The evaluation of any business model is important. For this reason the evaluation of the organizational structure of the casino will be done. It will entail critical analysis of the business model that is, the strategic choices, creating value, capturing value and value network. These are the four components that make up the affinity diagrams (Pyzdek, 2003). A business model can have very many components. Business models are seen as powerful tools for analyzing, implementing and communicating strategic choices (S.M. Shafer et al, 2005). Though there is no definite definition of a business model, the four components have been used to give one. It can be a representation of an organization’s underlying core logic and strategic choices for creating and capturing value within a value network (Shafer, 2005).
An organization will make strategic choices depending on the underlying assumptions made before the business was actually started. The assumptions must be realistic or have logic (S. Shafer, 2005). Under the strategic choices component, we look at the casino’s main target. Who are there customers? There main market target are tourists and people who love to gamble for fun and as a way of making money. They also attract individuals who just
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Any organization faces competition from others, for this reason it has to offer unique services to greatly differentiate it from the others. This includes having a unique approach of securing capital (S.Shafer, 2005). The casino not only depends on gambling but also offers hotel and restaurant services for both gamblers and non-gamblers. It holds night parties, live concerts, and stand up comedies and outside catering services. This numerous activities it caries out has out done its competitors in service provision. A business must have services it offers and those services are offered by its employees.
There is the head of the casino, the General Manger, who is responsible of all the five departments: rooms, casino, entertainment, marketing and food and beverages. The departments are a show of the output the casino is supposed to offer at the end of the day. The casino has its own strategy as it chose a good allocation point. It is near a cruise ship where most local and international tourists arrive. In addition, there are hotels, restaurants and a big shopping mall near it. The allocation strategy was well planned so as to target the customers.
An organization must have an objective or goal it wants to achieve. For most organizations, such objectives are seen in their mission statements that they also use as an advertising strategy (Hughes K., 2005). For instance the casino’s mission statement entails offering its customers with professional gaming experience that will finally lead them to have maximum enjoyment. The statement goes further to explain that it has knowledgeable and careful planned staff and thus they are certain to not only achieve but also exceed all the goals of their customers. With such a mission statement in their brochures and advertisement they can not miss customers who come to ensure that truly that is what they have to offer.
Organization are generally known to be profit oriented thus have to create and capture value. These two components aid any organization to survive for along period of time.
Substantial value is created by any organization when its provision of services is highly differentiated (S. Shafer, 2005). In other words, the organization is supposed to offer its services differently from its competitors. By being different, it will be able to attract a majority of its customers making it more valuable. According to Shafer, it also includes unique ways of securing capital. Resources or assets and processes or activities of an organization are analyzed critically.
The casino has both human resources and other assets that they use as there input. First of all, it has its offices in the building they have bought to render there several services. It has the different kinds of machinery for the different gambling games they offer: table games and electronic games. For the electronic games, it has slot machines and video poker. For the table games, it has the tables, the poker cards and the dices.
As discussed earlier in the paper, the casino has several activities and departments that ensure provision of services to the customers. The casino department generates the highest revenue for the organization though there are other departments. It has different managers, controlling the different sections of service provision and activities that are carried out within the department. It has the table games manager, slot manager, F&B manager, security manager and surveillance manager. The sub-divisions of the department are a way that differentiates the organization’s activity from that of its competitors. Each manger is supposed to ensure that his or her area is perfect and that the customers enjoy the services.
The tables department trains its employees before they start working in the casino. It makes sure that the employees understand the need of good staff-guest relations. Moreover, it makes sure that the employees understand how the table games are played by teaching them about the rules of the games and making sure that the guests play genuinely. The department also evaluates its employees monthly. The employees have signed performance contracts that if they do not perform well they are prone to being fired. Any complaints made by a guest about poor services from an employee can lead to serious disciplinary actions of the employee. It makes sure that the rules of the department and the whole organization are followed. Other than that, it monitors the computers that are given to players to ensure that they are working effectively and that the guests do not mess with them or steal any thing. It is responsible of assigning pit managers to a table game (TG) pit each shift and that the department runs smoothly. That is, there are the needed resources and employee relations are good.
The slot department also carries the same activities as the table game department. Both give feed back to the general manager about how their departments are fairing on. Security is an important element in any casino business. This is so because the business involves dealing with large sums of money that readily attract thieves. The casino has to assure its guests that they can receive maximum protection for their money and property. The security department ensures safety of employees, guests and assets within the casino. It has hired privately trained officers to carry to be in charge of security. Its other duty is to ensure that cash or chips within the casino are transferred safely to and from the casino. It makes sure that banned individuals-under aged persons-do not enter the casino. It has to follow the governments rule that under aged persons are not allowed within the casino.
