Asmahany Ramely et al., Examining PESTEL Analysis of Event Businesses in Malaysia (2023)
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A research article by Asmahany Ramely, Rozila Ahmad and Noor Amalina Mat Yusof of Universiti Utara Malaysia and Mohd Fadzilillah Ab Talib of Boffin Event Management, Examining PESTEL Analysis of Event Businesses in Malaysia, published in the Journal of Event, Tourism and Hospitality Studies, Vol. 3, 2023, pages 57–79 (DOI 10.32890/jeth2023.3.4). Based on qualitative interviews with 15 event managers in Malaysia, the study examines how political, economic, social, technological, environmental and legal factors affect event operations. It identifies government policies and small business funding grants, labor costs and exchange rates, consumer trends, social media and technological tools, supply chain management and future pandemics, and health and safety laws as external drivers.
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Journal of Event, Tourism and Hospitality Studies, Vol. 3, (July) 2023, pp: 57-79
JOURNAL OF EVENT, TOURISM AND
HOSPITALITY STUDIES
http://e-journal.uum.edu.my/index.php/jeth
How to cite this article:
Ramely, A., Ab Talib, M. F., Ahmad, R. & Yusof, N.A.M. (2023). Examining pestel analysis of event businesses in
Malaysia. Journal of Event, Tourism and Hospitality Studies, 3, 57-79. https://doi.org/10.32890/jeth2023.3.4
EXAMINING PESTEL ANALYSIS OF EVENT BUSINESSES IN MALAYSIA
1
Asmahany Ramely, 2Mohd Fadzilillah Ab Talib, 3Rozila Ahmad
& 4Noor Amalina Mat Yusof
1,3,4
School of Tourism, Hospitality & Event Management, Universiti Utara Malaysia, Malaysia
2
Boffin Event Management, Jitra, Kedah, Malaysia
1
Corresponding author:asmahany@uum.edu.my
Received: 11/06/2023 Revised: 03/08/2023 Accepted: 05/09/2023 Published: 31/10/2023
ABSTRACT
This study aims to examine the impact of Political, Economic, Social, Technological, Environmental,
and Legal (PESTEL) factors on event businesses in Malaysia. Using qualitative interpretive methods
and data from in-depth interviews with 15 event managers, the study identified several external
factors affecting event operations. The results show that political factors such as government
policies, small business funding grants, and global trade agreements or restrictions can significantly
impact event businesses. Economic factors such as exchange rates, labor costs, globalization, and
economic growth or decline can also affect operations, while social factors such as consumer trends,
tastes, buying habits, lifestyle factors, and population demographics can also play a role.
Technological factors, including tools and technological advancements, incentives, and the
widespread use of social media, are also identified as important. Moreover, environmental factors
such as supply chain management, procurement, future pandemics, ethical sourcing, sustainable
resources, weather and climate, risk assessment, multiracial sensitivity, and geographical location are
found to impact event businesses as well. Finally, legal factors such as health and safety regulations,
employment laws, common laws, and consumer protection laws can also affect event operations.
Overall, this study highlights the importance of conducting PESTEL analysis to gain a
comprehensive understanding of external factors that can impact event businesses. By using this
analysis, event managers can develop strategies to mitigate risks and adapt to the changing market
conditions. The findings suggest that event managers must remain vigilant in monitoring and
responding to political, economic, social, technological, environmental, and legal factors to ensure
the success of their operations.
Keywords: Event Businesses, PESTEL Analysis, Malaysia
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INTRODUCTION
The event sector is a people-oriented business. Event organizers work hard to fulfill people’s needs
and demands, which can vary and change over time. Therefore, event organizers put extra effort into
delivering the best experiences, enjoyment, and excitement (3Es) to all event attendees. Maintaining
the 3Es helps sustain event businesses and keep them relevant in the market. Staying relevant requires
endless commitment and passion, and involves the collaboration of many players, including hotels,
airlines, buses, travel and tour operators, production houses, venue owners, caterers, entertainers,
booth suppliers and designers, and more (The Malaysia Convention and Exhibition Bureau (MyCEB),
2022). In addition to strong collaboration with other players, event providers must also strive to
continuously improve their performance. This can be achieved through ongoing assessments and
analyses. In addition to economic contributions, a detailed analysis is required for event sustainability
(Wang et al., 2022). It is worth the effort to ensure the sustainability of this sector, as it is projected
that by 2030, business events will attract 5.9 million delegates and contribute RM42.12 billion to the
country, creating 25,833 job opportunities (MyCEB, 2022).
Furthermore, in 2019, Malaysia secured 1025 business events, which contributed to over 540,000
international business travelers to the country. In monetary terms, it is worth RM3.9 billion in direct
expenditure, which generates RM9.2 billion in economic impact (Wong, 2020). Together with other
sectors, events have been identified as an important contributor to Malaysia’s national gross domestic
product (GDP). Thus, to maintain and expand this contribution, a thorough analysis of event business
performances should be regularly carried out. For this reason, the PESTEL analysis has been
employed by many event operators (for example, Gregoric, 2014; Supery, 2021).
