Exectuive summary
Jordan Events is an events management company that manages corporate, professional and personal events. The company will be located in Jordan and will organize, design, plan and manage events for companies, corporate organizations and weddings among others. It will offer high quality services at affordable prices and services will be structured to meet specific client needs.
The goals of the company will be to achieve customer satisfaction and exceptional quality of services, so as to lead in the events management market (ADAMS & MALLEN 2008, p.137). Staff at the company will be highly trained individuals in various fields including interior designers, artists and florists.
The company will focus on recruiting highly trained individuals to enable it attain the set goals and objectives. The services of Jordan Events will be advertised through print media, television and social network sites. In addition, the company will develop an interactive website to market itself and the services it offers.
Objectives
The general objectives of Jordan Events include the following:
- To capture the Jordan market and be the leading events management company in the Middle East region.
- To provide exceptional event management services to clients and exceed their expectations by offering superior services.
- To be the preferred events management company in Jordan.
- To offer different products that suits all types of meetings.
Keys to success
Jordan Events will design mechanisms that will enable it succeed in attaining the objectives it has. The keys to success include:
- High training of individuals, capable of delivering high quality services. All the permanent staff the company will employ on permanent basis will have college degrees.
- Efficiency in service delivery so as to ensure that the operating costs are minimized.
- The company will offer affordable prices and different banquets to ensure that it attracts and retains clients.
Mission
Jordan Events has the mission of being the preferred events management company in Jordan and Middle East region, with the best quality services that meet the local and international standards.
Business Description
Background and history of the business
Jordan Events is an events management company that is a fresh entrant in the market and manages events for corporate clients, individuals and businesses. The company is in the final stages of registration and documentation. It plans to begin operations in early 2013 by opening three branches in Jordan. In the next three years, the company will expand operations in Middle East region by opening more branches in principle cities.
The company has a vision of being the leading events management company in the region. It will ensure that it does this by offering high quality services in the region. There will be flexibility in the products offered by the company and will be tailor made to suit specifications of the clients (FISK, GROVE & JOHN 2008, p. 129).
The company is owned jointly by three brothers, all of whom have worked in the hotel, tourism and hospitality industries. The three brothers have held managerial positions in their previous jobs and thus have a wealth of experience in management.
Business goals
The main goal of the company is to be the preferred events management company in Jordan and Middle East region. The company will have to offer the best services in the region so that it becomes the preferred events management company. It will, therefore, create a strong brand by first operating few branches in Jordan then expand later. The other goal of Jordan Events is to acquire a large market share within a short time.
The company will aim at acquiring at least 10% market share annually over the next 5 years. The company noticed that the already existing event management companies in the region have not developed strong brands, and thus will not put up much competition (ROLL 2006, p. 147).
Acquiring 10% market share annually for a period of 5 years will enable the company earn high revenues and profits. The company projects that the number of clients who need events management services will increase over the 5 year period as more people recognize the service.
Products
The products and services that Jordan Events will offer vary. The company will offer the following services:
- Destination and location sourcing services
- Hotel and venue management
- Arrangement and stage management
- Exhibition services
- Guest management services
- Event designing and communication services
The company will handle different types of functions when offering these services. It will manage ceremonies, weddings, business meetings, product launches and festivals. It will also manage occasions such as workshops, company inaugurations and graduation ceremonies.
The clients will be engaged in the organization of the events to enable building of suitable concepts that will satisfy them. In addition to these services, the company will offer consultancy services to clients on how to organize their functions. The company will also offer training to individuals on how to successfully organize and manage events.
Supplier information
The company will develop contact with different companies in different industries to be suppliers of services and products it will need. The company will develop contacts with organizations that will be able to offer high quality services and products at affordable prices. The main suppliers will be the following:
Public address and communication services limited:
This company will provide communication equipment that the company will use in clients’ events. The company has vast experience in the line of business it is involved in. It offers high quality service and is affordable. The equipment this company has such as speakers are of high quality and of latest models.
Jebel Amman Hotel:
This company will offer catering services in the events Jordan Events will manage. It is a five star hotel located in Jordan and is affordable.
Jordan Tents and Stands Limited:
This company is located in Jordan and offers tents and chairs for hiring. The quality of the tents and chairs that this company has are new and in good conditions. The price it charges per tent is affordable. Jordan Events will hire tents from this company for outdoor functions that it will manage.
The company will sign contracts with these suppliers for a period of 5 years. The contracts will, however, be renewable based on the quality of service they provide and satisfaction of Jordan Events.
Agreement and ownership structure
Jordan Events is owned by three brothers who are the executive directors. The three brothers contributed capital equally and formed a partnership. Under the agreement, all profits and losses that Jordan Events makes will be shared in equal proportions among the three. The three will have equal rights in decision making and no major decision will be made without consultation.
