Feasibility Study On Convention Center: SMART Aim, Macro-Environment Analysis, Key Stakeholders

SMART Aim and Objectives of a pre-feasibility study on Convention Center

Aim and Objectives of a pre-feasibility study on Convention Center

The feasibility study aims to investigate the market feasibility before constructing event activities. After that, the financial stability will be measured to verify direct operating facility-related revenues, and potential risks will be identified. The economic spending will be generated at the advanced level, where both direct and indirect spending will be considered.

The objectives can be evaluated according to the pre-feasibility study on Convention Center by using the SMART aim.

• To achieve 78% financial stability in this convention centre-based project, BMCC will require the next 5 years.
• To investigate fair market feasibility within 90daays, the BMCC management will require to engage a minimum of 65% efforts.
• To estimate economic spending in advance, the BMCC Convention Center will require 60 days.

The city of Bruges had taken initiatives to commence this renewal urban based project as there was a lack of places where the events could be arranged successfully. The contemporary requirements have been verified in terms of the programming segment. Moreover, the city of Bruges decided to transform the exhibition hall into a covered public square that can be expanded with ultra-modern congress buildings, and the entire building has been renewed properly (Eyre et al. 2021). This urban renewal based project has delivered a dynamic architecture that might be used as a pleasure to organize the convention and meetings. 

UNESCO facility was required to develop the new building for the Bruge Convention centre as it controls the meeting industry as well, as event management is led by it. It makes up the biggest global business section as the industry needs to arrange meetings regularly. The main target of this convention-based project concept is to bring the professionals together and foster many new connections (Govender, 2018). In this project, the BMCC also facilitates the organizations of Bruge to organize the business summits and conduct leisure events like concerts to promote the new ideas and allow the users to spend leisure events, respectively. However, the following facilities make the UNESCO technology important in this convention project. 

This architecture will support proper logistic flows where all the business activities can be organized and provide an excellent overview of this Belgium city (Marques and Pinho, 2019). These convention centres will improve the importance of UNESCO world heritage as it is very closed to it and will be very feasible in terms of economic feasibility.

In this section, the macro-environment has been analyzed on the operations of the convention centres in the UK. This analysis aims to identify the major factors affecting global meetings and event management. Companies have to pay attention to effectively launching new products and services (ESR?NGÜ et al. 2020). A good PESTEL analysis is the way to analyze the needs of BMCC, like the exhibition industry. This macro-environment analysis plays an important role in establishing the opportunities and recognising the potential threats for this industry. 

Multiple political factors affect the meeting and convention industry. The first is the political pressure that might include the policies and regulations to minimize the obligations. The political situation of the country affects the economic settings of any business. In that case, the political environment of the newly designed convention centre also comes across this challenge that degrades the business performance (Trimçev et al. 2020). For example, a major difference has been seen between the Democratic and Republican policies in most countries. This transformation sometimes brings adverse effects in the taxes and other government expenses that ultimately affect the economy. 

• The Belgium Government rules and regulations have to be maintained properly to manage the conferences. It will be helpful to set a relationship with public conferences.
• Sustainable government protocols are to be maintained to analyse the current situations of the region of this convention centre. Besides this, the social conditions should be considered that have huge impacts in meetings and conferences of BMCC.
• Once the government grants this construction-based project, a conference will be organized to discuss the post-construction governmental rules and protocols.

Rationale of the Feasibility Study on Convention Project

The UK’s economic trends and the pressure bring various effects on the events and exhibition industry. According to the recent survey, it has been seen that a rate of 8% annual growth was in the year 2019. Due to the post COVID effect, it was 4% of total GDP growth in 2020, and it degraded at 2.1% in the middle of 2021 (Matovic, 2020). Due to minimising the growth internationally, the event and exhibition industry faces awkward positions. The expectations from the visitors of BMCC are quite higher in this pandemic period as architectural design is ultramodern based, and sustainability is the main factor to demand high prices. They started losing their potential clients for costy event management issues, reducing the overall ROI. 