PESTEL is the acronym for political, economic, social, technological, environmental, and legal
factors (Williams & Santos, 2021). PESTEL is also known as PESTLE, PESTEL, PESTLE,
STEEPLE, SLEPT, and LONGPESTLE. The choice of acronym used depends on the situation, as all
acronyms analyze the same six factors: Political, Economic, Sociocultural, Technological, Legal, and
Environmental. PESTEL analysis helps event managers improve their business performance by
providing an in-depth analysis of how events are affected by these six external factors. It is a tool for
analyzing external businesses and determining how potential future trends may impact businesses
within an industry (Vidani, 2015; Williams & Santos, 2021). Several studies have been conducted to
examine the diverse analysis of external business factors as follows:
Table 1
Types of analysis related to PEST
Types of domains Sector Sources
PEST E-commerce in China Guan (2022)
PESTEL Museums Wright (2022)
MICE Gregoric (2014)
Virtual events Supery (2021)
Tourism destinations Vidani (2015)
SWOT-PEST Model Large-scale sports events Wang et al. (2022)
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This research is unique because it presents a PESTEL analysis of 15 event companies. The insights
gathered from the responses of 15 event managers can serve as a guideline and indicator by showing
that different organizations (represented by the event managers) have varying perceptions of how
political, economic, social, technological, environmental, and legal factors affect their business
operations. While similar analyses have been conducted from the perspectives of a few different
organizations (for example, He-Kiis, 2022), this study is the first of its kind to focus specifically on
PESTEL analysis. Furthermore, there is a need for consistent examination of PESTEL factors that can
affect event business operations, as this sector is fragile and easily affected by external factors
(Zakaria et al., 2022). In the context of event businesses, there are limited studies that have employed
the PESTEL analysis. Although their studies evaluated the same elements, some did not declare this
effort as part of a PESTEL analysis for unknown reasons. Nevertheless, for any organization,
especially event companies, the PESTEL analysis is a valuable tool that can assist in making strategic
decisions across various scenarios (The Chartered Institute of Personnel and Development [CIPD],
2021).
LITERATURE REVIEW
PESTEL analysis is one of the popular techniques used by managers for environmental scanning. It is
designed to help event managers understand the influence of multiple factors that affect their business
performances (Wang et al., 2022). An accurate PESTEL analysis can assist event managers in
grasping the current situation, identifying potential threats to their event businesses (Wang et al.,
2022), defining their business goals and scope of activities (Sukiennik & Kowal, 2022), and laying a
foundation for future development plans (Abdullah et al., 2022; Nicula & Spânu, 2019) that can meet
market demand (Gregoric, 2014).
In addition to the benefits mentioned above, PESTEL analysis is also a useful tool for analyzing and
understanding problems that arise in the market. This allows companies to facilitate the process of
problem-solving (Supery, 2021). Indeed, the PESTEL model is a macroeconomic tool or indicator to
measure business performance whilst identifying a problem and its components (Williams & Santos,
2021). Furthermore, PESTEL can help companies discover new potential. For instance, in Kerala,
India, a PESTEL analysis in the region revealed new potential in tourism businesses. As a result, a
new tourism company was established to cater to tourists who love to visit Kerala's natural beauty
(Vidani, 2015).
PESTEL Analysis for Event Businesses
The objective of this study is to understand how political, economic, social, technological,
environmental, and legal factors affect event businesses. Political stability, where there are no
bombings and cases of terrorism, has become one of the main factors for the growth of event
businesses in Malaysia. As highlighted in a press release by The Malaysia Convention and Exhibition
Bureau (MyCEB), as events are recognized as a miscellaneous and multifaceted sector that is easily
affected and fragile, political stability is crucial. Furthermore, even businesses that suffered due to the
global economic downturn in 2019 are now picking up pace again, and this sector offers lucrative and
potential growth for the development of our country (MyCEB, 2022). In the PESTEL analysis,
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political factors refer to the extent to which a government can affect business development, in terms
of government policies, political stability, as well as trade and tax policies. In other words, a political
analysis helps event managers understand the degree to which government intervention affects their
business development (Wang et al., 2022).
Another component of the PESTEL analysis is the economic factor, which helps companies analyze
how economic conditions affect supply and demand, which directly impacts a company's
performance, including its financial growth or decline. Changes in interest and inflation rates are also
important determinants for economic analysis (Wang et al., 2022). In the PESTEL analysis, the social
analysis focuses on changes in the social and cultural market environment, which can indicate what
customers want, such as emerging trends and population growth. Professional attitudes and
demographic factors, such as age and beliefs, are also considered social factors (Wang et al., 2022).
