Caesars Casino Case Study

EASAE E AE: he e Business meratie Case Study EASAE E AE: he e Business meratie Case Study Case Study: Caesars Entertainment About Caesars Entertainment Caesars Entertainment is the world’s most diversified casino-entertainment provider and the most geographically diverse U.S. Casino-entertainment company. Since its beginning in. With everything from chart-topping rock bands to acclaimed comedians taking to its stage, the 5,000-seat Colosseum at Caesars Windsor Hotel & Casino requires top-notch sound quality. They enlisted audio-system integrator Solotech to replace the venue’s entire audio system in three separate phases. In the first phase, which was completed in 2017, Solotech replaced the venue’s. Initially, in 2008, there was a far-reaching problem for the Caesars Tunica Casinos, because the U.S macroeconomic fall of the Great Depression led to decreasing customer spending on entertainment, which resulted in adecline in revenues as well as itintensified the competition with related to market share. Caesar Casino Case Study To build a ridged but agile LEAN management atmosphere at Harrah's Metropolis casino with permanent and unambiguous results, I would suggest that Hirsch and his staff continue the existing five-day Kaizen workshop program and install a team of highly qualified LEAN process improvement consultants after one year. The property was part of Caesars Entertainment, the world's most geographically diversified provider of casino entertainment. Evidence from customer surveys and data on loyalty-card usage patterns, as well as competitive pressures across the casino industry, indicated a general need for process improvement at the Metropolis facility.

Introduction

2008 was a hard year for many organizations due to the fact that the economic environment was challenged considerably. The gaming market underwent considerable changes and the unpredicted reduction of customers, who were eager to spend their money on entertainments in casinos, because of the US macroeconomic collapse. Lean operations are the methods to eliminate wasteful steps in a working process and focus on such issues as time, efforts, and knowledge.

According to Wilson, Lean operations should make an organization more flexible and responsive (9). This paper aims at discussing the case study of Caesars casinos, the outcomes of its manager’s intentions to implement Lean operations in the organizational environment (Hyer, Hirsch, and Brown 1), and the challenges that can be expected regarding the available material and working conditions. The idea to use kaizen events helps to involve different departments in the problem-solving process and understand how to beginning a working process, where to search for credible information, and who to use the data offered.

Challenges Caesars Experienced during the Lean Implementation Process

The manager of Caesars casinos tried to weight all pros and cons of an improvement process; still, several challenges took place. One of them was based on a lack of professional knowledge. The point is that not all casino employees knew and comprehended clearly a definition of the term ‘Lean’. Some of them defined it as an opportunity to cut jobs. To reduce the impact of this problem and promote a clear understanding of the goals, Caesars casinos’ managers had to talk to the employees and explain them the essence and goals of this process that were to eliminate wasteful activities, improve customer experience, and increase effectiveness of the work (Hyer, Hirsch, and Brown 2).

Another significant challenge that was observed was the impossibility to get the required portion of a financial support to be sure that all physical and organizational changes were made successfully according to the recommendations offered. Sometimes, it is expected from leaders to obtain a higher-level approval of the intentions identified (Hyer, Hirsch, and Brown 10). In other words, the developers of kaizen events were not sure if all their ideas and thoughts could be financially approved. The challenge was overcome as soon as all goals, activities, and outcomes were clarified. When leaders observed the benefits and success of the chosen direction, the problem of financial support was solved.

In general, two challenges of the implementation process were successfully eliminated. The solutions to the problems were effective as no financial efforts were spent, and all physical and emotional efforts were justified.

Kaizen Event to Improve Guestroom Housekeeping Operations

As a manager of hotel housekeeping at Harrah’s Metropolis location, I have to follow the current success and challenges. Recently, the company’s service scores have declined considerably during the last several years. It is necessary to improve the quality of guestroom housekeeping services as a part of the Lean rollout. A properly chosen key performance indicator should prove if the chosen direction is correct or wrong and what improvements can be done in a short period of time (Parmenter 7).