The main purpose of the event industry is to improve its popularity through various communication mediums. The organizations always look for discounts on the events booking prices once that convention centre launches a new service or product. On the other hand, event management companies always try to build rapport with potential clients (Jadan, 2020). This approach forces the exhibition halls to re-think before designing the conference areas. Therefore, the architects of BMCC are enough dedicated to settling down a relaxing atmosphere to discuss business casually. 

The social factors comprise exchanging public views and opinions that will be useful to meet the objectives of convention centre promotion in the globally competitive marketplace. The advanced strategic decisions will be taken to organize the seminars without any unnecessary social complications. To promote these meetings and conference centres, modern, sophisticated advanced technologies can play a vital role in accomplishing business goals.

With the development of multiple technologies, event organizations have to adopt virtual event management strategies. In this pandemic period, this phenomenon is quite useful to attend the meetings that cannot reach the conference. Besides this, it also stimulates physical events in the online platform. Even it allows the users to enjoy their leisure time to see the virtual exhibitions from any corner of the world. 

• Virtual Exhibition in the BMCC is useful to arrange conferences for all the tourists, and Virtual Reality tools are helpful to make meetings and conferences more responsive. Moreover, it allows the users to represent the 3D views about the business conferences are the main advantage of adopting the new technologies.
• Cybersecurity protocols protect the IoT assets and work as a safeguard for newly proposed business strategies. Cybersecurity technology is helpful to prevent hacking data issues, and it will deal with this BMCC convention project. An end-to-end encryption methodology must be proposed in this section to avoid unnecessary security concerns.

Everyone in the world is struggling in this pandemic period. In this critical situation, the Bruges Meeting and Convention Center are still in the construction phase, which is now a blessing for their management. They have numerous scopes to bring changes in architectural design. For example, they can host hybrid conferences, including the virtual environment (Segura et al. 2018). A wide concept of sustainability and green environment promotion play vital roles in adapting the environmental factors. Thus, the stakeholders of BMCC are hopeful that the global environment will return to normal within the next few months by mitigating all the issues related to this project. Therefore, they will be able to arrange the meetings and events soon as the sustainability is maintained here properly. Furthermore, it is useful to eliminate the problems with the budget allocation and enhance the project feasibility with ease.

The final point that needs to be paid attention to is the legal laws and protocols that need to be followed by the exhibition organizations. The legal issue can be raised if exhibition planners do not maintain particular terms and conditions. In this pandemic period, the BMCC wants to attract clients by maintaining all the COVID protocols. They need to restrict the number of members for meetings and conferences.  On the other hand, this project must follow the guidelines given by the Belgium government if any heritage building is near this conference building. In that case, they might take permission before conducting the operations associated with this project.

Evaluating the Macro-Environment in which Convention Centres Operate

The exhibitions attract various people, including government sectors and other private business organizations. Exhibitions are mainly organized through certain stages; organizing, exhibiting, and visiting the programs accordingly. 

Identifying internal and external stakeholders in the project management allows the researcher to execute the project in a better way. Ensuring each stakeholder will be informed throughout the project that can satisfy the outcome. Without stakeholder analysis, it is quite impossible to identify the external and internal stakeholders of this BMCC convention project.

According to the stakeholder’s theory, there are three key stakeholders of any event management system, and BPCC is not exceptional (Keeys and Huemann, 2017). The event organizers, exhibitions, and attendees play the main role of this BMCC centre’s management stakeholders. 

An event manager of the Bruge meeting and management centre is responsible for planning and producing the events. To perform it, they follow the guidelines given by the organizations, manage the resources, and take actions accordingly (Cui et al. 2018). The managers formulate and prepare the risk associated plans based on the event booking. 

