The Value Adding Manager
The Value Adding Manager
Environmental Analysis Exercise – Remote Environment
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Summary
Information Technology
Information Technology (IT)[1] encompasses all forms of technology used to create, store, exchange, and use information in its various forms (business data, voice conversations, still images, motion pictures, multimedia presentations, and other forms, including those not yet conceived).
IT should be considered as one of the major forces driving change in today’s business and working environment. Indeed, most of the information is in digital form and therefore computers are needed in order to process the information. Moreover the computers and softwares have evolved drastically and represent a rapid growth nowadays. They are more effective and powerful concerning the capacity of storing, memorizing and manipulating data. That is why every business entity needs database information systems to keep track of its operations as well as customers.
Also protection of the information, due to known facts from Information Technology professionals and experts (, ), has been revealed crucial in the competitive market place. Moreover since Sept. 11, a feeling of insecurity is present and the problem of cyber crimes has emerged. More and more cyber crimes affect all kinds of sectors, for example military computers have been cracked[2], households’ computers, company’s databases as well. So it represents a major threat and can thus be considered as an important value driver for the industry. It changes the way business will store their information and therefore must be very vigilant and have effective security systems. As a consequence of the terrorist attack and those cyber crimes the US spent $2.9 billion on security in 2002[3]. The issue of security is a big problem to resolve for the US, which is in a very precarious situation with Iraq as well, where any kind of attack could strike the continent at any time. So, all the business and companies have only security on mind for those coming years concerning their data and electronic confidential documents. The government as well enforces the application of security measures.
As a result Harrah’s should consider cyber crimes as a major value driver that is vital for its future business. Infact, according to the Internet Security Alliance “one third of companies are still not adequately equipped to deal with an attack on their computer network by cyber terrorists” (Sept. 10, 2002). Moreover Tech News reported that “Internet attacks against public and private organizations rose by 28 percent in the first six months of 2002” (Jul. 08, 2002). That is why according to a new study from IDC[4], “consumers are more worried about internet security than previous years”. Finally, the Business Software Association reported that “Forty-nine percent of IT professionals think it is likely that the US government will be hit by a major cyber attack in the next 12 months” (Jun. 28, 2002). Thus, all those figures show that cyber crimes are the biggest issue that causes security problems for the government as well as businesses. Indeed, it applies to casinos too. They must have a very high tech security system to respond to any kind of theft and crime. Therefore the implementation of brand new and powerful security systems like the Fingerprint Sensors[5] to recognize an identity to be able to access data or powerful softwares that cannot be cracked and are protected by many different security systems. So this is not a negligible aspect to ignore and on the other hand, the future of safety of the confidential customer databases, for instance relies on high tech security systems to avoid cyber crimes that could ruin any business. Especially when big companies like Harrah’s are usually targeted.
In conclusion we can say that information technology will be a major concern at least for the five coming years and maybe more because we are far from resolving those problems in which solutions cannot be found overnight. Indeed, the study of GartnerG2 forecasts that “by 2005, around 90 percent of cyber attacks will exploit known security flaws for which a patch is already known” (May 02, 2002).
Energy Crisis
In recent years, American consumers have spent over half a trillion dollars per year on energy. According to the U.S. Department of Energy's Energy Information Administration (EIA), there has been a 194-percent increase in energy consumption throughout the past 50 years, more than double the 82-percent rise in the American population. EIA focuses on long-term fundamentals, including the availability of energy resources, developments in U.S. electricity markets, technology improvement, and the impact of economic growth on projected energy demand and prices.
According to the EIA’s annual energy outlook report, total energy consumption is projected to increase from 97.3 to 130.1 quadrillion British thermal units (Btu) between 2001 and 2020, an average annual increase of 1.5 percent. The report showed that residential and commercial energy consumption is projected to grow at an average rate of 1.0 percent per year and 1.6 percent per year respectively between 2001 and 2025, with the most rapid growth expected for computers, electronic equipment, telecommunications, and miscellaneous small appliance uses. Thus, with more buildings being constructed and more technology being used, the demand for energy will only continue to grow, outpacing the development of power generation plants in many areas. These statistics prove the importance of energy management.
The complexity of problems caused by ongoing energy crisis, especially concerning electricity, is a great dilemma for everyone. In the U.S., California's energy crisis alone cost the state as much as $45 billion over two years in higher electricity costs, lost business due to blackouts and a slowdown in economic growth. A shortage of electricity-generating capacity, a flawed market design from the state's attempt at deregulation, the grip energy companies had over wholesale electricity prices and regulatory missteps all contributed to the energy crisis that spread to the Western states. Due to such energy shortage, growing demand for electricity, and the projected retirement of existing generating capacity contribute to more demand for other natural resources to take place in electricity generation. As has been typical over many years, fossil fuels (i.e., coal, oil, natural gas) are the most commonly used sources as electricity generators. The trend in electricity generation is toward using resources such as less capital-intensive and more efficient natural gas and renewable fuels. Currently, electricity generation from natural gas, coal, nuclear, and renewable fuels is promoted in the U.S. Generation from such resources is projected to increase through 2025.
Oil is another vital energy source that the U.S. is facing problems with. The tensions surrounding the potential war against Iraq and the recent strike in Venezuela’s oil industry caused volatile situation of oil price. According to the recent EIA’s report, net imports accounted for 55 percent of total U.S. oil demand in 2001, up from 37 percent in 1980 and 42 percent in 1990. That trend is expected to continue. A growing portion of imports is projected to be refined petroleum products, such as gasoline, diesel fuel, and jet fuel, assuming the future availability of those products in world markets.
Due to increasing demand and steady increase in oil price as forecasted by EIA, a search for alternate sources of energy is inevitable, especially concerning automobile/airplane fuels. Transportation energy demand is projected to grow at an average annual rate of 2.0 percent between 2001 and 2025, reaching 40.4 quadrillion Btu in 2020 and 44.0 quadrillion Btu by 2025. The higher level of consumption in the transportation sector results from a higher forecast of vehicle miles traveled and a lower level of vehicle efficiency. Much of the effort has focused on vehicles powered by a source other than conventional gasoline or diesel fuel. A variety of alternative fuels are currently in use, including propane, natural gas, ethanol, methanol, electric vehicles, and hybrid-electric vehicles.
Today, due to rising energy/fuel prices and an increasing demand for energy, energy management became an integral component for most business operations. The quotation, “Time is Money” has never been more applicable, as the longer companies wait, the more money they lose. It is time to take the initiatives in energy conservation and management. Due to the high-energy consumption society that we live in, energy shortages and increasing demand for energy will inevitably continue to be an issue in the future.
Consumer preferences
Consumer preferences are one of the forces driving changes. Consumer preferences are closely related with socio-cultural, political, technical, economic, and psychological factors. “War on Terrorism”, after the World Trade Center tragedy in 2001 and War against Iraq, have made the safety and security the most concerning issue to travelers.
Mostly, by increasing concern of airline security, many travelers are reluctant to travel by air and some are changing their travel method from air to ground. For airline security, government considers to allow carrying guns to pilots in the cockpit. Baggage checks are more tightened and time spending from ticketing to boarding is getting longer because of security checks. Consumer preferences are, also, closely related with their physical conditions. Passengers with certain medical conditions would do much better to stick with the less rarefied air of ground travel. The safety standards within the airline industry are the responsibility of the airports and airlines - not the U.S. government - and should be paid for by the passengers who can afford to fly. Also, passengers’ health conditions are effecting travel decision.
Because of fast developing information and technology system, travelers can have destination’s information easily, and they can arrange travel schedules easier and faster than ever. Lots of internet reservation web sites are delivering best offer to customers. Harrah’s entertainment Inc homepage offers each 25 casino hotel rooms that includes Harrah’s, Rio, Harvey, and Showboat casino hotels in 12 states. This web site provides not only room reservation services, but also events and entertainment information. So, travelers can have all the information that they need in front of computer screens and save their time and money by making effective travel plan.
The popularity of casino gambling peaks in the empty nester age group. Americans ages 51 to 65, who tend to have more discretionary time and income than others, are more likely to have gambled at a casino in 2002 than seniors and those in younger age groups (Source: Harrah’s entertainment Inc/ NFO World Group Inc/ U.S. Census Bureau). The Harrah’s research said that age group which is 48 years old and more is more than 58% of total gamblers. The United States has seen a rapid growth in its elderly population during the 20th century. The number of Americans aged 65 and older climbed to 35 million in 2000, compared with 3.1 million in 1900. For the same years, the ratio of elderly Americans to the total population jumped from one in 25 to one in eight. The trend is guaranteed to continue in the coming century, as the baby-boom generation grows older. Between 1990 and 2020, the population aged over 65 is projected to grow more than 74 percent. People over 50’s are more concerned about their safety of travel and seeking stable life. According to some survey, 56% of casino visitors are aware of safety and security. Since one of the hotel’s characteristics is that it opens to public and can be accessed by anybody else, safety and security is hotel’s Achilles’ tendon. So, if casino has tightened safety and security system, it will lure those populations who really concern this issue.