Legal considerations
The company must be first registered and obtain certificate from the registrar of companies before it begins operations. The name ‘Jordan Events’ will undergo search in government records to ensure that no other company exists with such a name. In addition, the company will employ the services of a lawyer to scrutinize all contracts the company will sign. The legal officer will also scrutinize the partnership agreement to ensure that there are no gaps.
Business opportunities
Potential customers
The target market for Jordan Events is wide and includes organizations, businesses and individuals.
- The company will target organizations, both local and international, that have meetings such as conferences. It will mainly target conferences that have 200 participants and above. It will target meetings that are either one day or are for a long period.
- The company has identified that the number of companies that require event management services has increased in Jordan and Middle East region. In a study the company undertook, the numbers of companies that need the services increase by 5% annually. These companies need these services when making product launches, during their annual general meetings (AGM) and when making major news and new developments. The rapid growth of the region has led to increase in the number of organizations in different sectors. The company will target all these companies to be clients.
- The company will offer events management services to individuals. The company found that there are many people who want well planned weddings and ceremonies that take place in scenic places.
The company will target readers of business and wedding magazines in Jordan and Middle East region. It will place adverts showcasing the services it offers in these magazines. The adverts will give details that aim at enticing these readers to seek event management services from Jordan Events. Additionally, it will target individuals who use social network sites such as Twitter.
Geographical area
The company will be located in Jordan, a region experiencing tremendous growth in recent years. The population of Jordan has increased and this means the number of potential clients of the company is high (WALKER & FIRESTONE 2009, p. 53). The geographical features in the region provide scenic and appropriate places the company will hire to provide outdoor event management services.
The already existing event management organizations in the region are not yet well established and thus Jordan Events will be able to gain market share easily (FLOOR 2006, p. 98). Surveys by hospitality department in the Ministry of Tourism and Hospitality project that the events management subsector will grow at a rate of 15% annually. This provides Jordan Events a good opportunity to be a leading events management company in the region since it has resources and adequate capital.
The numbers of companies that are likely suppliers to Jordan Events are numerous. This will enable the company to get lower prices for the services that they will offer. In case the suppliers were not locally available, Jordan Events would have been forced to seek suppliers from either China or India. However, these countries are located far from Jordan and thus the services would have been expensive for Jordan Events. The central location of Jordan in Middle East region is strategic and can enable the company to expand with ease.
Bussiness competitors
The company will face competition from both local and international events management companies. The main local competitors will include Events Unlimited, Shahin and Shahin, Jordan EcoTuors, Dilloona and Gala Events and Classic Flowers Jordan. Others will be Al Ramz Group Jordan, OrangeRed Jordan and True Vision Conferences Company among others.
The international event management competitors of Jordan Events will include Pinkmoon Corporation, Global Vision Jordan, International Fairs and Promotions Jordan, Petra Events Management and Events Unlimited Jordan.
The only a few of these event management companies have managed to develop strong brands in the region. The market share that each of the companies have is less than 10% and there is no market leader. The likely strong competitors in the market are Shahin and Shahin, Talal Convention Center, Global Vision Jordan and International Fairs and Promotions. These companies have vast resources and facilities and will thus challenge Jordan Events.
Marketing strategy
Pricing strategy
The company will offer low prices for events management services that it will offer. The idea is to offer the most affordable prices while offering high quality service (KIMBALL 2011, p. 127). This means that the general strategy will be to have high number of clients and be efficient in operations. The goal of the management will thus be to operate optimally at very low costs. Overhead costs and wastage of resources will be minimized at Jordan Events so that it can be a low cost service provider.
The products will also be structured in a way that allows flexibility in price. Therefore, price will be set depending on the budget clients want to maintain (ALLEN 2009, p. 41). The company will use different information technology system in managing different activities of the company. This will assist the company in reducing costs on material such as stationary and thus reduce the overall operating costs. The result is that the company will offer lower prices (SMITH 2012, p. 171).
Additionally, the company will contract suppliers with low prices with the aim of saving and reducing operation costs. However, the suppliers will offer high quality services so as to satisfy Jordan Events’ expectations. The quality of service that the company will offer will always be high. This will attract many clients and will assist the company in retaining the customers. Once the number of clients increases, the company will be able to offer cheaper prices due to high numbers (MILLS 2002, p.129).
Sales projections
The company has made projections of the sales it expects in the next three years. After a period of 8 months, Jordan Events expects that the value of sales will increase. The company will engage in an intensive marketing campaign once it begins operations. In addition, executive sales persons will be employed to market the products and increase sales.
