Business Management and Environment Analysis: MGM National Harbour Resort and Casino

In this analysis we will discuss about business management  and below are the summaries point:- MGM National Harbour is a new international resort with a wide gaming and retail area. The business faces high rivalry due to lack of innovation and stagnant operations. Strategies are needed to combat competition and explore internal expansion opportunities.

Running head: BUSINESS MANAGEMENT AND ENVIRONMENT ANALYSIS
Business Management and Environment Analysis
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1BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
Executive summary
MGM National Harbour is positioned as a new international resort within Maryland with
wide gaming and retail area. The objective is to analyse the internal along with external
environment of Maryland casino business through conducting competitor analysis by
implementing porter’s five forces model. As MGM National is operating its business and
attaining increased revenue amount, lack of innovation as well as stagnant operation nature
has increased rate of high rivalry from the existing as well as new competitors within the
sector. The company has developed an instance of responsible business and could not explore
the opportunity of internal expansion. In addition, it is also observed that the company is
regularly contributing to earn increased revenue and same routes can attain stable culture for
the business.

2BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
Table of Contents
Introduction....................................................................................................................4
Industry background: Casino in Maryland.....................................................................4
MGM national Harbour Casino.....................................................................................4
PESTEL Analysis...........................................................................................................5
Political factors...........................................................................................................5
Economic factors........................................................................................................5
Social factors..............................................................................................................6
Technological factors.................................................................................................6
Environment factors...................................................................................................6
Legal factors...............................................................................................................7
Competitor or Porters’ five forces analysis....................................................................7
Threat of new entrants................................................................................................7
Bargaining power of buyers.......................................................................................7
Bargaining power of suppliers...................................................................................7
Existing industry rivals..............................................................................................8
Threats of substitutes..................................................................................................8
Strategies to combat competition oriented risks............................................................8
Strategic group and its importance.................................................................................9
Positioning map............................................................................................................10
SWOT analysis.............................................................................................................10

3BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
Vision, Mission, objectives and strategy......................................................................11
Strengths and gaps of strategies...................................................................................12
Conclusion....................................................................................................................13
References....................................................................................................................14

4BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
Introduction
MGM National Harbour is positioned as a new international resort within Maryland
with wide gaming and retail area. The hotel also has several luxury restaurants, community
hall and spa that offer exceptional luxurious experience to the targeted demographics
(Bowman, 2016). The objective is to analyse the internal along with external environment of
Maryland casino business through conducting competitor analysis by implementing porter’s
five forces model. Relied on such evaluation, recommendations will be offered to deal with
likely threats. Based on competitor analysis positioning can be marked in comparison to the
competitors. In addition, SWOT analysis will analyse the strong as well as weak areas in
exploring several opportunities in more details. The report will also analyse the company’s
current strategy with respect to the current threats and opportunities. Such analysis process
will explain the strength of the business practices along with recognising loopholes
accordingly.
Industry background: Casino in Maryland
Maryland in Washington is positioned to have 14% upgrade revenue and its major
contribution is derived from MGM National Harbour in current years. The major portion of
contribution signifies their ability of attaining competitive advantage in more than six casinos
overall. Based on the fact it can be said that the virtual gaming territory is broadly expanded
(Bull et al., 2016).
MGM national Harbour Casino
Based on the amount of tax paid along with generated amount of revenues explains
the success of MGM National Harbour. Relied on increased success they not just
implemented the plan of expanding and have promised to serve public schools that are
dealing with the funding concerns (Du, 2013). A huge amount has also been spent for the

5BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
purpose of gaming that cannot be employed in a better manner rather than investing to
enhance the position of unprivileged children through offering them with certain learning
opportunities. It can also facilitate in ensuring security of children along with developing
them as deserving students. Rather than responsible social duties, MGM has a function of
expanding within a new area increasing around 30% of space associated with gambling and
gaming (Elmes & Barry, 2017). They also have a plan of modifying their slot machines along
with implementing bigger gaming tables at cost effective tax rates.
PESTEL Analysis
This model is important in realising the external and internal environment in which
the company is operating business along with manner in which certain factors are impacting
the Maryland casino business.
Political factors
Political support along with stability is vital to develop a resort along with casino
business in the locality (Engert, Rauter & Baumgartner, 2016). The corruption rate is
observed to be high within this sector and the casino business is currently within Washington
as the stocks are at risk. Considering the same, the investors within several business sectors
are attaining benefits of strong economy. At the same situation, entrepreneurs require to
monitor changing business market conditions. The positive situation is that the labour market
is supportive and facilitates in attaining high business earnings.
Economic factors
The economic position of consumers greatly impacts or controls their money
investment intention within gambling and games. Washington is a tourist spot that attracts
foreigners to play as well as experience luxurious stay within MGM National. In addition, it
is gathered that savings and loans business can attain success within the locality (Flores,

6BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
2018). Conversely, inflation, savings and interest rates will be dynamic and can impact
business at various levels in business expansion. Moreover, the organizational resource will
immensely matter in consideration to economic factors.
Social factors
Other than US, gambling was legalized within Maryland in 2008 observing the
tendency of people selecting a casino as their recreation area in weekends. It is not important
that individuals with better fortune can just be an aspect of gambling session. People
belonging to middle class and regular income consider accepting chances to try their luck as
well. MGM being a luxury brand for attaining strategic advantages follow economic
background of demographics and preferences to impose positive business impact (Zheng,
Farrish & Kitterlin, 2016).
Technological factors
Current technological advancement must be planned by modifying slot machines.
Through increasing slot machines number will generate positive impacts as they are mostly
money making techniques. Therefore, casino sector must comply with intellect of people of
dealing with modern technology. Rapid technological advancement in the system will take
time to be approved and to attain profit.
Environment factors
In analysing environmental factors, the only aspect that creates hurdle is increased
fossil fuel while operating the large system. Hence, the business might deal with difficulty
along with weakness from its green business rivals in case business is not operating in
environment friendly way.

7BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
Legal factors
For the reason that gambling business is linked with high amounts of money along
with anti-trust and consumer protection and safety laws needed to be followed in consumer
dealings.
Competitor or Porters’ five forces analysis
Threat of new entrants
Among every casino within Maryland, MGM National has strong position in the
market and there is considerable threat of new entrants that cannot be ignored as innovation is
important in attracting target consumers (Wong, 2013). Innovative and highly advanced
technology based casino business will exert high pressure on MGM in following strategy of
competitive pricing. Innovative along with modern technology based casino business to exert
increased pressure on MGM to follow competitive pricing along with developing revised
value proposition associated with consumers. The organizations require implementing
suitable strategies in dealing maintaining competitive advantages over business rivals.
Bargaining power of buyers
Buyers consider maintaining their budget offering least amount of money. Moreover,
a consistent competitive pricing strategy is not that helpful as it affects the profit rate. Buyers
enjoy high bargaining power along with consistently attain offers along with discounts on
cetin available services.
Bargaining power of suppliers
Being positioned as renowned resort and casino service, MGM has the capability of
dealing with several suppliers. It is also explained that it makes the company able of
negotiating at the time of price increase (West, Ford & Ibrahim, 2015). The inability of

8BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
maintaining effective relationship with suppliers will generate increased bargaining power of
suppliers along with reducing profitability chances.
Existing industry rivals
Based on the market report, MGM Casino has resulted in increased areas of the state
share relied on their prosperity. Such report signifies their success over its business rivals.
The report also signifies their success over their business rivals. Conversely, the organization
requires sustaining the innovation culture in order to maintain the recent position against the
business rivals.
Threats of substitutes
New products offering increased advantages to consumers along with dealing with
needs within an affordable range is threat to the specified winnings. Along with attaining an
increased success, MGM follows an innovative culture regarding operational method
(Marchand, 2018). Moreover, continuous research process must be conducted for developing
several cost effective manners in enhancing consumer experience prior to certain other brands
reveal loopholes and fill the position.
Strategies to combat competition oriented risks
 It is suggested that innovating affordable and new service along with consumer
friendly gaming techniques that can attract new consumer bases and facilitate in
retaining trust of the existing consumers.
 A continues research and development process is needed in case major technical
details are linked with operational services. The organization must also invest on
developing HR abilities in regularly addressing industry needs (Vogel, 2015).
 Realizing the market needs is important for employees in providing best services and
products along with addressing substitution threats.

9BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
 Effective CSR policies can facilitate in collaborating with competitors for merged
business along with approaching with unmatched ways can improve the situation in
consideration to high existing rivalry.
Strategic group and its importance
Among all the six casinos within Maryland, MGM national is attaining increased
revenue in the sector. Separating an organization within a strategic group in the sector
facilitates in recognising identical business models along with redesigning the current
strategies in different manner. It explains the organizations market position following
identical business framework along with considering attracting consumers. The oldest casino
is Hollywood casino (Li, Alsaed, Hayat & Chen, 2014). Certain other competitors of MGM
National are Rocky Gap Casino Resort, Horoscope Casino, Ocean Downs and Live Casino
and Hotel. Among them, Live Casino and Rocky Gap can be addressed within single strategic
group as these three appears within same facilities. This deals within several operations
maintaining casino business as important.

10BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
Positioning map
Figure 1: (Author’s Creation)
SWOT analysis
Strengths Weakness
 MGM attains ability of dealing with
the recent consumer behaviour
within specified time. Individuals
have attained less time to spend in
recreation and prefer having all the
fun in one roof (Hatlevik,
Guðmundsdótti & Loi, 2015). MGM
 With positioning itself as luxurious,
their attempt of attracting consumers
of low stake within the casinos is
reducing. For this reason they
generally loose the chance to serve
consumers derived from middle
income groups.
 MGM National Harbour
 Rocky Gap Casino
 Live Casino Hotel
 Horoscope
 Hollywood
 Ocean Downs

11BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
offers them facilities of Casino with
increased advantages of restaurant
facilities and entertainment.
 HR abilities are observed to be
dynamic
 Their luxurious experience and
presentation has been developed
after research conducted on
profession demographic.
Opportunities Threats
 Casino business will attain high
prosperity in case expansion can be
better implemented. Moreover,
expansion opportunities can be
explored in the global market.
 As MGM National is operating its
business and attaining increased
revenue amount, lack of innovation
as well as stagnant operation nature
has increased rate of high rivalry
from the existing as well as new
competitors within the sector.
Vision, Mission, objectives and strategy
With Las Vegas background connection, they have been sustaining the casino culture
to explain the Las Vegas essence in places where they operate business. They consider
entertainment to be an aspect of human desire and their service to be solution of
entertainment activities (Hatlevik, Guðmundsdóttir & Loi, 2015).

12BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
The vision of the company is to grow as largest resort and casino business in
Maryland with mission of generating exceptional leisure facilities of visitors. They are
focussed on attaining the objective of offering exceptional hospitality services in a
responsible and respectful way. Conversely, the company addresses social causes along with
improving country’s future through supporting unprivileged community.
The company has developed an instance of responsible business and could not explore
the opportunity of internal expansion. In addition, it is also observed that the company is
regularly contributing to earn increased revenue and same routes can attain stable culture for
the business (Gupta & Mishra, 2016). Their strategy is to use Las Vegas association along
with experience within casino business for attaining high trust of consumers. Through
offering leisure facilities they follow soothing surrounding along with personalised touch on
the offerings as per consumer desires within their report other than casino service. Their
community based service facilitates in meeting consumer needs despite of economic
differences.
Strengths and gaps of strategies
Strengths related with this strategy is their ability to employ its past experience and
employing it as unique selling proposition in its business promotion. Wide gaming ranges is
available within a single roof in which several individuals can accommodate them within a
particular interest. Their community focussed offerings are for middle income group, fun
loving along with ambitious individuals visiting the casino (Godinho, 2014).
Based on such gap, the strategy of following CSR is stronger that has not yet explored
the global expansion broadly. Following such approach, the policy of innovation is strong
and very contemporary approach is needed. Research and development is considered as a
necessary aspect of increasing competitive benefits.

13BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
Conclusion
The objective was to analyse the internal along with external environment of
Maryland casino business through conducting competitor analysis by implementing porter’s
five forces model. It was gathered that with positioning itself as luxurious, their attempt of
attracting consumers of low stake within the casinos are reducing. For this reason they
generally loose the chance to serve consumers derived from middle income groups.
Considering same, a continuous research and development process is needed in case major
technical details are linked with operational services. The organization must also invest on
developing HR abilities in regularly addressing industry needs.

14BUSINESS MNAGEMENT AND ENVIRONMENT ANALYSIS
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