Elements of Business Within a Multifaceted Corporation
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Abstract
The organization that will be discussed here is a multi-tiered, multifaceted corporation. This paper will outline the various levels of structure including management, operational and financial issues. MGM Resorts International has holdings worldwide, and continues to expand using all resources available, including technical, financial, and manpower, while at the same time being aware of diverse cultural, economic, and environmental differences of each region.
Elements of Business within a Multifaceted Corporation
MGM Resorts International is one of the worlds leading global hospitality and entertainment corporations. This corporation, traded openly on the New York Stock Exchange, (NYSE:MGM) has a very diverse economic environment. The company generates income through various means that include their significant holdings in gaming, hospitality, and entertainment operations. The latest venture includes an unprecedented urban resort destination in Las Vegas, Nevada; City Center. MGM International owns and operates fifteen properties located in Nevada, Mississippi, and Michigan. It also has 50% (fifty percent) investment in four other properties in Nevada, Illinois, and their newest location, Macau.
The companys primary casino and resort properties are operated under the umbrella of MGM International, however, other amenities such as nightclubs, retail outlets, and restaurants may be leased by or managed by third party organizations according to that specific expertise. Operating outlets in this fashion allows for branding opportunities that might not otherwise be available.
In November 2010, the Company announced the sale of four long-term ground leases and their respective underlying real property parcels at The Borgata Hotel Casino & Spa in Atlantic City, New Jersey. MGM and Dubai World, joint owners of City Center are currently struggling with the developments financial impact; a $1.85 billion dollar loan that City Center could be in default of as early as mid year 2011 if the financial terms are not renegotiated. “There is lots of interest in a new debt structure at City Center.” “We want to get something done by the end of the year.” (Murren, J. 2010) “While liquidity risks are minimized, we remain cautious on MGMs operating performance,” Jefferies and Company analyst David Katz stated. (Beasley, D. 2010) Currently, there remains much speculation about the financial stability of the company due to over investment and over development.
The legal environment of MGM International is extremely diverse. Due to their far-reaching holdings around the world, the legal team must be aware of the laws of those countries and regions, and react accordingly. Legal and human resources teams stress diversity and specialize in diversity training for employees. The company has received numerous awards for its Diversity Initiative, its community philanthropy programs, (Voice Foundation), and its commitment to sustainable development and operations. The commitment to diversity states, “We create partnerships that contribute to the growth and prosperity of the community reflective of the world around us.” (www.mgmresortsdiversity.com). In house diversity training is encouraged for all employees to enable them to better understand and work with people from all areas of the country and the world.
At one Mississippi location, the Beau Rivage Resort and Casino in Biloxi, (known as the jewel in the Mississippi holdings), the staff consists of over 3,200 employees. These employees include security personnel, table games dealers, poker dealers, wait staff, hosts and hostesses, housekeepers, administrative staff, financial staff, human resources personnel, plant nursery personnel, and florists, as well as mid and upper level management. A staff this large can be compared to a small city that is operating under one roof. The human resources department facilitates the social environment, encouraging all employees to work together to create a pleasant, cohesive atmosphere where guests will not only enjoy visiting but want to return. This interaction is achieved through various activities within the work environment as well as outside. There are many events such as team walking, bowling, community clean-up, and even Weight Watchers meetings specifically for Beau Rivage employees.
The management structure is just as diverse. Within the Beau Rivage, the management structure begins with the Beaus President and