Assignment on Hospitality Contract and Event Management

 

1. Understand external factors that affect planning and management In the event and contract sectors

1. 1 discuss the main characteristics of the contract and event catering sectors

   
   
   Contract and event catering sector should have some characteristics which are vital for them. Some of them are given below-
   
   
   • Their service quality should be good and efficient.
   • Their product quality must be strictly followed as product quality production.
     
   • They should be innovative to compete with others in this sector
   • There must be a written contract between service providers and the clients.
   • There should be a well-defined group of users.
   • Their price must be lower than the price of meal in commercial catering.
   • There may be special constraints arising from the fact that the service is provided on the premises of the client entity, in line with a method of organization specific to that entity.
   • Contract catering covers the provision of food services to people at work in business and industry, catering in schools, colleges and universities, in hospitals and healthcare as well as welfare and local authority catering and other non-profit making outlets.
   • In 2004, the cumulative annual turnover of all contract catering companies operating in Europe represented approximately €22 billion.
   • For contract catering companies The Health and Welfare sector will be one of the main sources of growth by 2020.
     
     

     1. assess external factors affecting planning and management in the event and contract sectors

        Planning and management of event and contract sectors are affected by different internal and external factors. In below we are going to discuss the external factors which affect the planning and management of this sector-
        • Economic condition- If recessions occur or economic growth is negative, and then it adversely affects this sector. Inflation and deflation also affect this sector.
        • Demographics- The change in population growth rate, civil unrest also affect the planning and management in event and contract sectors.
        • Competition- Due to competition companies in this sector need to change their planning and management.
        • Politics- For different political reason like political clashes, political unrest, war this sector affect adversely.
        • Government- Government may affect the planning and management by implementing different laws and regulation.
        • Technological changes- Due to technological changes this sectors need to change their planning and management strategy.
        • Cultural and religious trends- In this era of globalization, company who want to work world wide need to change their planning and management strategy because each country or nation has their own religious and cultural values.
        • Supply and Demand- The change in supply and demand affect this sector.
        • Environmental change- Due to environmental change this sector is also affected.
     
     

2. Understand the operational issues which affect the success of event management

1. discuss the elements of project management which are necessary to ensure effective management of events

   
   
   To ensure effective management of event several elements of project management are necessary. In below we are going to discuss about them-
   1. Senior management direction and support: For determining the objectives, resource allocation and strategic direction senior managers or project sponsors are responsible. They are link between the team who work in the event and the executive management who driving the overall project. To develop a plan structure and process that helps to done the overall project properly, sponsors or senior management must challenge the project leaders and team members.
      
      
   2. Well Assembled team: To ensure effective management of event a well assembled team is necessary. In the project team there must be right individuals with proper skill and background.
      Professionals from different disciplines should be included in the team.
      
      
   3. Proper distribution of Roles, responsibilities, authority and accountability: Proper distribution of activities in the team is essential for success of a project. Selected leader will be responsible for leading and controlling the team; he also liable for formulating the plan, coordinating project tasks and assigning staff. The other members of the team are responsible about their tasks for which they are assigned. In the plan their roles, responsibilities, and authority should be clearly outlined.
      .
   4. Team process: Based on the outline team leader and members work to in right process to attain their goal. The work process should be related to the team goal and the event. Team leader is responsible to observe and control the other members of the team to execute their given tasks.
      
      
   5. Business objectives: Project’s objectives and its relevance to the business’s overall objectives must be stated in project plan.
      .
   6. Project planning tools: In planning process required tools must be made available to project managers. Like spreadsheets to illustrate tasks to complex data collection or data mining instruments for benchmarking a measurable goal. In determining timelines,
      resource allocation, risk assessment and measurement right tools plays a critical role. The tools must be relative to the overall project goal.
      
      
   7. Methods of Communication and reporting: To make a project successful a team needs to communicate with its clients effectively. It is also important for them to communicate with their seniors or supervisors to report daily about their tasks via email or other communication tools. To do the tasks according to the outlines it is important for the team to communicate and report effectively with their seniors.
      .
   8. Measurement and tracking. Finally: To check progress a solid project plan should have clearly defined measurement metrics and benchmarks. To assess their progress against stated goals it is important to measure or track by benchmarking with the outset and parameters identified for the team.

