This paper will discuss a SWOT analysis for an event planning business. The analysis will discuss economic, legal and regulatory issues and trends in the particular state for the business. The paper discusses how to critique the business to adapt to change. The supply chain and the organization of the business will be discussed. The paper will identify issues and opportunities made aware from the SWOT analysis. Major issues that the business may face will be discussed along with a hypothesis of the conclusion whether or not the business idea should continue to go forward.
The decline of the economy has bought about new creative choices for entertainment trends across the country, the trends and shifts have compelled event planners to be more creative. Seeking out new ideas and concepts. A SWOT analysis was compiled as a strategic plan for starting a new event planning business. The analysis concluded that some of the strengths of starting this business were events can be planned on short notice, this is a creative venture, access to technology is readily available, lots of social involvement, little to no completion, experience with similar functions.
Some weaknesses brought to light were: no variety of suppliers, no clients, no marketing, low economy, minimum resources. The SWOT analysis showed opportunities of: a chance to meet new clients, expand into different locations, the desire for services, and word of mouth. Some of the threats observed from the SWOT analysis were: liabilities, no market, expensive for consumers, zoning laws and decorations and events may be limited.
Some steps that need to be taken in order for the business to survive and succeed would be to research and plan the business, get some expert advice and business training, select a location, learn about financing options, select a name, determine the legal structure of the business, in the state if Ohio, any new news needs to register with the state, if the business is not using the personal name of the owner/ operator. But if the business is a sole proprietorship, there is no need to register.
Obtain an Employer Identification Number, this number is used to identify the business entity to the Federal Government, register for state taxes, businesses that operate in Ohio are required to register for specific tax identification numbers, licenses, permits and unemployment insurance, obtain business licenses and permits, in order for a business to operate in the state of Ohio a business license or permit is needed from the state and local government. Change is constant and required.
The business has to be able to respond to complex and fast moving marketplace changes. The business will have to be ready and willing to make drastic changes, which sometimes may mean reductions in force to restructurings, keeping up on technology and revamping product lines and suppliers. Many businesses under estimate the power of change and do not manage change effectively. If the business underestimates change it also underestimates the goals of the business that the changes were intended to achieve.
If the business fails to implement effective change management strategies there could be costly results, which could include reduced engagements, customer loyalty, productivity, performance, quality and ultimately the success of the business. The company has to implement systems for managing change that benefits the entire workforce and be able to adapt and uphold the new changes. The business will need to create an agile process that addresses business change and not let it be a one- time event but an on-going process.
The business will encompass many different changes that help promote and benefit the success of the business. The business will acknowledge change management as a part of the bigger strategic management plan. The business will focus on improving overall performance in order to drive favorable business results. Instead of just focusing on a single facet of delivering a product or service to the client, the business will focus on the entire process from the contracted suppliers to the customers and everything aspect in between.
The company will choose and develop the best suppliers, the company will design and implement systems and processes that will improve the customer interface and customer experience, while reducing transaction costs, keeping inventory at a minimum and improving service, outsourcing materials and services, managing an effective inventory and supply management system, effective service management, managing quality of services and supplies and constantly analyzing the supplier chain to increase revenue, improve customer service, reduce cost for the business and the customer and ultimately improve profitability for the business.
The management team will be critical thinkers who will analyze the business regularly, manage the business effectively, and improve business processes using strategic thinking and analyzing skills. The management personnel will learn and understand international management issues because some of the supplies may come from a foreign country so there may be some national boundary crossing taking place.
There has to be strong communication skills in order to deal with different clients and different suppliers and team building skills because management will be working in a diverse business, coming in contact with many different people and personalities. Some of the issues with an event planning business is that lots of times there be times when you have to outsource services of an event and in these cases you have to worry about returning the equipment back in its original condition, where sometimes the business may incur costs from clients guests damaging things like tablecloths that may get cigarette burns in them and so forth.
Some issues could also arise from improper crowd control, creating comfortable events, being prepared for disasters. Event planning can come in the form of planning small or large parties, political party conventions, meet and greet sessions, or business conferences, and there is always some type of event going on somewhere which means there are event planning opportunities everywhere on many different budget levels. Some major issues with event planning are not being able to visualize, an event planner needs to be able to clear their mind and visualize the event.
Not being organized could be a major issue with an event planning business, an event planner needs to be able to locate things quickly and be able to keep accurate records of all aspects of an event, the planner needs to be able to plan every detail of an event, time management skills are a must because there has to be the ability to multi task. Another issue is control an event planner needs to always have a backup plan because there will be times when things do not go as planned.
I think once the research and all the required permits and licenses are obtained that starting an event planning business would be a great idea. I don’t think the economy would affect this business much because there are many events that need planned from corporate functions to small functions. It would be wise to take pictures of some events that you do or video for showing purposes, maybe do some pro bono works for friends and family to get the name out there. Create a website, print up some fliers offering discounts and maybe host a low cost event at a night club.
The final conclusion it to not reject H0 in favor of H1 because there was not a definite conclusion that the data could be accepted in H1 due to similar results from all data reviewed. This is not stating that the null hypothesis is true it only suggests that there is not sufficient proof against H0 in favor of H1. With rejecting the null hypothesis, it simply suggests that the alternative hypothesis may be true. The results were too close to conclude unfavorably and just a little more favorable to conclude that the business idea would be successful.
All four areas reviewed were of importance and would equally contribute to the success of the business. Knowing what strengths the business had would help in knowing the capabilities of the business. Reviewing the weaknesses would show where improvement are needed, the review of opportunities and threats would reveal changes that could occur in the competitive environment, the social cultural environment, the political and legal environment, and the internal business environment.
Identifying the strengths, weaknesses, opportunities and threats of a company is not enough it is just a snap shot. When compiling data for a SWOT analysis is beneficial to minimize or eliminate both weaknesses. Weaknesses should be turned into opportunities and threats should be equaled to optimize the potential of the business. SWOT analysis can be very beneficial for a business.
Starting a Business in Ohio. Retrieved February 23, 2011. From, http://www.business.gov/states/ohio/start.html