Research Project of Contingency theory Assignment

RESEARCH PROJECT

Executive summary
Document has showed event management which is needed for every single business
organisation in hospitality industry. Along with this, the paper has also showed a range of issues
which impacts regularly upon event management. Kids Imagination a business organisation
situated in London works as event organiser where they are offering a range of services to its
customers like birthday party for kids and so on. Organisation, basically did investments in order
to resolve all the issues, where event managers do conduct events in much more effective and
efficient manner. PESTLE analysis has been done in this document to pull out realistic
opportunities and threats that company is having. Management theory consist of different range
of importance that are covered under the working pattern of manager. Contingency theory
removes all the uncertainties within event industry in order to pull out favourable outcomes in
specified time frame. Away with this, document has also given recommendations as well to
event manager of Kids Imagination so that it could directly take a range of decisions related to
insurance that are linked to event industry and it also helped in minimising the risks in
uncertainties.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Managerial issues..................................................................................................................4
Managerial Challenges (PESTLE analysis).......................................................................6
Management theory..............................................................................................................10
Changes in business practice and its impact on business performance................................12
Develop, apply and practice a range of professional competencies in development of
management decision making and strategic planning..........................................................15
Strategic Management Plan..................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Event management refers to the implementation of various management projects which
executed with creativity and skills. Events are generally conducted for special occasions like
conferences, festivals, concerts, wedding, conventions, ceremonies and formal parties. With the
changing time, event management is seen as the one among exciting job which influences
interest of people as they feel entertained while working (Henderson, 2014). Now a days, the
particular filed of event have changed a lot as requirements and expectation of people is
changing every single day. Thus, modern day event planners are upgrading them self in order to
conduct completely new and creative event which satisfies customers a lot. The present research
report is based on Kids Imagination, a London located small scale event company. The event
firm mainly conducts events for children. In this, specialisation of company revolves around
birthday parties, party cakes, decorations on the basis of themes, etc. Event manager of the
company are well talented as they uses effective tools in order to conduct best event that
provides maximised satisfaction to each customers in new manner.
The present report involves information on different kind of activities that includes in
conducting an event. It will further discuss about various causes and effects of managerial
challenges in hospitality sector. Usage of effective management theory in order to evaluate
effective managerial problems and issues. It will further focus on identifying some of the
changes that could help Kids Imagination for improving their business performance. Last but not
the least, it will include recommendation for the same company that will help company in
reducing its issues and enhance its profitability level in effective manner.
Managerial issues
Event management refers to the process of coordinating and planning a specific event or
program. It includes numerous of activities such as scheduling, coordination with other vendors,
arrangement of entertainers, security, emergency plans, taking permission from authorities,
selection of event site, and arrangement of parking and other transportation facilities (Mackin,
2015). With the changing time, requirements and work pressure of this industry is raising day by
day. The main reason behind this is developing expectation of customers belong to this industry
as they thinks that their event should be completely different and entertaining. For this, these
clients now forces event planners to conduct more innovative programs. It has been analysed that

event industry was initially offering only event facility but with the changing time they have
spread their number of services for influencing interest of customers and making them loyal
towards company for longer period of time. In this, now a days event planner have added
catering, accommodation, entertaining etc. Along with this, these event planners also focuses on
providing value added services to customers that is theme based parties. Further these event
manager have also shifted their interest towards personalised services (Munteanu and et. al.,
2014). This means personalise design, interior, music systems and other related amenities for
attracting maximum number of customers.
In relation to event management industry, it has been analysed that this industry is facing
numerous of issues related to clients and other related people. The result of these issues has
created problem for event planners as their work is affected due to these issues. Some main
issues of this industry includes reduced event budgets, advanced technology, low range of money
from sponsors, lack of technological updated skill of event planners, accommodation cost, low
range of networks, increased governmental norms and laws, security of event.
On the basis of above specified different issues in event industry, it can be said that all of
them influences work of event planner in negative manner. If it is talked about technological
advancement, it has been analysed that if technology at market place increases, it also develops
difficult for event manager as they have to develop themselves so that they could adopt similar
kind of technology in effectively in their working criteria (Petrakis and et. al., 2018). On the
other hand, while looking towards these challenges event managers have groomed themselves up
in effective manner which contributes in making their work easier and better in terms of quality.
Another issue which is basically being faced by event manager of this industry is that customer
requirements and trend gets changes on a regular basis. These two factors also carries a rapid
changing environment which impacts upon decision taking skills of event manager where early
determinations made by them might affect profit ratios of business organisation.
With reference to chosen organisation that is Kids Imagination, it has been analysed that
this company is belonging to core event industry. Event manager of this company is mainly
facing issues related to clients. This is because, requirements and expectation of these customers
are changing day by day. Along with this, these clients are now asking for high innovative events
in limited budget. The specific situation creates high level of issues for event managers as it is
difficult for them to satisfy expectation of client within provided budget. In addition to this, it has

