Detailed PESTLE Analysis of the UK Event Industry and its Factors

This report provides a detailed PESTLE analysis of the UK event industry, examining its macro-environmental factors. The analysis covers political factors, including the impact of Brexit and government policies; economic factors, such as GDP, inflation, and consumer spending; social factors, including population demographics and cultural trends; technological factors, focusing on advancements in event technology and digital platforms; legal factors, including employment laws and consumer protection; and environmental factors, emphasizing sustainability and green initiatives. The report discusses the implications of each factor, offering insights into the industry's current state and future prospects. It highlights the importance of understanding these external influences to identify opportunities and mitigate risks, ultimately aiding strategic decision-making within the event sector. The analysis provides a comprehensive overview of the challenges and opportunities facing the UK event industry.

982844: PESTLE
ANALYSIS OF
EVENT
INDUSTRY IN
UK

Table Of Contents
Introduction....................................................................................................................3
PESTLE Analysis Of The Event Industry In UK..........................................................3
Political Factors..........................................................................................................3
Economic Factors.......................................................................................................4
Social Factors.............................................................................................................5
Technology Factors....................................................................................................6
Legal Factors..............................................................................................................7
Environmental Factors...............................................................................................7
In-depth Discussion Of The Two Factors Of PESTLE..................................................8
Conclusion....................................................................................................................10
Reference List..............................................................................................................11
Introduction
The event industry operating within the UK provides an opportunity to the nation to
establish itself as one of the most favourable destinations across the entire globe for
the performance of business activities. At the very same point of time, this sector has
paved the way for the real growth of the UK events by means of providing the scopes
to local forms to reveal their performances. This has led the local firms within the
industry to take the form of vital international business while operating within the
nation. Thus the event industry that operates within the UK have gained and accrued a
global reputation and attracts for the leaders across the globe who have the desire of
holding there events within the UK (Dale, et al. 2016). This has enabled the industry

not only to contribute to the economic development of the UK but have also
developed the connection with the global leaders and business thinkers to debate,
discuss, share, learn, and innovate within the nation. The enhanced performance of the
event industry within the UK economy has enabled the engagement of the leaders and
institutions of the nation in their specific and requisite fields. This has ultimately
brought about an invaluable endowment of knowledge for the nation as a whole and
have established for some connections and businesses that will benefit the economy
for decades.
The present task will consider for the elaborate discussion of the PESTLE analysis of
the event industry operating within the UK and will attempt to figure out the factors
that will promote for the future of the industry.
PESTLE Analysis Of The Event Industry In UK
The PESTLE Analysis of the event industry will enhance the understanding regarding
the macro environment regarding the operation of the event industry within the UK.
These will comprise of the external institutional factors that are out of the influence of
the industry (Oliver Cazorla, 2018). This will thereby enable the identification and
evaluation of the macro-environmental issues and enhance the understanding of
business potential, position, and direction while operating within the national as well
as the international market segments.
Political Factors
The stability of the nation and the attitude of the government of the nation towards an
industry and the overall market is a very vital factor regarding the effective operations
of the business organizations. Apart from that the tax system followed within the
nation, security of the firms operating under an industry, and the structures followed
for the state costs are also very essential factors in regards to the operation of an
industry. While these can bring about the positive impact on the industry, the
influences that are caused by the wars, nationalization and other such issues can be
considered to have negative influence on the performance of the industry (Sadgrove,
2016). UK serves to be a constitutional monarchy which is carried out under the
influence of the parliamentary system. The political stability of the nation has
provided for a huge support to the industry that operates within this nation. However,
the issue related to the Brexit have created the scopes for political debates and

uncertainties for the event industry of the UK (Atighechian, et al. 2016). However, in
this context there are some nations across the globe that believe that Brexit have
enhanced the chaos and thus have limited the scope for the performance of the
industries within the event sector of the UK. But also there are some other nations that
view Brexit to have opened the doors of huge opportunities for the nation.
The present corporation tax rate within the economy for the profit of the event
industry is 19%. However, this rate is about to decline to 18% during the financial
year starting at 1st April, 2020 as declared by the government (GOV.UK, 2019).
Added to that the UK has also been a preferable destination for the FDI (foreign direct
investment). Numerous business organizations across the globe invest within the
event sector of the UK and thereby the entire sector has successfully drawn the
enhanced interest from the overseas nations.
Economic Factors
The vital factor that may influence the performance of this sector is the buying power
of the customers as well as the market. The growth of the wage rate, savings, the rate
of interest within the economy, the availability and accessibility of loans, value of the
currency, and the confidence of the consumers on the value of the currency as well as
the economy are all such factors that may determine for the economic forces within
the event industry within the UK (Lundberg, et al.2017).
The economic landscape of the UK economy is stronger as compared to that of many
other nations across the entire globe. The nation is the 5th largest nation across the
entire globe in terms of nominal GDP. The recession within the economy during the
global economic crisis of 2008 had been a trouble for the industries operating within
the nation but the moves made by the government had enabled the event industry
within the nation to cope up with the situation. With the weakening of the Pound
Sterling with the decision of Brexit, the price of the real estate has increased and there
also has been an increase in the cost of imports. These are the two most essential
factors that are vital for the successful operation of the industry (Robinson, et al.
2016). To meet the demand of ambience of the events conducted by the international
clients it is very essential for the industries within the event sector to import the
materials and with the weakening of Pounds upon Brexit, the cost of the imports have
inclined. However, while the organizations within the sector offers for the business

