Headcount Constraint In An Event Organizing Company: Case Analysis Of Parteeboo
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Date
2014
Authors
Arunasalam, Jaseetharaani
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Journal ISSN
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Publisher
Universiti Sains Malaysia
Abstract
The purpose of this study was to explore the headcount constraint issue in SME event organizing and designing company ParteeBoo that caused them to turn down customer orders. ParteeBoo is a unique service provider that designs themed parties, especially children parties. It was established in February 2012 by two business partners. Hiring headcount based on peak season alone caused a dilemma to the business partners because of the impact on profit margin caused by lesser sales during non-peak season.
Interviews were conducted with three ParteeBoo business partners, two interns and two customers to understand the issue faced by ParteeBoo. Interview was also conducted with a member from the industry who is an expert in other service industry that does event management and tourism to understand their practices. Analysis using Porter’s Five Forces, Fish Bone Diagram, SWOT and TOWS was undertaken to examine the problem faced. Findings from the study found a few contributing factors such as seasonal business trend, headcount availability, over loaded management and last minute orders were causing the headcount constraint.
Based on the analysis, some of the recommendations proposed to overcome the headcount constraint issue were to smooth the demands by increasing promotion of other parties during the non-seasonal period, being more focused on core business, recruiting new recruits that match the skills needed and hiring of recruits on a contract basis and to charge more for last minute orders or to decline if there are no capacity available.
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Keywords
Headcount constraint in an event organizing company , ParteeBoo that caused them to turn down customer orders