Industry Business Model of Mandalay Bay Resort and Casino - Case Study Example

Industry Business Model Paper Organization In focus: Mandalay Bay Resort and Casino Background THE upsurge in legalized gambling has been phenomenal worldwide. More than seventy-five countries operate lotteries, and other forms of gambling also flourish. A number of Asian countries have recently legalized casino gambling. Modern casinos are also big attractions in Africa’s Swaziland, Lesotho and Botswana. Britain’s parliament in 1960 voted to legalize popular forms of gambling, including off-track betting and casinos. Australia has some 2,500 state-licensed bookmakers. The people bet more than $5.5 billion annually, which is more than the government spends on education, defense, housing, social services and welfare combined! Some fifty million Americans gamble each year, betting anywhere from $30 billion to $100 billion, depending upon the estimate one chooses. The vast majority of this money is wagered illegally. Many states, however, are now stampeding to legalize lotteries, approve new racetracks and set up off-track betting! By early 1974, eight states were operating lotteries, with at least four others about to open for business. New York city began legalized Off-Track Betting (OTB) in 1971, and many other places, too, may soon do so. Also, New Jersey, Maryland and Hawaii are said to be considering joining Nevada in legalizing casino gambling. Yes, gambling is indeed a huge industry that is largely growing around the world today. For this particular reason, business organizations are actually becoming more interested in investing in gambling industries at present. For them, the said approach to business may indeed be risky, but the returns from the said challenging risks are all worth it. Among the business entities that were able to identify this particular truth behind the worldwide gambling industry’s progress towards the future is that of the Mandalay Business Corporation. The Mandalay Resort Group has invested a $1billion business entity to establish the Mandalay Bay Resort and Casino in Las Vegas. This particular investment has actually made a great impact in bringing in a tropical resort theme in the middle of the wild luxurious gambling industries. This particular resort holds at least 3,700 rooms within it vicinities and several huge function rooms within the area which are all made for gaming, dining and entertainment options that are considered as the main life of the said resort operations. In Handling Hotel and Resort Business Missions Hotels are mainly establishment who accommodates people who needs housing due to traveling reason and those who are searching for temporary residence. Since they establishments are known for accommodating large amount of customer, it generally requires basic organization techniques to better serve their visitors. Thus, hotels mainly used the organization method of distributing its necessary works into different sections for cooperation and monitoring purposes. One of the main divisions for hotel organization is the revenue center and the cost center. Revenue centers are sectors that involved managing the financial resources and income of the establishment. This division is mainly comprised of accounting and managerial sectors. The cost center handles the expenses and the necessary funds such as petty cash for its distribution to address the different cost accumulated in the course of the business cycle. Among the many divisions of hotel management, the food-and-beverage department accumulates most of the income because they address one of the necessities of the hotel guest and because their services are not yet included in the guest main expenses. However, this concept is not actually applicable to one form of hotel, which are those that include the food expenses to the accommodation cost. The Front desk representative is also one department in the hotel organization. Its main tasks include organizing the room allocation, welcoming guest, and addressing their basic inquiries, In addition, they handle telephone communication management. The housekeeping department also plays an important part in hotel organization. This department is mainly divided into certain parts such as room maintenance for beddings, utility sector, cleaning department, and delivery service for elegant hotels. In some cases, food-and-beverage divisions sometimes accumulate more expenses over its income thus they tend to lose revenue. One scenario that accounts for this idea is that most customers take advantage of this department’s promotion such as buffet. Another reason is when the hotel establishment is experiencing low season thus the food-and-beverage department experience many spoilage and expiration of products thus further expanding their cost and expenses. Thus, hotel management is mainly done is systematic process of distributing and organizing the necessary jobs and services into different departments to ensure the proficiency of the establishment’s business cycle. In this management technique, every division plays an important role and its tasks are valuable aspect contributing to the general service of the establishment. Dealing with the New Trend of Business Operations Today’s business world is totally different form what the business industries were about ten years ago. Indeed, with the introduction of Information Technology to the globe, along came the different innovations for the business activities in the present system of global trade. This is the reason why many traditional organizations take the option in changing the way they approach the business world in attaining their goals of gaining profit. Among the corporations usually changing their systems are publishing business corporations. This is mainly due to the fact, that with the business of information distribution, a larger scale of customers is needed to support the said industry. Surely, with the traditional set up of business industries, a corporation’s aim of reaching the most number of customers may not be that possible. But because of the emerging of virtual business and e-commerce, reaching a worldwide range of different customers had been possible for publishing companies in the present times. Certainly, for the Mandalay Corporation, creating a new branch of business industry is certainly a great risk. However, through the collaboration of the regular traditional business and the new trend of applying information technology with the recording system of the organization, its marketing approaches and its management approaches as well, handling the possible risks in the business has become a much easier task to