The surveillance department uses both technology and human intelligence to ensure honest operations. It ensures cheating is not among relationships; gust-guest, guest-casino, employee-guest, employee-employee and employee-casino. The casino has surveillance cameras with a security room with a lot of television to view any cases of insecurity. It takes videos and keeps the video tapes in case of any inquiries of criminal cases. There are about three security personnel in the casino surveillance room every night.
For every organization to succeed, it has to make sure that the costs are not higher than the revenue. The casino has to ensure that they are not offering charity services to its guests. It does this by not only relying on the casino department. Although it is the king department, the casino has other departments that add to the casino’s revenue. The other departments serve the casino departments but at the same time they attract other customers who want to use the other services used. The hotel and restaurant area is run by the F&B department. It serves the guests with the necessary food and drinks they wish to have. It also offers room services for any guest who wants to spend the night. The department is in charge of planning for night parties either in the casino or outside the casino. It offers outside catering services to various occasions like weddings, funerals and birthday parties. The department is also in charge of arranging the place for any live concerts that are held. It arranges for stand up comedies, concerts like poem recitals, classical and jazz musical concerts. The different forms of revenue collections ensure that the casino is making profit. This is so because the revenue is greater than the cost incurred.
There is a link between creation of value and value capture. The link is definitely the value network that comprises of suppliers, customer relationship and information, information flow and product or service flow (S.Shafer, 2005). The organization is most likely to create substantial relationships with these networks. The organization must be very careful in choosing the role it is to play in this component. An organization is not supposed to be reluctant just because it has gained trust in these parties, it must struggle to keep them.
The casino has its constant suppliers of the electronic games machines. The same suppliers ensure that they offer maintenance and reappearance services. The casino was able to identify its suppliers of the games machines before it started the business. The same suppliers give table games appliances and ensure that they are well marked and in good conditions. The other suppliers are for the food and beverage department, they get the farm produce from a food factory. The securing of these suppliers is due to timely payments that they get from the casino. It does not take any credit for its appliances and other in puts. These timely payments have enabled the suppliers to stick to the casino.
The customers are very sensitive to any business or organization. They are the source of revenue and attracting them is hard but keeping them is harder. It is very important that the customers get information of the new products and services that are being offered. Information is relayed to customers through the marketing department in the casino. it has brochures that explain about its new services they have to offer or changes of services and how the customers can go about to knowing them. They offer television, newspapers, newsletters and posters to advertise. The customers usually have first hand information when the services given change. The employees are trained to talk to the guests and explain on the new strategies. This enables the guests to feel that they are valued and it has kept the old time customers coming in constantly. Customer relationship is normally enhanced by ensuring that there is constant information flow of the service provision changes. It is also enhanced by giving the best services to the guests in the casino. They have gained confidence by ensuring the customer’s needs are adequately met. They have trained employees on how to relate with all kinds of guests thus the guests always feel that there needs are professionally met.
The organization ensures information flow within it. It has calculated ways of ensuring that all employees get adequate information about the changes made or the organizational goals. The organization has regular meetings, memos, and letters and hand books to inform every member of the organization what is happening within the organization. For employee satisfaction to be met, the management of the casino ensures that it follows the Employment Acts regulations, paying the employees on time and sharing the extra profit that is made by the business. The casino also gives its employees the chance to advance in their careers by giving them study leaves. Constant training of the employees gives them the chance to learn about the new changes by the management. When employee satisfaction is reached, then the services given to customers will be of high standard thus customer trust is increased.
Service flow of the casino is constant given that they ensure they have enough employees every night for each department. The management ensures that the machines are in a good condition for the guests to utilize. This will lead to customers having confidence in the business.
The formation of a good business model is very important. It gives the organizations a way forward to encroaching in to a business. Organizations must take up the necessary cautions as they engage in formulating a business model. It is important for them to ensure that they make realistic strategic choices. They must not make flawed choices that is, choices that do not have empirical evidence that they have worked before. The business model strategy is crucial so any business must make very careful choices.
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Pyzdek, T. (2003). The Six Sigma Handbook. New York: McGraw-Hill.
Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business Horizons, 48, 199-207.
Generalized organizational chart