Analysis of Macro Environmental Factors on Global Events Industry

This report provides a detailed analysis of the impact of the macro environment on the global events industry, using the Edinburgh Festival and Brazil Olympics as case studies. It begins with an introduction to global events and the importance of considering various factors for successful organization. The report then delves into a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors influencing these events, highlighting both positive and negative impacts. It further evaluates the criteria essential for successful event planning and discusses recommendations for improvements and solutions to minimize adverse impacts and maximize profits. The analysis covers the influence on decision-making and organizational behavior within the context of the case studies, providing a comprehensive overview of the challenges and opportunities in the global events industry.

Global Events

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
P5: Positive and Negative Impact of Macro Environment..........................................................1
M3: Application of specific examples, evaluation of macro environmental factors which
influence the global events industry............................................................................................1
TASK 4............................................................................................................................................1
P6: SWOT analysis......................................................................................................................1
M4 Critical evaluation of the criteria which are essential for successful planning of events and
the impacts of internal and external environment........................................................................3
D3: Recommendations of improvements and solutions for specific events to minimise the
adverse impacts and maximisation of profits...............................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global Events refer to the events which are held for the purpose of reaching out to a mass
range of audience all over the world in different countries (Adhikari and Liu, 2019). For the
purpose of organizing them the organizers have to consider the different types of factors which
can impact them. Therefore it is required from the event organizers that they are able to ensure
that the due consideration is given to various factors so that the events are organized
successfully. For this report, Edinburgh Festival and Brazil Olympics has been chosen. In this
report, specific analysis will be made on assessment of impact of macro environment on global
events industry. Additionally, focus on evaluation of criteria which is essential for the successful
planning of events will be made as a part of this project.
TASK 3
P5: Positive and Negative Impact of Macro Environment
Marketing Environment consists of both internal and external factors which affect the
organization's success (Macro Environment in Marketing Definition Factors Examples, 2017).
Therefore external factors are considered in Macro Environment. These external factors are quite
important and therefore are required to be considered while hosting an event. For the purpose of
analysis of Macro Environment the use of PESTEL analysis can be made.
This analysis in the context of Edinburgh Festival and Brazil Olympics is as follows-
PESTEL analysis-
Edinburgh Festival-
Political factors- The political situations can create an impact on the way an event is
hosted (Alizadeh-Choobari and Najafi, 2018). Thus these situations are quite crucial to be
considered by the organizers of the events before hosting the event. The political situation in
U.K. Has been quite dynamic after the introduction of Brexit and thus this created an influence
on the hosting of Edinburgh Festival.
 Positive impact- Due to the good decision-making which was shown by the Government
of U.K. The festival was held successfully. Thus in this way this led to the successful
hosting of the event.
 Negative impact- Due to the frequent changes in the political situations in U.K. There
was creation of a negative image. Therefore this put a negative impact on the event.
1

Economic factors- Economic situations in the countries changes frequently. The event
organizers are required to consider the economic aspects which are associated with the hosting of
the event (Brown and et.al., 2016). Edinburgh Festival's organizers also considered these factors
while hosting the event in the country.
 Positive impact- As U.K. Is a developed country and has a good economy the hosting of
such an event helped in boosting of the economy.
 Negative impact- The higher cost of organizing the Edinburgh Festival put an impact on
the economy of U.K. This was because of the higher-level of expenses which were
incurred in hosting such a big event.
Social factors- These are the factors which are related with the society. Thus it is quite
important for the event organizers to ensure that these factors are considered (Dominguez and
et.al., 2016). Before hosting Edinburgh Festival the organizers had to ensure that these factors
are considered which helped in the successful hosting of the event effectively and efficiently.
 Positive impact- Hosting of a big event like Edinburgh Festival helped in portraying of
the culture of U.K. In front of so many people in the world which helped them in
knowing more about the culture of the country.
 Negative impact- A big event like Edinburgh Festival had to face social barriers from
various people in U.K. Therefore this put an impact on the event.
Technological factors- Technology is quite dynamic in nature and can change quickly
(Evans, 2016). Therefore while hosting Edinburgh Festival the event organizers had to consider
the technological changes so that they were implemented quickly to make the event a success.
 Positive impact- While hosting Edinburgh Festival the event organizers were able to
ensure that the new technology was used. This contributed in ensuring that the event was
a success.
 Negative impact- There was an increase in the overall level of expenditure while making
the use of the new technological changes. Thus in this way the overall level of
expenditure of event organizers increased substantially.
Environmental factors- Nowadays people are becoming more conscious towards the
environment (Frölicher, Fischer and Gruber, 2018). Therefore the event organizers are required
to ensure that the events which they are hosting do not harm the environment and thus can appeal
to a mass range of audience.
2

