Casina
Summary
Bellagio has over $20 billion dollars of assets, 66,000 employees and made over $6M in profit the previous year 2005. It was run as separate profit centers. In short, Bellagio has a large service business, with operations in gaming, entertainment, food and beverage and hotel rooms. With such scale, a key responsibility of management is to maintain assets and ensure good cash flow – as much of its business is cash intensive. It is a highly seasonal business and competitive, with most of its operations in Las Vegas the hub of gaming.
As to the macro environment, Bellagio is subject to the laws, maintaining the licenses and paying gaming taxes, reporting to the US international Revenue Service tax authority and so on. As to the competitors, Bellagio is operated in highly competitive environment. It competed against other gaming companies as well as other hospitality and leisure and business travel companies. Its competitive methods include desirable location, high-quality resorts and facilities, well-trained employees, “must-see” entertainment attractions and unique programs.
Management’s principal goal in the controls systems is to minimize gaming losses. In general, Bellagio has all four principal forms of management control systems,
•Results controls
From the dealers end this is done through a low Base Salary for Bellagio dealers and
Tokes or tips from satisfied customers are primarily used as a compensation system. The better the dealer works the more tips he get. In addition, they are given a bonus holiday for perfect attendance.
The management earns annual bonuses averaging 30% of salary based on the financial profitability of the Casino area and a set of individual performance objectives.
•Action controls
Physical Controls
In the casino, these cash controls included:
1Locked cash boxes, secured transportation
2Daily cash and coin counts performed by employees who were independent of casino operations
3Constant observation and
Bellagio has over $20 billion dollars of assets, 66,000 employees and made over $6M in profit the previous year 2005. It was run as separate profit centers. In short, Bellagio has a large service business, with operations in gaming, entertainment, food and beverage and hotel rooms. With such scale, a key responsibility of management is to maintain assets and ensure good cash flow – as much of its business is cash intensive. It is a highly seasonal business and competitive, with most of its operations in Las Vegas the hub of gaming.
As to the macro environment, Bellagio is subject to the laws, maintaining the licenses and paying gaming taxes, reporting to the US international Revenue Service tax authority and so on. As to the competitors, Bellagio is operated in highly competitive environment. It competed against other gaming companies as well as other hospitality and leisure and business travel companies. Its competitive methods include desirable location, high-quality resorts and facilities, well-trained employees, “must-see” entertainment attractions and unique programs.
Management’s principal goal in the controls systems is to minimize gaming losses. In general, Bellagio has all four principal forms of management control systems,
•Results controls
From the dealers end this is done through a low Base Salary for Bellagio dealers and
Tokes or tips from satisfied customers are primarily used as a compensation system. The better the dealer works the more tips he get. In addition, they are given a bonus holiday for perfect attendance.
The management earns annual bonuses averaging 30% of salary based on the financial profitability of the Casino area and a set of individual performance objectives.
•Action controls
Physical Controls
In the casino, these cash controls included:
1Locked cash boxes, secured transportation
2Daily cash and coin counts performed by employees who were independent of casino operations
3Constant observation and