There are several KPIs that can be offered:

  • The level of employee satisfaction with training programs should help to understand if the offered improvements are appropriate for workers and what improvements can be observed in their work according to their personal points of view;
  • Employee perception of management commitment can be investigated to clarify the attitudes of workers to their duties and their intentions to work better or vice versa;
  • Percentage of services that can have healthy and safety impact on casino’s visitors should be used to attract the attention of potential customers and create a solid competition for other similar organizations;
  • Average number of responses to the positions in housekeeping should provide the information about the intentions of people to improve the quality of services, the level of knowledge, and the level of readiness to work at the chosen position;
  • Customer perception of employee work can be used to clarify if the customers are satisfied with the changes that are offered by employees, who have to work in accordance with the kaizen event offered.

The choice of these KPIs has the following rationale. These KPIs touch upon different spheres of life: customer satisfaction, employee devotion, financial indicators, and even environmental conditions. As soon as these KPIs are used, it is possible to identify if all changes implemented through the kaizen effort are effective and lead to the improvement of performance.

Detailed Agenda for a Kaizen Effort

The area of housekeeping should be improved in terms of floor store organization, cleaning capacity utilization, exclusion of the defects in rooms, decreasing the number of guests waiting for rooms. The following outline of the event should be offered to all front-line employees to be approved as a new possibility to improve the quality of the work in housekeeping and guestroom cleaning services.

Day One: Documenting

  1. A single guestroom cleaning process is viewed to define performance time, male a list of activities, and calculate the required number of housekeepers per one room (30 minutes for a physical observation and 30 minutes for analysis);
  2. Individual responsibilities are identified for each team member (1 hour);
  3. Every team member should pass through training on the kaizen event and its goals (1 hour);
  4. A kind of value stream map can be developed to underline the required changes, possible outcomes, and expectations (3 hours);
  5. Summary of the daily activities is developed (1 hour).

Day Two: Evaluating

  1. To analyze the impact of waste in a working process (2 hours);
  2. To understand and identify the losses and their impact (2 hours);
  3. To develop several Pareto charts and box plots (2 hours);
  4. To identify the resources that can help the promotion of the event and describe their usage (2 hours).

Day Three: Planning

  1. Team members are informed about several solutions for a process using the graphical material (1 hour);
  2. The changes are offered (1 hour);
  3. The changes are evaluated (1 hour);
  4. Health and safety issues are considered (1 hour);
  5. Testing the offered changes in practice to illuminate all shortages and make the improvements.

Day Four: Implementing

  1. Identification of the goals (30 min);
  2. Re-arrangement of housekeeping equipment (1 hour);
  3. A new way of housekeeping is offered and explained (1 hour);
  4. Housekeepers are trained (2 hours);
  5. Innovations and changes are implemented (30 min);
  6. Discussions take place (2 hours or more).

Day Five: Debriefing

  1. Enumeration of the goals planned and achieved (1hour);
  2. Identification of the results with their positive and negative aspects (1 hour);
  3. Communication and attention to the opinions of the housekeeping department representatives (2 hours);
  4. Making the final improvements (1 hour);
  5. Discussion of future prospects of the work (1 hour)
  6. Preparation of final documentation and getting approvals (2 hours or more).

The rationale for each agenda item is as follows. Each step and the ideas offered have a reason and goal. Each point helps to promote communication and develop relations between different employees of a housekeeping department. Finally, the chosen kaizen event helps to touch upon some managerial aspects and the conditions under which a portion of physical work is performed. It means that the effectiveness of the event can be approved as soon as the first activities are taken.

Improvement Approaches: Advantages, Disadvantages, and the Choice

At the end of the case study, Hirsch, the General Manager, faced the necessity to choose between two different approaches that can be used to improve a working process and the quality of services offered. On the one hand, there is an expert-driven approach with its benefits and challenges. On the other hand, there is an employee-centered initiative with its strong and weak aspects.

