MGM MIRAGE

SUBMITTED BY:

SUBMITTED FOR:
 1.0 CASE ABSTRACT

MGM Mirage (NYSE: MGM), one of the world's leading and most respected
companies with significant holdings in gaming, hospitality and entertainment, owns and
operates 16 properties located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, New Jersey, Illinois and Macau. City Center,
an unprecedented urban metropolis on the Las Vegas Strip scheduled to open in late 2009, is
a joint venture between MGM MIRAGE and Infinity World Development Corp, a subsidiary
of Dubai World. MGM MIRAGE Hospitality has entered into management agreements for
future casino and non-casino resorts in the People's Republic of China, Abu Dhabi, U.A.E.
and Vietnam. MGM MIRAGE supports responsible gaming and has implemented the
American Gaming Association's Code of Conduct for Responsible Gaming at its properties.
MGM MIRAGE has received numerous awards and recognitions for its industry-leading
Diversity Initiative and its community philanthropy programs.

MGM Mirage
Type Public (NYSE: MGM)
Founded 2000
Headquarters Las Vegas, Nevada
James Murren(Chairman/CEO)
Key people
Kirk Kerkorian (Member of the Board of Directors)
Industry Casinos and hotels
Products Hotels
Revenue US$D7,691.64 million (2007)
Operating income $2,863.93 million (2007)
Net income $1,584.42 million (2007)
Total assets $22,727.69 million (2007)
Total equity $6,060.70 million (2007)
Employees 54,700

Step 1: Identify the firm’s existing vision, mission, objectives and strategies.

The resorts and casinos of MGM MIRAGE are some of the most famous in the world,
widely credited for establishing a new generation of excitement in Las Vegas! Our 24
destinations are renowned for their winning combination of quality entertainment, luxurious
facilities and exceptional customer service.
 Our dedicated staffs of over 70,000 employees are committed to providing an
unsurpassed experience for every one of our guests. We are actively expanding our presence
globally, with potential developments in a number of domestic and international markets. At
MGM MIRAGE, we are all striving together to deliver our enticing blend of entertainment to
every corner of the world.
MISSION STATEMENT

Component Customers Employees Public Self- Philosoph Survival, Technolog Market Product
s of Mission image Concep y y s &
Growth,
/ s t Services
Profits
Company

MGM Yes No Yes No No No No Yes Yes

Customers – ‘Committed to providing an unsurpassed experience for every one of our guests.’

Public Image – ‘The resorts and casinos of MGM MIRAGE are some of the most famous in the world.’

Markets - ‘We are actively expanding our presence globally, with potential developments in a number of domestic and international markets.’

Product and Services - Our 24 destinations are renowned for their winning combination of quality entertainment, luxurious facilities and
exceptional customer service.
Step 2: Develop a vision and mission statement for the organization.

What to include to their Mission Statement

MGM MIRAGE seems already established ourselves as pioneer into entertainment

segment in the market regarding their high capabilities in maintaining their brand. The
competitive advantage over our rival as a leader in social responsibilities, not only through
monetary support of worthy agencies in our communities, but also through multi-dimensional
efforts.

“Delivering a promise of excitement” is our philosophy. With the first class hotel and
casino’s we can assure that our customers will have an unforgettable moment of their life. We
also are gaining profits to maximize our shareholders position in our company.

With the mass increase in internet usage globally the company, the company have to
cope with the changing pattern in the market today by introducing their online casino’s and
the usage of the hi-tech technology in maintaining the operation in monitoring the cash flow
in the cyber space. The technology usage in the internet market segment is crucial as the
company looking to tackle this market segment.
Step 3: Identify the organization’s external opportunities and threats.

