Decision Making for Creative Projects and Events

The report analyzes and evaluates the necessary aspects to effectively manage a creative community event. It covers market research, budget, breakeven analysis, funding, pricing, income stream, and recommendations.

Running head: DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Decision Making for Creative Projects and Events
Name of the Student
Name of the University
Author’s Note

1DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Executive Summary
The aim of the report is the arrangement of a creative community event by taking into
consideration all the required dimensions of event management. Different parts of the report
analyze and evaluate the necessary aspects to effectively manage an event. As per the analysis,
the major parts of this community event are development of the budget, consideration of the
breakeven point, funding options of the event, pricing of the event and recommendations.

2DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Table of Contents
Introduction......................................................................................................................................3
Market Research..............................................................................................................................3
Budget of the Event.........................................................................................................................4
Breakeven Analysis of the Event.....................................................................................................5
Funding of the Event.......................................................................................................................6
Pricing for the Event........................................................................................................................7
Income Stream of the Event............................................................................................................8
Recommendations............................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

3DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Introduction
Event Management is regarded as the process to apply the concept of project
management for the creation and the development of specific events like festivals, community
programs, conferences, ceremonies and others. At the time of the organizations of creative
events, the responsible event managers are needed to take into account all the relevant factors
required for the effective organization of the events. The main aim of this report is the
organization of the Annual Community Function. The program will take place on 15th July, 2018
at the community auditorium. There will be several parts of this event. There will be a singing
performance by solo artists along with band performance. The singing performances will be
followed by individual dance performance along with dance troop performance. After that, there
will be recitation performance. The program will also include the prize distribution ceremony of
the annual sports of the community. After the completion of all these performances, there will be
a dinner party for the residents of the community.
Market Research
At the time to conduct any kind of creative events, it is needed to consider the aspect of
market research in order to make the event more purposeful and entertaining for the spectators.
At the same time, market research helps the event committee to consider specific types of
program and activities for the entertainment of the whole spectators. There is not any exception
of this fact in case of this specific event. A market has been conducted among all the members of
the community for the selection of programs in the event. The aim of the community was to
arrange program for all the members of the community. In the survey, views and ideas were
taken from the residents of the community on the selection of program. Based on the result of the

4DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
market research, all these programs in the event have been selected. It needs to be mentioned that
this survey has been majorly helpful for the event committee to understand the perspective of the
people of the community on the selection of the events. This survey contributed to a more
appropriate selection of program in the event (Bhatt, Manadhata and Zomlot 2014).
Budget of the Event
Event Budget is considered as a tool for the projection of the income and expenses of the
event based on the gathered information and the preparation of budget is considered as an
essential part of the event management (Jones 2017). This same aspect is also applicable for the
undertaken community program and the following table shows the budget of this community
event:
Expenses Amount (£)
Rent for the Venue
Rent for Chairs, Tables and Other Furniture
Rent for Equipments
Decorations
Foods and Drinks
Fess for Performances (Singing and Dancing)
Travel for Performers
Pair Advertising
Miscellaneous
Total
9000
2500
3000
2500
10000
12000
3000
5000
3000
50000
Revenues Amount (£)
Spectator Fees
Participant Fees
Sponsorship/Donation
Total
20000
15000
35000
70000
Table 1: Budget

5DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
(Source: As created by author)
Breakeven Analysis of the Event
The Breakeven Point is considered as the sales amount either in unit or in revenue is
required in order to cover the total costs of the event that is both fixed cost and variable cost. For
this particular event, the analysis of breakeven point will give the committee idea about how
much tickets they are needed to sell to cover all the expenses of the event. For the analysis of
Breakeven Point, the required assumptions are provided below:
Total Fixed Costs: $30000
Variable Cost per Unit: $100 per Unit
Sales per Unit: $250
Desired Profit: $20000
There is a specific formula for the calculation of breakeven of the event and it is provided below:
Breakeven = Fixed Costs/ (Sales Price per unit – Variable cost per unit)
For this particular event,
Breakeven = $30000/ ($250- $100)
= $30000/$150
= 200 Units
The formula for converting the breakeven units in dollar is as follows:

6DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Breakeven ($) = Breakeven (Units) x Sales price per Unit
= 200 units x $250 = $50000
Funding of the Event
Funding is considered as a major step in the process of event management and it deals
with the question “where is the money coming from?” There are many income sources that help
in financing the events and it is also applicable for this specific community event (Quinn 2013).
The main funding options of the event are as below:
1. One major portion of the funding will come from the saving that the event committee has
been doing after the last event (Larson et al. 2014).
2. Another huge portion of the funding will come as the proceeds from advanced sale of
tickets. For this reason, it is needed for the event committee to print a ticket for the event
that will include the ticket price along with some basic descriptions of the event. A
sample ticket is shown in below:
Figure 1: Sample Ticket

7DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
(Source: As created by author)
3. Lastly, another major part of funding of the event will come from the donation as well as
sponsorship from different parties (Van der Wagen and White 2018)
The following table shows the amount comes from the main sources of funding apart from
the sale of tickets:
Sources of Funding Amount (£)
Savings
Donations
Sponsors
Total
5000
20000
10000
35000
Table 2: Sources of Funding
(Source: As created by author)
In order to ensure the effective funding for the community event, the event committee is
needed to ensure the proper advertisement of the event. This will help in attracting more fund-
providers to the event. At the same time, effective advertisement and promotion helps in
increasing overall awareness about the community event (Ziakas 2013). In addition, more
spectators will be able to know about the program. As budget is a constraint here, the event
committee is needed to consider the cheap but effective mediums of advertisement. For the
purpose of advertising, the event committee is needed to provide advertisement in the form of
posters and leaflets in the in the local area so that people become aware of the program
(Kuppuswamy and Bayus 2018).

8DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Pricing for the Event
Pricing is another major success factor for the event as the event committee is needed to
price the tickets effectively after taking into account all the relevant aspects. The committee is
needed to divide the total cost by the number of visitor. In this way, the price of each ticket can
be obtained (Rojek 2014).
As per the budget, £20000 is the expected income from the tickets; and the expected
number of spectators of the event is 800. Thus, the price of each ticket is as follows:
£20000/800 people = £25 per ticket
In this aspect, it needs to be mentioned that the event committee is needed to take into
consideration all the cost factors of the event for effective pricing like the fixed costs and the
variable costs. At the same time, they are needed to consider the profit margin of the event.
Consideration of all these aspects makes pricing more effusive.
Income Stream of the Event
The event committee is needed to ensure about the major stream of the event. There will be
three major income stream of the event:
1. Fees from the spectators are the first stream of revenue of this event as it is expected that
large number of spectators will visit the community (Heagney 2016).
2. Fees from the participants those who want to sing, dance or recite in the program is
another stream of revenue for the event (Jiangand Schmader 2014).
3. Lastly, donation and sponsorship is another major stream of revenue for the event.

9DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
According to the budget, the main income stream of the event is as follows
Stream of Income Amount (£)
Income from the Tickets
Income from the Fees of Some Participants
Income from Donations, Sponsors and Savings
Total
20000
15000
35000
70000
Table 3: Sources of Income
(Source: As created by author)
For this reason, it is needed for the community to make the event more attractive by
including attractive and entertaining program for the spectators. This will lead to the selling of
more number of tickets of the event
Recommendations
The aim of the event committee should be increase in the Return on Capital Employed
(ROCE). For this, the recommendations are shown below:
 The event committee is needed to take measures to decrease the overall expenses of the
event so that the profit margin of the event can be increased. Increased profit margin
contributes towards the improved ROCE (Arrow and Kruz 2013).
 The event committee needs to ensure the sales of the event tickets in a large amount. This
will help in increasing the profitability and ROCE as well (Peneder 2014).

10DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Conclusion
For the successful organization of any event, the event organizers are needed to calculate
the total cost of the event so that effective pricing can be done. At the same time, they are needed
to take into consideration all the potential streams of revenues as well as financing for making
the events successful and profitable.

11DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
References
Arrow, K.J. and Kruz, M., 2013. Public investment, the rate of return, and optimal fiscal policy.
RFF Press.
Bhatt, S., Manadhata, P.K. and Zomlot, L., 2014. The operational role of security information
and event management systems. IEEE security & Privacy, (5), pp.35-41.
Heagney, J., 2016. Fundamentals of project management. Amacom.
Jiang, J. and Schmader, S.W., 2014. Event management education and professionalism: The
view from the trenches. Event Management, 18(1), pp.25-37.
Jones, M.L., 2017. Sustainable event management: A practical guide. Routledge.
Kuppuswamy, V. and Bayus, B.L., 2018. Crowdfunding creative ideas: The dynamics of project
backers. In The Economics of Crowdfunding (pp. 151-182). Palgrave Macmillan, Cham.
Larson, E.W., Gray, C.F., Danlin, U., Honig, B. and Bacarini, D., 2014. Project management:
The managerial process (Vol. 6). Grandview Heights, OH: McGraw-Hill Education.
Peneder, M., 2014. The impact of venture capital on innovation behavior and fi rm growth.
In Perspectives on Financing Innovation (pp. 193-223). Routledge.
Quinn, B., 2013. Key concepts in event management. Sage.
Rojek, C., 2014. Global event management: A critique. Leisure Studies, 33(1), pp.32-47.
Van der Wagen, L. and White, L., 2018. Event management: For tourism, cultural, business and
sporting events. Cengage AU.

12DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Ziakas, V., 2013. A multidimensional investigation of a regional event portfolio: Advancing
theory and praxis. Event Management, 17(1), pp.27-48.