The experience got in Tunica proved an essential role of leaders and their inabilities to adopt new operations quickly and support the Lean shift in a short period of time. Such uncertainty may be a sign or poorly developed social and technical skills. Still, the implementation process has several positive results and helps to delete wasteful activities, engages as many workers as possible, and promotes a team spirit that motivates each team member. As soon as each member of a team understands the importance of change and is ready to take some steps, the success of any operation is possible. Motivation and the desire to implement changes are the basics in a working process. However, employees should think about the time that has to be spent, and that is actually available.

The benefits of an expert-driven approach are connected with the possibility to involve a small group of people, who know how to promote a change in a short period of time. This group knows how to save time and money and explain the peculiarities of a process in a clear way as soon as the situation is studied thoroughly. Though it is expected that all employees are involved in a working process, their activities are under the control of several people.

Such dependence leads to the main disadvantages of the approach – the impossibility to consider the opinions of all employees but the necessity to follow the orders. In other words, there is no freedom and choice for ordinary workers but new instructions to be followed. Such result contradicts one of the main working philosophies that is the consideration of employees’ opinions and their possibilities to be involved in improving their working conditions.

In my opinion, the Metropolis facility can win with a properly implemented employee-centered approach. First, every employee should have a chance to share his/her personal opinion on how to improve the services and attract the attention of many customers. Employees can use their personal observations and evaluations of guests to explain their suggestions. Metropolis’ casinos aim at leading competitions. A professional approach is something that can be done by any organization. The attention to employees’ opinions and their unusual ideas can help to compete regardless the standards. In brief, to be motivated to work better, employees should feel their urgency for a company and develop their ideas regularly.

Works Cited

Hyer, Nancy Lee, Hirsch, Brad, and Karen A. Brown. “Implementing Lean Operations at Caesars Casinos.” Thunderbird: School of Global Management 2014. Web.

Parmenter, David. Key Performance Indicators: Developing, Implementing, and Using KPIs. Hoboken, NJ: John Wiley & Sons, 2015. Print.

Wilson, Lonnie. How to Implement Lean Manufacturing. San Francisco, CA: McGraw Hill, 2009. Print.

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Implementing LEAN Operations at Caesars Casinos Case Study Solution & Analysis

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

STEP 2: Reading The Implementing LEAN Operations at Caesars Casinos Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

  • Nature of organization
  • Nature if industry in which organization operates.
  • External environment that is effecting organization
  • Problems being faced by management
  • Identification of communication strategies.
  • Any relevant strategy that can be added.
  • Control and out-of-control situations.

When reading the case for second time, following points should be considered:

  • Decisions needed to be made and the responsible Person to make decision.
  • Objectives of the organization and key players in this case.
  • The compatibility of objectives. if not, their reconciliations and necessary redefinition.
  • Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Implementing LEAN Operations at Caesars Casinos:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Implementing LEAN Operations at Caesars Casinos and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Implementing LEAN Operations at Caesars Casinos HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Implementing LEAN Operations at Caesars Casinos is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

STRENGTHS:

In the strengths, management should identify the following points exists in the organization:

  • Advantages of the organization
  • Activities of the company better than competitors.
  • Unique resources and low cost resources company have.
  • Activities and resources market sees as the company’s strength.
  • Unique selling proposition of the company.

WEAKNESSES:

  • Improvement that could be done.
  • Activities that can be avoided for Implementing LEAN Operations at Caesars Casinos.
  • Activities that can be determined as your weakness in the market.
  • Factors that can reduce the sales.
  • Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

  • Good opportunities that can be spotted.
  • Interesting trends of industry.
  • Opportunities for Implementing LEAN Operations at Caesars Casinos can be obtained from things such as:
    • Change in technology and market strategies
    • Government policy changes that is related to the company’s field
    • Changes in social patterns and lifestyles.
    • Local events.

THREATS:

Following points can be identified as a threat to company:

  • Company’s facing obstacles.
  • Activities of competitors.
  • Product and services quality standards
  • Threat from changing technologies
  • Financial/cash flow problems
  • Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

  • Precise and verifiable phrases should be sued.
  • Prioritize the points under each head, so that management can identify which step has to be taken first.
  • Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
  • Make sure that points identified should carry itself with strategy formulation process.
  • Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Implementing LEAN Operations at Caesars Casinos Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative. It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

  • Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
  • Analyze the opportunities that would be happen due to the change.
  • Analyze the threats and issues that would be caused due to change.
  • Perform cost benefit analyses and take the appropriate action.