Opportunities

 The theme hotel/casino resort concept had become firmly entrenched in Las Vegas as
well in much of the remaining gaming industry.
 Data monitor predicts that by 2010 the U.S casinos and gaming sectors’ value will be
approximately $109.2 billion, an increase of almost 40%
 Twenty million U.S citizens wagered some $4 billion by the end of 2005
 By 2009, projections are that online gambling revenues will exceed $20 billion
worldwide, with a smaller percentage coming from U.S. citizens
 77 million American baby boomers are now at their highest earnings levels, can
afford expensive vacations and, as retirees, they can be expected to travel extensively
and spend more during travel.
 The global casino gaming market reached a value of $298.7 billion in total revenues
in 2005 and by 2010 revenues are expected to increase to $387.5 billion.

Threats

 Recently efforts have been aimed at slowing the growth of internet gambling by
restricting the free transfer of credit card monies to gambling sites around the world.
 On an international basis, each local government establishes regulations controlling
gambling activities within its own borders.
 There were approximately 300 public companies generating gaming revenues in
2005.
 Harrah’s Entertainment Inc. is currently the largest U.S-based casino operation.
 Harrah’s now owns or manages 36 casinos under the Harrah’s, Caesars, and
Horseshoe brand names, which include 19 – land based casinos.
 Step 4: Construct a Competitive Profile Matrix (CPM)

MGM Mirage Harrah’s Las Vegas Sands

Entertainment Inc. Corp.

Critical Success
Factors Weight Rating Score Rating Score Rating Score

Advertising 0.20 3 0.60 3 0.60 2 0.40

Product Quality 0.15 4 0.60 3 0.45 2 0.30

Price 0.10 1 0.10 3 0.30 1 0.10

Competitivenes
s

Management 0.20 4 0.80 4 0.80 3 0.60

Financial 0.10 3 0.30 4 0.40 3 0.30

Position

Customer 0.05 2 0.10 3 0.15 2 0.10

loyalty

Global 0.10 3 0.30 2 0.20 1 0.10

Expansion

Market 0.10 2 0.20 2 0.20 2 0.20

Total 1.00 3.00 3.10 2.1

 Step 5: Construct an External Factor Evaluation Matrix (EFE Matrix)

External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted

Score
Opportunities
1) The theme hotel/casino resort concept had become
firmly entrenched in Las Vegas as well in much of the 0.07 2 0.14
remaining gaming industry.
2) Data monitor predicts that by 2010 the U.S casinos
and gaming sectors’ value will be approximately $109.2 0.12 3 0.36
billion, an increase of almost 40%
3) Twenty million U.S citizens wagered some $4 billion
by the end of 2005 0.09 2 0.18
4) By 2009, projections are that online gambling
revenues will exceed $20 billion worldwide, with a 0.10 3 0.30
smaller percentage coming from U.S. citizens.
5) 77 million American baby boomers are now at their
highest earnings levels, can afford expensive vacations 0.12 4 0.48
and, as retirees, they can be expected to travel
extensively and spend more during travel.
6) The global casino gaming market reached a value of
$298.7 billion in total revenues in 2005 and by 2010 0.10 3 0.30
revenues are expected to increase to $387.5 billion
Threats

1) Recently efforts have been aimed at slowing the

growth of internet gambling by restricting the free 0.08 2 0.16
transfer of credit card monies to gambling sites around
the world
2) On an international basis, each local government
establishes regulations controlling gambling activities 0.06 2 0.12
within its own borders

3)There were approximately 300 public companies 0.07 3 0.21

generating gaming revenues in 2005
4) Harrah’s Entertainment Inc. is currently the largest 0.09 4 0.36
U.S-based casino operation.
5) Harrah’s now owns or manages 36 casinos under the 0.10 4 0.40
Harrah’s, Caesars, and Horseshoe brand names, which
include 19 – land based casinos
TOTAL 1.00 3.01
Step 6: Identify the organization’s internal strengths and weaknesses.