been further analysed by event managers that clients demanding is raising every day. This is due
to the comparison which is made by clients as they observe innovations used by another event
managers and expect from their own event planners to make something new for them. On the
basis of represented issues, it can be said that there are numerous of problems which are raised
by customers for event managers (Sandy Sou and McCartney, 2015). This can be well
understood by conducting PESTLE analysis for Kids Imagination. With the help of this analysis,
it will easier for managers to understand different challenges which could be further overcome
by them in effective manner.
Managerial Challenges (PESTLE analysis)
Political: This factor mainly covers various factors that includes changes which arises in
governmental laws, policies and norms and influences business practices of event industry. With
reference to Kids imagination, it can be said that changes in legal laws of UK government could
develop major challenge for event planners as their work is hampered due to frequent changes in
norms (Lin and Taylor, 2017). This could be understood with an example, where government has
changed its laws regarding freight transportation where transporting trucks (Lorry) could only
take a certain amount of load up to 1 imperial ton where previously it was 1.5. This might affect
negatively on profit ratios of Kids Imagination and because of the amendment, it can be said that
company would require to pay more money to transporting agencies with whom they have made
connections so that company's stages, gates and other props could effectively be shifted to the
place where event is going to be organised. On the other hand, if it is thought in a different way,
the amendment which was given by governmental authorities of United Kingdom was some how
beneficial for the society as a specified load will not put pressure upon truck and through this,
they will not pollute the environment. Along with this, if the same is going to be followed by
them, it is may be possible that initiative taken by Kids Imagination would help them in
becoming a well known brand in front of society as it supports environment rather than focusing
on making money.
Economical: Economical factor includes many components such as disposable income of
customers, economic growth, interest rate, inflation etc. With relation to Kids imagination, it has
been analysed that mainly disposable income of its customers are influencing business growth of
Kids Imagination (Hopkin, 2018). This means, if people are more active or agree toward
spending their earned income parties and other events which are conducted by event company

then it would develop growth for Kids Imagination. Along with this, it has been analysed that
people of United Kingdom believes in doing lavish parties regarding birth ceremonies and so on.
Therefore, business expansion or focusing upon destination ceremonies would help Kids
Imagination in improving profit margins in specific time frame. On the other hand, since Brexit
took place which can be considered as a business opportunity for Kids Imagination. This could
be understood with an example, due to eviction of United Kingdom from EU many organisations
that were working in event industry of European Union shifted their businesses from United
Kingdom to there own nation (PANDEY, 2017). This can be taken as an advantage by Kids
Imagination where they can offer customers with heavy discounts for improvising there customer
base. Therefore, this factor could help a company like Kids Imagination could easily grab a good
position at marketplace for a longer time frame where they can target customers that are having
less earnings as well. At the same it develops major challenge for Kids Imagination too as after
Brexit there will be more event planner who target their same zone customers. As it is
developing heavy competition for the company in same country and industry.
Social: Social factors of this analysis focuses on several issues like demographic,
consumer behaviour and several others. It can be said that the same factor might develop
problem as well as opportunity for whole event management industry and its belonging
companies. Therefore, it can be said that for Kids Imagination, company might face uncertainties
at United Kingdom's market and this could impact upon there working as well (Sadgrove, 2016).
Thus, it is essential for business organisations like Kids Imagination to gain profits in specific
time frame. This could be understood with a specific example where market trend and societal
trend got changed from pink theme to purple. Here if Kids Imagination has themes related to
specific colour only than, it can be said that company may not grab a good position at
marketplace because they are not having things which are running in trend and this will directly
make its customers unsatisfied. Here, it is essential for Kids Imagination to keep on making
alterations among their operations and services they are offering to customers in order to
improve sustainability at marketplace.
Technological: UK is basically technologically developed country, this could be seen as
the opportunity for whole event industry. This is because the company is able to adopt latest
technology which could further help them out in their growth. This can be done by conducting
technology updated events in which best technological tools are used for delivering satisfactory

