Summary & Outline
The Wynn Resorts Limited case analysis focus seeks to align the vision, mission, and objective of the organization to while incorporating the recommendations focusing on a strategic management process. The key issues for Wynn Resorts is the decline in gaming revenue: The Macau Wynn resort generated 28.5 billion with construction costs of $1.9 billion, however gaming revenue declined 34.3% in 2015, while in 2016 declining an additional 12.4%. The Wynn Las Vegas resort has the same downsides with the construction cost of $5.0 billion with only a yearly ROI of 9.5% with gaming revenue of 6.3 billion dollars venture (Hoium, 2016). The strategic management process porter’s five forces identify key issues within the framework of Wynn’s business plan.
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Wynn allows customers to obtain cash to gamble with through Global Cash services which sets a very high fee (17%) from a player’s cash from checking and savings account. The action plan for Wynn is to develop player’s card system which is based on central casino credit, therefore emphasizing customers an alternative and viable option to gamble while seeking rewards. Wynn already extends credit line based on credit score directly to the customer through a system which pre-approves lines. The incorporation of a loyalty program for customers who seek central credit incentivizes to spend more while earning points to redeem on peaks such as guaranteed discounts on reservations or complimentary limousine service. The strategic management porter’s five forces define bargaining power of customers. As the implementation of the loyalty program for approved lines of credit can improve gaming revenue, thereby addressing several key factors that indicate bargaining power of customers (I, E Differential advantage of the product, emphasis on price sensitive, and information availability (Porter & Clayton,
In order to achieve its goal, the managers of Marriott have developed a financial strategy with 4 main decisions.
Casinos are very tricky when it comes to “customer relations”. They allow their customers to forget about the world around them and concentrate on winning, when the whole time they are robbing them blind. In most cases, people walk out of casinos with empty pockets and a stomach full of booze.
When testing if a corporate strategy is leading the company to success, there are techniques that can be used to project data collected from the company. Long term attractiveness, competitive strength, and the nine cell industry attractiveness/business strength matrix are used to highlight strategic positions of each business in a diversified company. The industry attractiveness gages the prospects for long-term performance. Competitive strength measures how strong the units are positioned in a business in their industry. Lastly, the nine cell industry attractiveness/business strength matrix merges information on attractiveness and competitiveness to show where in the industry does a unit fit when it comes to long-term success. Walt Disney
This article is about Harrah’s Entertainment; one of the largest casino entertainments made a decision to move away from being a product based company to a strategic marketing company geared towards customer satisfaction by implementing a customer focused rewards program. Bill Harrah, the founder of the company established the company’s reputation on the premise of pride of the employees working for “the best in the business” while given more attention to the condition of the properties. However, when Gary Loveman joined the company as the new Chief operating officer, he made a move towards customer service. Gary Loveman hired Marilyn Winn, the head of Human Resources, to change how the company engaged in people development. Winn came up with a strategic plan to develop Harrah’s human capital. As a result, Winn is faced with the difficult task of improving employee motivation and job satisfaction in a rough economy after 9/11, which changed our nation forever. Although, the company gained market share it did not quite meet the company’s projected level.
Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text & Cases (6th Ed.). New York, NY: McGraw-Hill.
