Consultants’ analysis of Eventmakers - Sample Essay
As a group of consultants engaged in investigation of Eventmakers we will analyze the character of the company and their overall activity on the market. Eventmakers is a company, who from spare time business activity rapidly expanded into a multi departmental enterprise. The company started with providing services and renting equipment for variety of occasions, business thrived and then quickly expanded with wider service offering. Situated in the area of Jutland, the company is organising different events for different customers which can be neighbours or different companies with different sizes operating in a variety of fields.
Their main service offering comprises of equipment rental, organization of event-parties and event-actions. Originally being a small family business, Eventmakers, has developed in many ways. Nowadays the enterprise has several services on offer and in comparison with the beginning the number of employees increased significantly and more technical equipment was purchased through the years and the home-office was moved into larger premises. Even a company with bright development could face different problems and difficulties in some areas of their business, which will be necessary to look at for their improvements.
Our task here is therefore to conduct an analysis and find the right solutions for the company’s potential problems. From the received task we were informed, that the given case is on theoretical level, but it will be treated as a real one and blended with information gathered from the real world. 2. Problem formulation: Regarding our Problem formulation section, which plays a crucial role in our report, we are formulating a general question which also represents the main question of this report.
This central issue can be encountered in the Problem identification section among with other explanations regarding our choice. Later on we are following the analyse indications given in the task and after presenting them in Problem specification section, we will describe under what limitations are we going to approach this case and where we will set the borders of the necessary analyse in Delimitations section. 2. 1. Problem identification: Our task is very broad and therefore we identified the following question which could keep us focused on analysing the company from several necessary angles:
– Does the company, under current conditions, need to make any changes, and in what way, in order to improve or sustain its activity in the long term run? Because of the complexity of our task we choose to formulate our main concern about this company in a way which expresses the necessity of comprehensive analysis. We are aware that other problems could be formulated as well but it would be almost impossible not to touch upon something which would relate to this question, especially the analysis which is necessary to be done in order to answer it.
Therefore we formulated the main question in a simple way with intention to indicate the numerous issues it comprises of. Also our objective is to split this question into sub-problems, existing in the external and internal environment of the company, which need to be analysed in order to answer the question. * Situation on the external environment of the company: Firstly, we decided to approach our analyses from the company` s external environment in order to find out the situation on Danish market and the trends of the market in which company is operating.
To get the appropriate overall picture, it is important to be aware of many factors from the external environment which could appear to be destructive or constructive for the company. In this case, study of the external environment, which influences activities of Eventmakers, is necessary to be done in order to see if there are situations when the company should adjust their activity for their advantage and thus remain in the market. In our analysis we can not omit any of these investigations as they are interrelated for obtaining a clear view.
Therefore to answer the external matters we will carry out following analysis: Considering the worldwide development we will focus on more relevant issues relating to the company’s plan. As the directing manager of Eventmakers is considering contacting new business partners in Germany but is worried about their economical situation, we will look at the development and the economical stability of the nation. It could offer the company with necessary analysis in order to decide whether the move into the new market could be considered as a company’s strategy.
b) Macroenvironment for the Eventmakers’ market: In this section of analysis our group will focus on the demographic variables, attitudes, cultural changes, media, technology, financial situation of Denmark. It is important to know how the factors are influencing the industry and therefore the company must be able to adapt. c) Microenvironment for the Eventmakers’: In this part we will describe the current situation of the market, which is essential to know in order to adapt and plan the future strategies for the company. We will mostly concentrate on the customers and the competitors’ analysis.
Further more we will consider Eventmakers` service offering and the way company differs from other enterprises. Regarding the intentions of the directing manager of Eventmakers, to expand its businesses in Germany we will provide the analysis of the economical situation in the country in order to see whether there is a possible expansion of Eventmakers into new markets. We will look at the GDP (gross domestic product) of the country, personal disposable income, to see if there is a trend of increasing or decreasing through the last years.
During the last six years the annual growth rate of GDP in Germany is increasing by average of 1. 6% and the personal disposable income grows rate accounts for 2. 9%. The inflation rate of 1. 7% is relatively low in the country and remains almost stable. It indicates that the country has stable economy developments therefore attractive for foreign investors. At the same time with the lower inflation rate the income of the population will be higher. In comparison with the OECD1 average price levels, Germans pay less than average for products and services.
This means that people are willing or can afford to spend more money on unnecessary, rather on luxury goods. However Germans tend to save around 13% of their disposable incomes, which leaves than quite a large proportion of the incomes for spending. First places of the expenditure in Germany are on housing, transport and food. The fourth place takes the expenditure on leisure, which Germans are considering seriously as they consider their job, and it is increasing through the last years. Leisure activities that involve the whole family tend to be more popular than individual ones.
Sport is one of the most favorite activities, where Germans are tending to invest more money. According to our analysis, we disagree with the direction manager words about the development of German economy, and we can conclude that the economical situation in the country is more or less stable and Germans are spending big amount of money on the leisure activities. In this case the company could expand on the German market, which is seems to be profitable one, but Eventmakers just has to consider the language barriers and the differences in culture which will be presented in our project later on.
The situation on the macroenvironment of the company: The analysis of the external environment, especially on macro level can give the company the picture of the overall situation of the country and external environment of the market in which it is operating. By considering in general, terms such: matters of economical stability, attitudes of the people and other factors, we can suggest the company where it can get the potential customers and where to concentrate its activity.
For the investigation of the company’s macroenvironmental factors, we will use the Environmental model, by looking into the demographical variables, media, technology, attitudes, people’s cultural changes, and financial situation of the country, because the Eventmakers industry and the company itself is influenced by these factors. All the factors in the macroenvironment affect the industry and organisation but they are out of their direct control. They are continuously changing and the company needs to be flexible to adapt.
We will start our analysis by looking into the demographic aspect of the company’s macroenvironment, because the people make up the market. a) Demographic variables: The demographic factors affect customer needs and the size of the markets. The analysis of the population in the country will reveal first of all whether it is increasing in terms of total number of people available to purchase products and services. The total population of Denmark is more than 5 million inhabitants, and is expected to increase. – Age group variations The distribution of the population according to the age is presented by age group variables.
More than a million of the total population in the country are below 17 years of age and it represents 18. 7%. The age group from 15 to 60 years is about 3. 5 million which is 66. 4% of the total population. Similarly, more than a million of the population are over 60 and it is about 15%. 2 Regarding the period of the last 20 years, the proportion of young people and children in Denmark is dropping, at the same time the share of people in active employment and the elderly is increasing. 3 This growth can be seen as advantage for Eventmakers’, because their potential customers mostly consist of an active employment age group.
Also it will lead to increased demand for product and services the company provides. However other groups have to be taken in consideration because the service products of the company can be obtained by different age group. For example, the population of the youngest age group can be seen as the potential customers of the company. Even the money is earned and the decision about purchase is made by their parents but is influenced by the needs of the kids. The next step will be to look at the population growth rate (PGR). It is the factor, which determines the increase in a country’s population during a period of time, usually one year.
It is expressed as a percentage of the population at the start of that period and reflects the number of births and deaths (surplus or deficit) during the period and the number of people migrating to and from the country. In the year of 2002 the population growth rate in Denmark was positive and represented by 0. 29%. This population growth can be explained by the level of development and high living standard in the country. The population growth rate tends to be higher in Eastern cultures, where the social and economical conditions are not so developed.