Technological factors refer to technology-related factors that help event businesses develop and
advance, such as technology packages, technical research and development, technology awareness
and adoption rates, as well as new services or products. Technological innovation is also a factor that
falls under the technological factor category and can affect event business development. On the other
hand, environmental factors focus on ecological and environmental factors that impact a business's
operations or customer demand, such as access to renewable resources, weather or climate changes,
and corporate responsibility initiatives. Legal factors refer to legal restrictions or mandates in the
nations or regions where a corporation conducts business. This includes health and safety regulations,
labor laws, and consumer protection legislation. In summary, legal factors refer to all factors related
to the legislative domain (Martínez-Vázquez et al., 2022) that correspond to event business
operations. Table 2 illustrates the components of PESTEL and their external factors according to
various sources.
Table 2
Components of PESTEL and Their External Factors According to Various Sources
Component External factors to consider Sources
Political Government
Political/governmental stability
International relations
Tax policy
Industry regulations
Global trade agreements or
restrictions
Level of bureaucracy
Foreign trade policy/ regulations
Small business funding grants CIPD (2020) Gregoric (2014)
Policy development Martínez-Vázquez et al. (2022)
Welfare of community Nicula & Spânu (2019)
Economic Exchange rates
Globalization
Economic growth/ decline
Inflation and interest rates
Cost of living
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Labour costs
Consumer spending habits
Business cycle
Stock market performance
Consumer confidence
Unemployment trends
Social Consumer trends/ tastes
Fashions
Consumer buying habits
Purchasing power
Lifestyle factors
Career attitudes
Work-life balance
Population demographics
Health consciousness
Education level
Emphasis on safety, religion, and
beliefs
Technological Automation
Innovation
Disruptive technologies
Social networking upgrades
Robotics
Artificial intelligence
Security
Technology Incentives
Technology lifecycle CIPD (2020) Gregoric (2014)
Rate of technological change Martínez-Vázquez et al. (2022)
Role of the Internet Nicula & Spânu (2019)
State of technology
Environmental Environmental restrictions
imposed by in-country
governments
Sustainable resources CSR
(Corporate social responsibility)
Ethical sourcing
Transportation
Procurement
Supply chain management
Future pandemics
Geographical location
Weather, climate, and climate
change
Pollution, and waste management
Attitudes towards “green” or
ecological products and
renewable energy/sustainability
Legal Employment law
Common law
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Local labour law
Health and safety regulations
Discrimination law
Legal Anti-trust law
Intellectual property law
Consumer protection law CIPD (2020) Gregoric (2014)
Health and safety law Martínez-Vázquez et al. (2022)
Tax regulations Nicula & Spânu (2019)
Advertising standards
Product regulations
Healthcare laws
Retirement laws
METHODOLOGY
To gain a deeper understanding of how political, economic, social, technological, environmental, and
legal factors affect event businesses, the researchers in this study employed a qualitative approach
using in-depth interviews. The in-depth interviews allowed the researchers to explore the experiences,
perceptions, and perspectives of the event managers regarding the influence of political, economic,
social, technological, environmental, and legal aspects on their industry. The qualitative nature of the
study was appropriate as it aimed at describing and interpreting the complex issues and phenomena
surrounding event businesses as seen through the eyes of the participants.
To gather relevant data, the researchers targeted event managers with experience in managing events,
including during the challenging period of the COVID-19 pandemic. The purposive sampling method
was used to carefully select participants who could provide valuable insights into the impact of
various external factors on event businesses. After conducting the interviews, the researchers
performed thematic analysis to identify recurring patterns, themes, and concepts in the interview
responses. They carefully analyzed and coded the data, extracting meaningful insights related to the
impact of each external factor on event businesses. The thematic analysis process helped to uncover
nuance details and diverse perspectives expressed by the event managers, providing a comprehensive
understanding of the multifaceted influence of these external factors on the industry.
Based on the thematic analysis, the researchers categorized the interview responses according to the
six broad categories namely political, economic, social, technological, environmental, and legal
factors that affect event businesses. This categorization allowed the researchers to organize and
present the findings systematically, highlighting the interconnectedness and interplay of these factors
in shaping the event industry's landscape. By utilizing thematic analysis, the study contributes to the
existing body of knowledge by presenting a rich and nuanced portrayal of how political, economic,
social, technological, environmental, and legal aspects collectively impact event businesses. The
findings of this research could lead to the development of new concepts and theories that enhance our
understanding of the challenges and opportunities faced by the events industry in the face of external
influences.
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RESULTS AND DISCUSSION
The interviews were conducted from Feb 2021 until Feb 2022. Within this period, we managed to
gather responses from event managers struggling to sustain their business before, during, and after
COVID-19. One important key fact that emerged was that COVID-19 changed the landscape of event
business, and for some companies, surviving the pandemic necessitated them changing their business
model. Before discussing the findings in detail, Table 3 presents the location, position, age, and
gender of the event managers and the nature of their business. All their companies were event-based
but served a specific market segment based on event types such as a workshop, training, weddings,
dinners, entertainment, birthday parties, surprises, and personal celebrations. In addition, two
managers were employed in both event and hotel operations. Most managers are experienced in both
physical and virtual events.