Pest analysis

PEST FACTORS:

POLITICAL:

  • Next political elections and changes that will happen in the country due to these elections
  • Strong and powerful political person, his point of view on business policies and their effect on the organization.
  • Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
  • Change in Legislation and taxation effects on the company
  • Trend of regulations and deregulations. Effects of change in business regulations
  • Timescale of legislative change.
  • Other political factors likely to change for Implementing LEAN Operations at Caesars Casinos.

ECONOMICAL:

  • Position and current economy trend i.e. growing, stagnant or declining.
  • Exchange rates fluctuations and its relation with company.
  • Change in Level of customer’s disposable income and its effect.
  • Fluctuation in unemployment rate and its effect on hiring of skilled employees
  • Access to credit and loans. And its effects on company
  • Effect of globalization on economic environment
  • Considerations on other economic factors

SOCIO-CULTURAL:

  • Change in population growth rate and age factors, and its impacts on organization.
  • Effect on organization due to Change in attitudes and generational shifts.
  • Standards of health, education and social mobility levels. Its changes and effects on company.
  • Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

  • Social attitudes and social trends, change in socio culture an dits effects.
  • Religious believers and life styles and its effects on organization
  • Other socio culture factors and its impacts.

TECHNOLOGICAL:

  • Any new technology that company is using
  • Any new technology in market that could affect the work, organization or industry
  • Access of competitors to the new technologies and its impact on their product development/better services.
  • Research areas of government and education institutes in which the company can make any efforts
  • Changes in infra-structure and its effects on work flow
  • Existing technology that can facilitate the company
  • Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Implementing LEAN Operations at Caesars Casinos Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

  • THREAT OF NEW ENTRANTS:
  • as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
  • Barriers to entry that includes copy rights and patents.
  • High capital requirement
  • Government restricted policies
  • Switching cost
  • Access to suppliers and distributions
  • Customer loyalty to established brands.
  • THREAT OF SUBSTITUTES:
  • this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
  • Price performance of substitute
  • Switching costs of buyer
  • Products substitute available in the market
  • Reduction of quality
  • Close substitution are available
  • DEGREE OF INDUSTRY RIVALRY:
  • the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
  • Competitive advantage
  • Continuous innovation
  • Sustainable position in competitive advantage
  • Level of advertising
  • Competitive strategy
  • BARGAINING POWER OF BUYERS:
  • it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
  • Bargaining leverage
  • Switching cost of a buyer
  • Buyer price sensitivity
  • Competitive advantage of company’s product
  • BARGAINING POWER OF SUPPLIERS:
  • this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
  • Input differentiation
  • Impact of cost on differentiation
  • Strength of distribution centers
  • Input substitute’s availability.

STEP 7: VRIO Analysis of Implementing LEAN Operations at Caesars Casinos:

Vrio analysis for Implementing LEAN Operations at Caesars Casinos case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below:
VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Implementing LEAN Operations at Caesars Casinos company’s activities and resources values.
RARE: the resources of the Implementing LEAN Operations at Caesars Casinos company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common.
COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation.
Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity.
ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Implementing LEAN Operations at Caesars Casinos) must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Implementing LEAN Operations at Caesars Casinos Case Solution:

Caesars Casino Case Study

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

  • Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
  • as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
  • it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
  • Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Implementing LEAN Operations at Caesars Casinos Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

Caesars Casino Case Study Guides

  • Improve profitability
  • Increase sales, market shares, return on investments
  • Customer satisfaction
  • Brand image
  • Corporate mission, vision and strategy
  • Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Implementing LEAN Operations at Caesars Casinos Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

Caesars Casino Case Study Guide

STEP 11: Recommendations For Implementing LEAN Operations at Caesars Casinos Case Study (Solution):

Caesars Casino Case Study Questions

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.

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