Finance Decision: Comprehensive Analysis of a New Year Party Event

This report comprehensively analyzes the financial viability of a New Year party event. It begins with an evaluation of market research on similar events, followed by the identification of potential sources of finance, including short-term options like bank loans and overdrafts. The report then identifies relevant income streams, primarily from the host company's payments and potential revenue from gift centers. A detailed cost analysis is presented, breaking down expenses for food, beverages, rentals, staff, and entertainment, alongside revenue projections, return on capital employed (20%), and a breakeven sales calculation (£15,852.17). The report also examines pricing strategies used to generate revenue and maintain market competitiveness. Finally, it offers recommendations for choosing appropriate financing, income streams, and pricing strategies, concluding that the event is financially viable and providing valuable insights for event management companies. References include relevant academic sources.

Running head: FINANCE DECISION
Finance Decision
Name of the University:
Author’s Note:
Course ID:

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FINANCE DECISION
Table of Contents
Introduction:....................................................................................................................................2
1. Evaluation of the market research of similar events, which could help in drawing relevant
conclusion from the financial exposure:..........................................................................................2
2. Identification of different sources of finance for the event:........................................................3
3. Identifying the relevant income streams:.....................................................................................4
4. Discussing about the proposed event cost, revenue, return on capital employed, and
breakeven:........................................................................................................................................4
5. Depicting the pricing of the events with the inclusion of different pricing strategies:................7
6. Providing adequate recommendations for choosing appropriate source of finance, relevant
income streams and pricing strategies:............................................................................................8
References and Bibliographies:.......................................................................................................9

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Introduction:
The overall assessment mainly focuses in identifying the overall viability of an event,
which could help in increasing profitability of the event management company. Relevant
identification of adequate location and overall expenses needs to be conducted for the successful
completion of the event. In addition, the overall major event that needs to be conducted for the
assessment is the New Year Party. This party could eventually allow the event management
company to generate the relevant profitability from the overall event. The event of New Year
Party will mainly be conducted for the company at Aqua Nueva, which might increase the
relevant profitability from the event. The event would eventually allow the organisation to
generate higher revenue from the operations. The relevant financial viability of the event is also
depicted in the report for determining the overall profitability, which will be provided from the
investment.
1. Evaluation of the market research of similar events, which could help in drawing
relevant conclusion from the financial exposure:
The New Year Party event is mainly conducted by the organisation, which might help in
generating the required level of profitability from the project. The event management company
Evolve Events has been conducting many events in New Year, which has been successful in past
years. These overall operations have mainly allowed the organisation to generate the required
level of profitability from the operations. The company has been providing relevant events such
as office parties, corporate events, venue finding and Christmas events. These overall operations
of the organisation have mainly allowing the company to generate the required level of
profitability. Relevant corporate events have mainly allowed the organisation to generate higher

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revenue, which could generate higher revenue. The revenue generated from the evaluation has
mainly allowed the event managed company to increase relevant profits. There has been many
events in the London comparing the same activities, which depicts viability of the New Year
Party that will be conducted in Aqua Nueva. Abdou, Alam and Mulkeen (2014) mentioned that
with the help of previous evaluation of the event Management Company could eventually allow
company to detect viability and success of the new event.
2. Identification of different sources of finance for the event:
The event management company ‘Evolve Events’ has been conducting many operations
in London, where relevant sources of finance is been used by the organisation. These sources of
finance have mainly allowed the company with its short term financial obligations, which is
needed for completing the event program. The company has been conducting events like New
Year Party, where relevant financial exposure is needed for effectively completing the event.
Furthermore, with the help of adequate sources of finance, event companies are mainly able to
reduce the problems, which could reduce completion of the event.
The company could need both long and short term finance for completing the relevant
events of the organisation. The short term source of finance such as bank loan, overdraft and
cash credit can be used the company for supporting its short term finance needs. These overall
fulfilments of the finance needs could eventually allow the organisation to adequately complete
the event and generate higher returns from investment. However, long term finance needs could
be fulfilled by taking long term loans for investing in fixed assets. Moreover, the current event
could be supported from short term bank loan, overdraft and cash credit for adequately
increasing higher returns from investment (Cheung and Miu 2015).

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3. Identifying the relevant income streams:
There are different types of income streams, which could be enjoyed by the organisation
from the relevant event. The income streams mainly allow the company to generate higher return
to support ort financing and other needs. From the overall evaluation the major income stream
will mainly be generated from the company whose event is been conducted by ‘Evolve Events’.
The payment conducted by the company for the New Year Party will mainly be helpful in
generating higher revenue for the event management company. The second revenue that will be
generated by the company is from the exposure of gift centre in the venue. This relevant
increment of the overall revenue could eventually help in generating higher revenue from the
operations from investment.
The overall revenue of the event is mainly restricted to the overall payments that will be
provided by the company for whom the New Year Party is been arranged. Arrangement of the
income stream is relatively restricted, as the organization can only accommodate guest that are
invited by Host Company. However, relevant income can be generated from gift centers that will
be placed within the event. Hence, the income that will be generated by the event organizing
company is from the payments provided by the host company and from the gift centers. Deboeck
and Kohonen (2013) mentioned that identification of revenue streams mainly allows event
organizing companies to detect viability of the event and the relevant financial income that could
be generated from the activity.
4. Discussing about the proposed event cost, revenue, return on capital employed, and
breakeven:
Particulars Amount Amount

