Introduction to event

participating in certain events as performers, the media, local tourism bodies, 
or providers of facilities and infrastructure for instance. Moreover there can 
be local firms and businesses looking to improve revenue through events. 
An event management company‘s stability and profitability are 
interdependent on its ability to quickly identify and respond to changes in the 
external environment. Change is inevitable and having the flexibility to deal 
with unexpected market mutations can mean the difference between survival 
and extinction for an organization. 

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Event Management HM-402 
Uttarakhand Open University 
23 
2.4.1 Conducting an Environmental Scan 
While external factors like government policy changes are sometimes unexpected, 
that doesn‘t mean one can‘t prepare for them. The most effective way for a business 
to prime itself to be flexible and adaptive is to develop a framework for conducting 
an environmental scan. 
An environmental scan is the process of methodically gathering, analysing, and 
interpreting data about external opportunities and threats. It‘s a mechanism to collect 
relevant information about the outside world, the competitors, and the market 
position of the event management company. 
One of the most popular methods used to perform an environmental scan is the 
PESTEL analysis. This model is an external factor evaluation matrix that focuses on 
six spheres of data: 

(P)olitical: The extent to which a government may influence the 
economy and thereby impact organizations within a certain industry. 
This includes government policy, political stability, and trade and tax 
policy. 

(E)conomic: How economic conditions shift supply and demand to 
directly affect a company. This includes economic growth or decline, and 
changes in interest and inflation rates. 

(S)ocial: Changes in the socio-cultural market environment that illustrate 
customer needs and wants. This includes emerging trends, population 
analytics, and demographics. 