services to customers. As a result, it will influence customers interest towards event planners
(Sarwar, Ramachandran and Hosseinian-Far, 2017). Away with this, it has also been analysed
that technology consist with a rapid changing environment like from halogen to LEDs and in
event industry, it can be said that these changes has helped business organisations to become an
effective business brand. For instance, technological change where LEDs came in trend and at
the same time, Kids Imagination has adopted the same which has helped them in fulfilling all the
demands and through this company could directly gain a good position in the market.
Legal: Legal factors are basically interrelated to legal laws of the country which
influences industry. With relation to hospitality industry, it can be said that changes developed in
employment law of United Kingdom, working capabilities of event industry will be influenced.
This could be understood with a good example where, Kids imagination need to follow certain
laws with respect to countries in which they are operating. It is mandatory for them to consider
different laws so that they do not fall into any kind of legal trouble. These laws include: data
protection law (it is concerned with privacy issues and intellectual property rights), environment
laws and guides (level of environmental laws within country and what kids imagination can do to
meet those rules and regulations) and business laws (these procedures are followed by
government and are consistent). Kids imagination also needs to adopt patents, intellectual
property rights, IPR rights and copyrights.
Environmental: Main focus of this factor is towards environment and its related
concerns. In relation to United Kingdom, it has been analysed that people of this country are now
more conscious about there surrounding environment. Therefore, there are possible chances that
event industry could use it as opportunity or could face any major challenge due to this. Thus, it
is required by Kids imagination to use environmental friendly equipments. Renewable
technology is major area for Kids imagination (Reic, 2016). It leverage trends within event
sector. Environmental norms are modified which alters priorities with respect to product
innovations. For instance, in maximum areas products are designed on basis expectations and
environmental standards within emerging and developed markets of Kids imagination. Cost of
operations must be added by environmental agencies by regular examination. Biggest impact is
of waste which has been eliminated by organisations. For this they need to consider that
packaging of equipments is done by using eco-friendly products so that if they are decomposed
then it do not create harm to environment.

From the above specified PESTLE analysis, it has been analysed that with the changing
time, there are numerous of opportunity as well as challenges which have been identified with
the help of this analytical tool (Khan and et. al., 2014). On the basis of evaluation, it can be said
that there are numerous of challenges that are developed for event planner due to changing time
and expectation of clients. These challenges affects working capabilities of event planners as
well as their career growth. Some of the main challenges that have been developed due clients
are stated as below:
Meeting customers expectation: With the changing time, event planner uses new
innovative themes to attract more and more customers or clients towards them. These innovation
simply raises expectation of clients from their own event planner. In addition to this, these clients
bring their own theme in front of event developers. As a result, the expectation of these clients
increases at highest level as the idea is generated by them only. This create major challenge for
event manager to satisfies these clients as its really difficult for them to organise similar kind of
event according to the imagination of client. The specific challenge places negative effect on
event managers as they are not able to meet customers expectation.
Shrinking budget: Continuous based decline in budget develops biggest challenge for
event manager of Kids Imagination. This is because, each and every client wants high innovative
event which could satisfy them as well as attract its each guest so that their reputation could be
maintained in effective manner. In this regard, it can be said that it would not be possible for
managers to conduct same expected event with less provided budget line (Cadle, Paul and
Turner, 2014). Thus, it can be considered as major challenge that is faced by management of
Kids Imagination to satisfy expectation of client. Shrinking of event budget directly impacts
upon company's profit margin as with low budget it wont be possible for company to adjust its
profits. Along with this, it also becomes hectic for event manager to maintain their quality of
event within the provided budget.
Lack of Technological resources: This is the another challenge which is faced by event
planners due to client. It has been analysed that UK is technological advance country which
owns numerous of advance technology that could be used by event planners. In context of Kids
Imagination, it can be said that the company is not having satisfactory technological resources.
This develops major challenge for them as with limited technology it would not be possible for
them to conduct technology effective event. At the time of evaluating this challenge, major