outside the globe then that turns to be beneficial for them as that enables them to earn
greater amount due to weakening of the currency. However, this increase in the prices
within the nation has not been accompanied by the increase in the wages. The
National Living Wage for the people above 2 years of age within the UK has been
£8.21 per hour since 1st April 2019 (brain et al., 2019). The inflation rate of the nation
had increased to 3.1% during the final quarter of the year 2017, however the several
policies from the Bank Of England has been able to bring down the inflation rate to
2.3% (Velásquez and Meunier, 2017). The lowering of the inflation had enabled the
nation to enhance their rate of interest and that has been much beneficial for the
operation of the event industry within the UK.
Social Factors
The consumer market within the UK is huge and the data suggests that the population
of the nation during the year 2019 has been 66.85 millions (Statista, 2019). The births
in the nation have outnumbered the count of deaths and are expected to remain
increasing in the coming years. This will provide for a huge customer base to the
event industry to serve and accrue the enhanced revenue. The percentage of the old
population within the nation is quite large and that serves for the opportunity to the
sector to organize the events for the older people and grab the attraction of this sector
apart from organizing the national as well as international business events.
The multiculture of the population of the nation have enabled the performers within
the event industry to select distinct themes and develop for new facets of events and
organizing the events in the various manners and successfully cater the interests of the
people belonging to the distinct religions and races (Nguyen and Yang, 2016). The
increasing population of the nation has still brought about the new and enhanced
opportunity for the sector to explore. Despite of the higher cost of living and
education, the level of educated population within the nation has been on the verge of
increase and this had provided for a pool of talented people within the nation that can
be absorbed within this sector to bring about newer innovation and strategies for the
development of the industry (Gray, et al. 2016).
Technology Factors
The acceleration of the technological development within the nation has enhanced the
competition within the events industry. Rapid technical and technological

development has enabled the companies to adopt the prevailing market trends and
appeal the needs and requirements of population of the present generation. Also the
emergence of the internet platform and online media has enabled the creating and
recreating the events over the platform in a much cost effective manner. As the people
still have the desire to meet and interact in the occasion of carious events so till date
the virtual events have not completely been able to replace the live events (Pessima
and Dietz, 2019). But the cost advantage added to the businesses by the online events
has dragged the attention of the customers and has thereby enhanced the scope and
opportunity for the organizations within this sector.
For the UK economy technology has been a major contributor and huge talents and
investments are coming within this sector. This has enabled spreading the benefits of
the enhanced technology across the UK. The telecommunication sector has also seen
vital improvements within this nation. This has enabled the industries within the event
sector to offer enhanced communication with the clients and customers within the
nation as well as around the globe. This has also enabled the businesses within this
sector to maintain a good public relation and retain them for availing the further
services from the participants within the industry (D'Alessandro, 2018). The
smartphone applications and the website usage have enhanced the access of the
service providers and the event organizers. People can have now easy access to the
event organizers nearest to them and to their desired location for organizing various
forms of events. The enhancement of the data storage facilities has also enabled the
performers within this sector to maintain the confidentiality of the data and rights of
the consumers. But the advancement of technology has also enlarged the scope of
cyber crime and brought about enhanced risk on the operational stability as well as
data protection and thus needs to be very carefully maintained and prevented by the
participants within this sector of the UK economy (Suklev, et al. 2018).
Legal Factors
The legal factors include the various laws associated with the business within the
event sector of the UK economy. The policies regarding minimum wages, reduction
in the emission of green house gases and enhancement of global warming, laws
providing for the consumer protection, national employment laws and many such
other laws needs to be followed by the event industries in the UK to operate
peacefully and effectively within the market. Following the health and safety rules

and regulations is also very vital for the operation of these organizations. While an
event is planned and conducted then that involves the presence of a huge number of
people (Holmes, et al. 2015). Thus it is the responsibility of organizations planning
and performing the events to provide proper care and enjoyment to the people and
thereby serve the purpose of the distinct events. While planning for the events it is
essential for the organizations within the industry to observe the various regulations of
the nation and maintain the national and regional restrictions. As the events include
the presence of a huge number of people so it is also essential that the organizations
maintain the fire safety and the emergency services while conducting the events.
Environmental Factors
The government of UK has played a vital role regarding the development of the
environmental standards and the event industry is also diverging towards meeting the
environmental issues. It has rather been essential for the organizations within the
event sector to be aware regarding the protection and prevention of the environment.
This is very much beneficial for the environment as a whole but has also presented a
challenge for the event industry as these organizations now need to develop some
green products and strategies for organizing the events and making the events more
attractive towards the clients (Yang, 2016). This includes the collection of
environment friendly products and production techniques and also requires the
purchase from the local suppliers in most of the cases for avoiding the pollution. This
at times enhances the cost of creation of the event. Another vital concern for the
organization remains regarding the selection of the venue for conducting the event
and the organizations need to choose the place and venue in a manner that the impact
of global warming is minimal on the selected venue and programmes of the event and
the same is also viable for the clients to catch their attraction and enhance their
attendance. Although the climate in the UK is mild but it is still unpredictable and that
makes the realization of the event very hectic. If an event is planned open air to
enhance the consensus of being environment friendly and all of a sudden it starts
raining then that may damage the entire programme. Thus it is beneficial for the
organizations within this sector to consider the forecast that are available these days
and then plan for the events in the requisite manner (MacKay and Stoyanova, 2017).
Also the other very vital issue that needs to be looked after by such organizations is
the adoption of the adequate manner for waste disposal and that should be done in a

