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Executive Summary
The current report provides a thorough analysis of the annual Art Basel Hong Kong art fair, which features more than a hundred exhibitors from various parts of the world. The event stimulates the growth of the contemporary art scene and creates a cultural bridge between Asia and the West. The Background section provides a brief overview of the organizations history. Vision and Objectives focus on the primary mission of Art Basel and its strategic objectives in Hong Kong. Strategic Position Analysis comprises the assessment of the organizations external environment, purpose, and an overview of its cultural significance. Consequently, Strategic Choices Analysis focuses on the internal decisions of Art Basel. Strategy in Action Analysis discusses the implemented strategy for the event in Hong Kong. Lastly, the report presents two recommendations concerning the external environment for risk management and draws a conclusion about Art Basel Hong Kong.
Introduction
Event management plays a vital part in the development of business and the promotion of initiatives. Art Basel is one of the leading international art fairs globally that has been actively facilitating the industry since the 1970s (Our history, n.d.). At present, it stages at three primary locations Basel, Miami Beach, and Hong Kong. Since art galleries are pivotal in the promotion of the industry, the fair in Hong Kong is essential to connect the Western and Eastern traditions of art. The event lays the groundwork for future cooperation between museums and galleries globally. Ultimately, the current report presents a thorough analysis of the Art Basel Hong Kong fair and provides recommendations on potential improvements concerning event management.
Background
Galleries and fairs are critical to the growth of the art industry, and Art Basel reinforces this concept. Recent years have demonstrated the necessity to construct a cultural bridge between the East and the West. As the President of Pace Hong Kong mentioned, We hope to create more connection between the contemporary art scene in Asia and the West (Waters, 2018, p. 183). This vision further implies the significance of the Art Basel installation in Hong Kong due to its impact on the global art scene.
Art Basel is a powerful brand that is widely known in the industry. It was founded by Ernst Beyeler, Trudl Bruckner, and Balz Hilt in 1970 in Basel, Switzerland, and immediately received astonishing success (Our history, n.d.). Throughout the years, Art Basel fairs have been promoting art, photography, and even films in various parts of the world, filling the cultural gaps and attracting thousands of visitors. In 2013, the organization held an art fair in Hong Kong for the first time (Our history, n.d.). Ultimately, Art Basel, Hong Kong has become a central art event in Asia that facilitates art communication and promotes various initiatives of the leading partners.
Vision and Objectives
Since its foundation in 1970, Art Basel has reinforced its vision of developing the art industry and uniting people through culture. Vision and objectives constitute the central part of the strategic framework for event management and allow the organization to convince stakeholders of the righteousness of the cause (Sharples et al., 2014). Thus, the concept of endorsing art values and the transparent vision of the organization has allowed Art Basel to support its long-term objectives and become one of the most notable art events globally. Art Basel Hong Kong, specifically, is the event that transcends cultural boundaries and creates a connection between Asia and the West in the world of art. Moreover, the Hong Kong art fair allows the organizations partners, such as UBS and BMW, to increase its influence in the East (Hong Kong: Partners, n.d.). Ultimately, Art Basels vision has supported its growth for over fifty years, and the Hong Kong event is the next step in increasing the prominence of contemporary art globally.
Strategic Position Analysis
Consequently, it is essential to analyze the strategic position of Art Basel and determine its prospects of implementing an art fair in Hong Kong. In event management, strategic positioning is an essential part of the development program that specifies the feasibility of the project (OToole, 2022). It includes various contributing elements, such as cultural specificities of the region, economic factors, political issues, communication with stakeholders, and other aspects that might affect the event (OToole, 2022). Ultimately, the current sub-chapter thoroughly evaluates the strategic positioning of Art Basel Hong Kong.
Environment
The first aspect of strategic positioning is the assessment of the external environment. Art Basel has chosen Hong Kong as the third location of its art fairs, complementing Basel and Miami, and the current analysis provides insights into the rationale behind this decision. The present paper examines political, economic, environmental, and social factors to determine the feasibility of Hong Kong as the location for Art Basel art fairs.
