Part 1: Financial Report
1. Executive Summary
This paper aims to explain the phenomenon of managing finances within a budget and the operation of monitoring work. According to the background information, the Australian Multicultural Foundation, Sydney (AMFS) intended to launch Harmony Week from 10-14 June 2016. The International Hotel Group will conduct it. As the programme manager, my core responsibility will be to handle the event within the budget requirements provided by the Australian Multicultural Foundation, Sydney. The core responsibility is also to provide the budget, variance, financial and budget reports in a descriptive manner. There are three parts, with each task examining a new perspective on the financial and budget management of the International Hotel Group.
2. Event Description
The AMFS is celebrating Harmony Week. It is a 4-day event at the International Hotel Group with almost twenty international leaders invited from culturally diverse backgrounds. The hotel is responsible for hospitality, entertainment, and other associated care-management services, including music, food, dance, concerts, carnival, etc.
3. Operational Plan
Strategic asset allocation is usually based on the return and cost of the event; a buy-and-hold strategy is commonly used in such cases. It often occurs when a shift in values causes a rift in the initially established mechanism of the policy mix. According to personal study and research, the rebalancing of the portfolio is the only way. For example, in this case, when one asset declines in value, the other asset would increase in value, and eventually the asset value is increased.
Another way of asset allocation is tactical asset allocation. This is one method that works best in the company’s favour over the long term; strategic asset allocation may look relatively rigid for that matter. However, the issue of a constrained budget can be tackled and managed well by the tactical asset allocation strategy. The tactical decisions regarding the budget usually arise from a mix of capitalizing costs and using exceptional opportunities for investment. This is one way to manage the International Hotel Group well.
The market rates, as discussed regarding different categories, vary from $100 to $5,000; this was found through research, calls, and discussions with marketers in the context of event management and organisation. Thus, the allocated budget for the International Hotel Group is $67,000; therefore, the different categories must be less than this budget to fit in with the budget of $67,000.
4. Hierarchy/Organization Chart
5. Financial Statement
A Standard Operating Procedure is a financial application used for interpretation and standardisation when analysing the budget. Budget adjustments usually occur when recording income and expense budget transactions. Thus, an effective Standard Operating Procedure also allows the base budget to be modified into the current budget. The base budgets are usually established during the budget construction process and eventually undergo ongoing financial commitments as established earlier. The budget for food/tea/meals, and even the light and sound processing of the event, has fluidity, and therefore, in this way, the base budget of $25,000 could adhere. In this case, a contingency plan is also managed and includes a further $5,000; in this case, the scene of international music will be excluded from all the event amenities (McWilliams, 1997).
6. Proposed Idea
The expenses are outlined in a weekly budget under the fixed budget of $67,000:
The food will cost a total of $7,000, and this will also include the weekly meetings set by the organisers of the food business, as well as the different vendors. The goal is also to obtain sponsorships that could help reduce the cost of the event.
Once the meetings are set, around 7-8 food vendors will be gathered to help provide free food facilities and will be allowed to market their businesses through stalls and standees. The cost of booths for the event will be $1,500, and therefore, these food vendors will use the stalls to provide food to customers. The arriving customers will pay directly to the food vendors.
Furthermore, the payroll expenses will be calculated at the end of the event. Two interns and volunteers will be hired weekly. In this case, the issue is to accommodate the payroll expenses within the fixed budget. The hourly rate of a volunteer will be $15, and the daily rate of the interns will be $35; accordingly, the volunteers will be paid $15 per hour over the course of a day’s event. However, the interns are hired under six-week agreements and will manage advertising, marketing, and other promotional activities for the event.
Besides, 15 round tables with chairs will also be booked six weeks before the event to avoid any irregularity. Lighting will only be used on the musical night and during the carnival, and the lighting arrangement will cover the lawns, trees, tables, and stages in accordance with the contingency plan. The goal is to provide a quality event overall that is liked by a large number of customers while also focusing on a fixed budget. The contingency plan, as stated earlier, includes a further $5,000, and in this case, the scene of international music will be excluded from all the amenities of the event. So, one of the amenities, such as the global music or the lighting on the last day, will be avoided. The theme of the musical night will be changed to disco rather than modern, leading to less lighting use. However, this is a plan that will be avoided at all costs to avoid sacrificing the quality.
Moreover, on the other hand, the weekly plan will also include the arrangement of the accommodation. As the event is done on behalf of the Australian Multicultural Foundation and conducted at the International Hotel Group, considerable attention and budget will be assigned to the accommodations to promote the hotel business. Regarding accommodation, as stated in the appendix, only rooms with a single bed will be provided for $200 a night. This will help generate maximum profit while supporting a huge, grand event.
The event’s equipment and sound system will be given maximum attention, and due to the large expenses, their importance will not be overlooked. Some of the equipment used in the event includes projectors, a sound system, and microphones, and they will be bought and rented in sufficient quantities to achieve the event-management goals.
Another weekly budget will be set for the floral decoration and arrangement as it is one of the important amenities not to neglect. The floral decoration will include the entry, stage, table centres, and buffet area. Also, 28 small bouquets in orange, red and white flowers will be booked three weeks earlier than the event.