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Food and Beverage
Foods £ 14,000.00
Beverage £ 6,000.00
Equipments £ 1,200.00
Delivery charges £ 600.00
Misc Charges £ 500.00 £ 22,300.00
Location
Rental Fee £ 2,450.00
Other £ 350.00 £ 2,800.00
Rentals
Lightening £ 1,800.00
Other £ 210.00 £ 2,010.00
Staff
Event coordinator £ 200.00
Designer £ 450.00
Volunteers £ 120.00
Labour £ 360.00
Other £ 1,130.00
Entertainment
Music £ 150.00
DJ £ 800.00 £ 950.00
Particulars Amount

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Sales £ 35,000.00
Revenue from gift shop £ 3,600.00
Total Revenue £ 35,000.00
Particulars Amount
Revenue £ 35,000.00
Variable cost £ 24,380.00
Contribution £ 10,620.00
Fixed cost £ 4,810.00
Net profit £ 5,810.00
Breakeven sales needed £ 15,852.17
Return on capital employed 20%
With the help of above table’s relevant expenses that needs to be conducted by the event
management company, for completing the overall event successfully, is adequately identified.
This relevant identification could eventually help in identifying the total cost and net profit that
will be generated from the event. Main expenses that could be identified are on food, lighting,
rental, and DJ, which will be provided for the event. With the help of total cost, both variable and
fixed will directly allow the event management company to identify the break even sales or
revenue that needs to be provided by the host company. From the overall evaluation of the tables
the relevant revenue that will be generated by the event management company is £35,000, which
could help in supporting expenses of the event. Part of the total revenue is mainly contributed

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from gift shops that will be situated within the event for the customers. Furthermore, the main
revenue stream will be generated by the host company, who is throwing the New Year Party
Furthermore, from the evaluation relevant break even sales that need to be conducted by
event Management Company can be identified. The overall break even value of the event mainly
comes to £15,852.17. The break even value amount needs to be earned by the event management
company for reducing the chances of incurring any kind of loss. Duanmu (2014) stated that
identification of the break even sales value allows organisation to compete in the market and
create large customer base. Lastly from the overall event return on capital employed comes to
around 20%, as revenue of the organization is restricted towards the payments provided by the
host company.
5. Depicting the pricing of the events with the inclusion of different pricing strategies:
Particulars Amount
Revenue £ 35,000.00
Revenue from gift shop £ 3,600.00
Total Revenue £ 35,000.00
The above table many represents the relevant pricing strategy that is used by the event
management company for conducting the particular event. The pricing strategy has mainly
provided relevant returns for the organization, where the overall profits from the event is
identified to be at £5,810. The prices of relevant £35,000 are adequate to provide the relevant
revenue from the event. However this pricing strategy is mainly used by the event management
company for controlling the Market competition and adequately increasing customer base.

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Elazouni and Abido (2013) mentioned that the use of adequate pricing strategy allows your
organization to generate relevant income while maintaining competitive edge in the market.
6. Providing adequate recommendations for choosing appropriate source of finance,
relevant income streams and pricing strategies:
The relevant recommendation mainly helps in identifying the source of finance, income,
and pricing strategy, which could be used by the event management company. Hence from the
evaluation of the oral calculations and condition of the event relevant short term overdraft and
cash credit facility could be used by the event management company as an adequate source of
finance. This could eventually help in reducing the negative impact of any financial obligations
that might come up during the commencement of the event. The relevant income streams can be
identified from the payments in that will be provided by the host company. Moreover, the pricing
strategy is relatively competitive in nature, which allows the event management company to
reduce competition and increase the customer base. Hence, from the evaluation viability of the
event can be identified, which might allow the event management company to generate revenue
and increase its profitability.

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References and Bibliographies:
Abdou, H.A., Alam, S.T. and Mulkeen, J., 2014. Would credit scoring work for Islamic finance?
A neural network approach. International Journal of Islamic and Middle Eastern Finance and
Management, 7(1), pp.112-125.
Cheung, C.S. and Miu, P., 2015. Home ownership decision in personal finance: Some empirical
evidence. Financial Services Review, 24(1), p.51.
De Bondt, W.F., Muradoglu, Y.G., Shefrin, H. and Staikouras, S.K., 2015. Behavioral finance:
Quo vadis?.
Deboeck, G. and Kohonen, T. eds., 2013. Visual explorations in finance: with self-organizing
maps. Springer Science & Business Media.
Duanmu, J.L., 2014. External Finance and the Decision of Foreign Direct Investment: Evidence
from Privately-Owned-Enterprises in China.
Elazouni, A. and Abido, M.A., 2013. Contractor-finance decision-making tool using multi-
objective optimization. Canadian Journal of Civil Engineering, 40(10), pp.961-971.
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
Joo, B.A. and Durri, K., 2015. COMPREHENSIVE REVIEW OF LITERATURE ON
BEHAVIOURAL FINANCE. Indian Journal of Commerce and Management Studies, 6(2), p.11.
Spronk, J., Steuer, R.E. and Zopounidis, C., 2016. Multicriteria decision aid/analysis in finance.
In Multiple Criteria Decision Analysis (pp. 1011-1065). Springer New York.