Political Environment
Political factors are the most significant criteria in the assessment of the external environment since they determine the initial possibility of holding the event. As the relationship between the West and Asia, specifically China, remains in unrest, Hong Kong serves as the cultural and political bridge for communication. In other words, Hong Kong has a substantial connection to China and the West, developing a hybrid approach to many institutions (Marginson, 2021). It allows Hong Kong to serve as a cultural hub of contemporary Asian art and maintain close bonds with the West. From these considerations, Hong Kong is a highly attractive location for foreign investors and entrepreneurs that wish to increase their influence in Asia.
Economic Environment
In terms of absolute and relative economics, Hong Kong maintains one of the highest rankings globally. Moreover, the region has become the second-largest market in contemporary art auctions by 2020 due to the rapid growth of influence on the global scene (Poposki & Leung, 2022). In the 2010s, Hong Kong experienced a drastic increase in popularity as an art hub both from foreign investors from the West and a relatively local clientele from China (Poposki & Leung, 2022). Evidently, this tendency led to an increased cash flow in the art community, facilitating the economic environment of Hong Kong and its art market. As a result, Hong Kong has become an attractive location for art fairs and is widely considered one of the most thriving art hubs globally.
Environmental Environment
The environmental environment generally refers to the regulatory measures that determine the capacities of the region to meet safety standards. This type of risk management has become particularly prominent after more than forty people died during a sports event in South Africa in 2010 due to poor safety and environmental conditions (OToole, 2022). As a result, the implemented risk management regulations adhere to the international standard ISO 31000:2018 and demand meticulous attention to safety measures (OToole, 2022). For this reason, Hong Kong is an attractive location for holding international events since it gradually increases the control over environmental safety. According to Thomas et al. (2020), the penalties for inadequate safety compliance are becoming stricter, and the government prioritizes safety laws in its policies. Nevertheless, there is still a risk of the COVID-19 pandemic and associated complications; therefore, it is essential to implement efficient safety measures.
Social Environment
Lastly, Hong Kongs social environment welcomes foreign and Asian stakeholders. Similar to the political environment, Hong Kong has close connections to China, but it is a democratic regime with a substantial emphasis on human rights (Marginson, 2021). In other words, it has similar social structures to the developed countries in the West. Ultimately, Hong Kong presents a suitable social climate for foreign stakeholders while still appealing to locals.
Purpose
In the context of the current work, purpose refers to the general objective of the organization that encompasses governance structure, communication with stakeholders, and social responsibility. In other words, it is essential to adhere to social regulations and sustainability standards besides the specific objective of improving the contemporary art scene. Moreover, the organization should convey this message to the stakeholders and convince them of profitability and positive outcomes.
Governance Structure
The governance structure is an essential area of planning that refers to formal preparations for the event. According to OToole (2022), it includes financial management, sustainability, a safe workplace, equity, and connection to the community. In other words, Art Basel Hong Kong ensures that the organizations internal decisions adhere to the external environments specificities and conducts an appropriate preparation program to appeal to the stakeholders.
Stakeholder Expectations
Art Basel is an established brand; therefore, stakeholders have heightened expectations concerning the event. Art Basel provides opportunities for a wide range of stakeholders, including partners, prominent artists, and ordinary customers. It follows a stakeholder-centric approach that allows for minimizing the risks of restricted stakeholder engagement or perception of the event as an elitist occasion (Sharples et al., 2014). It is vital to present the Hong Kong art fair as an event for everyone since it would facilitate the growth of the contemporary art scene and benefit sponsors. Official partners, such as UBS and BMW, have their own interests in the expansion of Art Basel, and it is essential to adhere both to regular consumers and sponsors. Ultimately, the stakeholder-centric approach chosen by the organization satisfies the needs of various stakeholders and plays a vital part in the growth of the contemporary art scene.