 Positive impact- While hosting Edinburgh Festival the event organizers took the care of
environment by ensuring that there was no major impact on the environment. They
reduced the carbon footprint by making the use of appropriate techniques and methods.
 Negative impact- Due to the tough environmental laws of U.K. The expenses of the
event organizers increased and thus in this way it put an impact on the Edinburgh
Festival.
Legal factors- The event organizers have to consider the legal rules and regulations of
the country in which the event is being organized. Therefore, the event organizers of Edinburgh
Festival had to consider the laws of U.K. Which helped in successfully hosting the event.
 Positive impact- By following the legal rules and regulations of U.K. The event
organizers of Edinburgh Festival were therefore able to ensure that the event was
completed successfully.
 Negative impact- Due to the frequent change in the laws an impact was created on the
event organisers. Therefore while hosting Edinburgh Festival the event organizers had to
face this issue and adjust the event according to the new laws which were framed by the
government.
Influence on decision-making and organizational behaviour- In Edinburgh Festival there was
an influence on the overall decision-making because the organizers of the events had to consider
the factors in the macro environment in an effective manner which helped them in planning the
event accordingly. Therefore in this way the organizers of the event were able to make sure that
the event was organized successfully. Also the organizational behaviour was influenced because
the event managers had to motivate their employees to do better and according to the maximum
potential thereby leading towards the achievement of goals and objectives of the event.
Brazil Olympics-
Political factors- The political situations are quite important for the event organizers to
consider before they can plan for hosting an event successfully (Grix and et.al., 2017). Thus
while hosting Brazil Olympics the event organizers had to consider the political situation, level
of political stability in Brazil which helped in successfully hosting the event.
 Positive impact- In Brazil, the political conditions are quite stable. Therefore this helped
the event organizers of Olympics to be able to host the games in the right manner and
3

make the event a highly successful one appealing to a range of mass audience all over the
world.
 Negative impact- The event organizers of Olympics had to consider the different types
of government policy wile hosting the event in Brazil. Therefore in this way the
restrictions of the government created an impact on the games.
Economic factors- The economic situations in a country are quite crucial to be
considered by the event managers when they plan to successfully host an event. The event
organizers of Olympics had to consider the economic situation of Brazil before organizing it
which helped them in hosting the event successfully.
 Positive impact- As Brazil is a developing country it has plenty of opportunities on the
economic front which was quite helpful for the event organizers of Olympics as they
were able to use these opportunities in the right manner by successfully hosting the
games.
 Negative impact- The hosting of Olympics led to an increase in the overall expenditure
and thereby put an impact on the economic situation of Brazil.
Social factors- In Brazil, there are multiple cultures which are present in the different
regions of the country. While hosting a big event like Olympics the event organizers had to
ensure that they considered these cultures in an effective manner so that the games were able to
reflect the culture of Brazil to audience all over the world.
 Positive impact- While hosting the Olympics the event organizers had to make sure that
the social sentiments of the people of the country were respected. Thus this helped in
successfully hosting the event.
 Negative impact- The social customs of certain sections of the society in Brazil were
impacted by the hosting of a big event like Olympics. Therefore, in this way this
impacted the Olympics.
Technological factors- Technology changes quite fast and thus the changes which incur
in it have to be implemented quickly (Huang and et.al., 2016). While hosting a big event like
Olympics the event organizers had to take these factors into consideration so that the
technological changes were implemented quickly.
4

 Positive impact- While hosting the Olympics the event organizers were able to ensure
that they were able to use innovation in the right manner so as to attract the attention
towards the games. Thus in this way this created an impact on Olympics.
 Negative impact- Technological change increased the expenditure of event organizers
while they hosted a big event like Olympics. Therefore this created an impact on the
hosting of the games.
Environmental factors- Nowadays the people are quite conscious regarding the
environment (Li and et.al., 2018). Thus, While hosting the Olympics the event organizers had to
take specific care of the environment which helped them in hosting the games successfully.
 Positive impact- Due to the environmental policies of the government the event
organizers of Olympics had to ensure that they were able to host the event successfully.
Therefore this ensured that the games were held in an environment-friendly manner.
 Negative impact- Despite trying to host the Olympics in an environment-friendly
manner the games led towards an impact on the environment.
Legal factors- Every event organizer has to respect the laws, rules and regulations of the
country in which the event is being held. Therefore the organizers of Olympics had to ensure that
they followed all of them in an effective manner. This helped them in successfully hosting the
event.
 Positive impact- The laws of Brazil regarding the hosting of events helped the event
organizers in ensuring that they were able to host the event successfully.
 Negative impact- There was an increase in the overall level of expenditure of the event
organizers because of the strict laws, rules and regulations of the government.
Influence on decision-making and organizational behaviour- In Brazil Olympics, the event
managers had to consider these factors and modify their decisions accordingly. These factors
therefore put an impact on the overall decision-making as the event managers had to organize
such a big global event after they identified the need of considering these factors. They had to
ensure that the organizational behaviour was influenced accordingly which therefore helped a lot
in positively motivating the workers in ensuring that the event was organized successfully. The
positive organizational behaviour was also influential in identifying the impact of organizing
such a big global event so that the event managers were able to influence the employees so that
they give their best in organizing this particular event successfully.
5