Eventually, another weekly budget will be set for transportation (50 passengers) to take the guests and hosts sightseeing (Campbell, 1997).
This is the entire outline assigned to the core expenses related to this event.
7. Conclusion
The event organisation is successfully briefed in this paper regarding managing finance research of the event. The Manage Finances within a Budget / Monitor Work Operation task is based on a five-day event that will be held at the International Hotel Group. As stated earlier, the tactical decisions regarding the budget usually arise from a mix of capitalising costs and using exceptional opportunities for investment. This is one way to manage the International Hotel Group well. So, the asset allocation method will be tactical asset allocation. Moreover, the market rates, as discussed regarding different categories, vary from $100 to $5,000; this was found through research, calls, and discussions with marketers in the context of event management and organisation. Thus, the allocated budget for the International Hotel Group is $67,000; therefore, the different categories must be less than this budget to fit in with the budget of $67,000. Hence, the outline of the budget is done according to the fixed amount.
Part 2: Standard Operating Procedure
A standard operating procedure is a set of written directions, such as a manual, that guides workers in performing an activity appropriately and encourages consistency and quality. The resulting set of instructions is called an SOP. In this way, an SOP helps implement and perform the specific functions or activities of the procedure effectively and efficiently. Various documents, such as guidelines, laboratory working procedures, worksheets, and conventions, may also serve as SOPs. SOPs are specific to organizations and help ensure consistency with legislative
directions. SOPs are of limited value if they are not written accurately and will fail if they are not followed. Consequently, SOPs ought to be readily available in either printed or digital form for reference by those who are going to perform the particular job or activity in the organization. SOPs help train people for a specific function or procedure; they also reduce supervisory time and effort and build confidence among the group while undertaking tasks.
Some templates of essential SOPs are given below:
Table 1: SOP – Training and New Employee Skill Building
Table 2: SOP-Performance Check
Table 3: SOP-Performance Evaluation-2
Part 3: Assessing Cost and Resources
The market rates, as discussed regarding different categories, vary from $100 to $5,000; this was found through research, calls, and discussions with marketers in the context of event management and organisation. Thus, the allocated budget for the International Hotel Group is $67,000; therefore, the different categories must be less than this budget to fit in with the budget of $67,000.
The goal is to provide a quality event overall that is liked by a large number of customers attending the event while also focusing on a fixed budget. The contingency plan, as stated earlier, includes a further $5,000, and in this case, the scene of international music will be excluded from all the amenities of the event. So, one of the amenities, such as the global music or the lighting on the last day, will be avoided. The theme of the musical night will be changed to disco rather than modern, leading to less lighting use. However, this is a plan that will be avoided at all costs to avoid sacrificing the quality.
Moreover, on the other hand, the weekly plan will also include the arrangement of the accommodation. As the event is done on behalf of the Australian Multicultural Foundation and conducted at the International Hotel Group, considerable attention and budget will be assigned to the accommodations to promote the hotel business. Regarding accommodation, as stated in the appendix, only rooms with a single bed will be provided for $200 a night. This will help generate maximum profit while supporting a huge, grand event.
Monitor Work Operations
Part 1: Assessing and Monitoring Efficiency
The event is a short-term goal; therefore, it is already identified that the tactical asset allocation strategy will work best for the International Hotel Group. Thus, in this case, the company’s most important priority is to achieve a rate of return by generating revenue from the identified expenses. Some of the expenses will include logistics, supply chain management, and the launch of the event, which will consist of marketing and advertising fees; an effective team of staff members will also be hired. So, in this case, another identified expense will be the payroll expenses. Some temporary staff members will be hired for the event, such as interns, volunteers and event organisers, so for that purpose, payroll will also be an identified expense. This cost is the amount of salaries and wages paid to employees, and in return, they provide services to the event business team. Hence, a summary of the identified expenses includes payroll expenses, logistics, supply chain management, and the launch of the event, which will consist of marketing and advertising fees.
The interns will be competent, capable, and hired based on their experience with managing such events. Moreover, in this case, advertising and marketing fees will adhere to what was initially supposed to be given to the marketing and advertising agencies. As per the appendix, the budget has to be well-managed, effective, and efficient. The hiring and payroll expenses will eventually be offset by receiving a larger number of customers due to well-developed marketing strategies run by the marketing team.
Part 2: Organization of Workflow
Workflow – Event Management at AMFS
Combined Team Rosters
Table 3: SOP-Performance Evaluation-2
Table 4 & 5: SOP-Performance Appraisal Ranking
Part 3: Meeting Minutes
Part 4: Staff and Media Delivery Report
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References
McWilliams, A., & Siegel, D. (1997). Event studies in management research: Theoretical and empirical issues. Academy of management journal, 40(3), 626-657.
Campbell, J. Y., Lo, A. W. C., & MacKinlay, A. C. (1997). The econometrics of financial markets (Vol. 2, pp. 149-180). Princeton, NJ: Princeton University Press.
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