Financial Decision Making for Creative Projects and Events - Analysis

This report delves into the financial decision-making process for a Christmas party event, offering a comprehensive analysis of market research, potential revenue streams, and cost structures. It outlines the event's specifics, including the venue, services, and facilities offered. The report explores various sources of finance such as short-term debt, overdrafts, and retained income. It details income streams from seat sales and additional services like food, DJ parties, and wine cellar visits. The report also includes detailed cost breakdowns, revenue projections, and calculations of return on capital employed and breakeven sales. It also discusses pricing strategies and recommends the most appropriate financial sources and income streams for maximizing profitability, ultimately providing a solid financial framework for the event.

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

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Table of Contents
Introduction:....................................................................................................................................2
Depicting the overall market research of similar events and drawing relevant conclusion from the
financial exposure:...........................................................................................................................2
Sources of finance for the event:.....................................................................................................3
Discussing the relevant income streams:.........................................................................................4
Illustrating and discussing the proposed event cost, revenue, return on capital employed, and
breakeven:200..................................................................................................................................4
Mentioning the pricing of the event including different pricing strategies:....................................7
Recommending the most appropriate source of finance, relevant income streams and pricing
strategies:.........................................................................................................................................8
References and Bibliographies:.......................................................................................................9

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Introduction:
The report includes relevant events description, which could help in generating high
income for the event company. The overall valuation of event location, type and facilities offered
is also depicted in the report. Therefore, the event that will be conducted is Christmas Party,
which has been conducted for many years in UK. The event is mainly aimed to be conducted in
‘Christmas at Le Pont de la Tour’, which is situated in ‘The Butlers Wharf Building, 36D Shad
Thames, London, SE1 2YE’. The event venue mainly consists of Meeting rooms, conference
centres, party venues and wine cellar, which could be an adequate place for the Christmas party.
Moreover, the facilities such as DJ party, 5 hour unlimited beverage, Continental menu,
Christmas theming, crackers and novelties. The identified services and venue space mainly states
the relevant measures, which could directly help in generating the required level of profitability
for the event company.
Depicting the overall market research of similar events and drawing relevant conclusion
from the financial exposure:
Christmas events in UK is one of the major activities that is been conducted in winter,
which allow the event management companies to increase their profits by attract adequate level
of customers. There have been many events with different types of themes, which are conducted
in Christmas by the event companies. In addition, these similar events in Christmas have been
conducted by the company, which mainly allow the event management companies to generate
the required level of profitability from investment. The events conducted in London Marriott
Hotel County Hall, BFI IMAX and The Deck, and Blueprint Cafe mainly provide higher revenue
for the event management companies. The identified events were mainly successful providing

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
higher level of revenue, which was mainly conducted after providing high end entertainment and
food services. Moreover, Christmas party in recent years have provided high end service to
consumers, which have allowed event management companies to generate high revenue (Bodie,
Kane and Marcus 2014). The rising trends in Christmas celebration have mainly allowed the
organisation to generate the required level of profits from operations. Therefore, seeing the
overall rising trend in party events organisations and companies could conduct such occasions
for increasing the profitability.
Sources of finance for the event:
Penguin Company is mainly identified to be one of the Major events organising company
that has conducted maximum of the events in UK. The proposed event could provide revenue
from different streams, as adequate event option are been selected. There are different types of
Finance shows that could be used by the organisation for this particular Christmas event. The
Expenditure on the event is relatively high due to the services programs and quality food that is
provided by the event company. The different level law services provided by the Christmas event
would eventually need adequate funding from relevance sources of finance. The different types
of Finance source that could be used by the organisation are short term debt, overdraft, and
retained income (Chen and Wan 2014).
The use of short term debt could eventually help in supporting the short term need of
capital which could be utilised for the Christmas event. The Christmas event could also be
financed by using overdraft facility from the bank, where relevant direct investments such as
booking the venue and payments could be conducted. Lastly, the use of retained income by the

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
event management company could also be conducted for relatively increasing profits and
reducing any kind of finance expense from the event (Du, El-Gafy and Zhao 2015).
Discussing the relevant income streams:
The major income stream that can be identified from the Christmas party is the sale of
seats conducted to customers. This is a major income stream that could be used by the event
management organisation to generate the required level of income to support its expenses. The
sale of tickets or seats to customers with all the relevant services and amenities could provide the
required level of revenue for the Christmas event. The revenue you could also be increased by
initiating two different types of services that could be provided from the Christmas event. The
service that will be provided is the main event of dinner with different types of variety food. The
sale of food services will provide the maximum revenue from the event. After which there are
different types of Events such as DJ party, wine cellar visit, and Salon Prive. The above depicted
events could provide the additional revenue from the Christmas party that could enhance income
stream of the event management company (Granadillo, El-Barbor and Debar 2016). With the
help of the identified services provided in Christmas party could eventually have the event
organising company to generate the required level of profits from the operation.
Illustrating and discussing the proposed event cost, revenue, return on capital employed,
and breakeven:200
Particulars Amount Amount
Food and Beverage
Foods £ 24,000.00