Strength

 MGM MIRAGE provides it all mega casinos, world class hotels and restaurants and
some of biggest entertainment shows in the world.
 The other signatures resort, featuring luxurious, tropically oriented themes located on
the site shared with Treasure Island at the center of the Las Vegas strip.
 From pirates to pyramids to castle, other MGM Mirage properties follow the same
general concept of themed entertainment gaming resorts covering a wide variety of
locations and catering to many different types of customers.
 MGM Mirage earned $635 million net on revenues of $7.1 billion with a market cap
of $18.99 billion.
 A joint ownership with MGM Grand Paradise Limited is the MGM Grand Macau.
This hotel-casinos resort in Macau features at least 345 table games and 1035 slots
with room for significant expansion.

Weaknesses

 The gaming industry is heavily regulated by states and by other governments. In

United States, individual states must first pass laws legalize gambling, and then
they generally set up some form of regulatory commissions to oversee gambling
activities.
 MGM Mirage ranked 2nd in the casino operator behind Harrah’s Entertainment,
Inc
 Step 7: Construct an Internal Factor Evaluation Matrix (IFE Matrix)

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors

Strength Weight Rating Weighted

Score
1) MGM MIRAGE provides it all mega casinos, world
class hotels and restaurants and some of biggest 0.16 3 0.48
entertainment shows in the world.
2) The other signatures resort, featuring luxurious,
tropically oriented themes located on the site shared 0.13 3 0.39
with Treasure Island at the center of the Las Vegas
strip.
3) From pirates to pyramids to castle, other MGM
Mirage properties follow the same general concept of 0.13 3 0.39
themed entertainment gaming resorts covering a wide
variety of locations and catering to many different
types of customers.
4) MGM Mirage earned $635 million net on revenues
of $7.1 billion with a market cap of $18.99 billion. 0.20 4 0.8

5) A joint ownership with MGM Grand Paradise

Limited is the MGM Grand Macau. This hotel-casinos 0.16 4 0.64
resort in Macau features at least 345 table games and
1035 slots with room for significant expansion.

Weaknesses

1) The gaming industry is heavily regulated by states

and by other governments. In United States, 0.10 2 0.20
individual states must first pass laws legalize
gambling, and then they generally set up some form of
regulatory commissions to oversee gambling activities.
2) MGM Mirage ranked 2nd in the casino operator
behind Harrah’s Entertainment, Inc 0.12 1 0.24

Total 1.00 3.14

Step 8: Prepare a Strengths-Weaknesses-Opportunities-Threat (SWOT),
Strategic Position and Action Evaluation Matrix (SPACE) and Boston
Consulting Group Matrix (BCG)

Strengths-Weaknesses-Opportunities-Threat (SWOT Analysis)

Strengths (S) Weaknesses (W)

Opportunities (O) SO Strategies WO Strategies

1)MGM Mirage should do

some promotion packages as 1) MGM Mirage need to
acquire domestic casino
they know all baby boomers
operators to capture customers
has the most highest earnings of the casino and to lessen the
and they are retiring competition S6,W2
soon.S1,O5

2)By looking for the

opportunities arisen that US
citizen will eventually spent
to the total 4billion, MGM
Mirage could add more
variety of new entertainment
to their market S3,O2
Threats (T) ST Strategies WT Strategies

1)With the profit they gain 1) As Harrah’s Entertainment

on revenue, MGM Mirage
should buy some of the
public companies that is
doing well in the market so
that they can larger their
market share.S4,T3
2)As new regulations of local
government in gambling,
MGM Mirage should
Inc. overcome MGM Mirage
as leading company in casino
industry, MGM Mirage could
once again bypass Harrah’s
by merging with one of the
big company or buying a sum
of small competitor that will
increase their asset. W2,T5
concentrate to enlarge their
business by buying land in
the United States to build
more casino and hotels.
S4,T2
 Strategic Position and Action Evaluation Matrix (SPACE Matrix)

X - Axis: -4 + 5 = 1

Y - Axis: 5.33 + (-4.86) = 0.47

Coordinate: (3.6, 2.2)

Financial Strength (FS) Environmental sustainability (ES)

