Introduction
The value of Global Events will be evaluated in this blog by applying an appropriate framework and showing statistics. Global event organization is dependent on the external environment and the organisation which is responsible for maintaining sustainability. The global influence on events structures and development of such events in the event industry. Macro-environment and design-making, along with internal capabilities, are effective in facilitating the organisation of events. This study has focused on the management strategies and environmental influences to direct the processes of global event organisations and their management. The use of theoretical underpinnings and supportive organisational behaviour is considered to be essential for global events. The planning and implementation of events are controlled with sustainable practices and innovation capacity.
You may also feel interested to read below posts:
How MNCs Enter New Markets
Introducing European Economic Community (EEC/EU)
Pros and cons of contract manufacturing
Why pharmaceutical companies go for contract manufacturing?
Value, legacy and impact of events on the environment
Global events have a significant economic impact, cultural impact, and long-term legacy on the host environment. Events can be of many types, such as speakers’ sessions, sponsorship, conferences, festivals, workshops, trade shows, VIP experiences, sports events (such as the Olympics, Football World Cup, Cricket World Cup) and many other events happening in different continents of the world. The global event industry is responsible for organising global events with social responsibility and economic responsibility, and positive cultural impact.
Value of global events on the environment
Global events such as Olympics, World Cup Football or Cricket, Festivals etc., have a profound economic impact on the economic environment in which they operate (Rogers, 2013). Such global events contribute to the economic environment in two ways: directly and indirectly. Such events directly affect the host’s economic environment through sponsorships, direct spending by the tourists and guests, and indirect spending through enhancing money spending and transactions in the economy.
London Olympic Games 2012 was a major global event which had a huge impact on the economic environment of London. A report presented by Overmyer (2017) revealed that Britain earned $16 billion from the London Olympics. The event attracted a large number of tourists who spent a large volume in the country. The report also revealed that the event received only 590,000 visitors for this event, and they spent £1,290 on average while spending time during the events. The UK received huge FDI for infrastructural development, and they created 31,000 new jobs in the UK (Overmyer, 2017). Apart from those, the businesses in London received additional sales from Olympic visitors. UK hospitality and tourism industry were tremendously affected due to a large number of tourists in the city, and the country got an excellent opportunity to expose the natural beauty, and heritage to the tourists apart from earning revenues from them.
World Cup Football is said to be the greatest event on earth. Thus, it also has the greatest impact on the hosts. The last World Cup took place in Russia. The Moscow Times (2018) reported that the country received $15 billion in revenues from the event. Attracting a large numbers of tourists, creating of new jobs are integral impacts of such big events. Russia received 570,000 international tourists who spent $5,000 to 8,000 on average and this contributed to a further $2.5 to 4 billion in the Russian economy (Instarem, 2018). The event contributed to the creation of 220,000 new jobs amid the World Cup, which increased the personal income of Russians by $6.59 Billion (Instarem, 2018).
The above two events are only examples of how they create value for the hosting economies. However, hosting countries have to invest in infrastructure and facilities. For example, Russia initially spent $11 billion on infrastructure of stadiums, airports, and roads. In return, the country received tangible and intangible financial, and cultural legacy. This is how global events have a sustainable impact on the hosting nations.
Impact of global events on the environment:
The impact of global events can be revived in the PESTEL framework to assess both the positive and negative impacts of the events.
Global events can have a positive impact on the political power of the host nations on the global level by enhancing the popularity and bargaining power of the hosts (Cavagnaro, Postma, & Neese, 2012). For example, arranging global events such as Cricket World Cup, or Olympics etc. help the hosts to be known to the world. Thus they enhance their bargaining power with other nations.
Global events attract a large volume of FDI, and tourists; as a result hosting nations get the opportunity to develop their internal infrastructure which then has a long-term positive impact on the economy (Casswell, 2013). Such events create new employment opportunities, more economic activity, and more spending from foreign nationalities. All these contribute to the economic growth of hosts. However, the opposite is also true in the case of arranging concerts by world-famous artists who usually charge a large number of fees. Such concerts just cost the hosting economies.