The project sponsors are the project financier who is responsible for sending the

Once the event has been coordinated, the project documentation is required to execute the plans. In that case, the BMCC information manager will play a significant role in managing all the data on the events or exhibitions from pre-event to post-event analysis. He is involved in maintaining the database to store the event booking details. Besides this, he will develop the statistical graph according to the target audience’s preferences. It is the best way to attract customers (Osei-Kyei et al. 2017). Besides this, he can prepare the risk management plan that formulates the risks and their mitigation ways. 

The security managers of the BMCC centre are responsible for preparing the security framework for their clients. This framework will store the confidential data of the events and associated organizations. Moreover, the employee’s records and guests’ information will be kept in the BMCC database organised with data encryption based protection. Besides this, the procure management and the raw data about the meetings are recorded without compromising the data protection. They only allow authorised people, and a face recognition system has been introduced here for environment security purposes. 

Meta architectural bureau has delivered the obstacle free exhibition hall with enough capacity to accommodate different typical events. They are responsible for transforming the area into public covered conference areas. Once the exhibition hall is developed horizontally, the shared entrance built by the BMCC architecture can be useful to connect between exhibition and conference areas (van Winden and van den Buuse, 2017). Thus, the neighbourhood can access the events from outside where the conference area has been stacked vertically. Besides this, the preservation of majestic trees supports a safe and healthy environment that introduce good environmental impacts in that region of Belgium. Thus, the eco-friendly environment easily relieves everyone and upgrades satisfaction levels by collaborating with construction-based project external development factors.

Exhibitors are the external stakeholders of any event management. They rent and decorate the venues of the BMCC after choosing the suitable places to organize the exhibitions. Those exhibitors aim to participate in exhibitions, fulfil corporate social responsibilities, and gain competitive advantages. 

Political Factors

Both the organizers and exhibitors of this centre want to attack more clients. They decorate the environment according to the event and meeting types (Budig et al. 2018). Besides this, the seating arrangements and projector setup are also done perfectly so that all the people can view data on display properly. 

The financial investors aim to grant sponsorship of the business. The project sponsors of the BMCC will monitor the day-to-day operations of this project. This sponsorship will be required to involve at the very beginning of this project. They will help to conceive the project aim easily within the shortest period.

For example, like a state official, the project sponsor can invest sufficient to develop the constructions. In this construction-based project, both public and private financial investments are required to run this project and secure it from major failure from financial aspects.

The clients are the external stakeholders on whom the entire business is dependent. The booking status and business situation are entirely dependent on them. The exhibitors can easily utilize the online market and attract more clients through technological development. This attracts more clients repeatedly by introducing new products and expanding the industrial development (Levy, 2018). Therefore, the clients of this BPCC can be benefited from a face-to-face communication facility with proper accommodations and other facilities. 

Both globalization and liberalization are quite important for potential clients and customers. The organizations have to adopt the way to involve the globalized economy and need to avail competitive advantages from the global marketplace. This section aims to find out the current trends (Locatelli et al. 2017). The companies can find new markets and start partnership businesses with other similar organizations. This strategy will be helpful for BMCC as it is still under construction. Hose er, it comes political pressures with the liberalization of trade, which may affect the higher standard of living. 

This situation is quite helpful to gain knowledge from the internet and become envious. Thus, it can attract foreign investment to enhance local economies and improve higher living standards. It is helpful to set up new and cheap production lines for the establishment and displays their services to emerge the market trends. 

In the recent crisis, the BMCC can cut advertisement expenses through online platforms. Both the exhibitions and meetings are the centre sources of income, and the industry needs to focus on those areas for their economic growth. The expectations of the exhibitors can be fulfilled once the social aspects of the trends meet the expectation levels (Nicholas and Steyn, 2020). However, the main target of those event industries is to maximize the overall ROI (return on investment). To host regions, it is required to eliminate the frivolous expenses intellectually. To do this, the organizations carefully monitor the ROI without compromising the services of exhibitions and events. It might also include an assured return. This technique will influence the event management board of BMCC to introduce their services in innovative ways. 

