Event Planning Business in Let's Party Company - Case Study Example

New Business Venture – Event planning business Student’s Name: Lecture’s Name: Date of Submission: New Business Venture – Event planning business Table of Contents New Business Venture – Event planning business 2 Table of Contents 2 Thesis Statement: 3 1.0 Introduction 4 2.0 Core preposition 4 4.0 Vision 6 5.0 Mission 6 6.0 Objectives 7 7.0 Leadership style of the founder 8 8.0 Leadership theory which suit Let’s Party 9 9.0 Leadership style which suits Let’s Party Company 10 10.0 Value and ethics 10 11.0 How to ensure that employees conform to values, ethics, vision and mission 11 12.0 Organizational culture 12 13.0 PESTLE of Abu Dhabi 13 13.1 Political factors 14 13.2 Economic environment 15 13.3 Social 16 13.4 Technological 17 14. 0 Conclusion 17 15.0 References 18 Thesis Statement: Even though Abu Dhabi has experienced massive growth in tourism and business activities, there are still no many events planning business, hence the need to undertake a political, economic, social and legal analysis to determine its feasibility. 1.0 Introduction In the recent past, United Arab Emirates has rapid growth in the wake of the dynamic international economy. Many people have crossed borders to do business in The Emirates within the UAE including Dubai, Abu Dhabi, Sharjah, Umm al-Quwain, Ras al-Khaimah, Ajman, and Furaijah. The growth has been characterized by the entry of foreign practices and ideas, stirred by the advanced technologies like the internet (Gimbel, 2007). Today, United Arab Emirates is regarded as one of the largest economy in the world while its Emirates have become economic and financial hubs. Gimbel (2007) claims that, even though Dubai has become the target of businesses across the globe, Abu Dhabi remains the largest business center contributing 60% of the United Arab Emirates. The population has also grown tremendously from 2.1 million in 2011 to 2.3 million by 2012; this forms a large customer base for business (Madichie, Epps & Demangeot, 2013, p.312). The intensification in business and growth of tourism industry in Abu Dhabi has pointed to the increase in events such as vacation, business conference, festivals, concerts and formal parties. Based on such growth, we have decided to start an event planning Service Company named “Let’s Party” to be based in Abu Dhabi. The report will present the business and economic environment (PESTLE) of Emirate which formed part the decision to select this location. The report will include mission, Vision, Objectives, leadership style of the founder, values and ethics, and organizational culture. 2.0 Core preposition Let’s Party has set up its core preposition that will enable Let’s Party to penetrate the market and overcome the competition. Fulfilling customer requirement is the core agenda of this company. For that reason, Let’s party is the event planner of your choice for a superior colorful event. The company has well-defined packages focusing on “always premium prices” for its range of events. It simply means the company packages high quality event at premium prices which provide value for money. Let’s Party superior value provision does not just depict itself on the event appearance, but also the comfort clients derive from the events and understanding that the services they get from the company will present the most modern style event. 3.0 Overview of Let's Party Company Let’s Party is an event planning company that will be established in January 20th 2015 in Abu Dhabi. The business is set up based on a sole proprietorship between Uthman Bakr and Husayn Husayn who are both marketing graduates with an aim of selling event services to Abu Dhabi people and the rest of the world. The Company offers services such as event consultancy, event production, team building, event themes, event travel, logistics, entertainers, entertainment devices, venue sourcing, message delivery, team building, online registration and logistics. Let’s Party will also produce and manage different business events like business conferences, marketing, road shows, product launch, press tours, gala dinners, CRS events, award and celebration ceremonies among others. The company employees motivated staff of 73 people to operate and improve customer experience. The management has invested $101,500 with an objective of break-even in the third year while yielding revenues of approximately $600,000 in a period of five years. 4.0 Vision The company holds a broad and vibrant vision for its employees. Let’s Party vision inspire to create a great environment which inspires staff to be the best they can. It also aims at making these employees responsible workforce who can help to create a sustainable society. Let’s Party will also foster a successful network of suppliers and customers, and create enduring and mutual value. The company believes in providing high quality and premium services by organizing events with a unique experience. They translate this feeling in all their services including business conference, parties, gala dinner and award ceremonies. To realize the vision of this, Let’s Party emphasizes on four factors including safety, sourcing venue that matches the right events, providing the most excellent customer service and operational efficiency. Here, safety means getting the most secure venue for the event and providing the most professional security to the customers. Getting the complimenting venue means if it is a business meeting, the company gets a