Global events also have a tremendous impact on the sociocultural environment of a nation organising such events (Breyer & Gerlach, 2013). They get the opportunity to let world tourists know cultural values, natural beauty and heritages. This creates a new opportunity for the nations to open a new windows of tourism development.
To execute global events, hosting nations develop their infrastructure, communication technologies, networking and Artificial Intelligence (Madsen & Desai, 2010). As a result, such events have a positive impact on the technological framework of the host nations.
The ecological environment is mainly affected negatively because a large number of people visit the country (Yeoman et al., 2012). Such huge populations put pressure on water resources natural resources. Tourists spend excess water, generate excess wastage, and many of them destroy the natural heritage by not following the principles of responsible tourism.
Global events also have a negative impact on the legal environment of the hosting nations (Rogers, 2013). It happens because people from different nations gather in one country and they have different types of psychology and attitude towards legal orientations. Many tourists have prone to breaking legal rules, and it deteriorates the rules and regulations of the country.
Legacy of global events on the environment
Legacy of events refers to the long-lasting and sustainable, and positive impact of events on the environment arranging the events (Yeoman et al., 2012). Global events have a long-term positive impact on the host nations in terms of learning, economic impact, sporting impact, regeneration impact, and finally, tourism impact (Nurmakov, 2016).
Host nations come to know great details about arranging seminars, concerts, sporting events, and sporting rules and regulations, and they build the capability of arranging such events. It enables the hosting nations to have a sustainable impact (legacy) on developing and maintaining such arranging capability in a sustainable manner. Cavagnaro, Postma, & Neese (2012) revealed that global events have the strongest economic legacy on the hosting nations. Sporting events or cultural events play the most prominent roles in developing economic activities, establishing more companies during the events and bringing a large number of tourists who make frequent visits to the country later. For example, around 590,000 foreign visitors gathered in London in 2012 for Olympics. These people discovered and got fascinated by the offers of London, and later on, they made further visits, or they encouraged others to visit London. As a result, UK tourism got promoted.
Finally, the most prominent legacy is the regeneration of infrastructure in the host nations. To arrange global events, countries have to build or improve their infrastructures. Later on, they can use infrastructural development for different other reasons. For example, Russia developed roads, 11 airports and stadiums. Later on, they had a good impact on the development for many years.
Review of the management strategies for the development of events
Ahmad et al. (2013) suggested a framework of management strategies in regard to the development of responsible events. The authors have argued that legacy and positive environmental impact play the most prominent role in making responsible event development.
The above figure shows that energy efficiency, waste minimization, less water consumption, eco-procurement, and legacy on major terms are the key that the management team of any event should consider. Management of an event team should ensure that the construction of infrastructure or energy consumption approach of the event should be eco-friendly. Utilizing day-lights, and using solar power or renewable sources of energy can play a big role in this regard.
The management team of an event should also emphasize on waste minimization approach to have a less negative impact on the environment (Ahmad et al., 2013). Using recyclable materials or decomposable materials will drastically reduce the volume of waste generated from an event. It is inevitable that events will create wastage. However, management should be alert to dump all the wastage in certain locations so that they can be well-managed rather than polluting the environment carelessly.
Less water consumption is another management strategy of a sustainable event approach. Global events attract a large number of tourists from all around the world, and they consume water for a varied number of reasons. Less water consumption feature will enable the hosting nation to have less pressure on the underground water resources. For example, water taps can be installed with sensors so that only a specific volume of water is used exactly when it is required.
Apart from the above, management of any events should emphasize on the legacy of the events on the hosting nations. This can be ensured by evaluating the impact of events on the surrounding areas. Therefore, management should build the infrastructure of the events in such a manner that they can benefit the hosting nations even for years after the events.
The event management companies such as Beyond Certainty, Clearwater events and much more focus on management efficiency and strategic management approaches to facilitate sustainability along with corporate responsibility. As commented by Batle et al. (2018), global events are promotions with managerial efficiency and stakeholder management that aid in objective achievement. The following management strategies are focused on developing events with sustainability and responsibility.