reason behind this challenge is insufficient availability of funding. It can be said that this
company is very small in size, thus it will not be possible for them adopt expensive technologies
(Paul, Yeates and Cadle, 2014). This ultimately develops challenge for event planner as with low
level of funding it wouldn't be possible for them to conduct an effective event that satisfy
customer client.
Comparative expectation: Comparative expectation of customers also refers to the
situation in which client compare different visited event with the similar kind of event which are
conducted by their own event manager. In context of Kids Imagination, it can be said that
currently working event manager of this company faces challenges due to this comparison. This
is because, UK is developed country and its citizens prefers to hire event manager for every
small function. Therefore, its localise people are attending every small event which develops
their knowledge on events and its recent trends. This knowledge ultimately influences them to
compare one event with another. On the basis of this it can be said that this developed
comparison initiative challenges in front of customers as they are not able to fulfil demand of
clients according to their expectation (Li, 2015). Excessive comparison of clients demotivate
event planner as they feels that whatever efforts that are placed by them in making an event
satisfactory it will not satisfy client. Along with this, it might result negatively on growth
hospitality industry as some of its leaders might left the same field due to high zone of
expectation of clients.
Management theory
Management refers to the process of managing and controlling individuals and activities
which are performed by them in an organisation. In addition to this, management theories refers
to the combination of various policies, rules and regulation which direct the managers of an
organisation in order to manage their work.
CONTINGENCY THEORY
A contingency theory is an organizational theory that emphasise importance of both, the
leaders personality and the situation in which he operates. It specifies that there are specific
situational factors that can effect organisational behaviour. It consists of dependent and
independent variables. Motivation and leadership constitutes independent variables where as
turnover, productivity and absenteeism constitutes dependent variables. this theory is a best
possible solution. This theory helps in understanding the complex organisations as it focuses on

multi variate organisations (Aladwani, 2014). A manager is said to be effective only when his
decision making fits in the situation. Contingency theory is a theory based on situation prevailing
in the organisation, this theory was emerged from the real life experiences of managers who
found that there is no best approach to management for all situations. A situation is defined by
three factors under contingency theory. They are manager-employee relations - how the manager
interacts with his employees, Task structure - how tasks are set up by the manager, and positional
power - is the amount of power a manager has over his followers. If these factors matches up to
the style of manager, then success is projected. Basically , it says that adopting a single style is
inefficient for long term.
Contingency is a crucial aspect of event management. Even the best made plans can lead
to failure sometimes. There are chances of miss happening for which event organizers are
expected to react quickly and appropriately. In event management contingency leads to
preparedness and is beneficial because of the potential for learning from some situations and
using these skills in influencing future conditions. As we can see in today's world needs and
requirements of each and every individual has been increased, so in event management also
different customers are having different demands. People these days expects maximum
satisfaction with minimum pay which is not likely possible in event management because the
budget provided by the clients and their requirements are high. If there will be no satisfaction,
customer may move to other place. It is not easy to survive in the competitive market, to stay
different managers must guide there employees in such a way that they are able to fulfil l the
customers needs in every situation (Frandsen and Johansen, 2016). By the use of contingency
theory in event management, the manger will be able to build loyal customers who will blindly
follow, what the event planner says and will reflect in improving word-of-mouth A manager is
said to be effective only when he takes decision keeping in mind the organisation. Adoption of
contingency theory in event management will lead to better decision-making i.e., both the
managers and customers can be satisfied because planning can be made according to the need
and requirements of the customer. use of this theory will lead to better decision making,
increased customer satisfaction, maximisation of profit and attainment of competitive advantage.
On the basis of above specified contingency management theory, it has been analysed
that companies belonging to hospitality sector especially event management one could overcome
instant situations which are faced by them. In addition to this, it can be further said that by using

