Break even Analysis | Event Financial Management
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Added on 2019-12-28
Break even Analysis | Event Financial Management
Added on 2019-12-28
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Event Financial Management
TABLE OF CONTENTSINTRODUCTION................................................................................................................................11) Advise a range of methods in generating income during the event........................................1ii) Pricing strategies available for pricing the entry tickets of the event.....................................3iii) Main purpose of Financial Management within the events industry.....................................4iv) Break even Analysis...............................................................................................................7CONCLUSION....................................................................................................................................8REFERENCES...................................................................................................................................10
INTRODUCTIONIn current corporate environment of the UK, event management industry is one of themajor sources of income for the economy. There are several companies that are operating in theevent management industry that offers wide range of innovative and creative services to thecustomers and making their functions more attractive (Brigham and Ehrhardt, 2013). Herein,researcher focuses on evaluating the financial prospects of medium sized event ManagementCompany named as Julia Charles Event management. Further, report highlights the method ofgenerating income during the event as-well-as recommending pricing strategies for the entrytickets. Furthermore, purpose of financial management within the event industry has beendiscussed. Lastly, the present work illustrates the importance of break-even analysis with respectto the cited firm. 1) Advise a range of methods in generating income during the eventThere are several methods that can be undertaken by Julia Charles Event ManagementCompany to generate income during Dinner and Dance party on Valentine's Eve. However,financial advisor of the company has to evaluate those methods and present them to the eventmanager so that he/she can employ them during the event in order to generate higher income(Masterman, 2014). Following are the methods through which cited event company can generateincome during the events:Ticket Counter: This is one of the major sources of income that Julia Charles EventManagement Company can use to generate revenue (Vogel, 2014). However, organisingDinner and Dance Party on Valentine's Eve will assist event firm to attract large numberof couples and individuals as well. Thus, with the help of these two categories of ticketswill help in generating higher income such as for individual; Stag entry ticket should beused and for pair; Couple entry ticket should be considered (Loker, 2014). In this, pricecan be set a bit higher than the original costs as people will buy the tickets to enjoy theValentine's Day with their loved one. Gifts Shop: Opening a gift shop within the event premises will assist in generating higherincome. It is because of the fact that people will be attracted or influenced to buy gifts fortheir loved once like cards, articles, roses etc. Therefore, opening a gift shop will help inraising large amount of income (Jones, 2014). 1
Beverage Counter: For organising a Dinner and Dance Party, Julia Charles EventCompany can open beverage counter where both hard and soft drinks will be on sales.This is to facilitate people who are likely to drink. They can buy and this could leads tobe another good source of income during the event for the cited company (Nagornyy,2010). Raffles: It is another common means of raising revenue during the event. However, attimes, it is difficult to raise cash sponsorship; it is easier to obtain goods from sponsorswhich can be raffled. During the Valentine’s Day party, event manager of Julia CharlesEvent Company can take raffle as the option from one of its vendors who can providegoods that can be presented to the most beautiful couple, best dancers or best singers etcin the party (McNeil, Frey and Embrechts, 2015). Souvenir stall: A souvenir store can be another major source of revenue for the eventmanager of Julia Charles Event Company in the desired event. However, providingvarious memento, keepsake, or token remembrance can help in attracting variousindividuals present in the party to buy souvenir and raise income for the event (Baxter,Hoitash and Yezegel, 2013). Photo-booth: This is one of the most innovative ways of increasing the revenues for anevent. However, manager can set-up a photo-booth section with creative valentine themewhere intended guests can click their photographs. Therefore, this can be another sourceof income for the event manager of Julia Charles Event Company by influencing morenumber of people (Yang and Ha, 2014). Sponsorship: It is the most common way of generating money for executing an event. Itis the duty of event manager of Julia Charles Event Company to attract differentorganisations or individuals who can provide funds in terms of sponsorship in order topromote their goods and services at the event place (Bladen, Abson and Wilde, 2012).Large amount of money can be created through this way thereby helps in conductingentire course of Valentine’s Day party in effective and efficient manner. Food/snack stand: In an attempt to organise the “Dance and Dinner” Valentine’s Party,Julia Charles Event Company can set-up food and snack stand where people can visit andhave food of their choice. However, it is important to maintain hygiene of thesurrounding so that people can enjoy the party to a great extent (Fulford and Standing,2
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