Return on investment 6 Competitive Pressure -6
Inventory turnover 5 Price Elasticity of Demand -5
Working capital 5 Barrier to entry new market -4
Earnings per share 5 Demand variability -4
Cash Flow 6 Changed in technology -4
Liquidity 5 Risk involved in business -6
Price range of competitive products -5
FS Average 5.33
ES Average -4.86

Competitive Advantage (CA) Industry Strength (IS)

Market Share -4 Growth Potential 3
Customer Loyalty -4 Profit Potential 6
Technological Know-how -3 Financial Stability 6
Product Quality -5 Technological Know-how 4
Competition Capacity -4 Resource Utilization 5
Utilization Productivity, Capacity Utilization 6

CA Average -4 IS Average 5
 After Calculate the SPACE Matrix of MGM Mirage, they are located in the
aggressive quadrant (Upper Right Quadrant).MGM Mirage is now in an excellent position in
the market because provides it all mega casinos, world class hotels and restaurants and some
of biggest entertainment shows in the world. They now have to take their advantage to use
their internal strengths to take advantage of external opportunities such as doing some
promotional packages to attract all the baby boomers to spend their compensation money into
a very relaxing vacation n entertaining themselves at MGM Mirage Hotels and casinos. The
2nd and 3rd thing they should do is overcome internal weaknesses and avoid external threats.
Their internal weaknesses cannot be overcome easily as it is considered law of a country.
They can avoid their external threats by using market penetration and market development
strategy. They should be more competitive in the market by acquiring existing company or
cooperate together with other company that is rising in the market so that their customer will
aware of MGM Mirage products.
GRAND STRATEGY MATRIX

Rapid Market Growth

Quadrant II Quadrant I

Weak Strong Competitive

Competitive Position
Position

Quadrant III Quadrant IV

Slow Market Growth

From the Grand Strategy Matrix, it has been identified that The MGM Mirage belongs
to the Quadrant 1 that needed either the forward, backward, or horizontal integrations if there
is an excess in the resources, or by just concentrating on the market positions or the market
development in order to sustain. Therefore, as the Grand Strategy Matrix is being
constructed, the company falls into the first quadrant of the graph for having a strong
competitive position with a rapid market growth. Under the market development and market
penetration shows that MGM Mirage should counter the market by buying others company to
strengthen their position. Under the product development the MGM Mirage should always
come out with different and new product to eliminate thereat from their competitor. The
integration and also diversification process should be implemented and MGM need to
construct to keep the company competing in their market segment. This company falls under
the excellent strategic position and therefore they are able to take risks aggressively when
necessary or afford to take any advantages cause by any of the external opportunities.
BCG MATRIX FOR 3M

From the image above, it is clearly identified that The MGM Mirage falls under the
second quadrant which is the Stars that represent the organization best long run opportunity
for growth and profitability. This company reflects a high position in relative market and also
the industry sales growth that should be injected through an investment to maintain or
strengthen their dominant positions and also to expand their market internationally as the
market they enter have high possibility in terms of profits and opportunities. At this stage,
The MGM Mirage needs is the consideration of the most appropriate strategies to be applied
such as either through the forward, backward, horizontal integrations, market positions or the
market development; which is more suitable to strengthen their position. By doing market
development and also product development MGM Mirage have the opportunities to
overcome their competitor in their market segment, and also will counter possible threats that
could affected their business, they also will manage to capture new batch of customer by
offering product development as well as retain the old ones.
INTERNAL-EXTERNAL (IE) MATRIX

The IFE Total Weighted Score

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99

High I II III
3.0 to
3.99

MGM Mirage

Medium IV V VI
The EFE 2.0 to
Total 2.99
Weighted
Score

Low VII VIII IX

1.0 to
1.99

Grow and Build

 EFE Total Weighted Score = 3.01

IFE Total Weighted Score = 3.14

Segment $ Revenue 2006 % Revenue 2006

(in thousands)
Casino 3,130,438 40.15
Rooms 1,991,477 25.54
Food & Beverages 1,483,914 19.03
Entertainment 459,540 5.89
Retail 278,695 3.57
Others 452,669 5.81
Total 7,796,733 100

By using the Internal-External Matrix, it is clearly identified that MGM Mirage falls under
the first quadrant by relating the total weighted score from the IFE and EFE Matrix.