The Great Transformation From A Casino City To a Resort Destination Atlantic City is the place to gamble on the East Coast. Although this may initially seem to be a positive characteristic, it is evident that this destination has the capability to be so much more than it already is. This point of interest has the world’s first boardwalk, which opened in 1881, has 4 miles of hotels, amusements, and casinos. Atlantic City was originally a resort town, until 1978, when it changed into a gaming city. This popular day-trip destination had over 34 million visitors in 1998 alone. Despite this amazing statistic, along with the revenue that gambling brings in, many steps are being taken in order to further promote the expansion of this great city. The renovations and improvements being made to the Atlantic City Convention Center are already increasing the amount of money coming in. There is a great deal of other things to focus on in the Atlantic City region. In endorsing local attractions in this scenic area, and in shifting the target market of this spot, this city would change back into a resort destination. When most people think of Atlantic City, the first thing that comes to mind is the casino attractions that are available. With the city’s constant shuffle and excitement, gamblers from all over go there dreaming of a big win. Many people consider Atlantic City to be the “Las Vegas of the East Coast”. There are over 12 casinos, with one building as magnificent as the next. At any given second of the day, these hopefuls may have their lives changed in an instant with just one win. These casino hotels gain most of their income from gamblers. Casinos employ almost 49,000 people every year. This number should actually jump when the Marina District opens. Although Atlantic City prospers as a gambler’s paradise, many would love to show others just how much more Atlantic City really has to offer its tourists. The Atlantic City Convention Center, built in 1929, was renovated with $72 million in 1997. With the world’s largest pipe organ, everyone from the Beatles to Pavarotti has played there. It was designated a historic landmark in 1987. Conventions, trade shows, meetings, and public events of the greater Atlantic City area all take place here. When the renovation is finally completed, it will seat up to 12,000 people for special events.
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
The lodging industry has seen improvement since the economic downturn of late 2007. There are factors beyond the industries control that could stifle growth in the industry, including but not limited to the still weak global economy and governmental breakdown. Since 2010, the industry has seen steady growth in average daily room rate (ADR), revenue per available room (RevPAR), revenue and net income. The have either reached or almost reached pre-downturn (2007) rates. Room construction in much of the United States has also started to rise again but at a slower rate than the financial indicators.
Strategic management is the set of managerial decision and action that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long range planning), strategy implementation, and evaluation and control (Hunger & Wheelen, 2011). In this report I will do research about the strategy of Marriott International, Inc. I will give advise on how Marriott can improve their strategy and I will come up with an advisory strategy.
Bollenbach, who had a reputation for creating innovative financial structures in the hotel industry, proposed a radical restructuring for MC. Bollenbach’s proposal included breaking MC into two separate entities. The new company would retain the service businesses of MC and have the financial strength to raise capital and take advantage of various investment opportunities. On the other hand, the old company would retain the hotel properties and the pressure to sell properties at reduced prices would be greatly lessened. This drastic restructuring proposal, deemed Project Chariot, had to be evaluated by J.W. Marriott before he went before his board of directors with his ultimate recommendation. Thus, Marriott planned to review the company’s past financial history that led to their current position; evaluate Project Chariot’s advantages, disadvantages and value; determine the bond risk involved if Project Chariot was accepted and finally consider alternative recommendations.
...ring the basic premises of strategic management'. Vol 12 pp. 449-461. San Diego: Strategic Management Journal.
• Hitt, Michael A; Hokisson, Robert E.; Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio: Souht. Wester 2005.
1. Grow and build: I, II, & IV Intensive strategies (market penetration, market development & product development) or Integrative strategies (backward, forward, & horizontal integrations) After analyzing the EFE and IFE data for MGM Resorts and inserting those points into the IE Matrix I have identified that MGM falls into the grow and build portion of the matrix. The EFE point of 3.2 indicates that MGM resorts is responding well to opportunities and threats within the industry. The IFE point of 2.3 indicates that the organization is average at best internally. I. Product Development
Core to the successful running of any organisation, business or firm is having a proper laid out strategy. As earlier discussed, an effective strategic approach to any business gains it core benefits in its short-term and long...
Strategic management is a disciplined effort or control to make necessary decisions that have an effect on a business or an organization; the aim of strategic management is mainly to develop new, innovative or diverse ideas and opportunities for potential or development, and facilitates or assists an organization to achieve its goals (SM, 2010). In reality, strategic management not only can be used or applied to determine mission, vision and values or objectives, but it also establishes roles and responsibilities or timelines in a business (David, 2009). In the following sections, this study will focus on and examine the nature of strategy formulation, implementation, and evaluation activities, and analyze the potential pitfalls or risks in using a strategic-management approach to decision making.