this management theory it would be easier for event company handle their company related issue
and succeed effectively (Garlick, 2017). In order to understand this in more effective manner,
one of the common example of company belonging to same industry and facing similar kind of
issue have been stated as below:
Penguins Event management company is the great event to work with, as they take all the
stress of organizing an event and give the confidence to the clients for the successful of the
event. Mostly customers are hiring the Penguins event for their small and large events as because
of the ease that comes working with them an their capability to come up with ideas suits to each
client (Silvestre, 2016). There are many event management company who faces certain issues,
and in the similar sense the penguins event management company is also having the problem of
budget in which the customers are not giving them the sufficient amount which is going to be
spent on the event, and by giving the less amount they are expecting many things which is not
even possible for the event handler to do the best event in this limited budget, as the event budget
is one of the very first thing which the company want from the prospective client. Therefore if
any customer is establishing the event coordinator then they will tell them the special packages
which will suit their need and budget, they can resolve this issue by the help of contingency
theory of management. Along with this, the event company is also facing the issue of
technology, as this is the challenging for the event organizers to keep up-to-date with the
technology trend (Miskewicz and et. al., 2015). As this will effect the company as each client
want something new and the unique, so they want that their event handler must be the one who is
having all the technologies facilities, and if the event company will not able to fulfil the client
technological needs then they will move elsewhere, that's why it is important to keep up with the
trend of technology. The event company can make use of technology by using the event
management software, as by this the firm can manage multiple events and measure the outcome
and performance for each event. All these issues can be resolve by the use of contingency theory
of management as this gives the event managers a wide range of ways to react to problems and
also this gives them the important judgement in their decision making. This helps the company to
organize the event in better manner and to make the effective decisions.
Changes in business practice and its impact on business performance
In today's modern and hyper competitive era, there are a large number of organisations
which are involved in hosting and organisation of events and parties on a frequent basis. Such

events vary from small private events to big scale and international events. In this regard, it can
be comprehended that event management is all about organisation and successful execution of
activities and planning and these are the areas which majorly demands the investment of money.
Those service providers who are involved in association with the formulation of events get
payment for the services delivered by them to event managers (Atkins, Carey and Sanders,
2014). Today, there are a vast number of
firms that are engaged in this field of practice owing to the uniqueness and creativity that can be
employed by individuals that are associated with the services linked to event planning and
management.
The major prospect through which huge sum of money can be earned in event industry is
by utilisation of innovation, art and creative thinking skills. The event manager can either be a
sole proprietor or a company that strives to pool the resources together with a view to minimise
cost. By way of company arrangement, the financial as well as manpower requirements for
execution of events can be tackled in a feasible manner. The management of events in an
effective and efficient manner largely calls for coordination from the very first stage. The
foremost things in relation to event industry is to get orders from clients. This is also referred to
as pitching for an event or party. Event management is basically the application of efficient
business practices for optimum project management.
In this regard, Kids Imagination is a small event management company which organises
events such as birthdays and other parties. It has been noticed that owing to the lack of financial
and technological resources, the sales and profits of this entity has been declining from last some
months. Due to this, organisation has not been able to successfully meet the demands and
preferences of clients or customers in response to their selection of venue, event theme, event
design, location, catering, lighting etc. Taking these issues and challenges into account, the
manager of Kids Imagination has ascertained the significance of bringing about changes within
the organisational practices so as to ensure increased efficiencies of operations (Lynch and et. al.,
2016). This will provide assistance to company in gaining the attraction of a large number of
clients so as to significantly enhance the quantum of orders received for event organisation and
management every day. Also, this will ensure the fulfilment of needs, demands and preferences
of customers while making sure that the cost of management of events is under control. As the
lack of funds and technological initiatives from the side of company have been causing issues for

