MGM MIRAGE

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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

Key peopleJames Murren(Chairman/CEO)

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

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.

Component

s of Mission

/

Company

Customers Employees Public

images

Self-

Concept

Philosophy Survival

,

Growth,

Profits

Technology Markets Product

&

Services

MGM Yes No Yes No No No No Yes Yes

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

Entertainment Inc.

Las Vegas Sands

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

Competitivenes

s

0.10 1 0.10 3 0.30 1 0.10

Management 0.20 4 0.80 4 0.80 3 0.60

Financial

Position

0.10 3 0.30 4 0.40 3 0.30

Customer

loyalty

0.05 2 0.10 3 0.15 2 0.10

Global

Expansion

0.10 3 0.30 2 0.20 1 0.10

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

remaining gaming industry.

0.07 2 0.14

2) 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%

0.12 3 0.36

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

smaller percentage coming from U.S. citizens.

0.10 3 0.30

5) 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.

0.12 4 0.48

6) 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

0.10 3 0.30

Threats

1) 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

0.08 2 0.16

2) On an international basis, each local government

establishes regulations controlling gambling activities

within its own borders

0.06 2 0.12

3)There were approximately 300 public companies

generating gaming revenues in 2005

0.07 3 0.21

4) Harrah’s Entertainment Inc. is currently the largest

U.S-based casino operation.

0.09 4 0.36

5) Harrah’s now owns or manages 36 casinos under the

Harrah’s, Caesars, and Horseshoe brand names, which

include 19 – land based casinos

0.10 4 0.40

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

entertainment shows in the world.

0.16 3 0.48

2) 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.

0.13 3 0.39

3) 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.

0.13 3 0.39

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

resort in Macau features at least 345 table games and

1035 slots with room for significant expansion.

0.16 4 0.64

Weaknesses

1) 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

0.10 2 0.20

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

1)MGM Mirage should do some promotion packages as they know all baby boomers has the most highest earnings and they are retiring 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

WO Strategies

1) MGM Mirage need to acquire domestic casino operators to capture customers of the casino and to lessen the competition S6,W2

Threats (T) ST Strategies

1)With the profit they gain 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

WT Strategies

1) As Harrah’s Entertainment 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)Return on investment Inventory turnover Working capital Earnings per share Cash Flow Liquidity

FS Average

655565

5.33

Environmental sustainability (ES)Competitive Pressure Price Elasticity of Demand Barrier to entry new market Demand variability Changed in technology Risk involved in businessPrice range of competitive products

ES Average

-6-5-4-4-4-6-5

-4.86

Competitive Advantage (CA)Market Share Customer Loyalty Technological Know-how Product Quality Competition Capacity Utilization

CA Average

-4-4-3-5-4

-4

Industry Strength (IS)Growth Potential Profit Potential Financial Stability Technological Know-how Resource Utilization Productivity, Capacity Utilization

IS Average

366456

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.

Quadrant II Quadrant I

Quadrant IVQuadrant III

Rapid Market Growth

Strong Competitive

Position

WeakCompetitive

Position

Slow Market Growth

GRAND STRATEGY MATRIX

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 Total Weighted Score

2.0 to 2.99

Low VII VIII IX

1.0 to 1.99

Grow and Build

EFE Total Weighted Score = 3.01

IFE Total Weighted Score = 3.14

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

Weight

Buy other small

competitor company

Implement new

promotional package

Strength AS TAS AS TAS

1) MGM MIRAGE provides it all

mega casinos, world class hotels and

restaurants and some of biggest

entertainment shows in the world.

0.16 3 0.48 1 0.16

2) 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.

0.13 - - 3 0.39

Segment $ Revenue 2006(in thousands)

% Revenue 2006

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

3) 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.

0.13 2 0.26 3 0.39

4) MGM Mirage earned $635 million

net on revenues of $7.1 billion with a

market cap of $18.99 billion.

0.20 2 0.40 1 0.20

5) 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.

0.16 4 0.64 - -

Weaknesses

1) 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.

0.10 - - 3 0.30

2) MGM Mirage ranked 2nd in the

casino operator behind Harrah’s

Entertainment, Inc

0.12 4 0.48 2 0.24

Total 1.00

Strategic Alternatives

Key Internal Factors

Weight

Buy other small

competitor company

Implement new

promotional package

Opportunities AS TAS AS TAS

1) The theme hotel/casino resort

concept had become firmly entrenched

in Las Vegas as well in much of the

remaining gaming industry.

0.07 - - 4 0.28

2) 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%

0.12 3 0.36 - -

3) Twenty million U.S citizens

wagered some $4 billion by the end of

2005

0.09 - - 4 0.36

4) By 2009, projections are that online

gambling revenues will exceed $20

billion worldwide, with a smaller

percentage coming from U.S. citizens.

0.10 - - - -

5) 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.

0.12 - - 2 0.24

6) 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

0.10 2 0.20 3 0.30

Threats

1) 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

0.08 - - 2 0.16

2) On an international basis, each local

government establishes regulations

controlling gambling activities within

its own borders

0.06 - - 2 0.12

3)There were approximately 300

public companies generating gaming

revenues in 2005

0.07 4 0.28 - -

4) Harrah’s Entertainment Inc. is

currently the largest U.S-based casino

operation.

0.09 4 0.36 3 0.27

5) Harrah’s now owns or manages 36

casinos under the Harrah’s, Caesars,

and Horseshoe brand names, which

include 19 – land based casinos

0.10 2 0.20 3 0.30

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

Occurred in the Firm

Internal Strategic

Position

Have Major Changes

Occurred in the Firm

External Strategic

Position

Has the Firm

progressed

satisfactorily Toward

Achieving Its Stated

Result

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