Slots, Tables, and All That Jazz: Managing Customer Profitability at the MGM Grand Hotel

Dennis  Campbell; Francisco de Asis  Martinez-Jerez; Marc   Epstein; Joshua  Bellin

Case | HBS Case Collection | March 2006 (Revised September 2006)

Slots, Tables, and All That Jazz: Managing Customer Profitability at the MGM Grand Hotel

by Dennis Campbell, Francisco de Asis Martinez-Jerez, Marc Epstein and Joshua Bellin

Abstract

The MGM Grand Hotel in Las Vegas had detailed information on loyal gaming customers, but could its information systems also be tailored to nongaming customers? As the nongaming business sectors became increasingly profitable both at the MGM Grand and in Las Vegas generally, understanding the nongaming customers appeared to be of critical importance to the continuing growth of the resort.

Keywords: Games, Gaming, and Gambling; Customer Relationship Management; Customer Value and Value Chain; Entertainment and Recreation Industry; Accommodations Industry; Nevada;

Format: Print

25 pages

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Citation:

Campbell, Dennis, Francisco de Asis Martinez-Jerez, Marc Epstein, and Joshua Bellin. "Slots, Tables, and All That Jazz: Managing Customer Profitability at the MGM Grand Hotel." Harvard Business School Case 106-029, March 2006. (Revised September 2006.)

An organization’s culture can be a significant source of sustainable competitive advantage. For the organization, it can attract job candidates who fit and align employees working in different teams around common goals. For employees, a strong culture can generate pride, satisfaction, and purpose. However, a strong organizational culture can easily decay with a company’s growth as new employees join the firm and business units develop cultures of their own. This technical note proposes that the growth a company can sustain while preserving its culture is governed by its ability to attract employees who fit with its purpose and values and to preserve and foster this alignment over time. To achieve this, an effective leader must formally articulate the purpose and values of the company and rely on four management systems that can be collectively thought of as a “North STAR” orienting managers’ and employees’ attention in the intended direction. This note details these organizational capabilities and management systems and describes the steps that successful companies take in order to preserve a strong culture through periods of growth.

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Slots, Tables, and All That Jazz: Managing Customer Profitability at the MGM Grand Hotel

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