In this segment, the social networking and e-marketing strategy are helpful to host the regions for events. If the event is posted on Facebook, LinkedIn and other social media platforms, it will be easier to perform an online survey to know the clients’ opinions (Aljohani et al. 2017). Moreover, it also minimizes the survey time as well as help to attract more potential customers by understanding their choices and decisions. Thus, economic growth can promote new sides of this event management organization. 

Economic Factors

However, there are also negative economic impacts that cannot be avoided due to its biasness. The conventional process of assessing the impacts of the economy often becomes controversial. They are connected with negative shades when naive approaches and political pressure are added to this segment. It becomes critical to host regions without ignoring those adverse effects. 

To contract with authorities of economic effects, analyze the local communities who are also part of hosting the events (Tam et al. 2020). They are also intended to attract new clients and justify public investments. In that case, the organization needs to repeatedly perform fair market research to gain positive effects. 

The conceptual framework on social implications re-develops the event management plan and produce the economic benefits. There are several benefits that the convention management team can avail to host the events in the new regions. 

First, the economic benefits can be seen in the event management business context. The skilled jobs offer more employment and introduce the first-class to employ the tax based enhances. It might include income and property tax as well as sales. 

Secondly, host or place marketing carries the city image and raises awareness. Moreover, it raises brand awareness, creates associations with the desired features, and improves the local pride, which is the ultimate goal of BMCC (Radziszewska-Zielina et al. 2018). The organizations will be interested in using their convention center for meetings and other conferences or exhibitions. 

Thirdly, social welfare benefits include building communities related to the events. It will enhance the strength of social networks by supporting social reasons. Therefore, social impacts can improve the brand image of the exhibition venues like BMCC centre. 

The main funding sources in the event are debt capitals, retained earnings, and equity capital. The BMCC Company can use the retained earnings from the business operations and expand to the shareholders. Business operators can raise funds by borrowing debt from the public or private banking sector. 

Based on the data collection, extraction data analysis, and discussion with stakeholders, a financial model on this convention centre construction project can be prepared. Suitable assumptions on the costs and revenue sources can be made to assess the potential development of the site. The financial feasibility analysis might be concerned with the following areas.

This section will derive the expenditure for implementing the proposed project. First, the operating cost will be estimated as per the base costs. The base costs for operating various project components like water, electricity, housekeeping, and security standards. The root cost for this BMCC project will be considered after an appropriate analysis of expenditure patterns of the Belgium region. After a few years, the percentage accuracy will be applied to the project cost.

The financial analysis of this conference centre project will be undertaken to recognize the proposed project’s potential and generate expected returns. An appropriate return can make a proper commercial venture where different financial indicators are involved in estimating the viability of this project. Those indicators like Debt Service Coverage Ratio (DSCR), Present Net Value (NPV), and Internal Rate of Return (IRR) estimate financial viability.

Social Factors

In this step, the scenario has been analysed along with project risks. Those risks are not limited to the financial crisis, and they will also deal with the existing facilities related to the project. Moreover, the current situation analysis is important for this section for performing feasibility study from financial aspects. This scenario generation will be built to analyse the factored-in financial viability.

It is required to check the proposed activities according to the goals of this BMCC Conference centre. After that, the base prices will be calculated for each of the activities, and it will be helpful to estimate the minimum charges and use prices required to run this project. Now, it is the right time to generate revenue projections based on the proposed occupancy pattern. In that case, different revenue streams will be generated in upcoming years. The value must be changed accordingly due to the newly proposed activities and various revenue projections. Thus, a preliminary assumption regarding cost and expenses will be made in the upcoming 5 years.

The project undertaken under the PPP (Public-Private Partnership) might have sufficient profit-generating potential. This approach attracts the private bidders easily, even if the viability gap is there. Similarly, the project financials and impact assessment implementation strategy will be finalized. Structuring the transaction has multiple risk possibilities and liabilities that can be suggested effectively. So, this transaction-based analysis can analyse whether the PPP framework is perfect.