Casino gambling is popular leisure time activity enjoyed by American adults in these days. According to Las Vegas Convention and Visitors Bureau, about 26% of visitors’ major purpose to visit Las Vegas is vacation and pleasure. Only 6% of gamblers visited for gambling. Most visitors also enjoy as one of their travel to visit Las Vegas. The drive to find a healthy balance between leisure and work is evident among casino gamblers. While gamblers share many of the same leisure time preferences as Americans overall, they are far more active in their leisure time. Gamblers are more avid readers and are far more likely to be out-and-about eating at restaurants, traveling on weekends, going to cultural events and engaging in other activities outside the home[6]. They want to have fun and safety when they are away from home. From the given information, by satisfying customer needs of safety and security, casino industry can increase cash flow stream through bring more people and increase revisiting. The safety and security will be major issue and affect consumer preference, as there are troubles with Cuba, Iraq, North Korea, Iran, Libya and Syria.
Ecological
|Sub-categories |Identify the primary sources |How often do you |Based upon your information sources used, list and briefly describe the key value drivers you believe are |
| |of information |review this |important to monitor in understanding the cause and effect relationship with your firm. |
| | |information? | |
|Natural resources |Energy Information |Bi-weekly |Value Drivers |
| |Administration | |Cost of electricity, Natural gas price, Coal price, Renewable fuels, Crude oil price, Increased demand of natural|
| | | |gas and its distribution channel, Energy consumption |
| |Hotel Online |2-3 times/week | |
| | | |Energy Prices – As has been typical over the past few years, energy prices were extremely volatile during 2002. |
| |National Renewable Energy |Weekly |Natural gas: In 2002, about $2 per thousand cubic feet in January rose to between $3 and $4 per thousand cubic |
| |Laboratory | |feet by the fall. |
| | | |Coal: The average mine mouth price of coal is projected to decline from $17.59 in 2001 to about $14.40 per short |
| |The Electricity Forum |Bi-weekly |ton (2001 dollars) in 2020, remaining at about that level through 2025. Prices decline because of increased mine |
| | | |productivity, a shift to western production, and competitive pressures on labor costs. |
| |Wall Street Journal |Daily |Crude oil: Crude oil prices rose in 2002, mainly because of reduced production by the Organization of Petroleum |
| | | |Exporting Counties (OPEC) and, to a lesser degree, fears about the potential impact of military action in Iraq. |
| | | |Crude oil prices began 2002 at roughly $16 per barrel and were between $25 and $30 per barrel by the fall. EIA |
| | | |projects that the average world oil price is to increase from $22.01 per barrel (2001 dollars) in 2001 to $25.83 |
| | | |per barrel in 2003, then to decline to $23.27 per barrel in 2005. Rising prices are projected for the longer |
| | | |term, to roughly $25.50 in 2020 and roughly $26.50 in 2025, largely due to higher projected world oil demand. In |
| | | |nominal dollars, the average world oil price is expected to reach approximately $48 per barrel in 2025. |
| | | |Average electricity: Average electricity prices are projected to decline from 7.3 cents per kilowatthour in 2001 |
| | | |to a low of 6.3 cents (2001 dollars) by 2007 as a result of cost reductions in an increasingly competitive market|
| | | |where excess generating capacity has resulted from the recent boom in construction and the continued decline in |
| | | |coal prices. Electricity industry restructuring contributes to declining projected prices through reductions in |
| | | |operating and maintenance costs, administrative costs, and other miscellaneous costs. After 2008, average real |
| | | |electricity prices are projected to increase by 0.4 percent per year as a result of rising natural gas prices and|
| | | |a growing need for new generating capacity to meet electricity demand growth. |
| | | |Electricity Generation (Supply): Generation from natural gas, coal, nuclear, and renewable fuels is projected to |
| | | |increase through 2025 to meet growing demand for electricity and offset the projected retirement of existing |
| | | |generating capacity, mostly fossil steam capacity being displaced by more efficient natural-gas-fired |
| | | |combined-cycle capacity brought online in the past few years and still being constructed. The natural gas share |
| | | |of electricity generation is projected to increase from 17 percent in 2001 to 29 percent in 2025, including |
| | | |generation by electric utilities, IPPs, and CHP generators. The share from coal is projected to decline from 52 |
| | | |percent in 2001 to 47 percent in 2025 as a more competitive electricity industry invests in less |
| | | |capital-intensive and more efficient natural gas generation technologies. Nonetheless, coal remains the primary |
| | | |fuel for electricity generation through 2025, and AEO2003 projects that 74 gigawatts of new coal-fired generating|
| | | |capacity will be constructed between 2001 and 2025. |
| | | |Supply & Demand for Natural Gas – A major consideration for energy markets through 2025 will be the availability |
| | | |of adequate natural gas supplies at competitive prices to meet growth in demand. Energy Information |
| | | |Administration projects growing dependence on major new, large-volume natural gas supply projects for both |
| | | |domestic and imported supplies to meet future demand levels, including deepwater offshore wells, new and expanded|
| | | |liquefied natural gas (LNG) facilities, the Mackenzie Delta pipeline in Canada, and an Alaskan pipeline that |
| | | |would allow delivery of natural gas to the lower 48 States. |
| | | |Energy Consumption – Total energy consumption is projected to increase from 97.3 to 130.1 quadrillion British |
| | | |thermal units (Btu) between 2001 and 2020, an average annual increase of 1.5 percent. |
| | | |Residential energy consumption is projected to grow at an average rate of 1.0 percent per year between 2001 and |
| | | |2025, with the most rapid growth expected for computers, electronic equipment, and appliances. |
| | | |Commercial energy demand is projected to grow at an average annual rate of 1.6 percent between 2001 and 2025, |
| | | |reaching 23.5 quadrillion Btu in 2020 and 25.3 quadrillion Btu by 2025. The most rapid increases in demand are |
| | | |projected for computers, office equipment, telecommunications, and miscellaneous small appliance uses. With |
| | | |continued growth in commercial and industrial electricity demand between 2001 and 2025 (2.2 and 1.6 percent per |
| | | |year, respectively), significant additions of baseload generating capacity are projected. Projected growth in |
| | | |commercial floor space of 1.6 percent per year and growth in industrial shipments of 2.6 percent per year |
| | | |contribute to the expected increase. |
| | | |Renewable Energy – Renewable technologies are projected to grow slowly because of the relatively low costs of |
| | | |fossil-fired generation and because competitive electricity markets favor less capital-intensive natural gas |
| | | |technologies over coal and baseload renewable in the competition for new capacity. Where enacted, State renewable|
| | | |portfolio standards, which specify a minimum share of generation or sales from renewable sources, are considered |
| | | |in the forecast. Federal subsidies for renewable (in particular, wind) are also included in the forecast. |
|Water supply and quality |U.S. Environmental Protection |Bi-weekly |Value Drivers |
| |Agency (EPA) | |Water efficiency, Water security, Drinking water standard, Water pollution and its control, Water quality |
| | | |monitoring, Water conservation |
| |Environment Magazine |Monthly | |
| | | |Water Efficiency & Conservation – Water utilities across the United States and elsewhere in North America are |
| |PR Newswire |2-3 times/week |saving substantial amounts of water through strategic water-efficiency programs. These savings often translate |
| | | |into capital and operating savings, which allow systems to defer or avoid significant expenditures for water |
| |Public Health Foundation |Weekly |supply facilities and wastewater facilities. The incidence of water conservation and water reuse programs has |
| | | |increased dramatically in the last 10 years. Once associated only with the arid West, these programs have spread |
| | | |geo-graphically to almost all parts of the United States. In many cities, the scope of water conservation |
| | | |programs has expanded to include not only residential customers, but commercial, institutional, and industrial |
| | | |customers, as well. |
| | | | |
| | | |Water Pollution – There are many contaminants that may be present in source water before it is treated. These |
| | | |include: |
| | | |Microbial contaminants, such as viruses and bacteria, which may come from sewage treatment plants, septic |
| | | |systems, agricultural livestock operations, and wildlife. |
| | | |Inorganic contaminants, such as salts and metals, which can occur naturally or result from urban storm water |
| | | |runoff, industrial or domestic wastewater discharges, oil and gas production, mining, or farming. |
| | | |Pesticides and herbicides, which may come from a variety of sources such as agriculture, storm water runoff, and |
| | | |residential uses. |
| | | |Organic chemical contaminants, including synthetic and volatile organic chemicals, which are by-products of |
| | | |industrial processes and petroleum production, and can also come from gas stations, urban storm water runoff, and|
| | | |septic systems. |
| | | |Radioactive contaminants, which can be naturally occurring or be the result of oil and gas production and mining |
| | | |activities. |