M3: Application of specific examples, evaluation of macro environmental factors which
influence the global events industry.
Macro environmental factors like the economic factors and environmental factors highly
influence the global events such as Edinburgh Festival and Brazil Olympics. For example, the
the events like Edinburgh Festival can be hosted in the countries which have good economic
conditions as the events can help in boosting the economy of such country. While for Brazil
Olympics the economy of Brazil is considered before hosting such Olympics were it has many
opportunities to use them in right manner by hosting such games. The another factor which is
economic factor can have negative impact over such impact as by hosting such events people
throw the waste here and there and the cleaning of such events are not taken care by the
organisers of the events. All this things influences the decision making of the leaders as they
have to focus over all such factors and then make the decisions by which the company can
effectively host the events.
TASK 4
P6: SWOT analysis
A SWOT analysis is a strategic planning tool originating from business and marketing
analysis which encourages groups to reflect on Strengths, Weaknesses, Opportunities and
Threats (Panagiotou, Katakis and Gunopulos, 2016).
SWOT analysis of Edinburgh Festival
Strengths Weaknesses
 This festival was able to appeal to a
mass range of audience because of the
art which it displayed to the people thus
appealing to their tastes and
preferences.
 In this festival the culture of different
societies was reflected. This helped in
gathering a mass range of audience for
the event.
 The marketing strategies which were
applied for making the people aware
about the festival were not so effective.
 The promotional strategies which were
used by the organizers for promoting
the event were not very effective and
attractive in attracting the different
types of audience towards the event.

Opportunities Threats
 The event provided an opportunity to
emerging artists to showcase their
talent in a highly effective manner.
 The hosting of such an event helped in
portraying the art from different
countries in the world to a massive
range of audience which helped in
enhancing the reputation of these
countries.
 Due to the event the environment faced
a threat because of the impact which
was created by it.
 The event faced a threat due to the tax
policies of the government because the
higher tax rates can bring down the
profits from hosting the event.
SWOT analysis of Brazil Olympics
Strengths Weaknesses
 As Olympics are a major global event
hosting them can help in driving the
economic growth of a particular
country. Therefore the Brazil Olympics
helped a lot in giving a boost to the
economic growth of Brazil in a highly
effective manner.
 Hosting of Olympics helps countries in
boosting their tourism. Therefore the
Brazil Olympics helped Brazil in
boosting their tourism.
 Hosting of Olympics can put an impact
on the financial situation of a country.
As Brazil is a developing country an
impact was put on its financial position
due to hosting of Olympics.
 While hosting a big global event some
mismanagement can happen. Therefore,
In Brazil there were some
mismanagement while hosting the
Olympics.
Opportunities Threats
 Hosting the Olympics provides an
opportunity to the countries for
showcasing themselves on a global
platform. Thus, Brazil Olympics
provided this opportunity to Brazil.
 Higher tax rates of the government can
create a threat for Global Events. Thus
the tax rates of Brazil created a threat
for the Olympic games.
2