business center which meets the expectation of the host. 5.0 Mission In the fast-paced, changing world, success and effectiveness are recognized by better choices the management makes. Due to that change in the business arena, mission of Let’s Party might change, but great aspects and messages might remain the same. The standard missions of this company is to become the best business of choice by assisting customer organize a desirable event and ease planning burden. The main aim and mission of the company is to meet the customers’ expectations at all times and to give our customers exceptional services’. This can be summarized as satisfying shareholder’s value. This mission statement will guide the company as it expands into the Asian market. Let’s Party through its reliable and predictable professionalism, will have a negotiable and reasonable prices for event planning. Let’s Party also endeavors to provide good and proficient working environment to its employees and contracted vendors, hence compensating them for their good work. The company also makes it possible for the founders, owners and full-time staffs to live a comfortable life with their families and these can only be done by paying them good salaries. The vision and daily mission of Let’s party is to ensure that they have the knowledge and the needs of the current market, utilizing the latest technology and trends, and ensuring that the clients receive maximum attention they need. 6.0 Objectives Let’s Party will start as a small business with bigger aim and objectives over time. For the company to attain its goals, it needs to focus on the mission behind the vision. Let’s Party company has corporate objectives that will enable the organization to evaluate if the goals are achieved within the stipulated time. The SMART Objectives are outlined as follows: Be among the top three event planning specialists in the Abu Dhabi. Good rewards and compensation for its owners, staffs and founders of Let’s Party. Ensure sufficient results on a daily basis. The Company has corporate objectives that will enable the organization evaluate if the goals are achieved within the stipulated time. The company aims at stabilizing growth of 20 percent in the next five years, from 2015 through to 2020. Increase services in the business conference segment. Grow the company’s general market shares in the UAE and 12 percent internationally by 2020. To increase its brand awareness and differentiated positioning in UAE by 2018. 7.0 Leadership style of the founder Over the years, leadership has become a dependable factor in running of an organization. This is because it provides direction and determines its success (Lussier & Achua, 2010). With change taking place in the business sectors, managers have neglected authoritarian style to participative style of leadership. For this young company, the founders will use transformational leadership style which will bring positive change from time to time. Event planning and management is an industry which relies heavily on teamwork for a smooth organizing and monitoring of event. Teamwork is involved in almost every aspect including planning, budgeting, venue selection, transport coordination, arranging decors and entertainment, catering and security coordination among others. With transformational leadership, the presidents will be ethically responsible leaders who will concentrate on building the moral values, standards and maturity of the employees and encouraging their commitment to serving their organization and customers beyond self-interest (Ruggieri, 2009, p.1018). The advocates of transformational leadership presume that leadership enhances the performance of an organization through influencing an action of leaders which create platform for change (McNichol, 2007). As transformational leaders, the founders will have the duty to convey the vision of the company of organizing a successful event with a unique experience while monitoring safety and convenience. Event planning always needs a dedicated team because it takes longer to organize an outstanding one. Also, it could take longer depending with the number of people who are attending. For instance, gala awards in most cases bring many people together, therefore in that situation; the management will source a bigger venue which is spacious and conduct a thorough décor. The presidents will have a responsibility of leading the staff providing motivation and guiding them to fulfill the company vision and mission. The presidents must therefore remain focused and futuristic and use a proactive approach in their management. 8.0 Leadership theory which suit Let’s Party Leadership theories have become a very critical factor in shaping up leadership in the organization. Taylor (2009, p.41) argues that as business changes, contemporary managers are forced to embrace more positive theories which encourage change. For that reason, contingency theory of leadership stands out as the ideal theory which will be used to help influencing decision-making and actions of the Let’s Party Company. According to Taylor (2009, p.43), this theory maintains that no style of leadership is appropriate on its own. Theorists in this school of thought contend that in this leadership style, it is the contingent like situation and quality of the followers which determines which style to adopt (Lussier & Achua, 2010). In a nutshell, the theory hypothesizes that there no one suitable method of leading since the internal and external forces needs a leader