| | | |Water Protection & Security |
| | | | |
| | | |Drinking Water: Protection of drinking water at the source can be successful in providing public health |
| | | |protection and reducing the treatment challenge for public water suppliers. Source water quality can be |
| | | |threatened by many everyday activities and land uses, ranging from industrial wastes to the chemicals applied to |
| | | |suburban lawns. The 1996 Safe Drinking Water Act Amendments placed a new focus on source water protection -- |
| | | |States are to implement Source Water Assessment Programs (SWAPs) to assess areas serving as sources of drinking |
| | | |water in order to identify potential threats and initiate protection efforts. |
| | | |Under the Clean Water Act, the Office of Wastewater Management (OWM) works in partnership with EPA regions, |
| | | |states and tribes to regulate discharges into surface waters such as wetlands, lakes, rivers, estuaries, bays, |
| | | |and oceans. |
|Air supply and quality |EPA |Bi-weekly |Value Drivers |
| | | |Air pollution & control: Indoor air pollution, Indoor air quality control |
| |Business Wire |2-3 times/week | |
| | | |Air Pollution & Control |
| |Monroe Environmental |Monthly | |
| | | |Indoor Air Pollution: In the last several years, a growing body of scientific evidence has indicated that the air|
| |Mother Earth News |Every 2 months |within homes and other buildings can be more seriously polluted than the outdoor air in even the largest and most|
| | | |industrialized cities. Other research indicates that people spend approximately 90 percent of their time indoors.|
| | | |Thus, for many people, the risks to health may be greater due to exposure to air pollution indoors than outdoors.|
| | | |In addition, people who may be exposed to indoor air pollutants for the longest periods of time are often those |
| | | |most susceptible to the effects of indoor air pollution. Such groups include the young, the elderly, and the |
| | | |chronically ill, especially those suffering from respiratory or cardiovascular disease. |
| | | |Clear Skies was proposed in response to a growing need for an emission reduction plan that will protect the |
| | | |environment while providing regulatory certainty in the industry. The program was submitted as proposed |
| | | |legislation in the US House of Representatives on July 26, 2002 and in the US Senate on July 28, 2002. |
|Environmental maintenance |EPA |Bi-weekly |Value Drivers |
| | | |Enforcement of the environmental statutes and regulations, Public awareness, Environmental Management System |
| |Hotel Online |2-3 times/week |(EMS) |
| | | | |
| |Hotel & Motel Management |Weekly |EMS – An EMS is a continual cycle of planning, implementing, reviewing and improving the processes and actions |
| | | |that an organization undertakes to meet its business and environmental goals. Most EMSs are built on the "Plan |
| | | |(Planning, including identifying environmental aspects and establishing goals), Do (Implementing, including |
| | | |training and operational controls), Check (Checking, including monitoring and corrective action), Act (Reviewing,|
| | | |including progress reviews and acting to make needed changes to the EMS) model. |
| | | |Statutory and regulatory enforcement on environmental sustainability has been established due to increased public|
| | | |concerns for environment preservation. Examples of these are Clean Air Act (CAA) Policy and Guidance, Clean |
| | | |Water Act (CWA) Policy and Guidance, Safe Drinking Water Act (SDWA) Policy and Guidance, Toxic Substance Control |
| | | |Act (TSCA) Policy and Guidance, and Environmental Hazard and Community Protection Enforcement |
|Waste management |EPA |Bi-weekly |Value Drivers |
| | | |Food waste management, Wastewater management |
| |Chemical Week |Monthly |Food Waste Management - The United States not only produce an abundance of food, it wastes an enormous amount of |
| | | |it. More than one quarter of America’s food, or about 96 billion pounds of food a year, goes to waste--in fields,|
| |Business Wire |2-3 times/week |commercial kitchens, manufacturing plants, markets, schools, and restaurants. While not all of this excess food |
| | | |is edible, much of it is and could be going to those who need it. Food waste is not only unfortunate in terms of |
| | | |the lost opportunity to feed hungry Americans but also in terms of the negative effects on our environment. The |
| | | |nation spends an estimated $1 billion a year to dispose of excess food. That is a waste of both food and money, |
| | | |however not all food is appropriate for human consumption. Livestock farmers use some excess as animal feed. |
| | | |Renderers and other businesses recycle many forms of excess food into other products. Food scraps can be |
| | | |composted to create a valuable fertilizer. |
| | | |A restaurant chain donates food to local food rescue organizations that are part of a national network that |
| | | |handles prepared and perishable food. |
| | | |A food processing company donates extra packaged products to a national network of food banks or to a local food |
| | | |bank. |
| | | |A state Office of Waste Reduction helps divert more than 21,000 tons of excess food from state landfills by |
| | | |assisting four local food recovery programs through a food waste reduction grant program. |
| | | |Wastewater Management - OWM focuses on control of wastewater that is collected in discrete conveyances (also |
| | | |called point sources), including pipes, ditches, and sanitary or storm sewers. Traditionally, the Agency has had |
| | | |separate programs for point sources and nonprofit sources (which include agricultural runoff, erosion, and other |
| | | |sources not directly linked to a specific source of pollution). Now, however, as we adopt a more comprehensive |
| | | |strategy, OWM is working with other EPA offices and with our stakeholders to apply a watershed approach to water |
| | | |management, promoting integrated solutions to address all sources of pollution to surface water, groundwater, and|
| | | |habitats on a watershed basis. |
Ecology
|Sub-categories |List and briefly describe the three main forces which you believe will drive changes |
| |in the way you do business in each of the subcategories of ecological environment. Be sure to link |
| |these to the value drivers identified on the previous form. |
|Natural resources |Energy Crisis: A shortage of electricity-generating capacity, a flawed market design from the state's attempt at deregulation, the grip energy |
| |companies had over wholesale electricity prices and regulatory missteps all contributed to the energy crisis that spread to the Western states. |
| |California's energy crisis alone cost the state as much as $45 billion over two years in higher electricity costs, lost business due to blackouts |
| |and a slowdown in economic growth. |
| |From the past until now, the fossil fuels (i.e., coal, oil, natural gas) are the most commonly used sources as electricity generators. The trend in|
| |electricity generation is toward using resources such as less capital-intensive and more efficient natural gas and renewable fuels. However, in |
| |order for this change to take place, it will take approximately 20 to 25 years for complete implementation. Growing demand for electricity and the |
| |projected retirement of existing generating capacity (mostly fossil steam capacity being displaced by more efficient natural-gas-fired |
| |combined-cycle capacity brought online in the past few years and still being constructed), contribute to more demand for other natural resources to |
| |take place in electricity generation. Currently, electricity generation from natural gas, coal, nuclear, and renewable fuels is promoted in the U.S.|
| |Generation from such resources is projected to increase through 2025. |
| |The tensions surrounding the potential war against Iraq and the recent strike in Venezuela’s oil industry caused volatile situation of oil price. |
| |Due to increasing demand and steady increase in oil price as forecasted by EIA, a search for alternate sources of energy is inevitable, especially |
| |concerning automobile/airplane fuels. Much of the effort has focused on vehicles powered by a source other than conventional gasoline or diesel |
| |fuel. A variety of alternative fuels are currently in use, including propane, natural gas, ethanol, methanol, electric vehicles, and hybrid-electric|
| |vehicles. |
|Water supply and quality |Increased public consciousness and demand for healthier quality of life, federal and state standards for safety in drinking water is becoming |
| |stricter than ever. Many people are asking questions such as - How safe is my drinking water? Where does my drinking water come from, and how does |
| |it get to my home? My water may be safe now, but what about in the future? What can I do to help protect my drinking water? |
| |Community and federal involvement is essential in water pollution control. For example, publicly owned treatment works (POTWs) collect wastewater |
| |from homes, commercial buildings, and industrial facilities and transport it via a series of pipes, known as a collection system, to the treatment |
| |plant. Here, the POTW removes harmful organisms and other contaminants from the sewage so it can be discharged safely into the receiving stream. |
| |Generally, POTWs are designed to treat domestic sewage only. However, POTWs also receive wastewater from industrial (non-domestic) users. The |
| |General Pretreatment Regulations establish responsibilities of Federal, State, and local government, industry and the public to implement |
| |Pretreatment Standards to control pollutants from the industrial users which may pass through or interfere with POTW treatment processes or which |
| |may contaminate sewage sludge. |
|Air supply and quality |Ozone occurs in two layers of the atmosphere. In the stratosphere, ozone protects the earth from harmful ultraviolet rays. At ground level it is an |
