Wynn Resort Case Study

Wynn Resort Case Study
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Wynn Resort Case Study
Wynn resort operates its business based on regulation outlined by the government. Its goal is to provide quality service delivery. The company faces different challenge such as finding an opportunity for expansion and strict government regulations. Mr. Wynn, the CEO has enhanced the company’s operational strengths through establishing strategies that attract clients.
Case Analysis
Wynn resort limited is located in the People’s Republic of China it operates under two principal branches which involve Wynn Las Vegas and Wynn Macau. The main activities involve casino which attracts different customers across the city. Furthermore, the resort has table games, accommodation, and restaurants. Despite the growth rate of the company, it faces different challenges which include its smaller size in comparison with its competitors. It means that it is unable to host a significant number of clients compared to its competitors (Page, College, and Hoffman, 2002). To address this issue, the company could plan on expanding the facility by requesting the government to provide them with a go-ahead to increase.
Terrorist attacks have been outlined as the general challenges that most of the industries face. Expensive air travels also affect customer’s travel plans. The problems could be addressed by influencing the security agencies to work on reducing the occurrences of the terror attacks (Page et al., 2002). Safety and security play a fundamental role in both tourism sector and the travel industry.

Conducting business in international markets has been challenging since the company has not established itself in other parts of the world. The limitation of expansion is due to government limitation of licenses to conduct businesses like that of Wynn Resorts. However, the financial growth continues to raise the company (Page et al., 2002). The growth of gambling industry has attracted foreign investors. Therefore, Macau’s GDP has grown, thus more cash flow to the company.
Macau city has often had a peaceful and favorable environment for Wynn resort. It attracts different groups of people, most of them being the elderly. The youth also have a place of entertaining themselves within the facility. However, government restrictions have hindered the resort from progressing compared to other sectors in the industry. The issue could be solved by involving the stakeholders and government agencies in negotiation for fewer restrictions. For instance, the government could issue concession of the land owned by the company in Macau, if the government takes back the land the long-term plans would be affected negatively (Page et al., 2002). This problem could further be solved by renewing the concession and making the required payment and taxes on a timely basis.
Wynn resort has established strategies to work with different markets. However, a significant number of risk associated with such strategies have been noted. Political, economic and social risks affect the working of the company. For instance, terrorism, military conflicts, and health epidemics have been outlined as the major threats in the new market (Page et al., 2002). Therefore, the human resource management should establish dynamic analysis and study of the emerging market before investing in them, and this would reduce the occurrence of loses. The company would face reduced customer rate and decreased tourism clients often fear to risk their lives.
The facility attracts different groups of tourist. However, China has often faced challenges related to currency and insecurity. The currency exchange is sometimes unfavorable for the visitors thus losing interest in visiting the country. The government is yet to relax its restrictions between China and Macau (Page et al., 2002). The profit potential would then grow, and tourist to Macau Wynn resort would increase.
The resort has been able to maintain maintenance and acquire competitive advantage under the management of Wynn. The company relies on his competence for its operations. Such reliance is risky since if the manager fails or resigns from this facility, the resort would lose its credibility. The company could address this issue by training other employees on how to manage the facility. The training would enhance continuity of the company in case Wynn absence.
The company has Casino monopoly since the government of Macau has established restrictions on having casinos in its mainland. The monopoly has provided growth for the company. However, other restrictions affect the performance of the company (Page et al., 2002). For instance, the taxes are high hence restricting the company’s profit-making strategies. The management could negotiate with the government to reduce the tax so that the company can achieve financial growth.
According to the government’s agreement with Wynn, it has the right to assume custody and control the operations of the casino at any given time if the agreement is violated. The ability of the government to take over the operations of the facility pose another risk of losing the resort and challenge of operating under strict restrictions(Page et al., 2002). The company should, therefore, ensure that it follows regulations established by the government thus reducing chances of its closure and government takeover of the facility. It should make such regulations available to its employees and ensure that they adhere to them.
Summary
The challenges faced by the resort are minimal thus enabling the management to establish an effective course of action in implementing them. The resort should seek to address the restriction challenges by appealing to the government. Expanding its services would ensure growth and competitive advantage of the company.

Reference
Page Victoria, College Bentley, and Hoffman N. Alan. (2002). Case 1: Wynn Resorts, LTD