Rodnim SBL Pre-seen Dec 2024 PDF

CAUTION: THIS IS A PRIVATE DOCUMENT NOT TO BE SHARED ON ANY PUBLIC GROUP RODNIM SBL Pre-seen for DEC 2024 Analysis of Pre-Seen By Sir Hasan Dossani @ VIFHE (+971555245672)  KEY TOPICS COVERED PRESEEN RELATED OTHER TOPICS 1....

CAUTION: THIS IS A PRIVATE DOCUMENT NOT TO BE SHARED ON ANY PUBLIC GROUP RODNIM SBL Pre-seen for DEC 2024 Analysis of Pre-Seen By Sir Hasan Dossani @ VIFHE (+971555245672)  KEY TOPICS COVERED PRESEEN RELATED OTHER TOPICS 1. SWOT 1. CSR 2. How to improve performance 2. Implement change 3. Pestel / Porter 5 forces / Strategic 3. Culture position 4. Key qualities of leadership 4. Drawbacks of partnership model 5. Role of NEDs 5. E business / marketing / virtual 6. Diverse board events 7. Separate board committees 6. Big data analytics 8. Integrated reporting 7. Customer segmentation 9. Harmon process 8. Risk appetite, risk assessment and risk management 9. Event based risk management 10. Key risks and its recommendations 11. Project management 12. Stakeholders 13. Evaluate proposal (pros and cons) 14. IT & Data security 15. Talent management prog 16. Matrix / dual reporting 17. Impact of demotivated staff 18. Ethical issues / social footprint 19. Environmental footprint 20. Financial projection 21. Bribery 22. Content of a tender 23. Off the shelf software  SWOT ANALYSIS Strengths Weaknesses - Owners have 100% control over the business - One of the smaller companies / low market share (partnership model) - No collaboration, joint venture or strategic alliance - Both owners have worked together as event with other business managers for one of Harland’s largest events - Operates as a partnership (unlimited liability, dispute, management companies (good experience) difficulty in raising funds for business) - Website allowing online bookings and customer - Lack of experienced team members (e.g. for feedbacks marketing, event delivery, data analytics, HR, etc.) - Have event planning software with range of project - Data / information security risk (3rd party cloud, mgt tools personal sensitive data of customers, high - Bespoke mobile app for ticket booking with QR code dependency on internet, etc.) functionality - Some risks are missing from the risk register - Marketing system which is also integrated with (environmental risk, cyber risk, stringent employee website and social media regulations, high inflation, etc.) - Availability of MIS reports for decision making - Growth in fee income is slowing down - Operating profit has consistently fallen for last 2 years - Have risk management procedures in place (risk register, controls, etc.) - 14% of tender invitations received were not submitted - Only a marginal improvement in tendering performance compared to 20X2 - Customer satisfaction score is falling drastically since last 2 years - No or less use of new technologies such as live streaming, AI, navigation Apps, etc. - Limited physical / conventional marketing Opportunities Threats - Harland is large, prosperous and economically - Industry is dominated by 4 major players who advanced country collectively has 74% market share - Well established event management industry - High threat of new entrants - Industry fee income is 36% of event income, which is - High competition as there is many small sized event lucrative and in line with internal average mgt companies - Technological advancements opportunities (live - Private events – no significant growth in number of streaming, AI, navigation apps) events since last 5 years - Sports event – substantial increase in number of - Stringent regulatory requirement relating to health events since last 5 years and safety, data security and employment - Virtual events - growing in popularity as they offer wide geographical reach and do not incur travel costs for the participants - Harland national government has engaged several events management businesses to run a series of virtual conferences  HOW TO IMPROVE PERFORMANCE Revenue - Investigate reasons for falling customer ratings and address the issues to improve retention - Collaboration with other event mgt companies to increase referral business - Joint venture or strategic alliance with other businesses to increase revenue and bargaining power (such as special venues, food caterers, video and photo graphers, event promoters / media companies) - Differentiate from competitors through better quality, creativity and innovation - Focus on corporate events as they have high profit margins - Focus on sporting events and virtual events as they are growing in demand - Build relationship with government entities to get more business in government sector - Investigate why 14% of tender invitations were not submitted - Improve tender success rate (currently 46%) - Invest in latest technology such as live streaming, AI and navigation apps - Improved marketing strategies: o Traditional or conventional marketing such as radios, billboards, newspapers, flyers, etc. o Loyalty / referral marketing (give incentives to your attendees