who can settle in different situation. Therefore, the optimal course of the act is dependent upon the external as well as the internal situation. A reliable leader effectively applies his style of leadership to the right place. As a new company which will operate in an ever-changing business environment, the CEO will change the form of leadership which suits the current situation. However, this form of leadership will be transformational in nature and which consider employees as assets of the firm. Some of the factors which will put into consideration include leaders behaviors that consist of building a good relationship and interpersonal relationships hence showing concern and maintenance of subordinates. According to Ruggieri (2009, p.1018), this theory will help the management to initiate structures and position where roles are clearly defined to avoid duplication of roles during planning and organizing of events. When roles are separated, it makes employees responsible to complete their tasks without blaming their workmates. In brief, leadership which will be created through contingency theory is encouraging the assumption of responsibilities (McNichol, 2007). Since this theory is more of situational, employees are trained on several jobs and discouraged from specializing because they can be deployed in other departments during economic difficulties (Wright 2007). Organizations are an open system which requires careful management to satisfy and balance internal needs hence adapt to environmental circumstances. 9.0 Leadership style which suits Let’s Party Company The management at Let’s Party Company regards transformational leadership as the best style of the leader at the company. In many circumstances however, effective theories of leadership that have worked in other organization will be used to influence various decisions within the management. 10.0 Value and ethics Let’s Party believes that its success hinges on strong value and ethics which it embraces. Let’s Party will make sure that its staffs show proper conduct during the operations. The basis of its achievement comes from creating innovative, premium products and services. Let’s Party has three major values which will influence integrity and revolves around admiration, compliance and sincerity. The company has comprehensive theory which has a specific code of conduct which has entrenched into each of its operations. The company has also made its website more available, and for this reason, it has made specific policies concerning corporate governance, conflict of interest and guidelines which reports uncertain behavior. Employees of Let’s Party can report its misconduct to its Audit and Finance Committee because they are provided with a Business Conduct Helpline. The company will ensure that its suppliers have signed its “Supplier Code of Conduct” and performs factory audits hence guarantee compliance. However, if suppliers refuse to conform to Let’s Party standards, it may end up not doing additional business with them. Let’s Party has responsible supplier conduct, hence its obligation is to launch yearly Company Supplier Responsibility Report, which has the obligation of explaining the anticipations of its suppliers. For Let’s Party to be the leading event planner in the industry, it will align its value with its vision to create value-driven event planning company that is propelled by passion, steered by quality and by effective principles. Also, the company intends to be acknowledged for employees’ sacrifice and determination of corporate social responsibility. The company’s responsibility and mandate will start with being honest and responsible to the firm’s shareholders, founders, partners, suppliers, customers and the general society. This will be marked by openly communicating about its business policies and performance. Let’s Party will publish its annual Corporate Social Responsibility Report every year to depict to its customers and shareholders how it is concerned with society’s wellbeing. The management will also publish a performance report on quarterly and year basis as the reporting best practices. This will enable Let’s Party to join a small but growing number of firms that are evaluating their corporate responsibility, transparency and being responsible to its stakeholders. 11.0 How to ensure that employees conform to values, ethics, vision and mission Values, ethics, vision and mission are virtues which can be fostered within the organizational culture (Weiss, 2009). When these virtues become a part of the company, customers start to view companies quite different from the rest. For that reason, the management has put in place elaborate training program on superiors’ values, ethics and company vision and mission to make people on board better employees. Also, the company will give out code of conduct incorporated with value, vision and mission of the company every year to familiarize every employee’s behaviors which are expected of them when on duty. Lacle (2013) contends that generally, the company believes that such practices will enhance its image now and future. 