Kids Imagination, the manager of this organisation has been considering to bring about certain
changes with a view to enable enhanced business performance. In this regard, the changes that
have been proposed by the management of Kids Imagination along with their impact upon
business performance is mentioned below:-
Projection Mapping: This refers to the process of creation of an augmented reality
experience through the aid of projectors. These projectors assist in casting the images upon flat
screen. By making use of projection mapping, Kids Imagination can effectively light up any
physical surface and optimally transform the buildings or structures to 3D displays (Levi, 2016).
This technique is proposed to be used by the company in order to gain the attention of large
number of customers and to conduct the event in eye-catchy theme and lighting.
This technique would provide assistance to event planner of Kids Imagination to
incorporate immensely transformational design elements within any kind of flat surface that they
find fit. This is a form of visual technology which would prove to be immensely beneficial for
organisation to manage events in an optimum and cost-effective manner. With this exceptional
and innovative technology, Kids Imagination can feasibly enhance its customer base and achieve
the organisational objectives of attaining rapid business growth and facilitating expansion into
new geographical boundaries. The venues where the company would organise events post
execution of this technological change generally do not offer audio or visual equipments. This
means that space customisation is not taken into account by majority of the venues selected by
Kids Imagination for organising events. Addition of projection mapping to events arsenal allows
event managers to create unique experiences without altering the venue itself physically, which
is quite enticing to your customers.
Branded Multi-Use Apps: In today's modern era, applications have largely become an
inherent part of the manner in which most of the event planners and managers manage and carry
out the activities and processes associated with the execution of events and parties (Sharples and
et. al., 2014). In-fact, one of the most well-renowned as well as well-established event
technologies comprise of the use of branded apps in order to render infinite opportunities for
building communication with customers right by way of their own mobile phones. This
technology can be used by Kids Imagination in order to enhance the level of interaction taking
place between people and the business. This will assist the organisation to convert maximum
number of people from the population of United Kingdom to prospect as well as potential clients

who are intending to give orders to this small scale event and birthday party organising and
management company. Further, this mobile app of organisation can be customized to
demonstrate as if it was particularly and specifically designed and developed for events
organised by the entity (Jones, 2017). This strives to ensure that Kids Imagination offers such
functionality which strives to significantly increase as well as personalise the overall experience
driven by customers or clients.
Kids Imagination is looking forward to make use of branded multi-use app with a view to
build adequate and relevant connection with people who are active on the app and absorb them
on a range of levels before, during and after the execution of an occasion. From reservation of
the tickets to personalisation of event agenda, survey of the attendees, polling crowd within real
time and beyond, Kids Imagination can make use of the unlimited options that are available to
connect adequately and relevantly with the people by way of the multi-use app. Further, this
small scale organisation can also make use of branded multi-use apps to effectively and
efficiently promote the events that it organises and executes among a large base of audience.
Kids Imagination is proposing to make and launch such an app as this would strive to
significantly enhance the experiences gained by customers or clients. Also, it would provide
assistance in relation to sharing important things associated with the company and events such as
significant facts, historical titbits and successful execution of some of the most well renowned
events organised and managed by entity. Such a mobile application launched by Kids
Imagination would provide clients and customers with the opportunity to personalise a number
of elements related to venue such as decoration, location, food and beverage, security etc. just by
way of their mobile phones (Taylor, Doherty and McGraw, 2015). There will be a facility of
communicating with chatbots available in the application so as to gain assistance in relation to
any aspect.
Develop, apply and practice a range of professional competencies in development of
management decision making and strategic planning
A person engaged in management should possess skills which will help in carrying work
effectively. An event should be perfect with all required amenities, proper light and sound,
refreshment arrangements, venue and many more. It requires huge efforts to make an even
successful for which planing and decisions are must. Decision making refers to choosing the best
solution to achieve organizational goals. On the other hand, strategic planning is a process of

