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: The Bellagio use the combination of many controls to manage their resort including result, action, and personnel control to achieve their goals. 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 UP of table games reported directly to CEO. However, with the increasing of Nan-casino revenue, the UP of hotel can only to Vice CEO. List of alternatives Plan A: using new technology RIFF and still focus on doing a better control on gaming to get more revenue because the gambling is still a big part of revenue. Plan B: Keep present good control on gaming, and as soon as Seibel do better on no-gaming control, because more and more people prefer no-casino more than casino.
Recommendation It may be better to introduce new technology. Expect for REID, the company also can develop some online gambling which can offer guest gambling using the special computer in their own room via internal network.