Demographic Profile
The demographic profile of the study informants is presented in Table 3. A total of 15 participants
were recruited for the study, all of whom are event managers with experience in managing events
before, during, and after the COVID-19 pandemic. The age of the participants ranged from 25 to 43
years old. Seven of the participants were female, and eight were male. The demographic profile of the
informants in this study also revealed that nine participants operated their businesses from northern
Malaysia; four are located in the Klang Valley, one on the east coast of Malaysia, and one from
Sarawak. The companies they worked for are involved in various events, including workshops,
training, weddings, dinners, entertainment, birthdays, surprises, and personal celebrations. Two of the
participants are also involved in both event and hotel operations. Overall, the informants in this study
are experienced and knowledgeable event managers from diverse backgrounds, providing valuable
insights into how COVID-19 Malaysia affected Malaysia’s event industry.
Table 3
Demographic Profile of Informants
Informants Location Position Age Gender Nature of business
R1 Penang Event 25 Male Privately owned event and
Manager communications agency
R2 Sarawak Event 43 Male Weddings, company annual
Director dinners, parties, and more.
R3 Selangor CEO No info Female Event planning and project
management services. Outdoor
and virtual events
R4 Selangor Event No info Male Events and exhibitions, virtual
Manager and hybrid, in-house production,
and equipment rental.
R5 Kuala Execution 29 Male The launch event, roadshow,
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Lumpur Director grand opening, corporate dinner,
virtual event, video production
R6 Kedah Event 38 Male Webinar, workshop, and training
Manager provider – physical and virtual
R7 Selangor Event 29 Male Accommodation providers,
Specialist/ meeting and wedding service
Event providers
Manager
R8 Kedah Event 41 Male Event consultant emcee, deejay,
Management photographer
and
Consultant
R9 Penang Event 25 Female Event infrastructure and
Executive equipment services,
entertainment and talent services,
creative concept and design
services, custom-built structure
and props making as well as
advertising and promotional
solution services
R10 Pahang Owner, event 27 Female Wedding planner and caterer
planner
R11 Kedah Event 25 Male Hotel rooms, apartments, event
manager space, wedding, restaurant, and
food delivery
R12 Penang Event 30 Female Corporate, social, and
Manager promotional gatherings
R13 Kedah Sales No info Female Function room and grand
Manager ballroom
catering, coffee service, audio &
and visual equipment
R14 Kedah Event 27 Female Catering and event planner
Manager
R15 Perak Event 27 Female Fairy surprise party and event
Planner planner
PESTEL Analysis According to Managers’ Responses
Figure 1 presents the dominant factors that influence event business operations. The analysis revealed
four political, five economic, five social, three technological, nine environmental, and five legal
factors.
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Figure 1
Summary of Factors According to PESTEL Analysis
Political Factor 3
5
Economical Factor
4
Social factor
Technological Factor
Environmental factor 9 5
Legal Factor
3
Political Factors Affecting Event Businesses
Table 4 summarizes the political factors, along with the related responses and the informants who
mentioned them. The response summary provides a detailed picture of the effect of each factor.
Overall, it can be observed that political factors have the least impact on event business operations.
Taking into consideration the feedback provided by multiple event managers, three political factors
were recognized, which were highlighted by Informants 1, 7, and 8. Informant 1 specifically noted
that the prohibition of large gatherings due to the COVID-19 pandemic resulted in significant
financial losses for the business. To recover from the loss, right after the movement control order
(MCO) was lifted, the event manager expected the government to quickly produce a proper policy and
guidelines for hosting of events post-COVID-19. Other than policy, financial aid and assistance
during the crisis were significant for event managers to sustain their business (Razali et al., 2023).
Other than business sustainability, government aid is also crucial to rejuvenate businesses after the
crisis. However, it should also be noted that the number of virtual events increased due to the ban on
events that involved mass gatherings (Zakirai@Zakaria et al., 2022).
Table 4
Political Factors Affecting Event Businesses
External factors to Informants Summary of Event Manager Responses
consider
Government policy R1 The delay in producing or permitting guidelines further
undermined the event sector's ability to operate their
businesses, as event managers were left wondering about the
proper procedures and safety implementation needed for their
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events. Therefore, governments need to provide clear and
timely guidance to event managers, especially during times of
crisis, to enable them to adapt and sustain their businesses.
Small business Event managers acknowledged that the post-pandemic period
funding grants had been a stressful time to recoup their business losses. They
expressed gratitude towards the government for providing
financial aid and assistance during this period.
Global trade R7 The government's implementation of a mandatory lockdown
agreements or did not stop this event manager from continuing their business
restrictions operations. Rather than closing down, they seized the
opportunity to offer quarantine packages.
R8 The ban on mass gatherings compelled managers to shift their
business from physical to virtual event platforms
Economic Factors Affecting Event Businesses
The direct economic impact of the event industry, such as job generation and driver for economic
growth, substantiates the need to protect and sustain this industry. In 2019, before the COVID-19
crisis, MyCEB managed to host 2651 events, worth RM16.7 billion; and for the year 2030, MyCEB
plans to bring in events worth RM42.12 billion (MyCEB, 2022). Based on the interviews, event
managers agreed that four economic factors affected their businesses: exchange rates, labor costs,
globalization, and economic growth or decline. These factors helped managers analyze how economic
conditions shift supply and directly affect their company's performance. Table 5 presents a summary
of these economic factors, along with a summary of responses and who mentioned them. The
response summary provides details on the situations created by each factor.