The first table shows the sales projections that the company expects in the first three years. It can be seen that the value of sales projected increases from year 1 through to year 3. The company projects that sales will increase by 38.4% between year 1 and year 2. The projections indicate that sales will increase by 45.78% between year 2 and year 3.
The company expects that the environment in the region to continue being stable and conducive for business. The company noted that political, economic and social events in the region can adversely affect the sales of the company. Notably, the social unrest in Syria and confrontation between Iran and Israel are among the events that can adversely affect the sales of the company.
The second table shows the projected costs of sales. These include the costs of hiring venues, salaries and wages and advertisement fees. It can be seen from the table that the costs increase from year 1 to year 3 indicating increase in business. The increase in projected cost of sales from year 1 and Year 2 is 47.6%. The increase in the projected cost of sales from Year 2 to Year 3 is 24.76%. This is likely because the company will be highly efficient in operations after Year 2.
Marketing plan
The Middle East region and Jordan has a vibrant market that enables rapid growth of businesses. The region is centrally placed in Middle East with highly developed infrastructural facilities. The residents of the region embrace technological developments especially the rapid growth in information technology. This will make it easier for Jordan Events to market the products and services that it offers in the market.
The company will hire an advertising agency to design broadcast adverts. Initially, these will aim at introducing the company in the market. The adverts will emphasize the existence of the company, “Jordan Events”, in Jordan. Once the company starts receiving clients, the adverts will shift focus to promoting the company as the leading events manager in the region. Much of the introductory adverts will be done through television since it is considered “hot media” and has high influence in shaping peoples opinions (BERGER 2007, p. 32).
The company will also place adverts in different magazines, especially wedding and business magazines. These will target businesses, both local and international, and individuals who want to do weddings. A few billboards will be strategically placed in major cities in Jordan to promote the company.
The general aim of the adverts will be to create brand awareness (FERRELL & HARTLINE 2011, p. 682). In addition to these methods, the company will develop an interactive website that will enable clients find information about the products (TOKORO 2010, p. 96). The website will be made colorful and with attractive features to entice clients. It will include a gallery section through which clients can see the various arrangement and decoration styles the company can manage to make.
The other marketing strategy that the company will employ is the establishment of contacts with various hotels, magazines, and tours and travel agencies. These organizations can refer clients to Jordan Events to manage their functions.
The owners of the company have worked in the hotel and hospitality industry and thus have already established a few contacts. It will also employ qualified and highly experienced sales persons to market the company, the product and the services. Finally, the company will use social network sites to market the products and services that it offers.
Business operations
Operational function
The company will begin business operations in early 2013 once it finalizes registration and satisfies all official requirements. The company will ensure that it obtains all necessary documents and satisfies government requirements before it begins actual operations. The company will have three executive directors, who are the owners of the company.
One director will be the Chief Executive Officer, another one will be the Chief Financial Officer and the last one will be the Chief Operations Officer. The company will hire a consultant to assist the company define the roles of each one of them. There will be other directors employed be the company. These will include Human Resources Director, Business Sourcing Director, Sales Director and Strategy and Organizational Development Director.
The company will develop an interactive system of operation and all employees will have e-mail addresses (PERRET 2007, p. 443). The aim of this is to increase the flow of information within the company and to enable first implementation of decisions (ZHANG 2006, p. 256).
The company will also employ line managers to increase efficiency in operations, and enable connection between the management and the staff (BOHLANDER 2010, p. 39). The offices of the company will be located within the Central Business Districts (CBD) of cities to enable accessibility.
Services offered
The services that Jordan Events will offer are numerous and of high quality. The company will offer the following services:
Destination and location sourcing services
The company will develop contacts with hotels and acquire extensive knowledge about hotels in the region. It will develop a bargaining ability with the hotels so as to use hotel facilities at affordable prices (STIVING 2011, p. 5). It will negotiate on the behalf of clients and sign contracts to enable clients use hotel facilities.
Hotel and venue management
The company will manage the venue of meetings before and during the meetings. It will ensure all guests have accommodation and that all facilities such as bathrooms are functioning appropriately. Jordan Events will also ensure that the venue is secure and that catering services are available.
Arrangement and stage management
The company will provide high quality presentation services to all clients it offers services to. It will develop contact with companies offering public address services and will employ individuals with high experiences in setting meeting venues. The company will also be able to coordinate all speakers used in events and will ensure all guests have good site to the stage.
Exhibition services
Jordan Events will manage exhibitions at conferences for clients. It will be capable of managing conferences with over 150 exhibition sites. The company will manage booking of space, setting of exhibition sites and the venue. To ensure success in managing exhibitions, the company will contract stand designers to erect stands of different sizes for the clients (ABRAHAM, GALE & KRELL 2005, p. 180).