2. discuss the type and level of service associated with a variety of events

   Depend on the nature and scale of events, types and levels of service change.
   Entry and exit number for venue differ from event to event. If large amount of people attend in the event then number of exit and entry number must be high. For example- for concert need more exit and entry gate than academic conference.
   Catering service also differ with the change of nature. In wedding event or personal party food is supplied for all but in concert food is not supplied for all; there food supply for guests, artists, crews, staffs, volunteers etc.
   In some events people use to stand and in some people used to sit. e.g. - in concert people use to stand during the performance and in seminar people use to sit. So allocation of enough sitting arrangement is vital for some event.
   Audio-visual services are very events to events. For educational and academic events audio-video system must be clear and visible to all. In this case event organizer also considers the least disturbance by the event’s sound to the other classroom. Generally in sports or musical events sound is loud.
   Security service also change with type of events. For large event organizers need large number of security personnel. Events ending at midnight have higher security risk than events ending before midnight. The events where tickets are sold at the gate or door
   need more security than events restricted by written invitation or involving advanced ticket sales. Money collection events also need additional security.
   Some events need ticketing and some events don’t. For ticketing special service need to be employed.
   
   

3. assess the health, safety and hygiene problems which can affect the operational success of an event

   Due to health, safety and hygiene problems an event can be unsuccessful. Without adequate exits there is a chance people may be injured if problems happen like – fighting, fire etc. In indoor events it should be checked that the floor can take the weight of the equipment being used. It must be always take into consideration that overwhelmed crowd is hard to control. Without appropriate and adequate sanitary system an event may become a dirty place. Food preparation area must be placed away from toilets. Depending on the event type and event length toilets need to be cleaned and re-stocked, otherwise bad odor may be spread all over the event. Lacking of adequate drainage system may cause unwanted unsanitary or flooded condition in the event. Inappropriate facilities for artists and participants may cause bad reputation for the event organizer. If an event is held without announcing, local resident may fall into problems which sometimes bring no good to the events. Without appropriate signage to direct people around the site/venue the space could be turn into ineffective, crowd management issues may result and health and safety compromised. Lack of proper waste management huge waste can be build up which can be harmful to the health and safety of all those involved or affected by the event and the environment. Depending on event size and nature event organizers must provide sufficient first aids; they may keep in touch with some doctors, nurse and first aiders for emergency. Without proper medical provision in case of any emergency an event may become unsuccessful. In event food outlet and personal hygiene should be satisfactory, otherwise it may cause infectious disease outbreak. Food and water should be handled by properly trained who are aware of hygiene. Lack hygiene in food and water handling may cause contamination of them.
   
   

4. Consider how marketing human resources and quality control are applied in the organization and delivery of a successful event

Marketing human resources and quality control are important for organization and delivery of successful event. Depend on the nature and size of the event, tasks necessary to deliver the event, skills needed from people for the jobs, place of sourcing people need to deliver the event; it is determined how many people will be appointed for the event. Human resources department help a organization to find right suppliers. With the help of key data and information on trends, innovations and suppliers in the HR space HR executives make better decisions. To make making strategic and tactical HR decisions HR professionals use information form benchmarking, best practices, market share, customer satisfaction, breadth of services and other factors that are critical. Marketing strategy will be based on strategic networking and traditional advertising. When marketing plan development in initial phase, several focus groups should hold with target market customers to gain insight into their business decision making processes. The organization may contract with most flexible, knowledgeable, and professional HR firm for marketing human resources for the event. The organization should perform advertising campaign in appropriate media related to their target audience. After meeting with the clients a company should distribute the works among the workers or recruited persons or group. Company should try to exceed the customer's expectations at whatever cost. While this might hurt short-term profits, it will only strengthen a long term, customer-centric business model. The training/development plan to be proposed to the existing team (and to workers recruited to fulfil the contract) for the success of a event.

For a successful event maintaining quality control is essential. Quality of food and processes must be monitored and evaluated. Compliance with government regulation needs to be followed. For this we should appoint some qualified personnel to monitor

and inspect them. For maintaining quality control we can use quality systems, for example ISO 9001:2000, ISO 14000, inspection and testing procedures, policies on TQM, statistical controls etc.

1. Understand the client and contractor relationship

   1. assess the importance of a good client and contractor relationship to ensure successful contract catering

      To ensure successful contract catering good relationship between client and contractor has a great importance. In any contract base business changes are inevitable. For caterer contract fatigue is a constant challenge. Developing good relation with clients is one of the ways to overcome this challenge. Sometimes relation between clients and contractors become complex. Because of the change of clients needs, contractors need to be proactive. Contractor should measure up the way of their commitment to the clients. Contractor need to make sure that they evolve with their clients to meet their changing needs and don't get left behind. Contractor do some mistakes among them one mistake happen most, in spite of clients highlighting their disappointment at a caterer's performance, the catering organization does nothing, or shows to do nothing, about the situation. A good communication between clients and contractor plays a vital role in creating good relationship. Contract catering organization need to have direct feedback from their clients. They should see clients business as their business. For design successful catering propositions they need to work collaboratively. If contract catering companies are not listening to their clients they’re going to get into trouble. They may lose their trust of clients as a result of lack of relationship with them.
      
