Option #1 Essay Example
Identification of cost-savings measures for more efficient management
Cost management is an important function of management. In the modern day business environment, a company must manage cost effectively to ensure success. Cost management is a process involving planning and controlling the cost through budgeting (Bryant, and Walker 3). Therefore, to succeed post acquisition ofTrump Taj Mahal Casino, STHM Management will have to ensure that costs are effectively managed. There are steps that the STHM Management should take to ensure effective management of the newly acquired assets and to ensure cost saving. The first step to achieve cost saving will for the company to come up with the cost estimates through budgeting. Budgeting will ensure that STHM Management have an estimate of the amount of money and the resources that it will need in a given financial year to manage the new property effectively (Kilby et al. 24). After coming up with the budget estimate, STHM Management will have to ensure that it monitors the operations of every department to ensure efficiency in asset utilization. Human resources is one of the areas, where firms like casinos incurs a lot of cost. Therefore, to save cost, the HR of STHM Management will ensure that job evaluation is done to identify the departments that are necessary and those that are redundant and needs to be faced out. Facing out areas that do not generate enough revenue will help save cost as it will ensure that even the wage bill is lowered through downsizing. The other cost saving strategy will be to ensure that the best talents are hired to do the job (Bryant, and Walker 3). Having employees with the right skills only result in less productivity, more errors and lost time, which only increases the cost of managing the casino. Therefore, STHM Management will be able to save cost by hiring top performers who knows what they are doing. Additionally, STHM Management will have to ensure that the acquired assets are efficiently utilized and for the purpose for which they have been allocated as this will ensure significant cost saving in the company.
Identification of revenue-producing measures to offer higher top line revenues
The success of STHM Management will be measured largely by the amount of revenue that the casino will generate to STHM Management after its acquisition. However, to generate good revenue from the property, there are a variety of revenue-producing measures that STHM Management team will have to consider adopting. First, STHM Management will have to begin by promoting its brand. A brand needs to be visible and the targeting customers’ needs to be aware of the existence of the casino and the services and products it offers for customers to visit the casino (Tanpanuwat par. 2). As such, STHM Management will have to ensure that it advertises its new acquisition and to inform the targeted market why they need to visit the casino instead of competitors in the market. Secondly, STHM Management team will have to ensure that it provide quality but diversified products and services. Other than the casino games, STHM Management will have to consider introducing other products, such as spas, drinks, entertainments and accommodation facilities to ensure that those who visit the casino have other products and services to buy other than the casino itself (Kilby et al. 20). By introducing more products and service, this would increase the sources of revenue stream for STHM Management. Additionally, pricing strategy adopted by the company will matter a lot considering the existence of high competition in the industry (Tanpanuwat par. 4). For this reason, STHM Management will have to ensure that it prices its products and services competitively to attract many customers to the casino, thereby ensuring high revenue stream.
Bryant, Lonnie and Doug Walker. Profitability And Return On Investment From Casino
Amenities. College Of Charleston (2010): 1-24. http://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?article=1072&context=hhrcg
Kilby, Jim, Jim Fox, and Anthony F. Lucas. Casino Operations Management. Hoboken:
Wiley, 2006. Print.
Tanpanuwat, Arun. Examining Revenue Management Practices In Las Vegas Casino
Resorts. (Unpublished doctoral dissertation). University of Nevada at Las Vegas, Las Vegas, Nevada (2011): i-104. Print.
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