complete. Continuous Research and Development Developments of a certain company in its economic and organizational aspects are very much important in achieving its success. In this aspect, innovative ideas catering performance and production enhancements are significant since they promote development in the company’s present condition and processes. Because of which, the company’s system must be able to promote and encourage innovative behavior from their employees and workers for them to fuel their developmental aims. Encouraging innovative behavior is mainly acquired through enhancing the organizational structure and the dominant working culture in the company. Through this aspect, the management can push their people to engage their individual pool of ideas for them to be able to create new concepts and suggestions. Creating a positive atmosphere will also engage the thinking capabilities of every employee thus, the management must make it a solid concept in their company that they will acknowledge and entertain any innovative ideas from their people. Establishing also a concept that the management will hand out honorarium or benefits of any sort for their employee for their solicited ideas commensurable to the degree of their concept will also encourage innovative behaviors in the company. In addition, the company itself can develop a specific group or division in their organization that is mainly focused on researching and developing their systematic processes and structure. Having an innovative behavior in the company is very much important for the positive development of the organization itself. This is why many companies are focused on enhancing their own culture and environment in order for it to foster and encourage their people to have an innovative behavior towards their system. Thus, with the collective ideas and concepts of the entire business organization, they can actually develop and enhance their present system for them to become more productive and efficient in achieving their goals for success. Following a Strong Patter of Effective Business Leadership Kotter is one of the major business entrepreneurs in the industry that encourages the effective use of change procedures for the sake of organizational advancement within the field of business. Corporal organizations have particularly found his suggestions highly effective and applicable in actual business practices. According to him, changes are an inevitable part of any organizational progress. This is the reason why he developed the eight stages of change in organizational behavior settings. The said stages have been primarily set by the said entrepreneur to help other business enthusiasts in the field to increase their capabilities of progressing within the industry through the application of organizational changes. To understand further, the eight stages shall be introduced in separate discussions. The Eight Stages As said earlier, the eight stages of changes that Kotter suggests primarily focus on the possibility of creating progressive accounts for the different organizations that need the changes. 1. Increase urgency – The ability of the organizational administration in helping their people understand of the necessity of change makes it easier for the entire organization to adjust with the needed procedures to take. Most likely, the relevance of the changes proposed by the administration within the systems being followed by the employees should be made clear to the main stakeholders of the changes. The stakeholders referred to in this stage are the ones who are involved in the possible adjustments that need to be taken, primarily referring to the employees. The regulatory system that the administration would put up as an answer to the dire need of adjustment should be able to post a certain sense of urgency among the major role players of the organization. The processes should be clear as well as the purpose of the changes. With the knowledge of everyone else involved, the organizational structure could be made more stable towards its way to progress. 2. Build the guiding team – The establishment of a model team that would actually guide everyone towards the aimed progress should have the right skills, the right talent, the right disposition and emotional stance with regards the changes that are to be made. These particular attitudes of the people who are to be appointed as part of the guiding team shall help the entire organization realize its role in the progress of the said group that they are particularly involved with. Aside from the right disposition that the guiding team should posses, the organization’s administration team should actually be able to incite the right knowledge that the said team should know. This would allow them to cultivate the right attitude towards the change that needs to be applied within the organization hence, making them capable of affecting other’s disposition in the organization as well. 3. Get the vision right – The point of creating a guiding team is to equip the entire body of employees with the right disposition that they need in order for them to face the changes that they need to deal with. Making it possible for the guiding team to set simple yet reasonable vision for the employees to realize as stepping stone towards the changes that need to be implied is also one part of the administration’s primary responsibilities. It is very important that the administration instill within the guiding team the values of personal behavior that they need to share with their co-workers in the organization. The target of the guiding team is to allow change interfere within the systems of the organization in a much less complicated procedure. Most likely, the focus is on the behavioral capabilities of the people that they are trying to affect in the organization. The emotional views of the employees towards the change certainly need to be regulated as it affects the ability of each employee to adapt with the adjustments that are to be further implied by the administration. 4. Communicate for buy - in – Technological innovations of communication actually makes this process much easier to accomplish. It could not be denied that the key objective that may lead to the progress of this particular project of change is the thought of each employee that they are part of the organization and that they are given high regards by the organization’s administration. This could be attained through the ability of the administration to involve people who are in connection with the progress procedures as effective as possible. Employees are highly giving importance with the way that their superiors are valuing them. This is the reason why it is very important to keep people who are involved with the change procedures with the necessary knowledge that they need to understand. This would help them realize that they are indeed a part of the progress and are agents that are important for the implementation of the changes. 