 Hosting the Olympics ensures that the
revenues of a country can increase.
Brazil Olympics provided this
opportunity to Brazil.
 Hosting of the Olympics created an
impact on the environment of the
country. Thus Brazil Olympics created
a threat for the environment in Brazil.
Criteria for successful planning of events-
 Size of the event- The event organizers are required to consider the size of the event
which they are planning (Verma, Dey and Meisheri, 2017). Therefore, the event
organizers of Edinburgh Festival and Brazil Olympics had to consider it because both
were large-scale global events.
 Target audience- The target audience is important for event organizers because they
need to set-up the event in the right manner to make sure that they can earn higher-level
of revenues (Wise and Harris, 2017). Thus the event organizers of Edinburgh Festival
and Brazil Olympics had to determine the strategies for their target audience for ensuring
that they were able to make the events successful.
 Budget of the event- The event organizers should consider the budget of the event so
that they are able to host the event successfully. Therefore, the event organizers of
Edinburgh Festival and Brazil Olympics framed a specific budget for these events which
helped them in hosting these events successfully.
 Marketing and Promotion of the event- The marketing and promotion of the event is
important for the event organizers because in this way they will be able to frame a right
strategy which will help a lot in making their event a success. Thus, the event organizers
of Edinburgh Festival and Brazil Olympics had to ensure that they used appropriate
marketing and promotional strategies which helped them in making their events
successful.
M4 Critical evaluation of the criteria which are essential for successful planning of events and
the impacts of internal and external environment.
While planning events like Edinburgh Festival and Brazil Olympics it is important to
evaluate the strengths and opportunities of hosting such events. The impact of hosting
Edinburgh Festival would be great on external environment as this festival appeals to have mass
range of audience as it has display of art which appeal people with same taste and preferences.
3

Apart from this the event has the opportunity for the artists to showcase the talent in effective
manner. While by hosting Brazil Olympics the internal environment can be boosted as the
country would have high tourism rate which would increase the business of company.
D3: Recommendations of improvements and solutions for specific events to minimise the
adverse impacts and maximisation of profits.
The recommendations for improvements of global events can be taking take of the
environmental factors of the countries. This factor needs to be improved because this can create
problem for the company as it can have legal actions of government and the events can get bad
reputation from the same. It is important that managers and leaders of such companies give
major focus on the standards which can solve this problem and minimise the adverse impacts
which can be faced by company. If this is effectively considered by companies then it would
ultimately maximize the profits of such events.
CONCLUSION
From the above project report it can be concluded that global events are the events which
have limit of the duration with the global reach and requirements of significant public
investments. These events have impact over the macro environmental factors and influences the
decision-making power of managers and organisational behaviour. Apart from this it is essential
to evaluate the planning of events taking the consideration of the impacts of internal and external
environment.
4

REFERENCES
Books and Journals:
Adhikari, A. and Liu, C., 2019. Geographical distribution of thundersnow events and their
properties from GPM Ku‐band radar. Journal of Geophysical Research: Atmospheres.
124(4). pp.2031-2048.
Alizadeh-Choobari, O. and Najafi, M. S., 2018. Extreme weather events in Iran under a changing
climate. Climate Dynamics. 50(1-2). pp.249-260.
Brown, T. B. and et.al., 2016. Using phenocams to monitor our changing Earth: toward a global
phenocam network. Frontiers in Ecology and the Environment. 14(2). pp.84-93.
Dominguez, M. and et.al., 2016. Equine disease events resulting from international horse
movements: Systematic review and lessons learned. Equine veterinary journal. 48(5).
pp.641-653.
Evans, M., 2016. The Last Historic TV Star?: Nelson Mandela's Funeral Broadcast, Social
Media and the Future of Media Events. In Global Perspectives on Media Events in
Contemporary Society (pp. 141-157). IGI Global.
Frölicher, T. L., Fischer, E. M. and Gruber, N., 2018. Marine heatwaves under global warming.
Nature. 560(7718). pp.360-364.
Grix, J. and et.al., 2017. State strategies for leveraging sports mega-events: Unpacking the
concept of ‘legacy’. International Journal of Sport Policy and Politics. 9(2). pp.203-
218.
Huang, C. H. and et.al., 2016. Multiple polyploidization events across Asteraceae with two
nested events in the early history revealed by nuclear phylogenomics. Molecular
Biology and Evolution. 33(11). pp.2820-2835.
Li, Y. and et.al., 2018. Jointly localizing and describing events for dense video captioning. In
Proceedings of the IEEE Conference on Computer Vision and Pattern Recognition (pp.
7492-7500).
Panagiotou, N., Katakis, I. and Gunopulos, D., 2016. Detecting events in online social networks:
Definitions, trends and challenges. In Solving Large Scale Learning Tasks. Challenges
and Algorithms (pp. 42-84). Springer, Cham.
Verma, I., Dey, L. and Meisheri, H., 2017, August. Detecting, quantifying and accessing impact
of news events on Indian stock indices. In Proceedings of the International Conference
on Web Intelligence (pp. 550-557).
Wise, N. and Harris, J., 2017. Sports events, tourism, development and regeneration: a
perspective from gulf states of Abu Dhabi, Dubai and Qatar. In Sport, Events, Tourism
and Regeneration (pp. 9-23). Routledge.
Online
Macro Environment in Marketing Definition Factors Examples. 2017. [Online]. Available
through: <https://www.marketingtutor.net/macro-environment-marketing-definition-
factors-examples/>
5