QSPM

Strategic Alternatives
Key External Factors Buy other small Implement new
Weight competitor company promotional package
Strength AS TAS AS TAS
1) MGM MIRAGE provides it all
mega casinos, world class hotels and 0.16 3 0.48 1 0.16
restaurants and some of biggest
entertainment shows in the world.
2) The other signatures resort,
featuring luxurious, tropically oriented 0.13 - - 3 0.39
themes located on the site shared with
Treasure Island at the center of the Las
Vegas strip.
3) From pirates to pyramids to castle,
other MGM Mirage properties follow 0.13 2 0.26 3 0.39
the same general concept of themed
entertainment gaming resorts covering
a wide variety of locations and
catering to many different types of
customers.
4) MGM Mirage earned $635 million
net on revenues of $7.1 billion with a 0.20 2 0.40 1 0.20
market cap of $18.99 billion.
5) A joint ownership with MGM
Grand Paradise Limited is the MGM 0.16 4 0.64 - -
Grand Macau. This hotel-casinos
resort in Macau features at least 345
table games and 1035 slots with room
for significant expansion.

Weaknesses
1) The gaming industry is heavily
regulated by states and by other 0.10 - - 3 0.30
governments. In United States,
individual states must first pass laws
legalize gambling, and then they
generally set up some form of
regulatory commissions to oversee
gambling activities.
2) MGM Mirage ranked 2nd in the
casino operator behind Harrah’s 0.12 4 0.48 2 0.24
Entertainment, Inc

Total 1.00

Strategic Alternatives
Key Internal Factors Buy other small Implement new
Weight competitor company promotional package
Opportunities AS TAS AS TAS
1) The theme hotel/casino resort
concept had become firmly entrenched 0.07 - - 4 0.28
in Las Vegas as well in much of the
remaining gaming industry.
2) Data monitor predicts that by 2010
the U.S casinos and gaming sectors’ 0.12 3 0.36 - -
value will be approximately $109.2
billion, an increase of almost 40%
3) Twenty million U.S citizens
wagered some $4 billion by the end of 0.09 - - 4 0.36
2005
4) By 2009, projections are that online
gambling revenues will exceed $20 0.10 - - - -
billion worldwide, with a smaller
percentage coming from U.S. citizens.
5) 77 million American baby boomers
are now at their highest earnings 0.12 - - 2 0.24
levels, can afford expensive vacations
and, as retirees, they can be expected
to travel extensively and spend more
during travel.
6) The global casino gaming market
reached a value of $298.7 billion in 0.10 2 0.20 3 0.30
total revenues in 2005 and by 2010
revenues are expected to increase to
$387.5 billion

Threats
1) Recently efforts have been aimed at
slowing the growth of internet 0.08 - - 2 0.16
gambling by restricting the free
transfer of credit card monies to
gambling sites around the world
2) On an international basis, each local
government establishes regulations 0.06 - - 2 0.12
controlling gambling activities within
its own borders

3)There were approximately 300 0.07 4 0.28 - -

public companies generating gaming
revenues in 2005
4) Harrah’s Entertainment Inc. is
currently the largest U.S-based casino 0.09 4 0.36 3 0.27
operation.
5) Harrah’s now owns or manages 36
casinos under the Harrah’s, Caesars, 0.10 2 0.20 3 0.30
and Horseshoe brand names, which
include 19 – land based casinos
Total 1.00 3.66 3.71
Step 9: Recommend specific strategies