when they invite someone) o Affiliate marketing (influencers, bloggers, celebrities) o Sponsorships - Ticket pricing techniques (early bird discount, different prices for different seating locations, group discounts, VIP packages, add-ons like parking, refreshments, souvenirs) - Indulge in CSR activities Staffing / Cost efficiencies - Hire staff who have expertise in marketing, event delivery, IT innovation and data analytics - Tighter budgetary controls to control event costs - Strategic alliance with temporary resource companies to reduce costs - Consider converting into a limited company in order to raise more finances - Staff training to improve productivity and efficiency  PESTEL Political No direct information – but seems favourable as Harland is prosperous and advanced country and government running a series of virtual conferences to discuss policy matter issues Economy Favourable as Harland is an economically advanced country (so high disposable income of people) Social Favourable as Harland is prosperous and an economically advanced country (so high standard of living) Technological Favourable as virtual events are growing and there is internet, social media, cloud providers, etc. Ecological Favourable as Harland is a developed country, regulator (IEO) focus on environmental practice and industry risk and KPIs includes environmental sustainability as an important criteria Legal Unfavourable as there are stringent regulations relating to health and safety, data protection and employment  PORTER 5 FORCES Power of customer No direct information – but seems HIGH as there several event mgt companies and customer has many choices with now switching cost Power of suppliers (Drivers) No direct information Threat of new entrants HIGH as event mgt industry is a financially lucrative industry and expected to grow by 11% for next 5 years and industry risk mentions threats of new entrants Competition VERY HIGH as 74% of the market share is help by 4 large event mgt companies and there are several smaller event mgt companies. Substitute products No direct information – maybe virtual event (which is growing in popularity) can be seen as a substitute to physical events.  ANALYZE THE STRATEGIC POSITION PESTEL Covered above PORTER 5 FORCES Covered above INTERNAL FACTORS Human resource Financial resource IT Brand  DRAWBACKS OF PARTNERSHIP MODEL - Unlimited liability for partners - One partner is liable for all actions of other partner - Limited growth or scalability - Limited access to finances / capital - Chances of disagreement or dispute - Conflict of interest PUNCH LINE FROM PRESEEN: The two founders of Rodnim decided to set up a partnership rather than a limited company, so that they could maintain total control over the business  E-BUSINESS / ONLINE BUSINESS (EG VIRTUAL EVENTS) Advantages of E-Business - Global reach / no geographical limitations leading to increased customers and revenues - Lower cost (since no physical presence is required) - Customer convenience and saving - Able to attract younger generation - Provides competitive edge Disadvantages: - Not all customers use internet - Requires IT expertise - Risk of hacking, data leakage and Cyber crimes - High dependence on technology - Data security and privacy legislations PUNCH LINES FROM PRESEEN: Virtual events is growing in popularity as they offer wide geographical reach and do not incur travel costs for the participants Harland national government has engaged several events management businesses to run a series of virtual conferences  E-MARKETING Tools used in E-Marketing - Emails - Website - Search engine optimization - Social media marketing (facebook, insta, twitter, youtube, whatsapp, tiktok, etc) - Links on various related websites - Communities, forums, blogs, Influencers Advantages of E-Marketing - Global reach / no geographical limitations - Lower cost - Personalized marketing - Customer convenience - Data analytics - Able to attract younger generation - Easy two way communication - Able to obtain customer feedbacks - Provides competitive edge Disadvantages: - Not all customers use internet - Requires expertise - Risk of hacking, data leakage and Cyber crimes - Data security and privacy legislations PUNCH LINES FROM PRESEEN: Rodnim has a Marketing system which: - enables Rodnim to effectively promote the events (what about physical marketing?) - system is integrated with Rodnim’s website and a range of social media  BIG DATA ANALYTICS Advantages of big data - Deeper insight into latest customer needs and trends - Offer customized product - Personalized and targeted marketing - Increase customer satisfaction and retention - Higher revenue / market share - Competitive edge Disadvantages of big data - Data security and privacy - Legal compliance and complications - Requires technical expertise - One time investment PUNCH LINE FROM PRESEEN: Artificial Intelligence: analyse data to identify patterns and trends which are likely to become features of future events. This helps in gaining