Wynn resorts

of 10

Please download to get full document.

View again

All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
PDF
10 pages
0 downs
15 views
Share
Description
1. TEAM SILVER WYNN RESORTS VS. MGM RESORTS Strategic and financial comparison between hospitality and gaming industry competitors Brian Dubuque, Sinh Hoang, Nick…
Transcript
  • 1. TEAM SILVER WYNN RESORTS VS. MGM RESORTS Strategic and financial comparison between hospitality and gaming industry competitors Brian Dubuque, Sinh Hoang, Nick Lebsock, Firuz Shirinov
  • 2. COMPANY AND INDUSTRY OVERVIEW
  • 3. 2007 COMPANY AND INDUSTRY 2007 MGM Resorts Wynn Resorts Ceasars Profit Margin Analysis Gross Profit 46.19% 27.70% 48.48% Operating Profit 37.23% 15.98% 24.84% Net Profit 20.60% 9.61% 5.72% Liquidity Ratios Current Ratio 0.68 19.67 0.93 Quick Ratio 0.48 18.66 0.66 Cash Balance 412,390,000.00$ 402,268,000.00$ 710,000,000.00$ Debt Ratios Debt-to-Asset Ratio 0.49 2.47 9.93 Interest Coverage 4.04 2.99 -0.13 Cash Flow to Debt 0.09 0.93 0.10 Productivity Ratio Revenue Per Employee 114,800.55$ 162,879.94$ 124,482.76$ Operating Performance Ratio Fixed Asset Turnover Ratio 0.46 0.68 0.58 Inventory Turnover 33.85 28.23 83.72 Revenue 2005 44.61% 370147.00% 56.26% 2006 17.09% 98.00% 36.01% 2007 7.19% 88.00% 12.00% Profit 2005 7.50% 144.44% -35.71% 2006 46.25% 792.16% 126.65% 2007 144.41% -143.55% 15.60% Cash Flow 2005 -136.78% 23.95% 158.65% 2006 274.05% 81.77% -68.05% 2007 -136.99% 61.53% -219.15%
  • 4. SWOT ANALYSIS OF WYNN RESORTS Strengths - Presence in Strategic Locations - Brand Recognition - Experienced CEO Steve Wynn Weaknesses -Declining Operational Performance -Fewer Resorts than Competitors -Luxury Brand (Economy) -Drop in Occupancy 79.7% Opportunities - Growing Market in Macau - Growth Prospects in Hospitality Market - Domestic Tourism Threats -Declining economy -Customers cutting back spending -Las Vegas Resort Saturation -Competitors Expanding into New Markets
  • 5. STRATEGIC PLAN COMPARISON Wynn Resorts MGM Resorts -Capitalize on the Wynn Brand -Attract and Deliver High-quality Service and Amenities to High-end Gaming Customers -Bigger Push for Marketing Gaming and Incentives -Push the MGM Brand Domestically and Internationally -Opened in Detroit and Macau -Plans for Abu Dhabi, Atlantic City, China, and Las Vegas -Strategic Partnerships with Development Companies (Dubai World, Kerzner Int.) -Lowered Debt Load by $1.2 Billion
  • 6. 2012 COMPANY AND INDUSTRY 2012 MGM Resorts Wynn Resorts Ceasars Profit Margin Analysis Gross Profit 35.37% 36.92% 47.38% Operating Profit 0.90% 27.99% 19.09% Net Profit -19.30% 14.16% -17.46% Liquidity Ratios Current Ratio 1.3 1.947 1.35 Quick Ratio 1.25 1.859 1.22 Cash Balance 1,544,000,000$ 1,725,219,000$ 2,590,000,000$ Debt Ratios Debt-to-Asset Ratio 0.83 0.986 1.012 Interest Coverage 0.07 3.538 -0.071 Cash Flow to Debt 0.04 0.165 0.001 Productivity Ratio Revenue per Employee $137,140 322,142.75$ 122,714.29$ Operating Performance Ratio Fixed Asset Turnover Ratio 0.65 1.09 0.55 Inventory Turnover 85 47.87 85.84 Revenue 2010 0.75% 37.40% -1.01% 2011 29.60% 25.93% 0.11% 2012 16.70% -2.19% -2.72% Profit 2010 11.2% 115.39% -4.32% 2011 316.77% 31.96% 3.76% 2012 -156.75% -2.91% -1.69% Cash Flow 2010 -75.73% -36.82% 7.50% 2011 274% 0.32% -8.35% 2012 -17.25% 36.64% 94.56%
  • 7. INDUSTRY COMPETITION, ISSUES, TRENDS
  • 8. INDUSTRY COMPETITION, ISSUES, TRENDS Competition -Oversaturation of Market -High Issues -Struggle to Maximize Value of Experience -Lower Disposable Income -Desire for Economical Food, Beverages, Entertainment Options -Slowdown in Transportation and Tourism Industry Trends
  • 9. SWOT ANALYSIS OF WYNN RESORTS Strengths -Presence in Strategic Locations Added Resorts -Brand Recognition Increased -Experienced CEO Steve Wynn Weaknesses -Declining Operational Performance Increased -Fewer Resorts than Competitors -Luxury Brand (Economy) -Drop in Occupancy 79.7% Increased Opportunities -Growing Market in Macau -Growth Prospects in Hospitality Market -Domestic Tourism Increased International Tourism Threats -Declining economy -Customers cutting back spending Customers Starting to Spend More -Las Vegas Resort Saturation -Competitors Expanding into New Markets
  • 10. WYNN’S OVER-PERFORMANCE -Wynn capitalized on first to market advantage and growth in international expansion, especially Macau and China. -Increased Occupancy at Macau and Las Vegas Resorts -Greater Popularity Due to Marketing of Brand and Better Amenities -Smaller Size Allowed Them to React Quickly to Changing Market
  • Related Search
    We Need Your Support
    Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

    Thanks to everyone for your continued support.

    No, Thanks