Business Models and Strategies Quiz

RODNIM SBL Pre-seen for Dec 2024

• Document is a private document, not to be shared on public groups
• Analysis of pre-seen material for SBL, December 2024
• Topics include SWOT, CSR, implementing change, culture, leadership qualities, Role of NEDs, diverse board, separate board committees, integrated reporting, harmon process, event based risk management, key risks, project management, stakeholders, proposal evaluation, IT & data security, talent management program, Matrix / dual reporting, impact of demotivated staff, ethical issues, environmental projection, financial projection, bribery, content of a tender, off the shelf software, and big data analytics.
• Event management industry analysis includes SWOT, Pestel/Porter 5 Forces, disadvantages of partnership model, e-business/online business (virtual events), e-marketing, big data analysis, customer segmentation, risk appetite, risk assessment, risk management, event based risk management, project management, stakeholders, proposal evaluation, talent management program, IT & data security, Matrix / dual reporting, impact of demotivated staff, ethical issues, environmental projection, financial projection, bribery, content of a tender, off the shelf software, and KPIs

SWOT Analysis

• Strengths: Owners have 100% control, work experience together, good website, event planning software, mobile app for ticket booking, integrated marketing system, availability of MIS reports, risk management procedures
• Weaknesses: Small market share, no collaboration/strategic alliances, limited team experience in certain areas, difficulty in raising funds, data/information security risks, missing risks on the risk register, lack of use in new technologies
• Opportunities: Economically advanced country, lucrative established event industry, technological opportunities, trending virtual events, wider geographical reach
• Threats: High competition from large players, new market entrants, decrease in event fees, and stringent regulations

PESTEL Analysis

• Political: Favorable environment, virtual conferences indicate support
• Economics: Favorable, economically advanced country.
• Social: Favorable, high standard of living.
• Technological: Favorable, Virtual events are growing.
• Environmental: Favourable, focused on environmental sustainability.
• Legal: Unfavorable, stringent regulations like health, safety, data protection, and employment.

Porter's 5 Forces

• Power of customers: High, many choices with low switching costs
• Power of suppliers: Not applicable, no information given
• Threat of new entrants: High, lucrative market and risk of new companies.
• Competition: Extremely high, 74% of the market held by four large players.
• Substitute products: Not applicable, no information given.

Internal Factors

• Human resource: Assess current staff, experience, and training needs.
• Financial resource: Evaluate current finances and projected needs.
• IT infrastructure: Assess current and future technology needs.
• Brand reputation: Evaluate and develop reputation as a credible event management company.

Project Management

• Event planning details, resources, timelines, roles, fees, payment terms, and experience.
• Clear project initiation documents specifying scope, objective, feasibility, costs, and event duration.

E-Business/Online Business (Virtual Events)

• Advantages: Global reach, lower costs, convenience, appeal to younger generation
• Disadvantages: Not all customers use internet, need IT expertise, risk of hacking, data dependence

E-Marketing

• Advantages: Global reach, lower cost, personalization, data analytics capabilities, two-way communication
• Disadvantages: Not all customers use internet, requires expertise, risk of hacking, data leakage

Big Data Analytics

• Advantages: Deeper insights into customer needs, trends, customized products, marketing, higher revenue/market share
• Disadvantages: Data security & privacy, legal compliance & expertise requirements.

Customer Segmentation Analysis

• Analyze customers by event type, customer type, size, geographical location, duration
• Assess advantages and disadvantages.

Risk Appetite and Assessment

• Risk appetite is the level of risk an organization is willing to accept to maximize profit.
• Measuring impact and probability of risks.

Risk Management

• Identifies, measures, and manages risks.
• Risk assessment techniques, such as TARA model, used for each event.
• Includes risk register and committee.

Event-Based Risk Management

• Quality, timelines, costs, venue, technology, staff, weather, environmental footprint, emergencies, legal permits, fraudulent ticket sales, and credit risk.

Key Risks and Recommendations

• Strategic: Competition, loss of revenue, market share. Recommendations include differentiation, better quality, and aggressive marketing
• Economic: Decreasing demand, inflation. Solution is to focus on virtual events and budget tight controls
• Financial: Event costs exceeding revenues, difficulty collecting funds. Solutions include better budget planning and tighter cost controls, improved credit control
• Environmental: Weather, public awareness. Strategy is to use sophisticated weather prediction/management software and focus on environmentally sustainable measures.
• Compliance: Changes in regulations, fines. Solution is strong corporate governance and focus on health/safety compliance
• Operational: IT system failures, cyber security attacks. Recommendations are stronger IT, data security control, vendor relationships, and contingency plans

Project Management and Stages

• Understand client needs
• Plan and budget
• Arrange and brief entire event team
• Execution
• Post-event review

Role of Project Sponsor and/or Event Manager

• Event Sponsor provides overall leadership, resources, and ensures progress
• Event Manager handles the detailed planning, team management, day-to-day progress tracking

Tools Used in Project Management

• Event risk registers, Gantt charts for scheduling, and project task breakdowns (WBS).

Stakeholder Expectations

• Partners: Growth in revenue, market share, 100% of the business control
• Major clients: Good quality events at a low price
• Key employees: Good salary, job security, opportunities, and learning and development
• Government: Compliance, taxes, environment protection, and positive brand image
• Non-key employees: Good salary, job security, opportunities, and learning and development
• Smaller clients: Good quality events, low prices
• Community: Creating jobs, CSR, environment protection, minimal disruption to the community
• Vendors: Timely payments
• Attendees: High-quality events, value for money
• IEOs: Compliance with standards
• Pressure groups/social activists: Demands to be addressed.