| |air pollutant that can be harmful to human health and the environment. Motor vehicle exhaust and industrial emissions, gasoline vapors, and chemical|
| |solvents are some of the major sources of ozone. The Clean Air Act requires EPA, states, and cities to implement programs to further reduce |
| |emissions of ozone precursors from sources such as cars, fuels, industrial facilities and power plants. The EPA also encourages lifestyle changes |
| |such as recycling and conservation that can result in significant air quality improvements. |
| |Indoor Air Pollution & Control: A problem exacerbated during the winter months when windows and doors are shut tight against the cold. The big |
| |problem in winter is that there is not good ventilation. Today's homes are being made increasingly airtight to conserve energy--trapping not only |
| |heat, but also potentially harmful pollutants. It's a trade-off. If you open your windows, you improve ventilation and air quality, but you lose |
| |energy efficiency. Among the biggest indoor-air-polluting culprits identified by M&O are pressed-wood products like plywood and particleboard, which|
| |are assembled using urea-formaldehyde (UF) glues and adhesives. Formaldehyde has been deemed a probable human carcinogen by the EPA. It's also a |
| |known irritant that can cause or exacerbate allergic reactions. Nevertheless, it continues to be widely used to manufacture construction materials |
| |and household furniture and is commonly found in cabinets and paneling, walls, floors, textiles, and roofs. Formaldehyde is also used to produce |
| |permanent-press clothing and curtains, as well as to preserve some paints. All of these products can "offgas" formaldehyde, contributing to poor |
| |indoor air quality. |
|Environmental maintenance |Consumer preference on environmental friendly atmosphere puts greater pressure on companies to take the initiatives on providing environmental |
| |sustainability. According to a new multi-national report on consumer travel trends by the International Hotels Environment Initiative on July 2002, |
| |90% of British tourists interviewed nowadays consider it part of a hotel’s responsibility to actively protect and support the environment, including|
| |local communities, and are more likely to book a property with a responsible environmental attitude. |
| |Information technology (IT) adds to the public awareness of national and international environmental issues and with vast sources from IT public can|
| |be educated on the issues accordingly. Environmental Monitoring Public Access and Community Tracking (EMPACT) has met its goal of helping |
| |communities bring people up-to-date local environmental information they can understand and use in making daily decisions about protecting their |
| |health and environment. People in over 160 communities in 39 States now have current and accurate information about environmental conditions in |
| |their communities. |
|Waste Management |Currently, increasing number of people dining out is prevalent which will cause restaurants and public eateries to deal with more food waste and |
| |demand for more efficient food waste management will be required. Also, increased pick-up and take-out service will involve issue on recycling and |
| |perishable packaging. |
| |Stricter reinforcement on government regulations is predicted on the short run. For instance, EPA regulates all this waste under the Resource |
| |Conservation and Recovery Act (RCRA). RCRA's goals are to: protect us from the hazards of waste disposal; conserve energy and natural resources by |
| |recycling and recovery; reduce or eliminate waste; and clean up waste which may have spilled, leaked, or been improperly disposed of. |
Economic
|Sub-categories |Identify the primary sources |How do you utilize this information in making decisions? |
| |of information | |
|Key measures of economic |Department of Commerce: Bureau|Value Drivers |
|well being |of Economic Analysis |GDP, Private Consumption, Employment/Unemployment rate, Inflation (Consumer Price Index), Personal income and consumer attitudes |
| |Bureau of Labor Statistics | |
| | |GDP & Employment - Measures of output and employment are key indicators of the pace of economic activity. Real gross domestic product|
| |CEO Express |-- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.0 |
| | |percent in the third quarter of 2002, according to estimates released by the Bureau of Economic Analysis. In the second quarter, real|
| |Worldbank |GDP increased 1.3 percent. |
| | | |
| |Financial Times |Employment/Unemployment Rate – In 2002, Employment declined in December and the unemployment rate was unchanged at 6.0 percent. |
| | |Payroll employment fell by 101,000, following a decline of 88,000 in November. In December, job losses continued in manufacturing; |
| |OECD |employment also fell in retail trade and transportation. Total employment edged down in December. Despite several large monthly |
| | |fluctuations in 2002, employment was essentially unchanged from December 2001 to December 2002. In December, the |
| |Dow Jones Commodities Service |employment-population ratio declined by 0.2 percentage point to 62.3 percent. Over the course of the year, this ratio decreased by |
| | |0.7 percentage point. Employment declined by 23,000 in transportation; most of this over-the-month job loss was in air |
| |U.S Census Bureau |transportation. The over-the-year decline in air transportation (-25,000) was much smaller than in 2001 (-139,000). Substantial job |
| | |gains occurred over the month in amusement and recreation services (28,000) and in hotels and other lodging places (16,000). |
| | | |
| | |Inflation (CPI) - Consumer Price Index measures inflation. During the first 11 months of 2002, the CPI for all urban consumers (CPI-U)|
| | |rose at a 2.6 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 1.6 percent for all of 2001. The |
| | |index for energy, which declined 13.0 percent in 2001, increased at a 12.5 percent SAAR in the first 11 months of 2002. |
| | |Petroleum-based energy costs increased at a 28.2 percent annual rate while charges for energy services showed no change. The food |
| | |index has increased at a 1.3 percent SAAR thus far this year, following a 2.8 percent rise for all of 2001. Excluding food and energy,|
| | |the CPI-U advanced at a 2.1 percent SAAR in the first 11 months, following a 2.7 percent rise in all of 2001. The Consumer Price |
| | |Index for All Urban Consumers (CPI-U) declined 0.2 percent in December, before seasonal adjustment, the Bureau of Labor Statistics of |
| | |the U.S. Department of Labor reported today. The December level of 180.9 (1982-84=100) was 2.4 percent higher than in December 2001. |
| | |The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) also declined 0.2 percent in December, prior to seasonal |
| | |adjustment. The December level of 177.0 was 2.4 percent higher than in December 2001. |
| | | |
| | |Personal Income & Private Consumption – In 2002, Personal income increased $29.6 billion, or 0.3 percent, and disposable personal |
| | |income (DPI) increased $28.5 billion, or 0.4 percent, in November, according to the Bureau of Economic Analysis. Personal consumption |
| | |expenditures (PCE) increased $38.5 billion, or 0.5 percent. In October, personal income increased $26.5 billion, or 0.3 percent, DPI |
| | |increased $28.5 billion, or 0.4 percent, and PCE increased $27.3 billion, or 0.4 percent, based on revised estimates. Real DPI -- DPI |
| | |adjusted to remove price changes -- increased 0.3 percent in November, compared with an increase of 0.2 percent in October. |
|Economic cycles |Wall Street Journal |Value Drivers |
| | |Recession, Rate of Inflation |
| |Dow Jones Interactive(Factiva)| |
| | |A double-dip is when the economy starts to recover after a recession but then begins contracting again. Although there is no hard and |
| |OECD |fast rule for what constitutes a recession, economists generally believe that two consecutive quarters of shrinking GDP amount to such|
| | |a downturn. The US economy officially entered recession in March 2001, but it appeared to begin recovering at the end of that year. |
| | |It grew at a respectable annual rate, slightly above 3%, between the end of 2001 and September. But corporate-governance scandals and|
| | |tensions with Iraq helped send stocks down and oil prices up damping business investment, hiring and consumer spending late in the |
| | |year. |
|Monetary/fiscal policy |Worldbank |Value Drivers |
| | |Price Stability, Federal Reserve, Interest rates, Corporation income taxes, Consumption taxes, Property taxes, Harmonized indices of |
| |Lexus/Nexus |consumer price |
| | | |
| |Money Magazine |First, the combination of monetary and fiscal policy is already as stimulative as it has been at any time since World War II (charts).|
| | |On the fiscal side, the policy boost can be seen in the swing in the federal budget, which captures how changes in taxes and spending |
| |Hotel-Online |affects the economy. In fiscal 2002, which ended Sept. 30, the budget took a record swing, from a surplus of $127.3 billion in 2001 to|
| | |a deficit of $159 billion, an economic thrust of some $286 billion, or 2.8% of gross domestic product. |
| |Business Week |The deficit is expected to widen further in 2003, to perhaps $225 billion. But the fiscal boost could be even greater than that, since|
| | |the Bush Administration and the new Republican Congress are sure to push through another sizable stimulus package (page 40). Some, but|
| | |not all, of the federal lift will be offset by higher taxes and less spending on the state level. State budgets are expected to be in |
| | |the red by some $60 billion for the coming fiscal year, and unlike Washington, most states must balance their budgets by law. |
| | |Monetary policy has not been stingy, either. In fact, you have to go back more than two decades to find a period when the Federal |