After two alternative strategies being consider which is to buy other small competitor
and the other one is to implemented new promotional package. After the sum total
attractiveness being done note that the scores of 3.66 and 3.71 and from that analysis
indicates that the MGM Mirage Company should implement new promotional package. The
QSPM strategies will help to recommended to the MGM Mirage that the implement new
promotional package as their main objective in order to improve their business in the
entertainment industry. The advantages for using this strategy is that sets of strategies can be
examined sequentially or simultaneously and no limitation of the number of strategies that
can be evaluated and examine. In order to assure that the strategies will affected the company
as a whole MGM Mirage could enlarge their promotional tools by using the internet access as
their customer already being worldwide, the using of the technology is crucial to assures that
the company use every resources that they can use to eliminate the possible threat by their
competitor. They also could introduce new attraction to their existing product as one way to
attract new customer as well as retain the existing one. The MGM Mirage could strengthen
their branding by advertising and also sponsorship. The main objective by implementing new
promotional package is to overcome Harrah’s Entertainment Inc. to make MGM Mirage
leading brand in this market segment. As MGM Mirage financial showing that the company
doing very well in terms of profit gain, so it is being encourages that MGM Mirage need to
investing large sum of money in order to make the new promotional package will be great
investment. As a strong company in MGM Mirage, they need to focus to be leading company
and set their branding worldwide to make the company overpass Harrah’s Entertainment Inc.

Implementation

The MGM Mirage can implement these recommendations by focusing their objectives
on creating new promotional packages. It can also be implemented by fully utilizing the use
of proper tools such as the internet as a way of promotion to their customers who are already
worldwide. This can be done by advertising their new promotional packages via internet
where they are placed on online gambling websites. This in turn will attract potential
customers who are already regular gamblers who frequently visit these web pages. These
advertisements may include new attractions which can help attract new customers as well as
existing customers who long for something new from MGM Mirage. The MGM Mirage
should consider newer themes beside the already existing castles, pirates and pyramid
themes. The MGM Mirage should also consider the existence of other competitors besides
the domestic competitors in the United States. International competitors’ especially new and
rising casinos in the asian region (ie.Singapore) should be recognized and addressed. The
MGM Mirage must find ways to attract customers from asia to come to the United States
rather than visit the casinos in Asia. Advertising through sponsorship should also be
implemented as a way to attract customers. This can be done by establishing sponsorship in
several worldwide industries including entertainment and sports. As we are aware, football
has become somewhat of a household sport around the world. As a saying goes when a
football match is being played, all eyes in the world will be upon it. The MGM Mirage
should take advantage of this factor by advertising their name by sponsoring top football
teams in the world with a strong fan base worldwide.

Expected Result

From the planned recommendation and implementation of the new promotional

package, it can be expected that success can be achieved. The expected rise of new customers
could be estimated to be in the region of 15%. This is a result of the new promotional
package including new attractions. The implementation of worldwide advertising via the
internet is also expected to attract international customers especially from asian countries.
Advertising through sponsorship is also expected to introduce MGM Mirage’s name even
wider around the world. By 2009, projections are that online gambling revenues will exceed
$20 billion worldwide, with a smaller percentage coming from U.S. citizens. Data monitor
predicts that by 2010 the U.S casinos and gaming sectors’ value will be approximately $109.2
billion, an increase of almost 40%.
Step 10: Projected Financial Ratios of MGM Mirage

MGM Mirage and Subsidiaries Consolidated Statements of Income (in thousands,

except per share amounts)

Year Ended December 31

2010

REVENUES
Casino $3,130,438
Rooms 1,991,477
Food and beverage 1,483,914
Entertainment 459,540
Retail 278,695
Other 452,699
7,175,956
Less: Promotional allowances (620,777.00)
7,175,95
EXPENSES
Casino 1,612,992
Rooms 539,442
Sponsorship 2,987,878
Food and beverage 902,278
Entertainment 333,619
Retail 179,929
Other 245,126
General and administrative 1,070,942
Corporate expense 161,507
Pre opening and start-up expenses 36,362
Restructuring costs (credit) 1,035
Property transactions, net (40,980)
Depreciation and amortization 629,627
5,671,879
Income from unconsolidated affiliates 254,171
Operating income 1,758,248
Non-operating income (expense)
Interest income 11,192
Interest expense, net (703,361)
Non-operating items from unconsolidated affiliates (16,063)
Other, net (15,090)
(780,322)
Income from continuing operations before income taxes 977,926
Provisions for income taxes (341,930)
Income from continuing operations 635,996
Discontinued operations
Income from discontinued operations 18,473
Provisions for income taxes (6,205)
12,268
NET INCOME $648,264
Step 11: Recommend specific annual objectives and policies