Social Responsibility and Ethics
Distinguished attention to social responsibility from Art Basel is another contributing factor to the organizations success. In general, this concept refers to the moral obligation to prioritize people and the planet instead of corporate profits, and Art Basel adheres to these principles (Getz & Page, 2016). First, the organization provides the necessary conditions for visitors, such as safety measures, amenities for customers with disabilities, and various formats of engagement (Hong Kong: Visitor information, n.d.). Consequently, it adheres to the needs of moral stakeholders the groups that are impacted by the event but have little power to affect it (Sharples et al., 2014). The art fair promotes contemporary art and allows various artists to demonstrate their works regardless of their popularity, culture, race, or gender.
Culture
Another crucial reason for choosing Hong Kong as the location for art fairs is the extensive history of contemporary art in the region. As mentioned briefly before, Hong Kong has experienced rapid growth in popularity during the 2010s; however, the regions contemporary art history dates back to 1962 (Bailey, n.d.). Hong Kong became home to various prominent art initiatives, including Para Site art space, Empty Gallery, and Hanart TZ (Bailey, n.d.). Moreover, local artists from Hong Kong started to represent the region in international fairs, such as Venice Biennale and the Swiss fair (Bailey, n.d.). Ultimately, Hong Kong has been gradually increasing its scope of influence in the art world since the 1960s and is currently considered a global art hub by many prominent experts.
Capabilities
Concerning the preparation segment, Art Basel has sufficient resources and capabilities to hold a notable event in Hong Kong. Official sponsors have played a vital part in this process; however, the growing popularity of Art Basel makes each fair a profitable topic for informational outlets. Art Basel collaborates with some of the most popular media associations, including the Financial Times, South China Morning Post, Bloomberg, and Vogue (Hong Kong: Partners, n.d.). Cooperation with official sponsors and media partners has allowed Art Basel to accumulate sufficient resources to open the Hong Kong fair and attract people from various global art communities.
Strategic Choices Analysis
Having discussed the strategic positioning associated with the external assessment, it is crucial to analyze the strategic choices of the organization and its internal judgments. These decisions must adhere to the external factors, convince the stakeholders, mitigate any potential risks, and propose innovative programs to increase the attractiveness of the event. The current sub-chapter primarily discusses the organizations objectives on business, corporate, and international levels.
Business Level
The business level is crucial in decision-making since the ultimate goal of the organizations is to make profits and spread their vision. According to OToole (2022, p. 4), events are a response to the immediate needs of the business. This significance is transparently reflected in Art Basels decision-making and its willingness to collaborate with many sponsors and partners. Consequently, the report by Art Basel and UBS demonstrates that art fairs remain a central part of the global art market, with an approximate revenue of $16.6 billion in 2019 (Press release, 2020, par. 8). Therefore, the strategic choices of the organization primarily focus on the business level and the attraction of investors and notable artists.
Corporate Level
The corporate level refers to the organizations decision-making regarding vital stakeholders. Art Basel Hong Kong ensures the highest quality of communication with them via the dedicated VIP-relations team (About: VIP relations, n.d.). The team coordinates and consults various artists globally and serves as a communication bridge between galleries needs and executives objectives. It is an efficient approach that allows separating the art from formal bureaucracy, establishing a transparent corporate connection.
International
Similarly, Art Basel has put significant effort into earning the position of an international art fair organization. Since its establishment, the executives have focused on making art accessible and promoting artists globally (Our history, n.d.). Hong Kong was the next step of development since it allowed to creation a cultural connection between Asia and the West, further emphasizing the vision of international unity through art.
Innovation
Art Basel is constantly striving for innovation in the art industry. Contemporary art is synonymous with innovation, and Art Basel Hong Kong provides multiple ways for artists to express themselves. These methods include galleries, insights (local projects), discoveries (emerging artists), films, conversations, lectures, magazines, and many other mediums (Hong Kong: Galleries, n.d.). Ultimately, Art Basel Hong Kong puts significant emphasis on innovation since it is the central part of contemporary art.
