The paper "The Events Industry in London" is a perfect example of a business case study. Demand for certain practices and the benefits of the same practices have led to the development of the events industry. There have been increases in discretionary spending and leisure time which have led to the creation of more public events, entertainment, and celebrations. Corporations and business companies have also found the benefit of using events which in most cases is to promote businesses, market products, and create awareness or even build company reputations (Bowdin and Allen, 2006). Governments have also come to appreciate the importance of events and most are considering it an important industry to revenue contribution.
The governments promote and support events as part of strategies for destination marketing, nation-building, and economic development. Such is the case with the UK government (Bowdin and Allen, 2006). So many companies are involved in the creation, organization, and management of events since they have become part of the society and have proved to be of importance to both those who participate in them, the companies/organizers, and the revenue collectors.
In the tourism industry, for example, events play a major role apart from the arts and crafts and the historic sites that attract tourists. Politicians also depend on events to pass information (Bowdin and Allen, 2006). Like any other business industry, the events industry is affected by external factors that are important if analyzed for business success. Companies in the event industry have to be aware of the risks in the business external environment in order to make profits and ensure good performance. Companies select frameworks of their choice to analyze the external environment.
One such framework is the PESTLE analysis framework. This paper will use this framework to analyze the events industry's external environment and provide information based on the analysis of how the current trends will affect the future events industry. PESTLE Analysis Framework Political Factors The events industry in London receives a demand from the local people a well as people from other countries depending on the events being held. In the UK, events have become part of the government’ s revenue collection, nation-building, and developments. The government supports events and appreciates the contribution of the industry (Bowdin and Allen, 2006).
An example of a case is in 2005 which is four years back, but played an important role in the events industry market building and growth. UK exhibitions industry contributed ₤ 4.1 billion to the GDP and contributes ₤ 1bn per year (Friday’ s Media Group, 2005). This industry also supported 137,000jobs and contributed other billions by supporting other sectors of the economy. This contribution and others from other event industries have made the industry receive support from the government.
According to this report, there was a call for more support from the government to expand international trade by supporting the exhibitions industry which is part of the events industry. Supporting such kind of industries would increase the chances of London holding major global events (Friday’ s Media Group, 2005). Economic Factors The economy of any country or region affects the businesses in that region. The economic status of London, therefore, affects the events industry. The City has not been left out in the current situation of recession. Recession is one major problem that affects most industries and businesses with reduced demand that in turn leads to reduced production and distribution.
The events industry is currently suffering from low demand for events due to most consumer expenses being directed to basic needs (Federation of Small Businesses, 2009).
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