manner that in no ways causes harm to the environment and the entire effort is drawn
towards the prevention of the environment.
In-depth Discussion Of The Two Factors Of PESTLE
The business of the event organizing industries in the UK is not only limited to the
nation only but have expanded across the globe. The profit that has been generated to
the sector by staging the various events within the UK and in the other destinations
across the globe has caused the economy to gather export income of significant
figures to the UK economy. Thus to maintain the long-term efficiency in the business
and promote the business of the sector in the future it is essential that the sector
analyzes the scope that can be available to the industry. However, it is always not that
the factors that will influence the performance of the industry are under the control of
the industry, there can be some factors that are macro-economic and beyond the
control of the organizations and still affect the performance of the industry (Oliver
Cazorla, 2018). Such two factors are the political condition of the economy and the
technological factor of the economy.
Political: The UK is one of the most powerful economies across the entire globe. The
political stability of the nation has provided for great strength to the businesses
operating within the economy. But the issue of the decision of Brexit have brought
some tweaks in the entire political platform and raised numerous political issues and
debates within the nation. The decision of the UK to leave the European Union had
brought about an immediate effect of the weakening of the Pound Sterling. This has
also initiated for the uncertainty and unpredictability for the business operations
within the nation and has also chances of enhancement of trade restrictions of the UK
with that of the Europe. This also has chances of altering the profit margins of the
business organizations operating within the UK (Dale, et al. 2016). However, the
results are highly unpredictable until the final decision regarding Brexit has been
made.
Added to the unpredicted effects of Brexit, the stable political condition of the UK is a
major opportunity for the business of the event industry to expand and promote their
business within the UK. Also the support of the UK government for the promotion of
the ecofriendly products and services is a major opportunity for organizations within
the event sector to create, innovate, and expand. This will enable the sector to expand

by meeting or at times exceeding the environmental expectations and attracting the
attention of the clients to avail the services and make enhanced investment within this
sector.
Technological: With the development of the technology it has been possible for the
organizations within the event industry to organize for virtual events along with the
live events. The development of the platform of the virtual event for the organizations
within this sector along with the live events has stimulated the occurrence of the
physical events over the online platform (MacKay and Stoyanova, 2017). This has
enabled connecting the entire globe within an event even if it is not possible for the
participants to travel to the distinct corners of the globe. All this has been possible due
to the development of the technology and making the adequate and requisite
investment in the sector. Thus the advancement of the technology has the capability of
providing enhanced scope to the organizations within the event industry to develop in
the near future and form an enhanced market within the UK economy.
Apart from that using the 3D technology in the virtual events has been another
innovation within the sector over the virtual platform that has enabled the clients to
visualize the distinct stands of an event over the online platform. Although there has
been a whole lot of contribution of the advancement in technology within this sector,
yet that has not been able to absolutely replace the occurrence of the live events and
grab the attention of the clients (Holmes, et al. 2015). There are still clients who
prefer the live events to have a physical meet and interaction for serving distinct
purposes.
Democratization of the platform of internet technology has enabled the entry of new
firms into the market and compete with the reputed and well established event
organizers within the market if they are able to develop for enhanced search engine
optimization (SEO). The emergence of the web-marketing skills and e-commerce
have also aided the business in this sector has enabled the businesses to develop for
their own content and get the feedback and recommendation from the customers and
maintain a good public relations (Pessima and Dietz, 2019)
However added to these contributions of the technology that has enhanced the scope
of business for the event organizing industry, the sector of technology has also
enhanced the threat for the business within the sector. This has enabled the occurrence

of cyber crime and manipulation of the privacy of the customer data (Lundberg, et
al.2017). Thus this is a concern that needs to be effectively checked by the
organizations within this sector for the enhanced business performance.
Conclusion
The present task has considered the PESTLE analysis framework for evaluating the
macro economic factors prevailing within the UK for the organizations within the
event industry. Upon the requisite analysis of the macro-economic environment of the
nation it has been found that in all the aspects the UK economy is viable in providing
enhanced opportunities and scopes to the organization for their further expansion
within the national as well as international platform. The effective performance of the
industries within this sector in the UK can ensure the long term sustainable
development to the organization as a whole.

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