Guest management services
The company will manage the guests that clients have in a professional and satisfying manner. The company will include a registration portal in the website it will design to assist in registration and management of guests. The company will manage guests’ accommodation, meeting agenda and discussion sessions (FORD, STURMAN & HEATON 2012, p. 127).
Event designing and communication services
The company will assist clients in designing their functions (WOLF, WOLF, WOLF & LEVINE 2005, p.79). It will assist clients in developing theme, in designing seating arrangements and in decorating event venues. In addition, it will make arrangement for communication facilities and in advertising the event through the media.
The company will handle different types of functions when offering these services. It will manage ceremonies, weddings, business meetings, product launches and festivals. It will also manage occasions such as workshops, company inaugurations and graduation ceremonies. The clients will be engaged in the organization of the events to enable building of suitable concepts that will satisfy them. In addition to these services, the company will offer consultancy services to clients on how to organize their functions. The company will also offer training to individuals on how to successfully organize and manage events.
Personnel
The company will employ highly qualified personnel to undertake the functions in various departments. The company will employ most of the staff on permanent and pensionable basis. The employees must, however, work for a period of one year on contract after which performance will be reviewed. If the employee’s performance satisfies the board, the employee’s contract is renewed on permanent terms of employment.
The employees will have college degrees in various fields. The only employees who are not required to have college degrees are grounds men and seat fillers. They will also be employed on temporary basis depending on need (CARTER 2007, p. 37). The managerial level staff, including directors, will be expected to hold Masters Degrees in areas related to business.
The staff will be handsomely rewarded for their services and will be provided with medical cover by the company. They will be taken through various trainings and team building sessions annually to increase their competence and motivation (LELAND & BAILEY 2006, p. 78).
Technology
The company will used Information Communication Technology (ICT) Systems in operating the company (TASSIOPOULOS & DAMSTER 2004, p. 425). It will adopt a Customer Relation Management System (CRM) to maintain contact with clients. The system will enable customers make inquires and give feedback to the company (SHARP, 2002, p. 7). In addition, clients will be able to make bookings for Jordan Events services online.
This is because the system will be linked to the company website and will be available online. The company will also make it possible for the clients to make payments for services via the internet (GRÜNEWÄLDER 2008, p. 5). The company will also use a Warehouse Management System (WMS) to manage inventory. The staff will be able to know the location of all property of the company through this warehouse management system. The system will ensure the safety of all company property and will ease operations in the company.
Additionally, it will use an internet based Human Resources Management System (HRMS) in managing the employees (BARBEITO 2004, p. 30). The system will enable the human resources manager contact staff through their e-mails. The employees can also request and manage leave days through the human resources management system.
The offices will be fitted with computers, printers and other appliances that enable easy operations. The company recognizes that these are likely to reduce the operation costs in the long run. The company will also use development of internet technology in marketing the services it offers (DAMM 2011, p. 38). It will post adverts in the internet through the company website and through social network sites such as Twitter and Face Book (BAIRD 2009, p. 10). These will ensure rapid popularity of the company and the brand “Jordan Events”.
It will acquire latest electronic equipment such as cameras, speakers and microphones to supplement those that it will hire from suppliers. The company will acquire these equipments from top suppliers. It will acquire high quality equipments that will ensure customer satisfaction is achieved (BOWDIN 2006, p. 408). Managerial staff will be provided with iPods or Smart Phones so as to increase the speed of communication in the company.
The iPods and Smart Phones will also enable them know changes and trends in the market. This will enable them make informed decisions and keep the company ahead of competitors (ALLEN 2002, p. 131). The company will be technology driven. The directors will be ready to adopt any technology that will lead to improvement in operations and increase in efficiency (MEEGAN 2009, p. 9).
Finances
Projected profit and loss
The statement above gives the projected profit and loss account of Jordan Events for the first three years of operation. In the first year, it is projected that the company will make a loss of JD 21,406. The sales for the first year are projected to be JD 650,750 while the costs of sales for the same year are projected to be JD 301,662.
The projected gross margin the company will attain in the first year is JD 349,098. However, the operating expenses for the company during the first year are projected to be high. This is why the company is likely to make a loss in the first year.
In the second year, it is projected that the company will make a profit of JD 50,507 after tax. The likely reason for this is that the company will be operating efficiently and will have acquired a considerable market share. In the third year, the projected profit after tax is JD 247,454 which represents a 79.59% increase from year 2.
During the third year, the management expects that the company will be operating optimally, efficiently and will have acquired a large market share. After the third year, the company’s management is likely to begin the expansion process as indicated in their objectives.
Projected cash flow
Projected balance sheet
Capital was obtained through equal contribution by the owners.
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