12.0 Organizational culture In an organizational cultural context, Let’s Party Company will uphold a democratic and casual atmosphere, leading to its feature of being a “Flat” organization. The management will establish an organization with a large middle level management and upper level management that is, hands on and united. The management will have a culture which embraces teams with a certain degree of autonomy and equal authority preserved. The CEO will establish a highly collaborative culture, with no top-down hierarchy. This kind of arrangement termed as techno-democracy needs a great effort to sustain (Czinkota, et al 2013). In order to safeguard it, a form of bread and circuses atmosphere is built. Let’s party will also bear some distinctive organizational culture aspects such as: Offices with a local touch showing every office's exceptional personality and location. Double rooms offices occupied by three to four members belonging to one team. Darts, Football, video games, ping pong tables, pianos, lap pools, gyms including dance classes and yoga which motivates employees before taking daily activities Social groups like meditation classes, film clubs and salsa dance groups Health food from a wide range of cafés and sunshine brainstorming. Drinks and snacks at the office for Let’s Party staffs. Machan (2007) argues that the reason for having such kind of culture at the workplace is because the management considers that, taking care of employees well is more significant compared to making a lot of profit. Uthman Bakr believes that treating employees with respect, encouraging individual creative endeavors make them motivated hence working hard to stick to their motto of “let’s all enjoy the party” and enhance performance. The management believes that it is their job to ensure everyone in the organization has great chances, and feel they are bearing a significant impact and are participating to the betterment of the society. Innovative and creative corporate culture as proposed at the company will assists its employees succeed; they work hard and get results (Siddique, 2014, p.44). The company’s culture will perhaps be one of the most influential, positive, all-inclusive, efficiency-inducing settings the world has ever witnessed. Let’s party inculcates in its staff the philosophy which is not concerning money- but rather about a lifestyle that bring fourth innovative advantage over their competitors. They depict themselves as an organization that works with the aim of transforming the world through creative involvement and teamwork. Staffs feel confident to be part of such business, hence take massive gratification (Power & Barrows, 2006). 13.0 PESTLE of Abu Dhabi Let’s party capability to stay as one of the strongest brands in event planning industry in Abu Dhabi can be attributed to its competence and quality status which comes from the internal environment. This involves the company’s strategic objectives and goals which can be associated with its competency. Let’s Party management team has an unquenchable passion to increase the efficiency of its operations. This internal strength will be aligned with external environment which consist of political, economic, social, technological and legal. 13.1 Political factors The political temperatures for businesses in UAE have improved much better than it was in the last decade (Madichie & Blythe, 2011). The UAE climate encourages establishment of business in Emirates because the leadership understand that it is through business that the Emirates such as Abu Dhabi and Dubai has grown. In fact, the trade liberation has resulted to increase of businesses and tourism over the last decade in Abu Dhabi. Madichie & Blythe (2011, p.597) affirm that the ruler of the Abu Dhabi, Sheikh Khalifa bin Zayed Al Nahyan, is a great business person with interests in tourism through Etihad Airlines and other businesses. Business experts suggest that the regime has earlier adopted autocratic and political corporatist system and controlled each aspect of human lives (Keane & McGeehan, 2008, p.81). In return, this made it very difficult to invest in the business environment. Chris (2010) holds that western multinational organizations which wanted to enter in this country were few; hence those who tried to enter did so through partnerships because of the risks that were related with direct entry. Since the government formed positive climate for conducting business, it was therefore criticized for its differences with western markets (Douglas & Craig, 2011, p.153). However, the situation has changed very much. The government has ensured that the regulations are used to allow international organizations to export their goods and services into the Abu Dhabi market. This has led to increase in competition between local event planning companies and the global ones. However, the government in addition promotes various sectors of the economy and it provides political investment to its young and upcoming companies in competing with the rest of the world. Some of the companies which have received government support are Eventra Events Company in Dubai and Extreme Parties Organizing Company in Abu Dhabi (Chris, 2010). Madichie & Blythe (2011, p.594) suggest that today UAE ensures that it is involved in every sector of the economy, hence making the competition to be very stiff and intimidating to foreign businesses. However, investors can still be concerned because the government has political stability, which it has been enjoying over the years. 