Controls At The Bellagio Casino Case Summary
Case Report—Controls at the Bellagio Casino Report
Introduction
MGM MIRAGE is one of the world’s leading hotel and gaming companies, and the Bellagio is one of them, which attracts lots of customers every year. MGM MIRAGE operated as two segment, one is Casino resort and the other is resort. Company’s key revenue is from gaming and hotel, and most revenue was cash. This case is focused on the controls used in the casino, especially in difficult to control table games areas. Nowadays, customers become more interested in leisure time in resort than just gambling.
Problem statement
Major problem is result controls is relatively weak. May be because customer tastes have changed, which is from gamble to other things, such as shopping, dining, spas, shows, and entertainment. But companies is used to control gaming side critically.
The minor problem is action controls. Some employees did not well. What’s more the companies is trying to track every penny at the table, but having too much information is not always good for customers.
Analysis: …show more content…
From exhibit 2, the revenue information of MGM illustrate that the hotel revenue increase was largely rate driven both in 2004 and 2005. And in 2004, the revenue of casino and non-casino part was almost the same, but in 2005, Non-casino revenue was 2 times as casino revenue. However, there was a big part of cash revenue was from gaming and the company relied heavily on the ability of its reports to generate operating cash flow to repay debt financing. So no-casino revenue kept growing was not good for cash flow. At present, the VP of table games reported directly to CEO. However, with the increasing of non-casino revenue, the VP of hotel can only to Vice
Introduction
MGM MIRAGE is one of the world’s leading hotel and gaming companies, and the Bellagio is one of them, which attracts lots of customers every year. MGM MIRAGE operated as two segment, one is Casino resort and the other is resort. Company’s key revenue is from gaming and hotel, and most revenue was cash. This case is focused on the controls used in the casino, especially in difficult to control table games areas. Nowadays, customers become more interested in leisure time in resort than just gambling.
Problem statement
Major problem is result controls is relatively weak. May be because customer tastes have changed, which is from gamble to other things, such as shopping, dining, spas, shows, and entertainment. But companies is used to control gaming side critically.
The minor problem is action controls. Some employees did not well. What’s more the companies is trying to track every penny at the table, but having too much information is not always good for customers.
Analysis: …show more content…
From exhibit 2, the revenue information of MGM illustrate that the hotel revenue increase was largely rate driven both in 2004 and 2005. And in 2004, the revenue of casino and non-casino part was almost the same, but in 2005, Non-casino revenue was 2 times as casino revenue. However, there was a big part of cash revenue was from gaming and the company relied heavily on the ability of its reports to generate operating cash flow to repay debt financing. So no-casino revenue kept growing was not good for cash flow. At present, the VP of table games reported directly to CEO. However, with the increasing of non-casino revenue, the VP of hotel can only to Vice