Table 5
Economic Factors Affecting Event Businesses
External
factors to Informants Summary of Event Manager Responses
consider
Exchange R2 The operational/organizational cost of some events
rates increased due to the need to buy special equipment
that had to be imported from overseas.
Labour costs R2 After the lifting of the MCO, some attendees
expressed a desire to attend physical events.
However, hosting physical events requires hiring
additional staff, which can increase the overall
operational cost.
Globalization R6 The transition from physical to virtual event
platforms has compelled event companies to allocate
budgets for purchasing software subscriptions, such
as Zoom and Webex.
Economic R6 The ban on mass gatherings forced the company to
growth/ switch from physical to virtual event platforms.
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decline However, this transition has proven to be beneficial
as it eliminated the need to rent event spaces, cater
food, and incur other expenses associated with
physical events.
R2 The challenge of securing sponsorships for events
became harder, as many corporate entities were
unwilling to invest in sponsorships.
R10 Event managers need to plan and budget carefully as
clients may have high expectations for their events
but may allocate limited funds. For instance, in
weddings, where clients may desire a trendy and
luxurious ceremony, event planners must brainstorm
creative solutions to meet their client's needs and
requirements while staying within budgetary
constraints.
R11 Event managers ought to create a spreadsheet that
outlines the total budget and estimated costs for an
event.
Economic It is crucial to discuss the budget with the team
growth/ before finalizing it to ensure that everyone is on the
decline same page.
R12 The recent trend in event planning is to reuse
equipment for events with similar themes. Event
managers can also opt to create event decorations
themselves to reduce costs, such as using
inexpensive textiles for ceiling decorations and using
table and chair covers made from affordable
materials.
R15 Proper budgeting is crucial when producing a
quotation for clients as they may not be willing to
pay extra charges in case cost increases. Event
decorations, for example, can be costly, and there is
always the possibility of quoted items being out of
stock, which can increase costs and minimize profits.
As the best practice, event planners should consider
adding an extra 20% to the quotation price of
decorations to ensure that unexpected costs are
covered.
Social Factors Affecting Event Business
Social analysis involves examining how elements of social and cultural market environments, such as
emerging trends, population analytics, and demographics, impact event business operations. Based on
the interviews, 87% of the event managers agreed that social factors have the most significant impact
on their business. These social factors include a shortage of labor, fluctuating consumer trends and
tastes, buying habits, lifestyle factors, and population demographics. Table 6 presents these social
factors, based on the interview responses, and elaborates on each factor in detail.
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Table 6
Social Factors Affecting Event Businesses
External Informants Summary of Event Manager Responses
factors to
consider
R1 When the pandemic hit, the manager had to let go of
some staff members. When operations resumed,
Shortage of there was a shortage of manpower available to work
manpower on events.
R13 The lack of staff is also a common challenge faced
by event managers.
R14 The nature of events as project-based makes it
challenging for event managers to hire permanent
workers, and they often rely on part-timers to work
during events.
Consumer R2 Due to COVID-19, attendees were sceptical about
trends/ tastes attending physical events, and many continued to
refuse to do so.
R6 Many clients prefer virtual events due to their
flexibility and cost savings.
R9 When attendees request the repackaging of food
during events, it causes additional costs for the
manager, who must provide the necessary
packaging materials.
R11 Some attendees were dissatisfied with the event
theme due to communication issue.
R15 Some customers have exceptionally high
expectations and want outstanding and unique
results, especially for events like a kid's birthday
party.
Consumer R1 As an event planner, it is crucial to politely decline
buying habits minor requests made by clients during the event.
Even the smallest oversight can lead to the failure of
the entire event, so it is essential to manage client
expectations and prioritize the smooth running of
the event.
R3 Clients with limited budget often have high
expectations for their events, making it challenging
for event managers to deliver a successful event
within budget constraints.
R4 When a customer makes a last-minute request that is
impossible to fulfil, it can disrupt the entire event
planned and cause stress and frustration for the
event management team. Thus, event planners need
to communicate clearly with their clients and set
expectations earlier on to avoid last-minute changes
that could affect the success of the event.
Consumer R10 A potential issue during event planning is when a
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buying habits customer fails to arrive on time. Proper time
management is crucial in event planning, and delays
caused by late customers can disrupt the entire
schedule.
R11 Crowd management is crucial in event planning as
crowds can present a variety of challenging
situations and behaviors.
R15 Customers who request changes to the menu at the
last minute can create challenges in controlling the
amount and type of food being prepared for the
event. It is important to strike a balance between
having enough food for the guests without going
overboard and ensuring the buffet looks presentable
throughout the event.