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Beverage £ 14,500.00
Equipments £ 4,500.00
Delivery charges £ 1,200.00
Misc Charges £ 1,200.00 £ 45,400.00
Location
Rental Fee £ 6,500.00
Other £ 850.00 £ 7,350.00
Rentals
Lightening £ 2,400.00
Other £ 410.00 £ 2,810.00
Staff
Event coordinator £ 720.00
Designer £ 1,100.00
Volunteers £ 320.00
Labour £ 4,200.00
Other £ 6,340.00
Entertainment
Music £ 1,400.00
DJ £ 800.00 £ 2,200.00
Particulars Value Unit price Amount
Exclusive use 140 12 £ 1,680.00
Restaurant 400 89 £ 35,600.00

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
Wine cellar 40 40 £ 1,600.00
Salon Prive 20 82 £ 1,640.00
DJ 540 75 £ 40,500.00
£ 81,020.00
Particulars Amount
Revenue £ 81,020.00
Variable cost £ 53,940.00
Contribution £ 27,080.00
Fixed cost £ 10,160.00
Net profit £ 16,920.00
Breakeven sales needed £ 30,397.46
Return on capital employed 26.4%
The above tables mainly help in identifying the all expenses that will be needed for the
event. In addition, the table also depicts the revenue that will be generated from the operations
with all the relevant net profit and break even sales needed for the event to be successful. The
table also depict all the expenses such as food, rental, and other expenses that will be needed for
making the event successful. The derivation of the expenses is actually needed to understand the
overall extent of the spending, which needs to be conducted for a successful Christmas event.
Mallen and Adams (2017) mentioned that evaluation of profits and break even sales directly
allows organisation to gauge into the benefits that that could be provided from a particular

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
project. Maximum of 540 citizens will be accommodated in the Christmas party, which might
produce total revenue of 81,020 with a net profit of 16,920. The estimation is mainly based on
the overall expenses and relevant pricing of the services and foods that will be solved in the
Christmas party. Lastly, the break even sales that is needed for the particular Christmas event is
30,398, while the return on capital employed from the evaluation is at 26.4%. These values
directly indicate viability of the project which could help in improving profitability the event
organising company.
Mentioning the pricing of the event including different pricing strategies:
Particulars Unit price
Exclusive use 12
Restaurant 89
Wine cellar 40
Salon Prive 82
DJ 75
The above table mainly depicts the overall prices of different services that will be
provided in the Christmas party. The major pricing strategy is mainly focused on food, wine
cellar, Salon Prive and DJ, which could provide the required level of revenue from the Christmas
event. Masterman (2014) stated that use of adequate pricing strategy allows the organisation to
generate the required level of profits by maintaining relevant demand among customers. The
overall pricing strategy is mainly depicting relevant prices according to the services provided in
the Christmas party. The high level of pricing strategy would eventually reduce the overall

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
income that could be generated from the event. Therefore, mediocre pricing strategy is used
where not more than 540 customers could be entertained on that single day. Hence, keeping the
pricing strategy at with mediocre level could eventually help in attracting high standard citizens,
which will provide adequate revenue for the event management company.
Recommending the most appropriate source of finance, relevant income streams and
pricing strategies:
From the evaluation of all the above measures relevant measures that will be needed for
completing the Christmas party are adequately identified. Therefore, the overall source of
finance that will be needed in the Christmas party is from retained income and short term loans.
use of retained income and short term loan could eventually help the event organising company
to minimise the finance cost. Furthermore, this would eventually help in increasing the revenue
generated from the Christmas event. The income stream is also depicted in the above tables
where relevant sales from DJ party, wine cellar visit, restaurant and Salon Prive will be
conducted to generate the required level of revenue from the event. Lastly, the mediocre pricing
strategy adopted by the event management company could eventually help in attracting high
class customers, who could bear the selling prices of the service and food. Hence, the use of
above measures could eventually help the event management company to smoothly conduct its
operations and successfully complete the Christmas event.

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FINANCIAL DECISION MAKING FOR CREATIVE PROJECTS AND EVENTS
References and Bibliographies:
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. McGraw-Hill Education.
Chen, N., Du, W., Song, F. and Chen, Z., 2015. FLCNDEMF: An Event Metamodel for Flood
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Chen, Q. and Wan, X.P., 2014. Research and Implementation of event handling of IT Service.
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Day, C., Van Niekerk, M. and Okumus, F., 2017. The Importance of Strategic Communication
During Change Management at Palm College of Hospitality and Event Management.
Du, J., El-Gafy, M. and Zhao, D., 2015. Optimization of change order management process with
object-oriented discrete event simulation: Case study. Journal of Construction Engineering and
Management, 142(4), p.05015018.
Granadillo, G.G., El-Barbori, M. and Debar, H., 2016, November. New Types of Alert
Correlation for Security Information and Event Management Systems. In New Technologies,
Mobility and Security (NTMS), 2016 8th IFIP International Conference on (pp. 1-7). IEEE.
Jeston, J. and Nelis, J., 2014. Business process management. Routledge.
Lotem, A., Cohen, G. and Naon, L.B., Skybox Secutiry Inc., 2013. Method for simulation aided
security event management. U.S. Patent 8,407,798
Mallen, C. and Adams, L.J. eds., 2017. Event management in sport, recreation and tourism:
theoretical and practical dimensions. Taylor & Francis.