Stakeholder management, with the aid of organizational strategies that address individual needs and interests along with event goals can help in promoting the positive effects of the events. As mentioned by Van Niekerk (2017), a positive working environment and intrinsic motivation are useful for stakeholder management as per the Two-factor theory of Herzberg. The corporate environmental management model provides a specific planning and strategic implementation of events with consideration of easily available and eco-friendly resources to maintain sustainability. Moreover, it also facilitates local employment to enhance the economy. Sustaining positive event results can be achieved through community participation (Wang et al. 2019). Identifying and managing community participation is part of event success, which can be obtained through increased communication and community awareness. Governmental influence can increase investment quota and higher levels of promotion that increase national and international tourism.
The managerial strategies need to be developed and implemented based on society and sustainable standards of the UK in the tourism industry. Health management, safety, site management, electricity availability, waste disposal and sound systems are evaluated as per BSI standards for event management. Batle et al. (2018) commented that social inclusion and community participation, along with skilled stakeholder management, can increase the potential for event success. PS 51:2004 provides the guidelines for organising outdoor events with sustainable responsibility. However, Modica et al. (2020) commented that governmental influence is primarily to enhance its reach in national and international platforms. Nonetheless, the use of scientific planning and systemic management is effective for event planning and management.
Global events are influential in the sociocultural aspects along with the macro-environments such as economic and technological events. As stated by Kim et al. (2018), environmental impact, whether positive or negative, can influence development and economic growth. The economic values of events organised by Beyond Certainty and Clearwater events are high, with community participation and management efficiency that promote sociocultural development. However, Wang et al. (2019) argued that management strategies are needed to align with the legacy and host environment to promote the tourism and hospitality industry. Stakeholder management based on interests and event goals is prioritised to promote event management.
Evaluation of the macro-environmental factors on decision making and behaviour of organization with examples
Global events are affected by macro-environmental factors; such impact is much intensified in the case of global events. This can best be explained with a PASTEL framework, as illustrated in figure.
Political factors: The two essential political factors affecting the industry of global events is the increased pressures of politics in making policies and regulations in reducing the emission of greenhouse gases (Pitblado, 2011). This is certainly a positive political influence both on the events as well as on the hosting nations. The reason is that this type of trend has started with the awareness of customers and organizers, and all committed to being more careful about the negative impact of events on the environment. For example, such strategies have changed the tourism and aviation industry much through reducing carbon emissions by the airlines and being green by tourist operators. However, there is a certain negative political influence on global events. A more recent example could be the allegations against Qatar offering bribe money of $400 million to FIFA to be the host of the FIFA World Cup 2022 (The New York Times Company, 2020). Such issues are negative political impacts on global events, and they hamper the main spirit of events. A probable solution to this problem could be to engage multiple people to make such a major decision instead of engaging one person for a decision.
Economic factors: Thomas (2017) revealed that global economic factors have the most critical impact on events. Global economies have improved much in the last three decades; significant economic progress has taken place in South East Asia and in the Middle East. Such positive economic development has positively affected global events by increasing the number of such events globally. For example, a rise of Cricket events in different formats such as the Cricket World Cup, T-20 Cricket World Cup, country-based cricket tournament (that attracts tourists worldwide) such as IPL (India), BPL (Bangladesh), PPL (Pakistan); all of such global events has evolver due to increasing economic activities in these regions (Fourie & Santana-Gallego, 2011). Such events have significantly and positively affected people’s lives. However, the impact of the economy on events is not even global. For example, poverty-stricken areas such as African Countries do not have economic capabilities, and thus they cannot afford to arrange such global events in their regions. Thus, global events cannot have even positive impact globally.
Social factors: Social and cultural factors have a severe impact on global events because such events are closely related to cultural values, practices and beliefs (Zeng & Yang, 2011). Social factors mainly have a positive impact on global events because such events get the experience to engage with multiple cultures, which provides them with a unique experience. However, events need to adapt the activities based on the culture of the host nation. For example, when FIFA World Cup was hosted by South Africa, FIFA made the official theme song adapted to the cultural values of Africa with the lyrics “This time for Africa”. Such variations and exposure to multiple cultures provide global events to be even more enriched (Priporas et al. 2019). However, there is less probability that global events themselves will be affected by foreign culture; rather such events attack the host culture by letting foreign culture invade the host culture through foreign people.