Lifestyle R5 After the pandemic, people all over the world have
factors adopted new lifestyles and social norms. As a result,
event managers must stay up-to-date with current
and future event trends to remain marketable to
potential clients.
Population R7 Event managers must continually update their
demographics knowledge and expertise, particularly in protocol
and VIP handling, seating arrangements, and the
appropriate use of red carpets when receiving
distinguished clients.
Technological Factors Affecting Event Businesses
Technological factors are technology-related factors that help event businesses to grow and advance.
Based on the interview responses, most event managers regarded innovation, technology incentives,
and social networking upgrades as technological factors affecting their business performances. Table
7 presents a summary of technological factors, along with a summary of responses and who
mentioned them.
Table 7
Technological Factors Affecting Event Businesses
External
factors to Informants Summary of Event Manager Responses
consider
Innovation - R2 Facilities and equipment for events need to be
Tools and carefully considered to ensure smooth and
technological successful execution of the event.
advancements R6 Event managers need to stay updated with the
latest software and technology used for webinars
and training sessions.
R12 Events can be complex, but event managers can
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use project management software to help ease the
workload. Platforms like Trello provide event
planning templates to help managers start on the
right foot and ensure that all aspects of the event
are properly managed.
Technology R8 When transitioning from physical events to virtual
incentives events, event managers need to be equipped with
the right expertise and skills to host virtual events.
This may include understanding the technology
and platforms used for virtual events, knowing
how to engage attendees virtually, and ensuring a
smooth and seamless experience for all
participants. Event managers may also need to
adjust their event planning and management
strategies to account for the unique challenges and
opportunities presented by virtual events.
Upgrades — R1 This event management company advertises part-
Widespread time job openings on various social media
use of social platforms, including its official website and
media Facebook page.
R15 Event managers can leverage social media
marketing to promote their events and create brand
awareness. By posting engaging videos and
images related to their past events, they can
showcase their expertise and attract potential
clients. They can also create a unique brand
identity by developing a distinctive logo and using
it consistently across all their social media
platforms. This can help strengthen brand
recognition and make it easier for people to
associate their events with their company.
Environmental Factors Affecting Event Businesses
Environmental factors refer to ecological and environmental factors that impact a business's
operations or customer demand. These may include access to renewable resources, weather or climate
changes, and corporate responsibility initiatives. According to the interviews, 67% of the managers
agreed that environmental factors such as supply chain management, procurement, future pandemics,
ethical sourcing, sustainable resources, weather and climate, risk assessment, multiracial sensitivity,
and geographical location present external impacts on their business operations. Table 8 provides a
summary of the environmental factors, along with a summary of responses.
Table 8
Environmental Factors Affecting Event Businesses
External factors to Informants Summary of Event Manager Responses
consider
Supply chain R3 The success of an event is reliant on various
management parties, and if a partner or vendor offers poor
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service, it can tarnish the overall reputation of
the event company.
This also reflects the event manager's
inexpertise in coordinating an event
effectively.
R9 It is important to handle event equipment with
care, especially when dealing with items used
in decorations that are made from fragile
materials such as glass and cardboard, as they
often require special attention and
maintenance.
R10 The DJ scheduled for a wedding event who
arrived late or failed to show up can tarnish
the image of the event company.
R11 The performers or guests who were expected
to attend the event did not show up.
R5 To prevent miscommunication, event
managers need to use an inquiry form.
R7 Due to miscommunication, the vendor used
the main entrance for loading their items at an
event, instead of the designated loading bay.
This confusion gave a negative impression to
the guests arriving through the main entrance,
which was intended for their use.
R8 Effective communication is crucial in planning
an event to ensure smooth coordination among
all stakeholders, including attendees, vendors,
and emergency services. Miscommunication or
lack of communication can lead to confusion,
delays, and even safety hazards. Event
Supply chain managers should establish clear lines of
management communication and ensure that everyone
involved is aware of the communication
channels and protocols. This can include
regular meetings, written instructions, and
training sessions for all parties involved. By
prioritizing clear communication, event
managers can help ensure a successful and safe
event for all.
R12 Misunderstandings can occur when staff
members do not fully understand the
instructions given to them. This may happen if
the instructions are unclear or if the staff
members are unfamiliar with the terminology.
R15 To prevent misunderstandings, event
managers should provide clear explanations
about the materials being used and present
design plans for the party decorations to the
customers. This must be confirmed with the
customers if they agree, and only after
receiving approval will they proceed with the
interior decoration.
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Procurement R8 Event managers need to conduct background
checks on food vendors to ensure the quality,
taste, and cleanliness of the food provided to
the attendees. This can be done by checking
their reputation in the market, reading reviews
from previous customers, visiting their kitchen,
and tasting their food samples. By ensuring the
quality of the food, event managers can avoid
any potential issues related to food poisoning,
allergies, or dissatisfied attendees, which can
greatly affect the success of the event.
R9 The event manager is responsible for ensuring
that the venue is kept clean and hygienic.
Additionally, they must ensure that the food is
stored and served properly including keeping it
at appropriate temperature or following
specific handling instructions to ensure that it
remains fresh and appealing to customers.