Decision-making skills under the project management approach can control the quality of services and perform cost management for the event management industry. Evidence-based effective decision-making principles introduce data reliability and accuracy. Those results are useful to perform logical data analysis on the quality of services provided by that specific event management organization (Nocca, 2017). Similarly, it is also helpful to take business decisions to find out the unproductive positions of the organization. Therefore, efficient decision-making skills show how to get success within a short period. 

To upgrade the business performance, the decision-making process plays a unique role in maintaining costs. This improvised cost analysis segment is helpful to determine the event management cost and estimate the overall costs. Moreover, decision-making skills under project management can reduce overall expenditure and ensure that the project will be finished on time. 

Bruges enjoys a location-based advantage that will be applied for exhibition purposes under the ultra-modern infrastructures. The Belgium government of Bruges might arrange enough funds for project development purposes (Lepri et al. 2018). The findings are connected to the main critical success of establishing a financial plan to make this project financially viable. Thus, the users need to focus on the infrastructure to accommodate the global conferences in this convention centre.

Cost management covers the segment to determine the project cost and the way to control the costs from the baseline. Many times, strict control methods adversely affect the quality of products and services. The external and internal cost related to the event management needs to be maintained under the project management to prevent necessary expenditure (Kundzewicz et al. 2017). The accountants can easily keep the expenditure under control by using decision-making based cost optimization techniques. This financial chart is helpful in the feasibility study to get a rough idea of the whole expenditure. It will be suitable for the BMCC HR management to arrange the conventions easily. 

Technological Factors

Many issues can be seen in the project management context. 

To arrange meetings and conventions, the installation of computerized convention centre systems might be installed. In this period, both the physical and virtual meetings are arranged to complete the urgent tasks by the organizations. In that case, improper installations of video cameras projectors can be a barrier to arranging the meetings. 

As the Bruges convention centre is still under the construction phase, financial issues may arise at the initial stage. As the sponsors are not available due to the present economic conditions, it is quite an issue to make an effective arrangement of events. 

Another issue the operation manager can often face during customer support is operation management. Most of the time, client dissatisfaction comes due to a lack of handling customers at a time. Moreover, booking and financial handling are other issues in this event management that may face the event manager to lead BMCC centre.

Time management is a vital issue that often raises business management concerns. The event managers need to manage the time to deliver the products and services to their clients within a specific time without losing band loyalty (Singh et al. 2018). The management needs to involve the decision-making based requirement analysis and timeline related Gantt charts to maintain it.

Proper planning is required to avoid event management failure. In that case, the decision-making skills will be involved to check and monitor the performance chart of the employees. Moreover, the progress report must run and verify the business status instantly. It minimizes the failure of an event-based business. 

The technical assessment of the feasibility study is useful to determine whether the technical team of the project can meet the customer’s expectation levels or not. The technical requirements are enlisted under the project management based decision-making skills. So, the technical team can convert the technical features into working systems effectively. 

The Feasibility In The Economic Assessment Involves Cost Benefit Analysis That Is Quite Useful To Determine Overall Expenditure Viability And Other Associated Financial Resources. It serves the project credibility under the decision-making system.

The operational feasibility studies deal with the user requirements to meet the operational expectations. The operational management of the convention centre deals with the event requirement analysis, planning, and exhibition management (Singh et al. 2018). These stages are easily maintained if the feasibility study has been done appropriately before applying the operations. 

Human resources play a vital role in determining the project’s optimal feasibility and financial viability. This approach is important to make business decisions to design the convention centre and meetings. Resource activities can be involved to improve the demand of skilled members within a specific period. The Human Resource Managers can analyse the project and its economic feasibilities. Resource feasibility determines the net amount of resources to meet the project aim effectively.

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