Technological factors: The advancement of technology has helped events and the management committees in providing opportunities to have events (Bac, Bugnar & Mester, 2015). The extent of technological development in the host country significantly affects the events in how well they can be implemented. Well-developed technological and IT infrastructure helps any hosts to arrange the events smoothly. In contrast, poor IT and technological infrastructure impedes the way of smooth event implementation. For Example, Qatar is a small country, though rich. It doesn’t have enough IT and technological infrastructure in place. Thus, it needs to build all the infrastructure.
Environmental factors: Among all the negative aspects of global events claim against such events is the strongest in terms of environmental issues (Garcia-Sanchez, Cuadrado-Ballesteros, and Frias-Aceituno, 2016). There are a number of complaints on this ground: firstly, events pollute the environment through carbon emissions by airlines and transportation. Secondly, events generate a large volume of wastage. Thirdly, events put excessive pressure on the consumption of natural resources such as water. All these complaints against events create strong opponent groups against global events. However, an event can reduce the negative impact through proper strategies. For example, it can encourage airline companies to adopt green technologies emitting less carbon etc.
Legal factors: Legal factors can significantly affect events (Fernández-Pérez, García-Morales, and Pullés, 2016). Legal factors might create both facilities and obstacles for global events to be celebrated in different parts of the world. Legal factors of both events and those of the host nations can have either positive or negative impacts on events. For example, Saudi Arabia is strictly a Muslim country which prohibits the consumption of alcohol, night clubs, and night lives etc. which are most important to global tourists. As a result, this might be difficult for event-organizing teams to arrange such events in Saudi Arabia.
SWOT Analysis
SWOT analysis to reveal the criteria needs to arrange a successful global events.
| Strength | Weakness |
| A strong and skilled workforce employed for hosting Multiple media platforms served worldwide advertisement. The fiscal plan was practical and feasible that generated ample revenues. | Lack of efficient team management, lack of effective collaboration and digital AI technologies proper management of time large amount of carbon footprint left behind by the end of the event |
| Opportunities Wide coverage of media The growing need to host public events. Shifting the infrastructure to different remote positions for enhancing tourism aspects. | Threats Unpredictable changes in the economy. Britain’s decision to exit the EU has soured international relationships that caused problems in event turnouts. The recent pandemic from COVID 19 has cancelled a lot of events, including this. |
Table1: SWOT analysis of Geocoin Fest Europe 2 Event
(Source: meetinmanchester.com, 2019)
The SWOT analysis of the Geocoin Fest Europe 2 tourism event is influenced by factors that affect the strength of planning an event. The attributes that help in achieving success for the event are either intangible or tangible. These factors are the determination of the resources, the use of resources for targeting the audiences, capabilities stats ascertained; advantages gained profit from the event and improvement of the infrastructure (Bikakis et al. 2018). A strong team of motivation should host the event, and social media serve as a platform for advertisement. The plan of finance for the Geocoin Fest Europe 2 has proved to be feasible for generating good revenue. The various weaknesses are identified, such as the resources that are unexplored, lack of an efficient team of management, lack of effective collaboration, lack of technologies, improper funding, and carbon footprints. The various opportunities are analysed, such as the market that is underserved, small competition, coverage of media and the growing need to host events for the public. The various threats are analysed, such as changes in the economy, changes in the trends of the market, huge competition and calamities like the current COVID-19 infectious outbreak, and high taxes. All these might affect the growth of events and reduce profit. Such factors will help in the proper planning of the events.