R12 When hiring staff or a technical team for an
event, it is crucial to conduct background
checks on their experience and attitude in
previous events. The punctuality of staff and
their ability to manage technical issues such as
sound systems can greatly impact the success
of the event.
Future pandemics R4 A potential way for event managers to address
the impact of future pandemics is to
continuously enhance their creativity and
innovation to stay ahead of the competition.
This could involve exploring new event
formats, such as hybrid or virtual events, and
implementing new safety measures to ensure
the safety and well-being of attendees. By
staying up-to-date on industry trends and
leveraging technology, event managers can
adapt to the ever-changing landscape of events
and continue to provide unique and
memorable experiences for their clients.
Ethical sourcing R7 Instead of rejecting the tender due to the lack
of an Indian cook, the event manager could
consider hiring or borrowing a chef from
another hotel capable of cooking Indian
cuisine.
This would allow them to still provide the
desired food for the event without rejecting the
tender.
A competent event manager must be prepared
for any situation and be willing to take risks to
ensure that their clients' dreams come true.
R15 In the current landscape of heightened business
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competition, event managers need to be well-
equipped to navigate it successfully through
effective marketing and branding strategies.
R8 Thorough planning allows for meticulous
preparation, which can result in customer
satisfaction at events.
Sustainable R9 Creativity plays a vital role in an event
resources manager's ability to enhance the experience of
new customers, which in turn can contribute to
the sustainability of their business.
R8 The pandemic has necessitated a shift in
business models for event planners, requiring
adapting to the new reality of virtual and
hybrid events.
Weather and R8 Inclement weather, such as rain on the day of
climate an outdoor event like a wedding, can be a
source of disappointment and frustration for
the client.
R10 Damage to event equipment caused by floods
can result in additional costs for event
companies, as they must bear the expenses of
repairing or replacing the damaged equipment.
R14 Adverse weather conditions can hinder the
installation of crucial event equipment such as
canopies, stages, and lighting.
Risk assessment R9 When designing an event, it is important to
consider the associated risks of the design
elements, ensuring that they can be used safely
and without potential harm. This includes
decorations, such as how they are affixed, e.g.
attached to a wall or hung from the ceiling, as
well as the use of lighting, and devices such as
projectors.
Multiracial R9 It is crucial to be mindful and respectful of the
sensitivity diverse religions and cultures in Malaysia and
to avoid any actions or decisions that may
offend or disrespect to any group.
Geographical R11 The success of an event is greatly influenced
location by the venue selection, amenities, and
location. It is important that the chosen
location is visually appealing and facilitates
easy registration for potential attendees.
R7 When designing the event venue, accessibility
should be considered to ensure that all guests
can navigate the space without difficulty.
Additionally, precise instructions should be
provided to the logistics team to ensure
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Journal of Event, Tourism and Hospitality Studies, Vol. 3, (July) 2023, pp: 57-79
smooth operations and avoid any disruptions,
such as special guests being unable to access
the front lobby due to crowds.
R14 Hosting an event in a village area with narrow
streets can present challenges in terms of
incorporating decorative elements, working
with limited resources, and budget constraints,
and ensuring customer satisfaction.
Legal Factors Affecting Event Businesses
The last factor is legal factors. Legal factors present restrictions or mandates in countries or regions
where a company conducts business. This covers health and safety regulations, work laws, and
consumer protection legislation. Responses from event managers revealed six legislative factors
related to their business operations. These factors are related to health and safety regulations, health
and safety law, employment law, common law, and consumer protection law. Compliance with
legislative law is regarded as a strength for most event companies as it shows the commitment of the
company to deliver the best. Having proper legal documentation, such as agreements, is one of the
competitive advantages of companies (Martínez-Vázquez et al., 2022). Table 9 provides a summary of
legal factors, along with a summary of responses to elaborate on each factor.
Table 9
Legal Factors Affecting Event Businesses
External factors to Informants Summary of Event Manager Responses
consider
Health and safety R4 R4, who is an event manager, considers social
regulations distancing as a limiting factor that could
potentially decrease the number of participants
at an event and have a negative impact on the
event company's profit. The restrictions on
gatherings or limitations on the number of
people allowed to attend due to social distancing
measures could even result in event
cancellations, which may lead to significant
financial losses for the event company.
Health and safety R7 The importance of event managers being
law knowledgeable on how to handle intoxicated
guests during an event cannot be overstated. If
left unaddressed, the behavior of the drunk guest
can negatively impact the overall experience of
other attendees and tarnish the reputation of the
event company. Therefore, event managers must
have protocols in place to deal with such
situations, such as offering water, calling a taxi
or rideshare service, or enlisting the help of
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security personnel to escort the guest out if
necessary.
Employment law R9 In addition to designing an event for maximum
impact and attendee satisfaction, event managers
must prioritize the welfare, health, and safety of
their staff. This involves ensuring that staff
members are properly trained and educated on
handling potential dangers and hazards that may
arise during the event.