| | |Reserve was as stimulative as it is now. That's clear from the current level of the Fed's policy target, the overnight federal funds |
| | |rate, adjusted for inflation. Based on the latest consumer price index--which showed yearly inflation at just 2.2% in November--and a |
| | |fed funds rate of 1.25%, the real policy rate is -0.9%, compared with a long-run average of about 2%. That's the widest gap and the |
| | |most negative real rate since the 1980 recession. |
|Capital market behaviors |Wall Street Journal |Value Drivers |
| | |Market Volatility -Stock market volatility, Stock market indices, NASDAQ |
| |Dow Jones |Price of Money - Interest Rate, Long term Bond Yield |
| |Interactive(Factiva) |Return on invested capital |
| | | |
| |NASDAQ |Increasing "the return on investing" is economist-speak for boosting the stock market. Higher stock prices are always welcome, but |
| | |they would be especially so now. To a greater extent than in past slowdowns, the stock market's weakness isn't only a reflection of |
| | |the economy's weakness; it is one of its causes. Shrunken portfolios are creating a drag on consumer spending, on companies' |
| | |willingness to sell shares to finance new ventures and on business confidence generally. Administration officials earlier cited |
| | |studies suggesting the value of equity markets likely would rise by about 10% from dividend-tax elimination, though they no longer use|
| | |that number. The rise would occur largely because the tax burden on stock investments would be reduced, increasing the amount of a |
| | |dividend -- or a capital gain -- that an investor could keep. Some academics say the administration is overestimating the benefit. |
| | |Some say the plan would drive up interest rates by increasing federal deficits. Higher rates tend to undercut share prices. The |
| | |stock-market kick could be less than 5%, estimates Joel Slemrod, a University of Michigan tax economist. |
|Trade and industrial |U.S. Department of Commerce |Value Drivers |
|policies | |Exchange rate, Price of raw materials, Trade Volume, Balance of payment account |
| |Wall Street Journal |Trade including economic exchange among countries. The risk of foreign exchange rate should be considered apart from business |
| | |operating. |
| |Business Week | |
| | |2002 brought an economic recovery, increased oil prices and a related jump in imports which ended the 2001 deficit slimming. In |
| | |April, May, August and November new record highs were reached. Imports provide the fuel as global demand is strengthening more slowly|
| | |after the sharp export decline. The record deficit is again eyed for its effect on the dollar as trade deficits demand an equal |
| | |but opposite investment inflow. The dollar remains strong given comparative global investment returns (and risks, expectations). |
| | |After the West Coast port dispute held down imports in October, economists had expected the trade deficit to widen in November, but |
| | |not by so much. The deficit with China hit $10.5 billion -- its second-widest ever -- and deficits with Japan and South Korea were |
| | |also unusually wide. The growing trade deficit implies domestic producers lost U.S. market share to foreign competitors. |
|Labor markets |Bureau of Labor Statistics |Value Drivers |
| | |Minimum Wage, Labor Cost, Employment/unemployment Rate, Activity Rate, Wages and labor productivity, Structure and Distribution of the|
| |Dow Jones Interactive |Labor Force, Compensation Surveys(pWc.Deloitte & Touche.NRN), Immigrant Rate, Labor Supply and Demand |
| | | |
| |Nation’s Restaurant News |Employment declined in December, and the unemployment rate was unchanged at 6.0 percent, the Bureau of Labor Statistics of the U.S. |
| | |Department of Labor reported today. Payroll employment fell by 101,000, following a decline of 88,000 (as revised) in November. In |
| |Regional Labor Cost |December, job losses continued in manufacturing; employment also fell in retail trade and transportation. The unemployment rate |
| | |remained at 6.0 percent in December, and the number of unemployed persons was essentially flat, at 8.6 million. Both measures had |
| | |increased in November. The unemployment rate for adult women rose in December to 5.3 percent. The jobless rates for other major |
| | |worker groups--adult men (5.6 percent), teenagers (16.1 percent), whites (5.1 percent), blacks (11.5 percent), and Hispanics (7.9 |
| | |percent)--were little changed over the month. |
| | |Increasing labor costs and immigration rates is a matter of consequence in managing the human resources. The Employment Cost Index for|
| | |total compensation rose 0.7 percent from September to December, following a 0.8 percent gain from June to September, seasonally |
| | |adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported in Jan, 2003. Benefit costs continued to outpace |
| | |the gains in wages and salaries for civilian workers in December, increasing 1.3 percent compared with a modest rise of 0.4 percent |
| | |for wages and salaries. |
|Income distribution |Trade and Income Distribution |Value Drivers |
| |by William R. Cline (Institute|Class of customer, Consumer Confidence, Poverty and Basic Facilities in the country |
| |for International Economics) |Income Distribution Could help in defining the niche markets and target markets for the business development and expansion. |
| | |Poverty rate rises and household income declines, according to Census Bureau Reports |
| |U.S. Census Bureau | |
| | |The poverty rate in 2001 was 11.7 percent, up from 11.3 percent in 2000. |
| | |In 2001, people below the poverty thresholds numbered 32.9 million, a figure 1.3 million higher than the 31.6 million poor in 2000. |
| | |At 16.3 percent, the poverty rate for children remained higher than that of other age groups, but did not change between 2000 and |
| | |2001. |
| | |For people 18 to 64 years old, the poverty rate rose to 10.1 percent in 2001, up from 9.6 percent in 2000. |
| | |In 2001, there were 6.8 million poor families (9.2 percent), up from 6.4 million (8.7 percent) in 2000. |
| | |For non-Hispanic Whites the poverty rate rose between 2000 and 2001 (from 7.4 percent to 7.8 percent), as did the number who were poor|
| | |(from 14.4 million to 15.3 million). Poverty rates for Blacks, Hispanics, and Asians and Pacific Islanders did not change between 2000|
| | |and 2001. However, the number of poor Hispanics rose to 8.0 million in 2001, up from 7.8 million in 2000./1 |
| | |The poverty rate in the South increased from 12.8 percent in 2000 to 13.5 percent in 2001. The poverty rates in the Northeast, |
| | |Midwest, and West did not change. |
| | |The poverty rate for people living in the suburbs rose from 7.8 percent in 2000 to 8.2 percent in 2001; the poverty rate did not |
| | |change in central cities or in nonmetropolitan areas. |
| | |How poverty is measured affects one's perception of who is poor. Six experimental measures showed lower poverty rates for children, |
| | |Blacks, and people in female-householder families than under the official measure, while poverty rates for those 65 and over varied |
| | |greatly according to how medical expenses were taken into account. |
| | | |
| | |Four of six experimental poverty measures showed an increase in the poverty rate from 2000 to 2001, while two showed no change |
Economic
|Sub-categories |List and briefly describe the three main forces which you believe will try change |
| |in the way you do business in each of the subcategories of economic environment |
|Key measures of economic well being |With increased personal income, disposable income, and personal expenditure, general public will be spending their money on more leisure activities |
| |and other luxuries other than the necessities. |
|Economic cycles |The economic downturn caused by fears and insecurity from the potential was against Iraq will have impact on foreign and domestic travelers’ |
| |behavior. Mostly, there will be fewer numbers of travelers. |
|Monetary/fiscal policy |The year 2003 will be a period of high productivity, characterized by low inflation and interest rates, and rising profitability and real wages. |
|Capital market behaviors |Due to recent volatile conditions with Iraq and economic slowdown, scarcity in capital is becoming inevitable. There will be tighter capital markets|
| |and more focus will be toward management on intangible assets. |
|Trade and industrial policies |Decreasing U.S. currency will have effect on foreign exchange rate and lowering rate of foreign investment to the U.S. is most likely to occur. |
|Labor markets |The labor force will grow steadily as the population and labor force ages; diversity will continue to increase. |
|Income distribution |Very slow or even negative growth in real wages and a widening disparity in the distribution of income, particularly between relatively skilled and |
| |unskilled workers. |
Political
|Sub-categories |Identify the primary sources |How often do you review |Based upon your information sources used, list and briefly describe the key value drivers you believe are |
| |of information |this information? |important to monitor in understanding the cause and effect relationship with your firm. |
|Governments |CNN |Daily |Government did not control the casino industry directly, but its relationship with other countries and its laws |
| | | |and regulations related economy would affect confidence of consumers and investors. War in Iraq, North Korea’s |
| |Wall Street Journal | |nuclear crisis, and Bush administration’s tax cut plan will bring chain reaction in U.S. industries. |
| | | | |
| |The New York Times | |National relationship |
| | | |Analysts in Wall Street forecasted that when U.S. finish the war early, the stock price will be stable, but if |
| |TIME | |it takes longer than two month, the stock market will get more serious storming. Fortunately, the U.S. official |