Evaluation
The last part of the strategic choice analysis is the evaluation that allows for assessing the events benefits and preventing future mistakes. Art Basel presents annual and mid-year reports that transparently describe profitability, the efficiency of communication with partners, overviews of events, employment statistics, and other crucial parameters (McAndrew, 2021). The organization produces reports with various purposes, ranging from the evaluation of art fairs to more comprehensive analyses of global art trends.
Strategy in Action Analysis
The last descriptive part of the report concerns the organizations strategy in action. It refers to strategy implementation, including the processes of organizing and conducting the necessary preparations (OToole, 2022). Moreover, it transparently showcases the organizations event management capability and understanding of strategic processes. Ultimately, the current sub-chapter presents an overview of the organizing, process, and resourcing activities of Art Basel Hong Kong.
Organizing
Art Basel Hong Kong has been held annually since 2013, and the brand has perfected its organizing procedures during this period. Art Basel has teams dedicated to communication with artists and corporate partners, while other departments focus on the local organization of the event (About: VIP relations, n.d.). Exhibitors from various parts of the world have diverse needs for their art projects, and the organization needs to provide sufficient space and instruments for these ideas. Moreover, Art Basel Hong Kong presents a comfortable environment for visitors, such as access to diverse mediums of art and amenities for customers with disabilities.
Process
The process of the event encompasses galleries with exhibitors from various parts of the world, special lectures with notable artists, guides to local Hong Kong museums and institutions, and film programs. The wide array of presented art mediums and exhibitors allows for creating a pleasant experience for all visitors and artists. The process is a complicated part of event management that comprises many factors of complexity, such as uncertainty in products, problems with HR, lack of communication standards, and other variables (OToole, 2022). However, Art Basel Hong Kong has extensive experience and an established framework for the event process that helps mitigate the challenges.
Resourcing
Resourcing concerns the tangible preparations for the event, primarily including finances and human resources. The latter is a notable challenge for most events since organizations rarely have a designated HR team for managing employees, volunteers, and contractors (OToole, 2022). Nevertheless, Art Basel mitigates these problems with a comprehensive HR program and consistent recruiting process (Careers, n.d.). Ultimately, Art Basel is one of the most notable brands in the art industry, allowing the organization to hire competent specialists in the needed competency areas.
Recommendations
Based on the current report analysis, Art Basel Hong Kong is a highly prosperous art fair that rightfully attracts thousands of artists and regular visitors from various parts of the world. However, there are two recommendations that could potentially improve the risk management system and mitigate some of the dangers. The first one concerns the enhancement of occupational safety in the gallery. While the recent outbreak in China in April is gradually fading, there is still significant pressure in the region regarding the virus (Stanway & Pollard, 2022). From these considerations, Art Basel needs to implement the most comprehensive safety guidelines to mitigate the risks.
Similarly, the second recommendation concerns the external factor politics. Unfortunately, no industry is entirely independent of political influences, and the recent unrest between the West, Russia, and China has created notable international tension (Ellyatt, 2022). The concept behind the fair in Hong Kong is to create a cultural bridge between the regions, and the organization needs to demonstrate its commitment to the mission. Therefore, Art Basel might potentially dedicate some of the projects to further emphasize its vision and focus on uniting people through art, opposing it to political turmoil.
Conclusion
Art Basel, Hong Kong is one of the most influential annual art fairs globally. It significantly facilitates the growth of the contemporary art scene and serves as an essential mediator between the Eastern and Western art communities. The current report has examined the external and internal environment of the organization and highlighted intelligent event management as the primary reason for the organizations success. Art Basel Hong Kong excels in every discussed parameter, ranging from external factors to meticulous attention to resourcing. Lastly, the current report proposes two recommendations concerning the external environment for additional risk mitigation. Although Art Basel emphasizes the Hong Kong art fair as the cultural bridge between Asia and the West, political factors and risks of COVID might significantly hinder this mission, requiring additional safety measures. Ultimately, Art Basel, Hong Kong, is a thoroughly planned event that has a notable impact on the global art industry.
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