13.2 Economic environment Czinkota et al (2013) suggests that based on the supposed purchasing power parity, Abu Dhabi is ranked 9th in the world. Globally, it is considered as one of the fastest rising economies. Before this, the UAE had faced a cycle of decline and growth due to lack of sufficient reforms and policies in place. Today, the economy of the Emirate has grown through business, and tourism. As such, business conferences, parties and gala night have become the norm. The growth has made Abu Dhabi the wealthiest Emirate in United Arab Emirates with high disposable income (Gimbel, 2007). The Central authorities who consist mainly of the government and its agencies considered an economic system in place, products and any other business decisions. However, some decisions were rigid and some created good atmosphere for the foreign organizations to export their products to UAE freely. Madichie & Blythe (2011, p.597) posits that the business interest and reforms driven by its ruler Sheikh Khalifa bin Zayed Al Nahyan made the turnaround growth in the event planning sector. Therefore, it makes the economic growth of the country to be more favorable to the country than to the foreigners. Stability of UAE’s economy has become very important, especially for tourism sector, which Let’s Party will rely on greatly. Dubai Chronicle (2012) pined that the stability and improvement of Emirati Dirham have created hopes for new business which rely on tourism and foreign exchange. Due to increase in the growth of the economy over the years, it has ended up creating a very strong demand for labour, hence increasing the demand for the skilled and semi-skilled laborers’ in UAE (Keane & McGeehan, 2008, p.81). Vadakepat (2013, p.46) pines that in the past 5 years, the cost of labor has increasingly risen whereas the government has also increased the level of minimum wage hence affecting the operation cost in the Abu Dhabi companies. Such costs will have an effect on companies which may want to conduct business in UAE markets because they will be required to factor costs as risks. Czinkota et al., (2013) contend that the middle class population has increased over the years thus increase disposable income while creating a great chance for luxury goods. On the other hand, UAE’s economic growth has grown fast, hence resulted to relentless consumer inflation which is contributing to frequent government regulation. Regulation on business is considered not to be good for the economic health of foreign business. As suggested earlier, competition both externally and internally have turned out to be rigid hence has to protect its internal companies through protectionism (Chris, 2010). 13.3 Social Most of Abu Dhabi residents have high income, high living standard hence majority belongs to middle class (Madichie, Epps & Demangeot, 2013). This Emirates social life continues to borrow much of western lifestyle with several parties and other business events due to continuing improvement of financial positions. Dubai Chronicle (2012) stated that Abu Dhabi society continues to be free of events with increase in recreational activities and tourism. The multicultural form of society taking shape in UAE creates a good market for Let’s Party Company to increase its profit (Madichie, Epps & Demangeot, 2013, p.311). Increase of trade has led to increase of population in Abu Dhabi from 2.1 to 2.3 from 2011 to 2013. 13.4 Technological The Abu Dhabi population consists of young and exceptionally technologically conversant professionals who want events with technology touch (Darby, Jones & Al Madani, 2003, p.108). Today, event planning companies compete on the technological platform from lighting, music system and decors. Let’s Party is actually adopting technically from the onset in event planning and marketing. The company website will be used to market successful events and its products. 14. 0 Conclusion In conclusion, Abu Dhabi has provided a challenge to business people due to its growth results which are strange compared to other Arab cities in the Gulf. In the contrast to anticipations on the basis of local trends, including regional growth, Abu Dhabi has realized a high political stability, growth of tourism sector and expanded economy. The growth of business has led to increase in event planning activities. This report links these performances to the willingness of its leaders to capitalize on the opportunities related to the rising integration with the international economies. Also, individuals like Uthman Bakr and Husayn Husayn have taken the opportunity to invest in the booming tourism sector and event planning by setting up Let’s Party. The two are aware of the ever-changing business environment and has put up effective transformational leadership and best practice including value, ethics, vision and mission which will sustain this company in future. The Abu Dhabi favoring business and economic environment analysis undertaken shows there will be a significant success of an event planning business hence the need to venture into it. 15.0 References Chris B. (2010). Supporting SME essential for UAE’s growth. Emirates 24/7b. Retrieved on 11th January from http://www.emirates247.com/2.308/comment/supporting-smes-essential-for-uae-growth- 2010-06-30-1.261304 Czinkota, M.R., Ronkainen, I., Sutton-Brady, C., Beal, T., & Stegemann, N. (2013). International Marketing: Asia Pacific Edition, 3rd Edition. Cengage Learning Darby, R., Jones, J., & Al Madani, G. (2003). E-commerce marketing: fad or fiction? Management competency in mastering emerging technology. An international case analysis in the UAE. Logistics Information Management, 16(2), 106-113 Douglas, SP., & Craig, CS. (2011). The role of context in assessing international marketing Opportunities. International Marketing Review, 28(2), 150-162 Dubai Chronicle (2012). 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