The Caesars Tunica casino in Tunica, MS, was the company showcased in the case study. This casino
Question:
The Caesars Tunica casino in Tunica, MS, was the company showcased in the case study. This casino was just a 45-minute drive south of Memphis, TN, which happens to be the 4thlargest gaming market in the world. The annual revenue in this market was $1,000,000,000. Caesars already had a 50% market share in Tunica. They employed 4,000 people who served 8,000,000 customers annually. The casino wanted to move its score from B to A, which would equal a 12% increase in revenue. They also wanted to improve customer loyalty, team member bonuses, and employee satisfaction. Brad Hirsch, the Regional Director of the LEAN program for Caesars in 2008, decided to use kaizen events to achieve this goal.
Problem
Due to the Great Recession of 2008, customers had reduced spending on entertainment. This caused the revenue of Caesars Entertainment to decline, and the competition for market share in Tunica intensified. If people are not as satisfied, they will spend less time or frequent the casino less often. If the satisfaction score is increased, the revenue will increase by up to 12%. Less revenue means lower bonuses and lower employee satisfaction. These factors threatened the future of Caesars Entertainment. It was evident there was a lot of waste in the operations of Caesars. This waste represented a loss of profit and overspending.
How can you respond it please explain.