Some steps MGM can execute to quickly make up ground against its competitors and to get by until the market makes a full recovery are outlined below. Where bigger was better and growth through acquisitions were successful philosophies in the past, the company now needs to operate smarter, with more finesse and operating discipline.
It also leaves the company vulnerable to a takeover, particularly as Kerkorian steps away from his long-held leadership position at MGM. The decision to keep the Detroit and Biloxi sites open proved to be sound, as they are now credited with generating the greatest cash flow from among the MGM properties.
Short-Term Goals and Measures Room occupancy is improving, along with the convention market. Strong operating cash flows are necessary to fund the capital requirements needed to maintain and revitalize assets throughout the company, to repay debt financing, and to provide excess cash for future needs.
Along with the introduction of the M-Life customer rewards program, these initiatives have had a favorable although slight.
Buyers will be value-conscious for several more years, looking for cheaper offsite venues for their non-casino spending, and the domestic market is saturated; but overseas markets offer one bright spot in the industry. Long-term strategic initiatives must aim to create value, to pursue long-term growth opportunities, and to define an identity or image for MGM that will guide the immediate goals and actions of the company.
Then, it needs to structure a long-term strategy to secure a permanent position of leadership and competitiveness in the industry. And the company must be able to manage and control costs associated with future major projects. Student proposals will vary, but they should able to build an argument in support of the recommended strategies they believe have the most potential for success.
However, not all news was bad for MGM. MGM first needs to maximize shortterm performance to address the pressing financial demands on the company. Browse hundreds of Operations Management tutors.
Based on new conditions in the market, the following strategic options can be suggested. In addition, MGM has seen its recent cost savings strategies begin to take hold.
When the old model of doing business in an industry begins to fail, uncertainty is high. To positively impact casino revenue, recall that highend guests typically spend more on gaming activities. This is crucial for meeting its —14 debt maturities and to recover from a recent period of underinvestment.As demonstrated in the case, the casino and resort market is an extremely competitive market?
Analyze MGMs performance against at least one competitor? What are the strengths, weaknesses, opportunities and threats for each? MGM recently,pulled out of its involvement in the Resort and Casino.
MGM case study: A detailed analysis of how Philips Wellcentive helped MGM Resorts International, a major employer, improve their health plan through data aggregation and organization solutions. The case study provides details on topics such as.
Case Analysis: MGM Mirage Case Solution Horizontal Balance Sheet The balance sheet which has been made on the horizontal common size i.e.
calculating percentages for all the items as ofin other words calculating the variances as a percentage of while assuming as a base year.
Read the MGM Case Study in Case Study section of the text. Write a summary of the case study. In your summary be sure to discuss reasons why MGM would use an international strategy to achieve strategic competitiveness.
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