Evaluation of Proposals

• Collaboration with other Businesses: Pros include combining expertise and resources, more creative ideas, and increased reach, but cons include sharing revenue and possible differing cultures
• Covering into a limited Liability company: Pros include limited liability, more funding, and better credibility; cons include loss of control, additional compliance, and potentially more bureaucracy
• Use of AI: Pros include deeper insights into current trends and patterns, but cons include security risks and cost.
• Use of Live Streaming: Pro: Higher reach, Pro: Lower costs, Con: technology dependence.

IT Risks and Security

• Hardware: Unauthorized server access, damage, malfunction, power failure, natural disasters(fire/flood). Strategies: Physical security with guards, biometrics, swipe cards, CCTV, fire protection, generators, and backup equipment
• Software & Data: Hacking, data leakage, data loss/corruption, cybercrimes, software malfunction, internet dependency. Strategies: Strong password management, two-factor authorization, Data encryption, Regular backups, firewalls, log trails, updated antivirus, disaster recovery plans and regular staff training.

Impact of Data Security Breach/Leakage

• Disruption of business operations
• Reputational damage
• Loss of customers, revenue and market share.
• Legal cases and penalties

Staff Training/Talent Management

• Advantages: Increased skills, better quality work, higher customer satisfaction, lower complaints, motivation, efficiency, and cost savings.
• Disadvantages: Requires expertise, possible staff loss, resistance, high cost, time constraints, and difficult to identify training needs.

Matrix/Dual Reporting

• Advantages: Flexibility, enhanced collaboration, knowledge sharing
• Disadvantages: Potential conflicts, possible lack of clarity for staff

Impact of Demotivated Staff/High Staff Turnover

• Quality compromises, customer satisfaction decreases, reputation damage
• Increased cost of recruitment and training, reduced efficiency. Solutions are staff interviews, remunerations, appreciation of work, training development, and more involvement.

Ethical Issues/Social Footprint

• Employees: Low pay, long working hours, poor working conditions, no training, lack of diversity, job redundancies.
• Customers: Unfair practices, break of privacy, data breach.
• Suppliers: Unfair or unethical dealings, lack of ethics, delay in payments
• Society: Environmental damage, lack of Corporate social responsibility (CSR), traffic congestion, noise during events.

Environmental Footprint/Impact

• Reduce natural resources use
• Recycling, waste reduction

Financial Performance/Projections

• Historic performance analysis (P&L).
• Project variance (cash flow).
• Check that all assumptions and whether the projections/models make business sense.
• Sensitivity analysis.

Bribery

• Unethical, illegal, and damages reputation and potentially leads to loss of business. Strategies: Clear policy enforcement, ethical code of conduct, reporting procedures, strict disciplinary actions against bribery

Content of Event Tender Submission Document

• Executive Summary
• Client needs summary
• Event objectives and expected outcomes, dates, no. of attendees, venue, etc.
• Resources required
• Timelines
• Roles and responsibilities.
• Proposed Fees
• Payment terms
• Company experience & history

Off the Shelf Software

• Implementation Stages:* Identify requirements, analyze options, choose software, testing, training, data migration, go-live.
• Advantages:* Quick implementation, less errors, industry compliance, future upgrades, affordability, vendor support
• Disadvantages:* Possible lack of specific features, reliance on vendors, difficulty integrating with existing systems.

CSR (Corporate Social Responsibility)

• Customers: Attract customers who value CSR, and create a competitive edge.

• Employees: Increased retention, attracting talent, and motivation.

• Suppliers: Attract suppliers who value CSR and collaboration

• Government: Possible awards, improved relationships, possible tax benefits

• Society: Positive public image, more customers

Implementing Strategic Change/Transformation

• Unfreeze: Communicate reasons, solicit concerns
• Move: Detailed planning, timelines, project teams, training
• Refreeze: Consistent follow-through, appreciation, addressing resistance

Analyze Culture

• Power Structure: Leadership style, behavior.
• Organizational Structure: Board structure, divisions, department hierarchy.
• Control Systems: Cost or quality-focussed, rewards, punishment policies.
• Rituals & Routines: Office hours, staff functions, team building.
• Symbols: Building, office environment, dress code.
• Stories: Values, loyalty/commitment, traditions.

Key Qualities of Good Leadership

• Visionary, opportunity-grasping, risk-taking, staff motivator, focus on innovation, and team building.

Role of NEDs (Non-Executive Directors)

• Brings independence, shareholder confidence, external experience, monitors executive performance, compliance, and whistle-blowing

Benefits of Board Diversity

• More ideas, fresh perspectives, more healthy debates

Separate Board Committee

• Specialized, focused, frees up time for other tasks

Integrated Reporting

• Connects mission, strategies, financial performance, and environment/social initiatives
• Enhances reputation, communication with stakeholders, and attracting socially-conscious investors, lower cost of capital.

Harmon Process Strategy Matrix

• Outsource to a specialist or use self-software based on process complexity and strategic importance.

Last Week Preparation Plan

• Master top 25 important topics, watching the Dec 2024 webinar for professional skills, exam formats and techniques.
• Review relevant pre-seen workshop
• Preparing exam questions in mock format