A 3 page paper identifying alternatives for Hilton’s gaming business. At the end of 1995, Hilton was faced with the need to make decisions affecting the future of its gaming business. The paper provides a SWOT analysis of Hilton’s current situation and several available alternatives to arrive at a chosen alternative. Bibliography lists 5 sources.
Name of Research Paper File: CC6_KSmgmtHiltGam.rtf
Unformatted Sample Text from the Research Paper:
of 1995, Hilton was faced with the need to make decisions affecting the future of its gaming business. Gaming was a small part of the companys total revenues, and
in the mid-1990s, Hiltons only gaming sites in the United States were four sites in Las Vegas. At the time, it was investigating the feasibility of establishing gaming sites
in other US states and other parts of the world, including Australia, Egypt and Turkey. SWOT Analysis - Current Situation Strengths * Gaming accounts for more than one-third of Hiltons
overall sales; almost two-thirds of Hiltons operating earnings originate with its four casinos. * Hotel performance has recovered from its decline during the recession of the early 1990s. Weaknesses *
Hilton extends credit to lure gamblers away from other Las Vegas casinos, incurring bad debts. * Gambling began struggling as the economy emerged from the recession of 1991-92 (Christiansen, 1998).
* Gamblers expect casinos to offer free or low-cost food and drinks, increasing operating costs. Opportunities * Entertainment is associated with casinos, and the right entertainment can increase traffic into
the casino. * Revenues from table games declined 2.1 percent between 1995 and 1996, but revenues from slot machines increased 2.8 percent during the same period (Christiansen, 1998). * Casino
revenues increased 6.3 percent overall between 1995 and 1996. Threats * Gambling carries great risk (Sharav, Rho, Baade and Mitowski, 1994). * Competition is intense, and facilities require high capital
investment. * The wrong type of entertainment can decrease traffic into the casino, if not into the hotel. Available Alternatives Hilton can pursue
its plans for international casinos and continue targeting the convention market in Las Vegas, operating in the same manner as its competitors. The strongest positive trend among casinos in