| | | |said that the war with Iraq is very successful and after this announcement stock market is jumped up quickly. |
| | | |The stock market is swinging everyday because there is still uncertainty. However, most investors turn to |
| | | |optimistic about early settlement of war. The future market is also showed us very stable oil price. Specialist |
| |Las Vegas Review Journal | |saw that the oil price is around $25 a barrel in few months. We can positively say that the war will be |
| | | |terminated in few months and the U.S. economy will back up to normal after that. The North Korea specialists in |
| | | |U.S. announced that they will solute the nuclear problem with North Korea peacefully and the fundamental |
| | | |principle is not changed. The relationship with hostile countries will be settled down and the economy starts to|
| | | |get back to normal by next year according to federal officials. |
| | | | |
| | | |Homeland Security |
| | | |U.S. official raised national alert to second highest level in February 2003. Homeland security is the most |
| | | |concern to domestic travelers in these days. There are more than 1 million firefighters in the United States, of|
| | | |which approximately 750,000 are volunteers. Local police departments have an estimated 556,000 full-time |
| | | |employees including about 436,000 sworn law enforcement personnel, including about 186,000 sworn officers. There|
| | | |are more than 155,000 registered emergency medical technicians. |
| | | | |
| | | |The homeland security issue was raised right after September 11, 2001 and now this concern is the highest level |
| | | |ever because of war with Iraq and Al Qaeda terror threatening. |
| | | |After war with Iraq, the national security level will be reduced and people are not concerned as much as do now.|
| | | |The travel safety and personal information safety issue could be concerned more. |
| | | | |
| | | |Federal reserve policy |
| | | |Federal Reserve cut short-term interest rates to a 41-year low of 1.25% in November, 2002. When the short-term |
| | | |interest rate is low, the investors would find other places to invest money instead of banks. If the money is |
| | | |not stocked in the bank and goes to money market, it will increase capital circulation and liquidity of |
| | | |companies. These transactions will boost economy and people who have surplus in their portfolios, they will |
| | | |spend their disposable income to the hospitality industry and gaming industry. |
| | | | |
| | | |Since the reserve rate is almost hit 0%, the Fed reserve officials are figuring out what alternative tools to |
| | | |use next should the economy need more stimulus. That is reducing short-term and long-term bond rate to stimulate|
| | | |economy and Fed already buys bonds regularly to expand the money supply. The Fed capped long-term Treasury yield|
| | | |at 2.5% during the 1940s through large volumes of Treasury bond purchases. Since the economy is struggling and |
| | | |inflation is going up now, the Fed are ready to take action. |
| | | | |
| | | |Tax |
| | | |President Bush sent Congress a $2.23 trillion budget on February 4th, 2003 - with record deficits - that would |
| | | |speed up billions of dollars in income tax cuts, provide huge increases for the Pentagon and offer a modest jump|
| | | |in spending for NASA. Mr. Bush's budget forecasts a deficit of $304 billion in the current fiscal year, and |
| | | |projects a deficit of $307 billion for the 2004 fiscal year, which begins Oct. 1. Over the next five years the |
| | | |total projected deficit would be more than $1 trillion, a potentially problematic number for Mr. Bush, who as a |
| | | |presidential candidate vowed that he could both cut taxes and eliminate the national debt. In his budget message|
| | | |to Congress, the president said his budget reflected his most urgent national priorities: ''Winning the war |
| | | |against terrorism, securing the homeland and generating long-term economic growth.'' (Source: The New York |
| | | |Times) |
| | | | |
| | | |The president's proposed $670 billion economic package, which proposes the elimination of the tax individuals |
| | | |pay on stock dividends as well as the acceleration of planned income tax cuts, was running up the debt for a |
| | | |future generation to pay. $670 billion tax cut plans over the next 10 years will stimulate casino and gaming |
| | | |industry. In this tax cut, reduce taxes for stock owners, so dividends would become tax free. Investors in |
| | | |companies that don't want to pay dividends would get a new break in capital-gains taxes. |
| | | | |
| | | |This tax cut will stimulate economy by several reactions. More and more mutual funds will invest to stock |
| | | |markets because the dividend is not taxable. The company will give more dividends to stock holders and other |
| | | |personal investors also will have attractive to stocks. The surplus money from the tax cut will stimulate |
| | | |productivity and generate manufacturing activity. This tax cut is targeting next 10 years, so the effect will |
| | | |spread until next decade. |
|Regulations |American Gaming Association |Monthly |Even though gambling industry have opened many jobs and it has paid for taxes to communities, gambling would |
| |(american | |produce a number of negative impacts on society and that government regulation is the most appropriate remedy. |
| |) | |So, it is the target of special scrutiny by governments in every jurisdiction where it exists, including even |
| | | |such gambling-friendly states as Nevada. Thus, the authorization of legalized gambling has almost always been |
| |National Indian Gaming | |accompanied by the establishment of a corresponding regulatory regime and structure. |
| |Association | | |
| |() | |Employment Policies |
| | | |Since 1980, increases in the cost of health insurance benefits have outpaced inflation in dramatic fashion. |
| |Committee of North American | |Total health insurance costs per covered employee were $1,047 in 1980. These costs increased rapidly during the |
| |Gaming Regulators Association| |early 1990s, moderated by the constraining effects of managed care strategies in the mid-1990s. Since 1999, |
| |() | |costs have begun to grow quickly again. The 2001 cost was 8.9 percent higher than the 2000 cost, a difference of|
| | | |$342 per employee. The portion of costs paid by the employer went up 9.6 percent—$286—and the portion paid by |
| |Federal Bureau of | |employees went up 6.4 percent—$57. |
| |Investigation | | |
| | | |The U.S. Department of Labor (DOL or the Department), Office of Disability Employment Policy (ODEP) announced |
| |State Police Department | |the availability of $3.5 million to award up to seven competitive grants for strategic planning and |
| | | |implementation activities designed to improve the employment and career advancement of people with disabilities |
| |Employment Policy Foundation | |through enhanced availability and provision of customized employment services through the new One-Stop delivery |
| | | |system established under the Workforce Investment Act of 1998 (WIA) (Pub. L. 105-220, 29 U.S.C. 2801 et seq.). |
| | | | |
| | | |Gambling regulations |
| | | |The most important role for government regulation is determining the scope and manifestation of gambling’s |
| | | |presence in society and thus its impact on the general public. In this sense, regulation can be broadly defined |
| | | |to include the political process by which the major decisions regarding legalized gambling are arrived at, the |
| | | |corresponding legislation and rules specifying the conditions of its operation, and the direction given to |
| | | |regulatory bodies. Through such means as specifying the number, location, and size of gambling facilities; the |
| | | |types of games that can be offered; the conditions under which licensed facilities may operate; and so forth, |
| | | |governments have considerable control over the benefits and costs legalized gambling can bring with it. |
| | | | |
| | | |In the late 1990s the state regulators refocus toward social issues like problem gambling, neighborhood casinos,|
| | | |slot-machine themes and the propriety of internet gambling and college sports betting. And technology is central|
| | | |to regulators’ current concerns, former Gaming Control Board member Dennis Amerine said. (Las Vegas Review, |
| | | |August 11, 2002) |
| | | | |
| | | |The state governments have lots of budget cut from federal and they have more expenditure to security sectors. |
| | | |These make state governments difficult to decide where they should spend and how they can cover the shortage. |
| | | |The alternative solution is casino business. The states which already have casinos consider increasing gambling |
| | | |tax and other states which do not have casino yet start to think to open casino business. The too much tight |
| | | |casino regulations will give a breath to casino industry gradually. |
| | | | |
| | | |Crime control |
| | | |According to preliminary data released by the Federal Bureau of Investigation's Uniform Crime Reporting Program |
| | | |in December 2002, the number of Crime Index offenses reported to law enforcement during the first 6 months of |
| | | |2002 increased 1.3 percent when compared to figures reported for the same period of 2001. |
| | | | |
| | | |The Crime Index, which is viewed by many as an indicator of the Nation's crime experience, is comprised of |
| | | |violent crime offenses and property crime offenses. The Modified Crime Index includes arson as a property crime.|
| | | |Overall, violent crime, which includes murder and nonnegligent manslaughter, forcible rape, robbery, and |
| | | |aggravated assault, decreased 1.7 percent when comparing data reported for the 6-month periods. Property crime, |
| | | |which includes burglary, larceny-theft, and motor vehicle theft, increased 1.7 percent. Arson offenses, |
