Mcs Case

Controls at the Bellagio Casino Resort

In our world, good controls mean good business.

MGM Mirage and Its Properties

The Bellagio was one of 23 properties of MGM MIRAGE, one of the worlds’s leading hotel and gaming companies. MGM MIRAGE operated primarily in one industry segment, the operation of casino resorts, which included gaming, hotel, dining, entertainment, retail, and other resort amenities. Over half of the company’s net revenue was derived from nongaming activities, a higher percentage than many of MGM MIRAGE’s competitors. The company generally had an operating philosophy that preferred ownership of amenities, since guests had direct contact with staff in these areas and the company preferred to control all aspects of the guest experience. MGM MIRAGE’s operating philosophy was to provide a complete resort experience for guests, including nongaming amenities that commanded a premium price based on quality. The company’s primary method of competing successfully in the high-end segment consisted of: (1) locating resort, (2) constructing and maintaining, (3) recruiting, training, and retaining, (4) providing unique, (5) developing distinctive and memorable marketing. A key element of marketing to premium gaming customers was personal contact by marketing personnel. The company’s key revenue, related performance indicators were: (1) Gaming revenue indicators, such as table games drop and slot machines handle and (2) Hotel revenue indicators, such as hotel occupancy. MGM MIRAGE was making increasing use of advanced technologies to help maximize revenue and operational efficiency. Technology was a critical part of MGM MIRAGE’s strategy in nongaming operations and administrative areas as well.

The Bellagio

The Bellagio was widely recognized as one of the premier casino resorts in the world. Amenities and entertainment options at the Bellagio included an expansive pool, a world-class spa, exquisite restaurants, a luxuriant night club, and several bars and...