R12 Staff who are well taken care of in terms of their
welfare are likely to perform well in their jobs.
Experienced staff who know what to do and how
to avoid unnecessary incidents can greatly
contribute to the success of the event. Proper
training and clear communication of roles and
responsibilities can also help ensure the safety
and well-being of both staff and attendees.
R10 Event managers should ensure that there is a
clause in the contract that addresses staff safety
and insurance. This clause should outline the
responsibilities of the event company and the
client regarding the safety and well-being of
staff working at the event. It should also specify
the type and amount of insurance coverage the
event company has to protect its staff in case of
injury or accident while doing the job. By
including this clause in the contract, event
managers can provide their staff peace of mind
and ensure that they are adequately protected
while working at the event.
R14 Event managers need to maintain good
communication and relationships with their
part-time staff and ensure that they are treated
well.
Common law R5 The majority of business operators refuse to
have long-term business relationships due to
unexpected situations, which reduces the
chances of developing long-term relationships
with their clients.
Consumer protection R8 It is important to have a contract or agreement
law with vendors to ensure that they can provide the
necessary items or services on time to avoid
delays.
R10 Logistics — Keeping timelines and logistics on
track is one of the toughest challenges event
planners face.
R8 Customers had requested their deposit money
back in situations where the government did not
allow events to take place or due to weather
conditions that caused delays and prevented the
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event company from performing well.
R10 Bad weather can greatly impact the success of an
event, as it can cause disruptions and damage to
event equipment and decorations. For example,
if a wedding ceremony is held outdoors and it
starts to rain heavily, it can result in a flooded
and messy wedding canopy or throne, causing
frustration for the wedding couple and their
guests. Event managers need to have
contingency plans in place for such situations,
such as having a backup indoor location or
having waterproof equipment and decorations to
mitigate the impact of bad weather during the
event.
R8 Clients and event companies should be aware of
their rights and responsibilities, including what
can be expected and what cannot be expected.
Consumer protection This includes contractual obligations, refund
law policies, and other terms and conditions. By
having a clear understanding of these rights and
responsibilities, both parties can avoid
misunderstandings and disputes that could lead
to unsatisfactory outcomes.
R9 It is important to have a special agreement in
place to ensure that all necessary items can be
transported in the lorry or van provided, without
causing any damage to the goods being
transported.
R10 When handling food and beverage, event
managers must have a good understanding of the
quantity and dietary requirements of the guests,
as well as any food allergies they may have.
R14 To minimize the risk of dissatisfied clients, it is
important to have proper documentation. The
power of documentation lies in dealing
according to what is stated in black and white.
R15 The event manager should work with their
clients to gather comprehensive information
about any food sensitivities and allergies that
guests may have. This includes providing
detailed information about the intended food
theme throughout the ceremony, as well as
offering alternative menu options for guests with
specific dietary requirements. Event managers
must ensure that all guests are accommodated
and provided with safe and appropriate food
options to prevent any negative impact on the
overall experience during the event.
R9 The event manager needs to ensure that all
reservations are paid for and confirmed, and
conduct comprehensive rehearsal to ensure
everything runs smoothly during the event.
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Consumer protection Additionally, it is important to ensure that the
law entertainment or event arrangements are within
the financial means of the client.
R14 To prevent legal issues during or after an event,
it is essential to have appropriate client
agreements in place.
CONCLUSION AND RECOMMENDATIONS
In summary, the event business in Malaysia is a promising sector that provides unique content
depending on the type of event. It has become a form of tourism product, although it is known as a
fragile and highly competitive sector (Maidin et al., 2021). Therefore, event managers should put in
extra effort to ensure their company’s competitive advantage; in this regard, PESTEL analyses can
help companies identify their competitive advantages (Martínez-Vázquez et al., 2022). As a broad and
insightful document (CIPD, 2021), PESTEL analysis helps to maximize opportunities and minimize
threats for event companies. Based on the results of the PESTEL analysis as discussed in the earlier
sections, it is crucial for the industry to consistently carry out assessments such as PESTEL, as it is
evident that even businesses are highly susceptible to external factors such as political, economic,
social, technological, environmental, and legislative factors.
This paper significantly benefits event managers, especially in the Malaysian context. To stay relevant
and competitive in the market, event managers should always monitor external factors that may
impede or support their company's development. The findings interpreted from discussions with 15
event managers provide real-life feedback on how political, economic, social, technological,
environmental, and legal factors have affected event businesses. These insights are important as a
guide for future event managers to operate their businesses successfully. Initially, as the responses
varied between positive and negative, future researchers should consider conducting a SWOT
analysis, Porter's five forces analysis, competitor analysis, and the PESTEL analysis (Vidani, 2015). It
is also recommended that all event managers consistently conduct PESTEL analysis, as these external
factors frequently change with time and world events.
ACKNOWLEDGEMENT
The research presented in this paper is supported by the Institute for Management & Business
Research (IMBRE) at Universiti Utara Malaysia through the Case Study Grant Scheme (S/O CODE
21476).
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