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Copy of Wynn Resorts

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dane gicole

on 18 July 2013

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Transcript of Copy of Wynn Resorts

Wynn Resorts
Elevate your expectations
Presentation by:
Brooke Caton
Julianna Keleher
Amburli McCoy
A Brief Overview
Incorporated in 2002
Co-founder, CEO & Chairman of the board: Casino tycoon Stephen Wynn


June 24, 2002: granted concession in Macau


Wynn Las Vegas
Wynn Macau
Encore at Wynn Las Vegas
Encore at Wynn Macau
Corporate-level Strategies
Short-term
Long-term
Business-Level Strategies & Objectives
Demographic
Political/Legal
Economic
Sociocultural
Technological
Bargaining Power of Buyers
Rivalry Among Existing Competitors
Threat of Substitutes
Some
Many
Few
Threat of New Entrants
Bargaining Power of Suppliers
Five Forces Analysis
Strategic Groups
Different
perspectives
Strengths, Weakness, Opportunities & Threats
Global expansion of brand

Maintain current establishment model
Vision/Mission?
Vision: Wynn Resorts Limited will signify the very definition of luxury: we will differentiate our accommodations and services in order to be the number one destination resort location for clientele from around the globe.
Mission: Wynn Resort destinations are the standard of luxury accommodations, gambling services, and food and entertainment. Through a solid relationship between our management team, employees and clientele, we create an unique and memorable experience that continuously inspires the visual and emotional involvement of all of our parties. Wynn seeks to sustain and grow this exclusive connection to create not only a quality experience for our clientele, but also a fulfilling career for every Wynn employee.
Maintain emphasis on gaming revenues

Seek sources of entertainment consistent with corporate luxury image
Focused-Differentiation


Selected Balanced Scorecard Objectives:

Occupancy rates: promote Las Vegas segment

Luxury image: substantial investment in people & resort aesthetics

Workforce: skilled and flexible, selective to maintain quality

Compliance: closely monitor gambling laws & regulations

Expansion: begin development of Cotai land within next calendar year
Aging population

Typical Las Vegas visitor:
49 years old
College graduate with spouse
Yearly salary: $40,000 avg.

Rising affluence in developing economies
China: growing middle class
Dual income families

Postponement of family formation

Acceptance of gambling as entertainment form
All-encompassing surveillance of gambling floor

Electronic gaming tables

Coinless slot machines/electronic winnings redemption

Online room & dining reservations
Stringent regulations on gambling/casino operations

Foreign Corrupt Practices Act
Anti-Bribery Act
Anti-Money Laundering Laws

Increasing legalization of online gambling
5
Low switching costs

Consumer-driven industry

Sensitivity to price changes

Minimal differentiation between products
1
High number of suppliers

Low differentiation of supplier product

Possibility of vertical integration by buyer
Domestic
1
International
3
High capital requirements

Significant proprietary knowledge

Regulated industry

High exit costs
5
Slow domestic growth

Limited to areas with legalized gambling

Mergers create challenges for market position

Level of differentiation generally low
Unlimited options for entertainment
5
New York Stock Exchange Pricing
April 2007-Present

Hong Kong Stock Exchange Pricing
April 2009 to Present

Wynn Current Financial Position
Key Ratios & Comparisons
Wynn Resorts vs. The Industry
Wynn Current Financial Position
Key Financial Statement Figures
It's all about the clientele...
Promoting the Wynn Brand
Steve Wynn
Matt Maddox
Linda Chen
Levels of Leadership
Gambling Industry Titans
The Macau Difference
Wynn Net Revenue Projection
Tip
This is a huge mountain
Key Wynn Resorts Committees
Nominating &
Corporate Governance Committee
Audit Committee
Compensation Committee
Compliance Committee
CEO & Chairman of the Board
CFO & Treasurer
Marc D. Schorr
Chief of Operations
COO- Wynn Macau
COO- Wynn Las Vegas
Maurice Wooden
Wynn Board of Directors
Strengths:
Steve Wynn's reputation & vision
One of six concessionaires in Macau
Weaknesses:
Dependence on Steve Wynn
"Boys' Club" mentality
Opportunities:
Rebounding global economy
International expansion
Threats:
Increasing legalization of online gambling
Litigation
Number of establishments
Recommendations
Short-term
Las Vegas
Maintain brand image
Damage control for litigation
Consider lobbying against online gambling legalization
Macau/International
Ensure concession compliance
Begin Cotai construction within next year
Work visa initiative/workforce development
Long-term
Succession plan for Steve Wynn
Management team

Expand number of establishments in Macau
Unlimited by concession

Fresh global markets with gambling-friendly culture
Latin America
Brazil

Improved management training program for FCPA compliance

Reduction of dividend payouts
Z-Value & Market Volatility
Capital structure: long-term debt financing intensive

Substantial percentage of revenue stream from Macau locations
Concession expiration issue

Net income increase of 283% between FY 2010 & FY 2011

Threat of contingent liabilities from litigation

Future obligation of $1.9 billion for repurchase of Azure shares

Extreme dividend pay-out ratios:
FY 2010: 744.5%
FY 2011: 168.5%

Junket operations
Macau Competitors




Galaxy Resort Macau.



Donations
Training for students in hospitality and tourism
Wynn Marketing
Educational & Outreach Initiatives
Green Campaign
WE Volunteers
Community Involvement
Dominant Target Market:
High Rollers & VIPs
Las Vegas Competitors
Gambling Industry Titans
F
Focused differentiation
Target Market: Affluent Gamblers

Media Outlets

Traditional Incentives & Rewards
Supplemental Entertainment, Retail, Dining, Etc.
Database Marketing
HD Monitors in Taxis
SJM Holdings Ltd.
Sands China Ltd.
MGM China Holdings Ltd.
Melco Crown Entertainment Ltd.
Caesars Entertainment Corp.

MGM Resorts International

Las Vegas Sands Corp.
Presentation Agenda
1. Brief company history
2. Management & corporate governance
3. External environment
4. Competitive environment
5. SWOT, key competitors & strategic groups
6. Marketing position
7. Financial position
8. Recommendations
9. Proposed Vision/Mission
Tree of Prosperity
Wynn Macau Lobby
Junkets in Macau- Big Business
Originates from VIP gaming model of SJM during monopoly days

Junket operators: knowledge of clients and their creditworthiness
Grant credit using rolling chips granted by casino operator

Junket operators collect money back from patrons and pay credit for rolling chips back to casino operator

Paid commissions on a monthly basis by casino

Reduces risk of uncollectibility
Casino Hotel Industry
Order of establishment openings:
12 members total
Key members:
Steve Wynn, Chairman
Marc Schorr
Linda Chen
Elaine P. Wynn


Former member: Kazuo Okada
Steady economic recovery since the 2008-09 crisis

Widespread increase in consumer discretionary spending and confidence in the market

Increase in U.S. domestic travel
Forecast: 2.3% revenue growth per annum through 2017
Causes: increase in discretionary spending (travel) & consumer confidence
2008-09: Industry-wide revenue decline
-8.7% 2008
-8.4% 2009
(figures in millions, U.S. dollars)
Fiscal year 2011
Full transcript