PESTLE Analysis of Event Management Company

Event Management Company focuses on managing, organizing, and developing small and large-scale personal and corporate functions. They could be conventions, concerts, formal parties, weddings, ceremonies, conferences, festivals, and other events. It comprises branding and targeting the right audience, developing the event plan, and offering their services for a fee. Today, we’ll discuss the PESTLE analysis of Event Management Company; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.

Political Factors Impacting Event Management Company

Some of the main political factors in the Event Management Company PESTLE analysis are as follows;

I-Government Regulations

The government regulations for organizing massive public events are very strict. In fact, Event Management Companies need to get government approval, a license, and a letter from the local city office while conducting any event or launching the business. The government official would visit the event site and check all the requirement parameters and protocols before the events, and then give the green sign if it meets their standards.

II-Political Stability

A stable political environment plays a key role in the growth of businesses and companies. In case of political turmoil, roadblocks, processions, and other violent activities, people are fearful to go out and become a part of the crowd due to safety and security reasons.

III-Health and Safety Policies

The health, safety, and security policies of different countries are variable for the Event Management Companies. They need to make sure that the food they’re serving is fresh and up the healthy standards, the event site is secure for any type of potential mishap, and the contingency plan in case of any incidence.

Economical Factors Affecting Event Management Company

Some of the main economic factors in the Event Management Company PESTLE analysis are as follows;

I-Economic Downturn

The world’s economy is going through economic recession since the pandemic crisis. Many people have lost their employment and jobs, various businesses and companies filed for bankruptcy, and decrease in the buying power of ordinary consumers. When people have limited resources, they won’t spend it on partying and conducting events. Rather their focus is on meeting the daily needs and requirements.

II-Variable Costs and Expenses

Event Management Companies incur a lot of variable costs and expenses like seasonal workers, carriage costs, deals with hotels and restaurants, arrangements with local farmers, flower bouquets, and others. A small change in variable costs and expenses would negatively impact the sales, revenue, and profitability of the company.  

III-Inflation

The country’s inflation rate is the main economic indicator and it directly impacts the sales, revenue, and profitability of the company. It happens when the central bank and the federal bank start printing more currency notes and it decreases the price value of current notes. As a result, things become unaffordable for many people, and they decrease their spending on luxury items like organizing events and functions.

Social Factors Impacting Event Management Company

Some of the main social factors in the Event Management Company PESTEL analysis are as follows;

I-Gathering and Socializing

The trend of socializing, gathering, and partying has been increasing significantly for the past few years. It offers a great opportunity to the business of Event Management Company. They should run various types of marketing and advertisement campaigns to promote their services. It allows them to amplify their customer market and sales.

II-Changing Trends and Preferences

The customer market needs, demands and preferences keep changing depending on various factors. For instance, sometimes they want to organize and conduct wild parties, formal events, small wedding ceremonies, conventional and modern events, and others. Event Management Company should have the tools, equipment, expertise, and resources to conduct and organize various types of events depending on the needs and requirements of customers.

Technological Factors Affecting Event Management Company

Some of the main technological factors in the Event Management Company PESTEL analysis are as follows;

I-Latest Tools and Equipment

Event Management Companies should have access to the latest entertainment tools and equipment. It comprises of projector, latest sound and music system, comfortable seating arrangement, clean and new tenting tools and equipment, fresh flowers and bouquets, tasty food, and others. Access to the latest and advanced tools, equipment, and resources would ensure the growth and success of the event management business.

II-Web Platform and Mobile Application

Event Management Companies should develop an online web platform and mobile application to approach customers digitally and showcase their services. The efficiency of the web platform would attract many new customers. They need to clearly outline various types of event and partying services on their web platforms along with pricing plans with services.

Legal Factors Impacting Event Management Company

Some of the main legal factors in the Event Management Company PESTEL analysis are as follows;

Regulatory Compliance

Event Management Companies should comply with the government regulations of different countries. They consist of health, safety, security, data privacy, state license and event approval letters, and various other legal requirements. Regulatory compliance would help them to smoothly perform their business without any delays and disruption.

Environmental Factors Affecting Event Management Company

Some of the main environmental factors in the Event Management Company PESTEL analysis are as follows;

Sustainability Initiative

Event Management Companies contribute significantly to environmental waste and pollution. They should take environmentally sustainable initiatives like renewable sources of energy, organic waste, limited usage of plastic, no chemicals, and other inorganic waste to decrease the carbon emission rate.

Conclusion: Event Management Company PESTLE Analysis |PESTEL Analysis of Event Management Company |External Environmental Analysis of Event Management Company | Strategic Analysis of Event Management Company

After an in-depth study of the pestle analysis of Event Management Company; we have realized that Event Management Company is a growing business venture. If you are learning about the Event Management Company PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.