Planning of global events
The concept of the planning of events involves the intent to bid, which refers to the preliminary stage which is involved in making decisions. These decisions would act in refining the concept of the initial event and consult with the group of stakeholders, and sponsors in finalizing the concept. The analysis of feasibility involves the capacity of venues to accommodate the audiences, attendance, and volunteer availability during the hosting of the event. The outline often analysis of feasibility helps in determining whether the event should be preceded or not or whether the bid has been accepted or rejected. The formation preparation of the bid and the body of bidding should be developed. This helps to develop preparation timelines and presentations to the event owners. It will involve the response to the criteria of the events and the identification of the elements of bids that would bring success (Van Niekerk, 2017). It invokes the preparation of the bidding document and submitting it to the owners of the event.
The various stakeholders in the planning of events involve government, host clients, host communities, and social media. The host clients make sure that all the activities are going as it has been scheduled. The marketing or advertisement of social media helps in reaching out to the attendees based on a personal meeting. The guides of the event would be shattered by social media (Smith, 2017). The host community help in the provision of opportunities for the development of skills, participation, and volunteering. The Government acts as an organizer and owner of the event and is responsible for the security and safety of yet event.
The process of transformation refers to the change in process in guiding the organization of events toward effective performance. The process of leadership helps in managing the business in accomplishing the vision and helps to achieve proper results. The process of design defines the methods where the internal factors of the organization, such as culture, system, structure, and core processes, are streamlined. These help in aligning the strategy of business and ideologies. The process of department refers to the structural events that help in creating a learning organization. It helps in tapping the motivation, capability, and energy of human resources.
The risks in hosting an event are failure of power, withdrawal of sponsor, financial problems, cancellation at the last minute and improper funding. All these should be managed efficiently with proper precautions. With the help of 3D technologies, the virtual exhibition helps in looking at various strands and helps in a recreation of the event in online mode. The awareness of the brand could be achieved through mediums of communication such as TV, billboards, and online advertisement. The preference of the brand is achieved through various interactions, and brand experience with the customers and help to increase the ROI (Iarygina, 2019)
However, related criteria essential for planning events is the internal strength of the industry, resulting to achieve positive sustainability. It is noticed that effective internal motivation results to gain strong team growth that gains internal organisational development.
Conclusion
From the above analysis, it is stated that planning successful events follows different ideas and techniques resulting in ascertaining positive outcomes. It is concluded that the application of SWOT analysis results in knowing the related internal; strengths required to improve the event performance and, accordingly, achieve success. However, it is also concluded that related weaknesses are also noticed where effective steps are followed accordingly, resulting in ascertaining positive outcomes and gaining success outcomes. Besides, it is also concluded that different recommendations for improving the event process result in achieving positive success outcomes and results in planning successful event outcomes.
References:
Ahmad, N. L., Rashid, W. E. W., Abd Razak, N., Yusof, A. N. M., & Shah, N. S. M. (2013). Green event management and initiatives for sustainable business growth. International Journal of Trade, Economics and Finance, 4(5), 331.
Bikakis, N., Kalogeraki, V. and Gunupulos, D., (2018). Attendance Maximization for Successful Social Event Planning. arXiv preprint arXiv:1811.11593.
Instarem, (2018). The Economics Of The FIFA World Cup 2018 In Russia. [Online] Available at: https://www.instarem.com/blog/the-economics-of-the-fifa-world-cup-2018-in-russia/ [Assessed date: 7 August 2020]
Overmyer, M. P., (2017) “Economic Impact Analysis on Olympic Host-Cities”. Honors Projects. 647. [Online] Available at: https://scholarworks.gvsu.edu/cgi/viewcontent.cgi?article=1646&context=honorsprojects [Assessed date: 7 August 2020]
The Moscow Times (2018). Russia Received $15Bln Windfall From World Cup, Organizers Say. [Online] Available at: https://www.themoscowtimes.com/2018/10/16/russia-received-15bln-windfall-from-world-cup-organizers-say-a63203 [Assessed date: 7 August 2020]
The New York Times Company, 2020. U.S. Says FIFA Officials Were Bribed to Award World Cups to Russia and Qatar. [Online] Available at: https://www.nytimes.com/2020/04/06/sports/soccer/qatar-and-russia-bribery-world-cup-fifa.html [Assessed date: 8 August 2020]