      

   2. assess the factors that impact on the success of the contract and client relationship

      Different factor have great impact on the success of clients and contract relationship. Among them some are given below-
      • Nature of the contract: Contract’s nature has great impact on clients and contract relationship. Some contracts are simple but some contracts are complex. Depending on contract nature relation also becomes simple or complex.
      • Economic Interest: Contractor and clients both seek to have most economically advantageous offer. Contractor wants to save money form cost and clients also want to spend less money. Both bargain to reach satisfactory price which is advantageous for them.
      • Flexibility to change: If there is any chance in contract to change, clients will feel flexible. Clients may need to reduction, expansion or change in service. After both party may reach an agreement this change can take place.
      • Long-term commitment: To reach the objectives both parties need long-term commitment. Both parties should commit to help each other to solve problems during events.
      • Fairness and clarity: It plays a vital role in creating good relation between clients and contractor. Contract organizations may include third party or subcontract in their service after clients give them permission. In case of payment method both party must be clear to each other.
      • Commitment to quality: if contractor commit to provide quality service it will build good relation between clients and contractor.
      • Mutual trust: If both parties don’t have mutual trust, it is impossible to build good relation between them.
      • Communication: Communication has great impact in building good relation between contract and clients. If a client find any problem and easily communicate with contractor, he will feel free with contractor.
        
        

   3. review the different types of contract

In our daily life we see different types of contract. In below we are going to describe some of them-

• Express Contracts: In an express contract, either orally or in writing parties state the terms during its formation. There is a clear-cut written or oral offer that is accepted by the offeree (i.e., the person to whom the offer is made) in a way that clearly expresses approval to its terms.
• Implied Contracts: In a true implied contract there must be obligations arising from a mutual agreement and intent to undertake, which have not been uttered in words.
• Cost-plus contract: It is a contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit.
• Cost Plus Incentive Fee (CPIF) - here the vendor is reimbursed for costs incurred plus fee based on a formula tied to costs.
• Cost Plus Award Fee (CPAF) - here the objectives of the contract are decided to be completed by subjective means. The contractor collects reimbursement for their costs plus the award fee.
• Cost Plus Fixed Fee (CPFF): - This contract reimburses the contractor for the cost incurred to complete the work plus a agreed fixed fee. The fee does not alter based on cost of the work.
• Fixed-price contract: In this contract the amount of payment does not depend on the amount of resources or time expended. Such a scheme is often used in military and government contractors to put the risk on the side of the vendor, and control costs. Few types of fixed-price contract are- Firm Fixed Price (FFP), Fixed Price Contract with Incentive Fee Target (FPIF), Fixed Price with Economic Price Adjustment.
• Executed Contract: In this type of contract there is nothing remains to be done for the both parties and they have performed their own obligations under the contract.
• Executory Contract: In this type of contract something remains to be done by the parties according to respective obligations.
• Bilateral Contract: In a bilateral contract both the parties need to do some acts or forbearance according to their own obligations.
  • Unilateral Contract: In this type of contract only one party need to perform the promises or obligations.
  • Void contract: In this contract no legal rights or obligations are imposed upon the parties and a court can’t enforce on it. Truly it is not a contract at all.
  • Voidable contract: This type of contract is a legally enforceable agreement, but it may be treated as never having been binding on a party who was suffering from some legal disability or at the time of its execution who was a victim of con.
  • Tacit Contract: this type of contract is inferred from the conduct of parties, like withdrawing money from ATM booth.

1. understand the financial processes involved in tendering for and implementation of events

   1. discuss the process involved in drawing up contracts

      
      
      Fist we have to chose right information which we want provide and which is more relevant to our business. Our contents should reflect what we want or what we offer to clients.
      Secondly we need to make our contract easy to read and understand. Contracts written in complicated language is hard to realize. We should use such template in where all information is gathered by which clients can easily read and understand agreements.
      Before signing in the contract both parties need to review it completely. If any party doesn’t understand some or any points of agreement, those must be cleared to the party. By this both party may add any points of interest for their satisfaction.
      We can use a basic template as a starting point. By reviewing other contract we get ideas on what to add to our own contract. There are things that might interest us that we can add to our own contract to make it as informative as possible.
      We should leave some blanks in the contract for changing information. Most of times we need to alter names, dates and special disclaimers with the change of clients. Sometime some information is unique for our clients that we need to add those to our contract, for this reason we can also leave blank space.
      At last we need to make copies. When we present a contract, we should have additional copies so that both copies of our agreement have original signatures. In that way both parties have an originally signed agreement not a facsimile of a signature and cannot be modified after signing.
      