formulating strategy on allocation of resources to have desired results. to Their necessity can be
understood with execution of an event. These two are vital parts of management which is done
with only when person having right capacity and competencies. A detail elaboration of
development, application and practice of professional expertise have been provided:
Understanding of events: The is a basic and primary ability that should be there in an
event manager. There must be a idea about events and activities done in order to make it
successful (Wheeler and Griffin, 2014). Manager should go and visit seminars and conferences
held of event management so that notes can be made for implementing the same in own
company. Kids Imagination should include this as a foundation part of whole planning and
decision making. The success and failure of other events along with the event of competitors
must be take into account.
Interpersonal skills: It refers to ability to interact with people working in an
organization. It involves listening, questioning and understanding body language. Event manager
of Kids Imagination can build this skills to make its staff comfortable in sharing their ideas and
views in order to include them in decision making and strategic planing. There should be an open
and two way communication so as to understand their problems which will help in attaining the
goals within time.
Risk management skills: It is one of the most important competencies which enable an
event manager to predict potential risks that may affect the event. These should be related to
budget, natural calamities, return etc. It is assumed that, higher the risks, higher the return. A big
event involves huge investment and is sponsored by various people who have interest in the
program. Kids Imagination should engage a person who have good risk management skills in
which various risks can be assessed and evaluated. This will help in making a provision for
uncertainties and contingencies for preventing any financial burden.
Time management: An event can never be successful without proper timings. It is
valuable and each activities should be executed within allotted time. Every decision and planning
must be assigned time slot which will create a foundation for the whole event (Carey, Markland
and Sanders, 2016). Event manager of Kids Imagination should develop this skills so that right
decisions and planning are done for shorten the time that the staff had taken in all previous
events. This will reduce extra costs which can be utilised in some useful areas.

Budget allocation: Everything needs a specific budget. There should be sufficient funds
or budget which is allocated according to need and quality. It is essential to include in strategic
planning and decision making. The final outcome should be decided only when each of the areas
have been assigned funds which would be enough to fulfil the needs. Kid Imagination should
understanding the importance of budget in an event and its effective attribution so the no single
department has to bear the loss in case of failure (Carey and Smith, 2014).
Technological ability: This ability has evolved with the time and has taken a mainstream
place which should be made part event management. This competency can be developed by
looking into the trends or demands in current situation. Many new lightings, drone, hydraulic
system etc. have came into the market which are now being used in different kinds of events.
Kids Imagination should decided whether to buy a new technology or not within the available
financial resources. Also, strategic planing should be done so as to choose the best equipment
among present choices.
Adaptability: It is primarily related to changes that take place in the industry due to
external and internal forces. The trends and pattern of doing work in event sector change
frequently which is a major issue and can be resolved through strategic planning followed by a
right decision. Kid Imagination should encourage its employees to build capability to adapt the
changes and not to resist them. The modifications that might take place due to industrial pressure
should be considered in decision making so that strategies can be developed which may help in
making provisions in advance.
Leadership skills: It is about influencing the beliefs, attitudes and thoughts of people at
workplace and motivate them work hard and achieve targets within time. It is an useful and most
needed capability which should be there in an event manager to make employees work with
efficiency. Kid Imagination's event manager should posses this skill to impact the views of staff
to make them understand and agree with decisions and planning done by the company (Deresky,
2017). It should be applied in daily practices for maintaining a co-ordination in work among all
the departments and direct them to focus on common goal.
Quality management: It holds great value which can impact financial aspects. When a
party goes to a company for event planning, they pay for desired quality which they wish to see
at the event. This is an unavoidable factor which should be involved in decision making and
strategic planning. In no case, the quality should be reduced below the standard. Decisions are