5. Empower action – Once the right actions are taken by those who are appointed to imply change, rewarding good works is necessary and effective. Once there has been something that has been duly achieved through the help of one of the employees, it is advisable that the said work be equally rewarded by the administration. This would empower others to reach achievement as well to be able to rewarded like that of the others. This is a motivational procedure that would actually inspire the employees in a psychological way as the said employees try to continue aiming for the best results for the sake of their company’s progress as well as for their own recognition. 6. Create short-term wins – Achievements are important for employees. However, making them hard to reach may not be that inviting for them to put effort forward to attain the said individual achievements and recognition. Making the achievements easier to attain would actually improve the performance of each employee. The idea is to primarily help the employees understand how they could be able to make possible amendments to give themselves a chance to be a part of the rewards program imposed by the administration of the organization. 7. Dont let up – it is very important that the administration imposing the changes actually find ways by which to show that they are determined enough to imply the needed changes. It could be noted that the administration’s certainty in making the progress possible to happen would help the other employees realize their role in the said procedure. It is the stance of the administration in implementing the changes even when difficulties may arise that actually counts. It is very important that the administration remain determined and not disheartened of the failures that may have occurred along the way. 8. Make change stick – through the program of change and promotional applications, it is important to understand that employees need to know that they have the chance of taking over certain important positions in the organization. Making it possible for them to recreate the possibilities of achieving leadership positions for themselves shall help the employees picture in their minds the progress of the organization that particularly depends on their individual and team recognition thus implementing teamwork among the said group of employees.  Diagram 1: The Eight Stages of Kotter’s Suggested Process of Organizational Progress Understanding the idea that the eight stages of change implies on the organizational arrangement of different business entities, it could be derived that the focus of the stages is the behavior of the employees towards the changes that need to be applied for the sake of organizational progress. It is very important that the administration be able to help everyone in the organization realize the fact that they are an important part of the progress that they are aiming for. It lies in their capability of adjusting with the changes that the amiable results of the entire company could be achieved. The willingness of everyone to take part in the process then needs to be dealt with uncompromisingly. This then makes it clear that it is the administration’s responsibility to appoint the right people in the right positions and responsibilities that they are supposed to perform for the sake of organizational progress. Certainly, it is important for the employees to comprehend with the changes through gaining knowledge of the system in a more clarified procedure. The constancy and the stability of the organization’s administration too is an important part of the aimed achievement. It is the ability of the administration to show that they are determined enough to reach the goal that they have set for the entire group that may infectiously affect the entire organization’s body of employees. Conclusion Every organization aims for progressive changes. Gaining progress however is not that easy for everyone. The individualities of each personnel making up the organization may make the procedure of reaching the goal a bit harder to achieve. It is then important to understand as well as apply the different steps or stages of change as suggested by Kotter. The said entrepreneur’s excellence in helping people understand their potential of making change in the organizations that they are involved with as well as with the society makes it easier for them to achieve bigger changes that leads to progress for different business organizations. The realization of each individual that they are an important part of the entire organization shall indeed help them adjust their dispositions and behavior towards change to a more highly achieving attitude. Through the help of the organizational administration, each employee is then expected to create a more reasonable way of helping the entire organization step forward towards progress. Hence, through this, they are able to understand the ways by which the directly affect the existence of the organization that they are working for. Focusing on the individuality of each person and using that particular uniqueness in an aim of progressing as an organization makes it easier for any organization to instill the right values within their people for them to have the right vision towards the aim of reaching the best for that sake of themselves and their company as well. From this set of change stages, it is obvious that the author wants to imply the fact that it is important to invest in the individual capabilities of the employees of a particular organization in an aim to pursue progress. References: Kotters eight step change model. (2007). http://www.exemplas.co.uk/employers/managing_change/insights_Kotters_Eight_Step_Change_Model.asp. (October 25, 2008) John P. Kotter. (1996). Leading Change. Harvard Business School Press; 1st edition. Gadiesh, O. & Gilbert, J. L. (1998). Profit pools: A fresh look at strategy. Harvard Business Review, 76(3), 139-147. Kim, W. C. & Mauborgne, R. (2000). Knowing a winning business idea when you see one. Harvard Business Review, 78(5), 129-138. Magretta, J. (2002). Why business models matter. Harvard Business Review, 80 (5), 86-92. Moore, G. A. (2004). Darwin and the demon: Innovating within established enterprises. Harvard Business Review, 82(7/8), 86-92. Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business Horizons, 48, 199-207. Read More