EXAMINING PESTEL ANALYSIS OF EVENT BUSINESSES IN MALAYSIA

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.