competitive advantage Data analytics is being done by Head of Support Business who is not an IT expert  CUSTOMER SEGMENTATION ANALYSIS E.g. of customer segmentation - Type of event (concert, conference, festival, sports, private events, virtual events) - Type of customer (corporate, government sector, private clients) - Size of event (small, medium, large, mega event) - Geographical (city wise) - Duration (few hours, full day, multiple days) - Physical event vs virtual event - Recurring or one off - New client or repeat client - Indoor or outdoor - Budget Advantages of customer segmentation - Deeper insight into latest customer needs and trends - Offer customized product - Personalized and targeted marketing - Increase customer satisfaction and retention - Higher revenue / market share - Competitive edge  RISK APPETITE Risk appetite is the amount of risk an organization is willing to take. Higher risks have higher returns and lower risks have lower returns. Risk appetite varies from company to company depending on its shareholders attitude towards risk. In other words, the organization needs to decide whether it wants to be risk averse or risk seeker. PUNCH LINE FROM PRESEEN: The partners determine the nature and extent of the risks when setting the risk appetite, which limits the acceptability of risk RISK ASSESSMENT - Risk assessment means measuring the ‘impact’ and ‘probability’ of each risk and then prioritizing those risks accordingly - TARA model is used to do risk assessment  RISK MANAGEMENT Risk management means how the risks are IDENTIFIED, MEASURED AND MANAGED by the company. Risk management techniques include: ▪ Embedding risk management in organization’s culture ▪ Adopting Enterprise Risk Management (ERM) framework ▪ Risk assessment (TARA model) ▪ Risk Register ▪ Risk committee ▪ Risk manager (for larger organizations) ▪ Risk audits (for larger organizations) PUNCH LINE FROM PRESEEN: The individual risks are monitored by the management team, adjusted and adapted as necessary. Appropriate control activities are devised and undertaken to mitigate both the likelihood and the potential harmful effects on Rodnim Rodnim also has a risk register Event based risk management  EVENT BASED RISK MANAGEMENT RODNIM carries out event risk management for each event. Following can be included in event risk management checklist: - Quality - Timelines - Costs should be within budget - Venue (secured entries, emergency exits, parking) - Technology (IT, video, audio, virtual, etc.) - Health and Safety (guests, staff and neighborhood) - Staffing - Weather - Environmental footprint - Operational / Vendor risk - Emergencies and contingencies such as police fire and hospital coordination - Legal permits and licenses - Fraudulent ticket sales - Credit risk PUNCH LINE FROM PRESEEN: For each event, Rodnim also undertakes an individual risk assessment  KEY RISKS Risk Impact Recommendation Strategic risks - industry is highly competitive - Clients will move to competitors - Differentiate from competitors - attracts new entrants as they have many choices by offering better quality, - loss of revenue and market share creativity and uniqueness - price competition will lead to - Improve client satisfaction, reduction in fees / prices and loyalty and retention hence lower margins - Aggressive marketing and promotions - Collaborations and alliances Economic risk - Worsening economic conditions - Lower disposable income leading - Focus on virtual events as it has - High inflation to reduced demand for events lower costs - Increase interest rates - Fall in revenues and profits - Tight budgetary and cost - Increase in expenses hence controls reduced profit margins - Reduce borrowing to mitigate - Higher financing cost reducing financing costs liquidity for operating activities Financial risks - Event cost may exceed the - Events will incur losses - Tight budgetary and cost revenue - Delay in collections leading to controls - Credit to corporate clients liquidity issues - Strong project planning - Bad debt will lead to losses - Strong credit control and recovery procedures Environmental risk - Weather predictability - Cancelled or delayed events - Use specialized software / - Increased awareness in people - Reputational harm from negative systems to predict weather environmental impact - Include weather conditions in - Loss of clients and revenue event risk management checklist - Focus on environmental sustainability such as increased waste recycling, reduce water consumption and being energy efficient Complaince risk - Unforeseen changes in - Increased cost of compliance - Strong corporate governance regulations - Fines and penalties for breaches and focus on legal compliance - Increased health and safety - Employment disputes and strikes - Strong internal controls to legislation monitor compliance - Reputational damage - Increased data security and - Focus on health and safety - Suspension of license protection regulation  Risk Impact Recommendation - Stringent employee rights