ANNUAL OBJECTIVE

The MGM Mirage should introduce a new annual objective and policy which
emphasizes the need to compete and overcome Harrah’s Entertainment Inc. as the leading
gaming operator in the United States. This should be achieved by implementing the
recommendations above in a proper and planned regime. Overcoming Harrah’s as the largest
gaming operator should be the highest priority for the MGM Mirage. The MGM Mirage
should also make it an objective to take advantage of the rise of avenue in the gaming
industry by 2010 which is expected to increase up to $387.5 billion. By 2009, projections are
that online gambling revenues will exceed $20 billion worldwide, with a smaller percentage
coming from U.S. citizens. Improving the internet tool should also be an objective. The
MGM Mirage should adopt the policy of catering to a now worldwide based customer both
through their casinos and also online gaming facilities. The policy can include ways on how
to understand and tackle worldwide customers.

Step 12: Recommend procedures for strategy review and evaluation.

After the initial planning were suggested to MGM Mirage to strengthen the company
in terms of financial as well as promotional to be leading company in the industry, the crucial
step is to evaluate the strategy to make sure that each of them is can reach the company long
term and annual objective because of numerous internal and external factor can effected each
of the plan.

The main criteria are to make sure that external opportunity and threats and internal
strengths and weaknesses that represent the bases of current strategies should continually be
monitored for change. It is not really a question of whether these factors will change but
rather when they will change in what ways, so the strategies need to be review and evaluate
 to provide the information to the company about its strengths, additional internal strength to
support the strategies and to determine the company weaknesses.

Under the strategies evaluation process such steps need to be addresses:

I. The main competitor which is Harrah’s Entertainment Inc. reacted to the strategies
implemented by MGM Mirage.

II. MGM Mirage need to monitor Harrah’s Entertainment Inc. strategies is it changes due
to the changes made by MGM Mirage.

III. Changes of strengths and weaknesses of Harrah’s Entertainment Inc. due to the
implementation of new strategies by MGM Mirage.

IV. The reason of Harrah’s Entertainment Inc. made changes in their strategic.

V. MGM Mirage need to research what Harrah’s Entertainment Inc. strategies is

successful in becoming leading company in the industry.

VI. Harrah’s Entertainment Inc. satisfactory towards their company present market
positions and in terms of profitability.

VII. To determine MGM Mirage major competitors can be push before their start to
retaliating

VIII. The alternative way to effectively cooperate with the competitors.

The implementation of the strategies also crucial in terms of keep the evaluation process
continuous rather than on a periodic basis to allow benchmarks progress to be established and
more effective monitored. The strategies will take times to implement. The managers and
employees of MGM Mirage should be continually aware of progress being made toward
achieving the company objectives. As critical success factors change, organizational
members should be involved in determining appropriate corrective action. Through
involvement in the process of evaluating strategies, managers and employees become
committed to keeping the company moving steadily toward achieving the objective.
Have Major Changes Have Major Changes Has the Firm
Occurred in the Firm Occurred in the Firm progressed
Result
Internal Strategic External Strategic satisfactorily Toward
Position Position Achieving Its Stated
Objective

No Yes Yes Continue present

strategic course

Yes Yes Yes Take corrective

action

Yes Yes No Take corrective

action

Yes No Yes Take corrective

action

Yes No No Take corrective

action

No Yes Yes Continue present

strategic course

No Yes No Take corrective

action

No No Yes Continue present

strategic course