| | | |tabulated separately from the Crime Index, decreased 2.6 percent for the first 6 months of 2002 when compared to|
| | | |data from that same period of 2001.(See Appendix in political section) |
| | | | |
| | | |Among the city population groups, cities with populations of 10,000 to 24,999 and those with populations under |
| | | |10,000 inhabitants had decreases–0.4 percent and 1.9 percent, respectively–in the number of Crime Index offenses|
| | | |reported. Increases in Crime Index offense volumes ranged from 0.2 percent for cities with 1 million or more |
| | | |inhabitants to 3.1 percent for cities with populations of 50,000 to 99,999. The number of reported Crime Index |
| | | |offenses in suburban counties rose 3.6 percent; in rural counties, the number of offenses decreased 1.9 percent.|
| | | |By region, the West showed a 5.9-percent increase in Crime Index offenses, and the South reported an increase of|
| | | |0.6 percent. Decreases in the volume of Crime Index offenses were noted in the Northeast, 2.1 percent, and in |
| | | |the Midwest, 1.4 percent. |
| | | | |
| | | |Casino licensing |
| | | |The licensure of gambling industry suppliers is primarily concentrated on the business entities that provide |
| | | |gambling devices and equipment. Most regulatory bodies are also granted the statutory authority to license |
| | | |entities that provide non-gambling-related goods or services to casinos. However, only the State of New Jersey |
| | | |currently requires licensure of certain non-gambling casino contractors. |
| | | | |
| | | |A casino engages in a diverse set of outside business relationships in order to conduct operations. For this |
| | | |reason, it is important that casino jurisdictions exert a measure of oversight over all procurement decisions |
| | | |made by operators. This oversight might entail licensure of non-gambling provider entities or other regulatory |
| | | |measures. It is preferable that casino gambling enabling legislation expressly require that financing for casino|
| | | |operations be approved by the regulatory authority as being appropriate and from a suitable source. Casino |
| | | |license was too tight since casino operated, but it is getting favor to casino properties because to some states|
| | | |it is a major tax income. |
|Laws |American Gaming Association |Monthly |Federal and each state have different laws for regulate gaming industry. Some states such as Florida and Alabama|
| |(american | |have conflicted with Interior Secretary’s decision which gave permission to build casinos. The U.S. Supreme |
| |) | |Court ruled federal laws against casino broadcast commercials were unconstitutional; state prohibitions may |
| | | |still be valid. |
| |Wall street journal | | |
| | | |Federal and state laws |
| |Time | |Harrah’s entertainment has casinos in Arizona, California, Illinois, Indiana, Iowa, Kansas, Louisiana, |
| | | |Mississippi, Missouri, Nevada, New Jersey, and North Carolina. |
| |CNN | |Casinos are prohibited by state law – Alaska, Arkansas, Florida, Georgia, Hawaii, Kentucky, Maine, Maryland, |
| | | |Massachusetts, New Hampshire, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, |
| | | |Virginia, and Wyoming. |
| | | | |
| | | |Indian Gaming Regulators Act |
| | | |The amount of money involved is staggering. In 2001, 290 Indian casinos in 28 states pulled in at least $12.7 |
| | | |billion in revenue. Of that sum, TIME estimates, the casinos kept more than $5 billion as profit. That would |
| | | |place overall Indian gaming among Fortune magazine's 20 most profitable U.S. corporations, with earnings |
| | | |exceeding those of J.P. Morgan Chase & Co., Merrill Lynch, American Express and Lehman Bros. (Time, 12/16/2002).|
| | | | |
| | | |M & A |
| | | |State regulators approved MGM Grand’s May 2002 purchase of Mirage Resorts with little controversy even though it|
| | | |was the biggest casino purchase in the history of the state. Regulators evaluated the combination in light of |
| | | |the state’s casino antimonopoly rules and decided to OK it, with commission members applauding MGM Mirage |
| | | |majority owner Kirk Kerkorian’s long-time contributions to the Strip and Nevada’s economy. |
|Lobbying |American Gaming Association |Monthly |Some states are strongly prohibiting gaming properties and some states are considering legalizing them. To |
| |(american | |expand casinos to these states, it is important to understand for legislatures and communities how gaming |
| |) | |industry support regional economy. |
| | | | |
| |National Indian Gaming | |Lobbying and Political campaign |
| |Association | |Wealthy Indian gaming tribes suddenly are pouring millions of dollars into political campaigns at both state and|
| |() | |federal levels. They are also influencing gaming and other policies affecting Native Americans by handing out |
| | | |large sums to influential lobbying firms. In 2000 alone, tribes spent $9.5 million on Washington lobbying. |
| |Committee of North American | |Altogether they spend more to influence legislation than such longtime heavyweights as General Motors, Boeing, |
| |Gaming Regulators Association| |AT&T—or even Enron in its heyday. |
| |() | | |
| | | |Anti-gambling lobby activities take place by social group in its state or other casino companies in or out of |
| |Washington Post | |state. The social group such as religious group protests casino operation in its state because of negative |
| | | |impacts of gambling. They believe that if the casino starts to business in their state, crime rate will increase|
| | | |and residents also spend their money in casino. People dream of making a big fortune at a stroke instead of |
| | | |working hard. People will spend more time and money for gambling rather than in their home or for their family. |
| | | |It will cause social problems. Casino hotels protest to open a new casino property near them because it will |
| | | |increase competition and decrease their revenues. Some casino companies lobby to extend their properties and |
| | | |number of machines. |
| | | | |
| | | |Below is one of example from Washington Post. |
| | | |Anti-gambling forces are intensifying their effort to keep slot machines out of Maryland by raising money, |
| | | |targeting undecided lawmakers and taking advantage of infighting among slots supporters. A small group of |
| | | |gambling foes met on January 22nd in Annapolis to map out strategy, with a larger follow-up session scheduled |
| | | |for next day. At the top of the agenda: organizing a grass-roots drive to persuade local officials to take a |
| | | |stand against slots and planning a $100,000 fundraising campaign (Source: Washington Post, 23 January, 2003). |
| | | | |
| | | |Alaska and Hawaii are totally against gambling business, however, most state governments are favor of casino |
| | | |industry because it generates huge proportion of state tax revenue, but they are conflict with protest groups |
| | | |which mentioned above. The economic situation has been getting dark since 2001, so the state governments are |
| | | |struggling to gather the tax. Make things worse, the budget from federal government was cut sharply and it is |
| | | |imperative to spend in safety and security more and more. Federal pushes state governments to spend safety and |
| | | |security expenses from their pockets not from Fed. So, more and more states are revising to extend casino |
| | | |business and permit new casino business in few years. |
|Judicial |The Federal Judicial Center |Monthly |In some jurisdictions, the gambling board or commission exercises final administrative authority. Other |
| | | |jurisdictions, most notably Nevada, have adopted a two-tiered system in which one body (the Nevada Gaming |
| |The U.S. Supreme Court | |Control Board) exercises administrative authority, subject to a separate entity (the Nevada Gaming Commission) |
| | | |that serves as the due process oversight body. |
| |Washington Post | | |
| | | |Internet gambling |
| | | |It is important to note that, despite the claims of some, the commercial casino industry does not oppose |
| | | |Internet gambling because of fear of competition. To begin with, Internet gambling to be made legal, commercial |
| | | |casino companies would be in a good position to gain the major share of the market because of their |
| | | |well-established brand names. Second, there is no comparison between the social- and group-oriented |
| | | |entertainment experience of visiting a casino resort and the solitary experience of placing a bet on a computer.|
| | | |Finally, the casino entertainment experience is about more than wagering: Individuals also visit casinos for the|
| | | |restaurants, shows, retail outlets, recreation and other non-gaming amenities that Internet gambling does not |
| | | |offer. |
| | | | |
| | | |Many of the 1,500 Internet gambling sites operate in offshore locations in the Caribbean and elsewhere, |
| | | |according to a 2002 House Financial Services Committee report. Lawmakers estimated 2002 revenues from online |
| | | |gambling to top $4 billion. |
| | | |Internet gambling was developed with internet popularization. |
| | | | |
| | | |The Internet is first conceived in the early '60s. Under the leadership of the Department of Defense's Advanced |
| | | |Research Project Agency (ARPA), it grows from a paper architecture into a small network (ARPANET) intended to |
| | | |promote the sharing of super-computers amongst researchers in the United States. Finally, in 1982, the term |
| | | |"Internet" is used for the first time. For two decades, the internet is widely spread and internet gambling also|
| | | |has popularity so rapidly by its easy to access and play. Only state Nevada approved internet gambling and it is|
| | | |illegal in other states. MGM Mirage is the first Las Vegas player to plan to start internet gambling business |
| | | |and the other casino managements also should consider to roll an internet casino. |