procedures - Regular staff survey and feedbacks - Stronger IT and Data security controls Operational risk - IT system failures - Event delivery will be adversely - Stronger IT and Data security - Increased risk of cyber-security affected controls attack - Operational disruptions - Strong vendor relationships and - Unauthorised selling of event - Loss of client and revenue alternate options tickets - Revenue leakage - Adoption of latest technologies - Vendor risks to keep up to date - Reputational loss - Advances in technology - Contingency plans - Legal cases, fines and penalties - Strong risk management procedures  PROJECT MANAGEMENT ALL EVENTS ARE TREATED AS A PROJECT Stages of Event - Understand client requirements - Initial planning (prepare PID and submission of tender) - Detailed planning (if tender is won) - Arranging everything (team, venue, vendors, ticketing, etc.) - Execution / delivery of event - Post event reviews Project Initiation Document - Scope and objective: Understanding client needs and set objectives / desired outcomes - Cost benefit analysis / feasibility: prepare high level cost and revenue budget for the event - Duration: based on client needs and size of the event - Project sponsor: Senior leader (most likely Amanda as she is managing partner of event management) - Project manager: Sponsor will identify an experienced event manager from the team - Project team: team members to be identified (once tender is won) based on size and nature of the event - Key stakeholders: Client, attendees, vendors, temporary staff, regulators, etc. - Key risks: quality, timeline, cost/budget, weather conditions, vendor risk, technology, etc. - Key constraints: human resource, financial resource, IT systems, etc. - Project governance and monitoring: either by sponsor or by both partners (Amanda and Saffy) Benefit of a PID - Clarity of scope and objective - Identifies cost and benefits / profitability of the event - Assist in submitting tender - Monitoring the progress of the project - Assess whether the event is successful Role Of Project Sponsor - Provide senior leadership and guidance to event manager - Arrange resources required for the project - Monitoring progress and ensuring event is on track - Problem solving - Ultimately responsible and accountable for success of the event Role Of Event Manager - Breaking down the event into smaller components - Detailed event planning for each component (quality / time / cost) - Monitoring of the event team - Ensuring event is on track - Execution of the event - Accountable to the Event Sponsor Why Event Sponsor cannot be the Event Manager at the same time - Two separate roles requiring different skill sets - Sponsor may not have technical expertise required from a event sponsor - Sponsor may not have sufficient time to give to project - No segregation of duty / monitoring of event manager Post Project Review - Its carried out to assess whether project management steps were properly followed or not - The aim is to learn from mistakes so that future events follow proper project management steps Post Implementation Review - Its carried out to assess whether the desired objectives / client expectations were met (outcome) - The aim is to assess customer satisfaction by taking feedbacks Tools Used in Project Management - Work Breakdown Structures (WBS): breaking down the event into smaller tasks - Gantt chart (graphical representation of resources / costs) – see below - Event risk register - Progress report / dashboard E.g. of Gantt chart  STAKEHOLDERS EXPECTATION Stakeholder Expectations KEY PLAYERS (Key Decisions): 2 partners Growth in revenue, market share and profits 100% control over business KEEP SATISFIED (meet their expectations) Major clients Good quality event, low prices, credit terms Key Employees (3) Good pay, job security, learning and development / growth, compliance with employment legislations Government Compliance, taxes, environment protection KEEP INFORMED: Non-key Employees Good pay, job security, learning and development / growth. compliance with employment legislations Smaller clients Good quality event, low prices Community / society Create jobs, CSR, environment protection, minimum disturbance Vendors Timely payments Attendees Good quality event, value for money IEO (industry body) Compliance with their standards MINIMUM EFFORT: Pressure groups / social activists Their demand to be met  EVALUATE PROPOSAL / PROS AND CONS PROS CONS Collaboration with other Businesses - Brings together wider expertise, resources, - Sharing of revenue/profit and capabilities (specially for large events) - Difference in culture, business philosophy - More creative ideas and risk appetite - Increased reach by accessing new customers - May not have 100% control or / customer segments independence - Sharing of loss and risk - Chances of disagreement / disputes - Competitive edge - Conflict of interest - Reputational damage (in case the other company does not perform its part well) - Delay in decision making (due