Class Discussion Items

1. A recent empirical study shows that free-play offers are not producing incremental revenues. Should we stop offering free-play offers? How should we proceed?

2. Should we continue to offer Bingo & Keno in our repeater market casino, despite shrinking demand for the games?

3. We must reduce payroll costs by 15%, due to a decline in business volume that appears to be part of a long-term trend. Should we reduce everyone’s pay and benefits, or terminate employees to comply with the payroll reduction mandate?

4. One group of managers is pushing for promotional activity to spur the slow midweek period, while another camp is touting weekend promotions to sway patrons when they are actually making the decision to visit a casino. While both arguments have merit, there are insufficient resources to pursue both strategies. As GM, which strategy would you pursue? How would you address the concerns from the group opting for the opposing strategy?

5. The GM tells you that the slot floor is “full” when it is 2/3 occupied, which occurs about 5 days per year. As director of slots, should you reconfigure the slot floor? Should you reduce the number of games on the floor? Will this cause a problematic decrease in the variety of games offered (i.e., the game mix)? Owing to the physical dimensions of slot machines, and the possible configuration of units, is it possible to regularly achieve occupancy above 80%?  What about the crowding sensation? If no one is playing the games, shouldn’t we use the floor space for something else, in order to maximize cash flows?

6. As the entertainment director, you are concerned about the recent budget cuts imposed on your department. Your department’s profit margin is well below that of the overall property. How could you defend the entertainment budget?

7. As the director of finance, a recent survey shows that the accounting department has the lowest employee morale in the company. This is one of your departments. The GM is unimpressed by your leadership, and asks you to advance a plan to improve morale. What do you do?

8. Business is off in the pit. The GM has asked you to create a plan for improving the situation. The GM is pushing for $5 blackjack and has asked for your feedback. Make a list of items you would need to know to respond to the GM’s suggestion. Specifically, list the items you would need to consider to assess the profitability of this idea.

9. A study shows that slot players prefer pods over banks. While the marketers are pushing for more pods, the slot operators are defending the bank configuration. The marketers hold that the casino should offer the configuration that players prefer, while slot department is concerned that the reduction in units will decrease product variety and revenues. As the planning and analysis manager, the GM has asked you to advise him regarding this matter. What is your recommendation? Please provide your rationale.

10. The new CEO has told all the GM’s that their goal is to achieve 100% loyalty from their players. That is, GM’s are to restructure their organizations, operating strategies, and marketing activities to obtain 100% share of their players’ gaming wallet. Is this a constructive goal? Explain your position. How would you address the notions of variety seeking and polygamous loyalty? Assuming you did not feel this was an appropriate goal, how would you express an alternative loyalty-related goal? That is, how might you revise the 100%-loyalty goal?

11. Key corporate officers have asked you to weigh-in on the remodeling of the Egyptian-themed Luxor. Although the theme pervades the interior of the pyramid-shaped casino, there are those in management who feel the interior of the casino should be remodeled such that the theme is eliminated. That is, they feel that the interior of the casino should be remodeled in phases to gradually replace the tired Egyptian theme with a more modern and sophisticated décor scheme. This new décor would not have an overt theme, making future remodeling an easier task. These managers hold that themes have a finite life in the mind of the customer, and constrain management’s ability to create new experiences and reasons for customers to make return visits. How would you advise the corporate office on this matter?