add their values if consider that they
are necessary to implement. For instance, customers might be provided
with online, real-time data about the process on each stage.
 Providing customers with pre evaluations what kind of impact event can
bring of them. Achieving customers' objectives like its financial targets and
showing them that agency is not only outsourcing service provider makes
product more reliable.
 There are many ways how customers' satisfaction level can be measured,
however online survey conducting seems be the easiest and the most
reasonable in every day company life. This could be final step with clients
and given feedback would be summary of previously taken actions.
 Measuring of internal processes can be conduct by annual appraisal system
when everybody feedbacks everybody on anonymous way. Also, creating
system which will be able to detect if procedures work in terms of
deadlines, communication flow due to established structure and its vertical
nature. Apart of personal feedback which every employee would be given
with by their supervisor or colleague it's also reasonable to ask employed
people what's their opinions due to agency' procedures.

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