made according to piece of work that would be done in the event. Kids Imagination should focus
on focus equally on quality so that strategic planning can be done in order to contact the
suppliers for delivery of goods. This should be given ample amount of time for making right
decision so as to prevent complaints from clients and improve existing image and market
standing.
Strategic Management Plan
The management of Kids Imagination has taken into account the managerial issues and
challenges faced by this entity over a period of last some months. Looking upon this as a threat
to its sustainability in marketplace, the manager of this enterprise proposed certain changes
across the organisational premises. These changes are proposed to be the use of project mapping
as well as branded multi-use app (Richardson, 2014). Both these changes are proposed to be
implemented within the organisation so as to ensure that the customer contact of the company
gets significantly increased
post the execution of these cost effective and unique strategic technologies. Further, these
technologies are being implemented in the company to enhance the number of orders that the
organisation will receive and to substantially raise the sales as well as profitability of entity post
that. In this regard, the management of this enterprise has made a strategic management plan
which is aimed at successfully executing the two event management techniques as well as to
ensure that these technologies yield the desired results. The strategic plan implemented by Kids
Imagination to communicate the various key elements associated with proposed changes in terms
of execution of new technologies to stakeholders is as follows:-
Aim: To facilitate the expansion of operations of company and to reduce the overall cost
of operations.
Vision: To become a leading organisation within the events industry across the globe
while focussing upon sustainability.
Mission statement: To offer high quality products and services with a view to gain high
satisfaction from clients.
Values: Kids Imagination is a small scale, dedicated and motivated team of individuals
who possess high beliefs such as honesty, integrity, ethics and transparency (Steiss, 2019).
Goals and Objectives: The short-term goal of Kids Imagination is to focus upon pricing
and quality of services in order to gain high satisfaction from clients. The long-term goal of this

company is to gain entry within emerging markets which possess the potential to enhance the
existing level of sales and profitability of entity in marketplace.
Strategies: Kids Imagination will make use of project mapping as well as branded multi-
use app. While project mapping will assist the company in significantly enhancing the
experiences driven by customers, branded multi-use app will help the company in building an
adequate communication with customers to significantly increase the loyal base of customers
(Boss, Bryant and Mancini, 2016). Both these technologies will aid the organisation in enhancing
the sales and profits of entity in marketplace.
KPI
KPI Kids Imagination Wonderland agency Story event
Revenue 4 million 3 million 4.5 million
Gross profit 1.5 million 1 million 2 million
Asset 3 million 2.5 million 3 million
Total 8.5 million 6.5 million 9.5 million
The above stated table shows comparison of the Kids imagination with two of its
competitive companies which are working in London only. Above represented figures clearly
depicts financial stability of the company.
Competitors analysis
Porter's five forces
It is the common framework which is used by businesses in order to evaluate actual
competition within the industry. With reference to Kids Imagination competitors analysis for this
company can be done through using framework of porter's five forces. The model of have been
stated as below will all of its elements:
Threat of new entrants: This force for event industry is high as there are numerous of
the companies who can easily enter into this stream. New entrants with creative mindset can
easily enter into event line and earn high profits.

Rivalry among existing players: Competition within the industry is much high as there
are numerous of competitor available for Kids Imagination. These competitors can be both small
scale companies and large scale one.
Bargaining power of supplier: In this, Bargaining power of supplier is high as they are
dominant in nature and holds great power. They also negotiate with companies and convinces
them to settle down at their feasible quotation.
Bargaining power of buyer: Buyers in event line are too demanding as their
expectations changes every single day. Kids Imagination can easily influence customers by
providing them creative events at low cost.
Threat of substitute products: For event industry, substitute product can be seen as the
clubs who allow customers to enjoy their function within the premises.
CONCLUSION
From the above report, it has been concluded that management plays an important role
and necessary in hospitality as well as other industries. The report has been drawn on the range
of managerial challenges that exist in hospitality sector. Along with this, critical analysis of
various theories pertaining to management and interpretation of variety of complex problems
existing in industry have been explained. Also, the outcomes that have been gathered through
decisions must be implemented in real-life context which may have potential impact on business.
Along with this, different professional competencies have been developed and applied in
decision making and strategic planning for accomplishing organizational goals. Along with this,
it has been analysed that there main issue which have been faced by event industry is related to
insufficient amount or budget that negatively impacts upon event line and also influences profit
margin of this whole industry.

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Online
Kids Imagination. 2019. [Online]. Available Through:<http://www.kidsimagination.co.uk/about-
imagination-events/>.