to more coordination) Covert into a limited liability company - Liability of owners gets limited - May lose 100% control if there are external shareholders - Additional finances can be raised - Additional compliance with regulatory / - Better credibility and image in front of clients corporate governance requirements - Stronger corporate governance procedures such as audit committee, risk committee, NEDs, etc. Use of AI - Deeper insight into latest customer trends - Data security risk and patterns - Additional legislations to comply with - Customized products - Requires expertise - Personalized and targeted marketing - One time initial investment - Higher customer satisfaction and retention - More revenues - Competitive edge Use of Live Streaming Students to draft Students to draft Use of Navigation Apps Students to draft Students to draft  IT RISKS & SECURITY (HARDWARE AND SERVERS) RISKS SECURITY / CONTROLS ▪ Unauthorized access to servers ▪ Physical security of Servers: ▪ Damage / malfunction o Security Guards o Biometrics ▪ Power failure o Swipe cards ▪ Fire / Flood / Earthquake o CC TVs ▪ Fire protection ▪ Generators / Power supply alternates ▪ Backup equipment  IT RISKS & SECURITY (SOFTWARE AND DATA) RISKS SECURITY / CONTROLS ▪ Hacking / data leakage ▪ Strong password management / regular changing ▪ Data loss / corrupt ▪ Two factor authorization ▪ Cybercrimes / frauds ▪ Data encryption ▪ Virus ▪ User access rights should be as per their roles ▪ Software malfunction / bugs ▪ Regular Backups ▪ Internet dependency ▪ Firewalls ▪ Audit Trails / system logs ▪ Updated anti-virus ▪ Segregation of duties ▪ Disaster recovery plans ▪ Regular staff training ▪ IT security audits  IMPACT OF DATA SECURITY BREACH / LEAKAGE - Business / operational disruption - Reputational loss - Loss of customers / revenue / market share - Legal cases by customers - Regulatory fines (e.g. breach of Data Protection Act) - Incorrect decision making based on erroneous data  STAFF TRAINING / TALENT MANAGEMENT PROG Advantages of staff training - Increased skills and competencies - Better quality of work - Higher customer satisfaction and revenue - Lower customer complaints - Higher staff motivation - Increased productivity and efficiency - Lowers staff turnover/ recruitment costs - Helps in succession planning Disadvantages or risks with staff training - Requires expertise - Staff may leave and join competitors after training - Resistance / low motivation to participate - Day to day work will get affected during training days - Time and cost implications - Difficult to identify training needs and measure results MATRIX / DUAL REPORTING Advantages - Provides flexibility between teams - Stronger collaboration between teams - Sharing of knowledge and experience - Suited for multi team working such as project environment Disadvantages - Multiple bosses – potential conflict - Lack of clarity for employees - Slower decision making - May lead to work overload on the team  IMPACT OF DEMOTIVATED STAFF / HIGH STAFF TURNOVER Impact of demotivated staff - Affect on quality of product / service - Fall in customer satisfaction rating - Loss of reputation - Fall in revenue and market share - High staff turnover - Operational disruption - Inefficiencies - Increase in recruitment and training costs How to address issues - Staff surveys and exit interviews - Attractive remuneration - Rewards and appreciation - Training and talent management development - Career growth opportunities - More involvement in decision making  ETHICAL ISSUES / SOCIAL FOOTPRINT - Employees o Low pay o Long working hours o Poor working conditions o No Training o Discrimination o Lack of diversity o Job redundancies - Customers o Health and safety o Breach of personal data and bank details o Over pricing o Unfair and unethical dealing - Suppliers o Breach of personal data and bank details o unfair and unethical dealing o under pricing o delay in payments - Society o Environmental damage o No CSR o Traffic congestion and noise on event day - Other ethical matters: o Deliberate violation or non-compliance of law o Misstatement of facts or misreporting  ENVIRONMENTAL FOOTPRINT / IMPACT - Reduce use of scarce natural resources - Recycling of waste products - Reduce carbon footprint / emission/ pollution PRESEEN: VALUE: ENVIRONMENT (Operate in an environmentally sustainable manner) ENVIRONMENTAL RISKS: weather unpredictability, increased awareness by people KPIs: Waste recycling %age / Water consumption / Energy efficiency  FINANCIAL PERFORMANCE / PROJECTIONS Analyze the financial performance - Historic P&L will be given in exhibit - Identify major variances (based in variance ‘amounts’) - Explain the reasons for variance using the KPIs and information given in exhibit / preseen Financial projections If financial projection is given then apply the below checklist to draft your answers: - Chk whether discounted cash flow method is used - Whether the NPV is positive or not - Calculate payback (on pre discounted cash flow) and comment (