      

   2. assess the financial issues which affect the implementation of a contract Sometimes a contract is affected by different financial issues during its time of implementation. Some of the issues are given below-

      • Fee: It affects the implementation of contract. Before entering into the contract a fee must be exchanged between two or more parties.
      • Competitive tendering: The key to the operation of competitive tenders is the selection of the most cost effective bids for funding, using public funds to achieve desire outcomes. Competitive tenders are used to select the most cost-effective options. A competitive tender process will only work if the costs of achieving the desired conservation outcomes vary between participants. This will ensure that there is sufficient variation in the bid submissions, which in turn ensures an efficient outcome because the process selects the least cost bids to achieve a specified outcome. This is really challenging for catering firms.
      • Economy of scale: Many company i many fails to take advantage of potential economies of scale because of portioning of services and inefficiencies. Inefficiencies can be worsened significantly when funding uncertainties are introduced. Uncertainties in program funding create essentially the same challenges to business managers as uncertainties in the supply of food and nutrients present to natural populations.
      • Nil profit: There is always a risk of nil profit or low profit in contract implementation. Sometimes expense become high and contract bring no profit or low profit.
      • Subsidies: Gaining subsidies from government is beneficial for all the implied parties. Subsidized group or industry may be benefited in a highly competitive international industry with low prices with the help of a government’s cash subsided to farms so that they can sell at the low market price but still achieve financial gain.
      • Bidding for contracts: To win contracts, a company needs to know how to outbid other companies that want the same contracts that the company do. Knowing the ins and outs of the bidding process will help a company to compete for the business contracts.
      • Bank Guarantees: It serve as a contract performance guarantee. It gives one party right to get money from a bank for loss incurred as a result of the other party’s default or failure to perform. This system provides economic incentive for the service provider to do in accordance with the contract.
      • Quality/price ratio: In a contract both party want to have good quality service at beneficial price. In the time of implementation this issue may arise suspicion between both parties. So it should be perfectly transparent to both parties.
      • Tax legislation: When price is being calculated it needs to clearly specify whether prices are tax included or excluded. What type of tax is included and rate of it for the service also need to specify.
      • Cost: Different types of costs must be consider before implementation of a contract like- labor cost, structural and remuneration cost, food cost, running cost etc.
        
        

   3. discuss the process of business generation within contract and event management

      Business can be generated within contract and event management. For contacts and event management we need different types of people. Like - In an event we need to make use of the services of contractors -e.g. specialist firms such as waste management, pyrotechnic, and security companies; that make business for these companies. Contract also provides chance of out sourcing like- contract manufacturer, in food industry who known as copacker. Event management helps to create different types of business like- event planning business for social events, business events or a combination of both. We also need temporary paid staff and staff supplied by major stakeholders. Telephone booking may be a useful starting point. For recommendation we can ask other event manager or we can evaluate service supplier’s potential by observing them in different events where these organization provide their service. These
      will make business opportunity for those organizations. Local community can be beneficial as result of visitor spending money in event. Sometimes it is seen that event organizers contract with local business organizers for goods and services. For Large events need many people to coordinate and staging of the event that create direct job for people. For the providers of goods and service large events are flow on of business. Events can be the major drivers for tourism for the communities that want to develop their tourism potential.For events venue or site event organizer contract with venue or site owner which help them to continue their business. Contract and event management companies should consider the total product offering and focus on
      where they can add value to their business.
      
      

   4. evaluate business success and achieving corporate targets in contract and event management.

For successful contract and event management evaluation is a critical step. Most of event has business and corporate targets. After an event it needs to determine whether business objectives are achieved or not. Suppose an event’s objective is to increase profit 10% than the profit of previous year. To evaluate it an event organizer may need some degree of analysis to decide whether the profit arose from an increased number of attendees, a higher spending per attendee or from cost savings. Evaluation may be done by direct observation of event manager and staffs, visitor survey, administrative reports such as food and stall-holder income, ticket sales, and event financial statements, staff meetings and reports- where the development of the event is checked and controlled etc. By these means and other methods event manager collect necessary data and assemble these information all together to analyze event outcome and report to stakeholders. After all necessary these steps if event’s organizer notice that they gain 10% more profit than previous year, then their business target will be fulfilled and they are success in the event.

A typical form of business survey given below-

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