| | | | |
| | | |Internet tax |
| | | |The moratorium, which bans federal and state taxes on online services and so-called "multiple and |
| | | |discriminatory" taxes on e-commerce, is set to expire in November. However, several states are eyeing proposals |
| | | |to impose new Internet taxes to help close mounting budget gaps. The identical bills, by Sen. Ron Wyden, D-Ore.,|
| | | |and Rep. Chris Cox, R-Calif., would indefinitely extend the moratorium that was set in a 2001 bill. The measures|
| | | |were introduced on January 7th. The lawmakers said they want to act on a new bill to keep states from trying to |
| | | |impose new taxes. The bill, however, is likely to face stiff opposition from groups such as the National |
| | | |Governors' Association and the National Conference of State Legislatures, who fought the previous moratorium. |
| | | |Also some Internet service providers want to see the definition of "Internet access" changed to include Internet|
| | | |service providers that provide access through cable and other means, said Mark Nebergall, president of Software |
| | | |Finance and Tax Executives Council, a group that represents firms like Oracle (ORCL) and Microsoft (MSFT). At |
| | | |the time the original moratorium was imposed in 1998 it only covered Internet access providers who used a |
| | | |dial-up modem such as America Online, a unit of AOL Time Warner Inc. (AOL). The bill also eliminates a |
| | | |grandfather clause that had allowed 11 states who had enacted some sort of state Internet tax prior to 1998. All|
| | | |of those states have since ended or phased out such taxes (Source: Dow Jones News Wires, 8 January 2003). |
Political
|Sub-categories |List and briefly describe the three main forces which you believe will drive changes |
| |in the way you do business in each of the subcategories of political environment. Be sure to link |
| |these to the value drivers identified on the previous form. |
|Governments |While Mr. Bush had been touting an array of new programs, from famine relief to research on hydrogen-powered cars, the budget details released on |
| |February 4, 2003 reveal the price tag. They included a squeeze on some programs for housing, job-training assistance and health-care aid for needy |
| |communities, and a deficit of more than $300 billion. Overall, Mr. Bush asked Congress to raise federal spending - outside of big benefit programs |
| |such as Social Security and Medicare - by 4.1% to $782.2 billion for fiscal 2004. That's well above the 2.1% rate of inflation forecast by his |
| |economists. But it's only about half the growth rate of federal spending in recent years. Many areas would enjoy big increases. The White House says|
| |it's proposing a 12% rise in spending for the State Department and international assistance programs, 11% for Veterans Affairs and 5% for the |
| |Department of Homeland Security. The Energy Department would get an overall 6% increase. The department would gain $12 million for an International |
| |Thermonuclear Experimental Reactor, which the budget describes as "the next milestone on the path toward developing fusion as a commercially viable |
| |energy source." |
| |To offset the boosts, scores of other programs would face funding cuts or get barely enough to keep pace with inflation. The Housing and Urban |
| |Development Department would get a 1% increase - less than the inflation rate. The Labor Department would face an outright cut of 1%. Increases for |
| |several environment-related programs - the National Park Service, the Fish and Wildlife Service and the Environmental Protection Agency - wouldn't |
| |keep pace with inflation. Agriculture Department funding would be below the rate of inflation, held down by cuts in crop-insurance and |
| |rural-development programs. The Education Department would get a 6% increase. At the same time, the administration branded three education programs |
| |-- adult literacy, school safety and vocational education grants - as "ineffective" and marked them for cuts of 10% or more. An early test of how |
| |the Bush effort to rein in certain programs next year might fare can be seen in the struggle over fiscal 2003 spending. Although fiscal 2003 began |
| |four months ago, Congress has yet to approve final spending bills. Federal agencies have been operating on stopgap budgets. |
| |Relationships among other countries such as Iraq and North Korea affect the travel industry in U.S by directly or indirectly. The tension with Iraq |
| |and North Korea would decrease consumer confidence. Bush administration is very aggressive at war and terrorism, and has very strict policy to that.|
| |It is very good for national security, but it could stimulate tense with the third world and America could have more terror threatening. Those |
| |situations could hurt U.S. to go through from bad economic situation. If a U.S. war in Iraq caused a prolonged, it will increase in oil prices and a|
| |subsequent recession. However, if U.S. government and they have built good relationship, the people feel safer to travel around and consumer |
| |confidence will be increased. They will make economy stable and stimulate money market. |
| |Federal Reserve cut short-term interest rates to a 1.25% in November, 2002. It will break the recession and stimulate circulation of money in |
| |capital market. For America’s many investors and those who will become propose eliminating the double taxation on stock dividends. The recent tax |
| |cut plan will increase investment to stock market, so companies can have more money to increase their own investments and have a confidence. It will|
| |stimulate national economy to get out of the recession quickly. |
| | |
| |According to the Ministry of Human Resources' web site, "a sound employment policy is a prerequisite to good employer-employee relations. It should |
| |also reflect the Government's policy requirements as are announced from time to time". When an organization has vacancies for new recruits, the |
| |relevant department, usually Human Resources, need to do advance planning that can benefit both the organization as well as the new recruit. That is|
| |why any organization, whether big conglomerate or small firm, needs an employment policy to guide it in hiring people. More so when in the new |
| |millennium, human beings are considered as intellectual assets and need to be taken care of the same as other assets of the organization. One of the|
| |appropriate things for casino industries to do to keep the intellectual assets or the human beings working within the organization is to keep |
| |providing training to employees. Trained employees are essential for the successful future of hospitality industry since knowledgeable employees |
| |will perform and produce knowledgeable results. Training helps employees develop their potential and improves their capacities. In fact, today's |
| |employees look for companies that will take care of their personal development. |
| | |
| |$670 billion tax cut plans over the next 10 years will increase investment to company and stimulate to help escape from this recession of national |
| |economy. However, according to president Bush’s tax cut plan, budget to job-training assistance and health-care aid for needy communities will be |
| |squeezed. So, the companies’ financial environment will be getting better, but their spending to health-care aid will be increased next 10 years. |
|Laws |Harrah’s entertainment bought Rio Hotel & Casino in early 1999 for about $525 million. In 2000 the company bought riverboat casino operator players |
| |International for $425 million. Also that year Harrah’s had to write off about $39 million in investments and loans to National Airlines, which |
| |filed for bankruptcy. Harrah’s continued its acquisition streak in 2001 with the purchase of Harveys Casino Resorts, with four locations in |
| |Colorado, Iowa, and Nevada, for $675 million. Later in 2002 Harrah’s acquired the shares of JCC Holding company it didn’t already own for $54.1 |
| |million. MGM Mirage and other major casino operators, also, have acquired smaller casino hotels to dominate its gambling market. Soft laws for M & A|
| |of casino companies are helping big operators merge and expansion with other properties. |
| | |
| |Casino operators are regulated under federal and state law. 11 out of 50 states allowed casino hotels to operate gambling and 23 states allowed |
| |Indian gambling. Recently, Maryland had controversy to have casino in its state. Instead of casino’s major tax revenue distribution, many states are|
| |still having conservative position to allow casino business because they believe casino is much related with money laundry and crime. |
|Regulations |Actually, gaming regulations are not for prohibiting gaming industry but for building up casinos effectively and safely. These regulations have |
| |protected from over competitions because the governments control the number, location, and size of gambling facilities. It makes easy for Harrah’s |
| |entertainment Inc. to compete because it does not have to worry about over competitions in gaming industry. |
| | |
| |Safety and security of the destinations are one of the major concerns to visitors. Since those casino cities have many moving populations, it might |
| |increase crime rate, so as far as the casino cities keep controlling the crimes, tourists are willing to come to casino cities and gaming industry |
| |will have nice figures in their income statements. |
| | |
| |The greatest decline in intimate murders occurred in large cities from 1976 to 2000. Violent crime rates have declined since 1994, reaching the |
| |lowest level ever recorded in 2001 (See Appendix). Also, after September 11, 2001, security in every public place is very strict and the people |
| |awareness of terrorism and government’s war with terrorism will bring side effect of decreasing national crimes. |
|Lobbying |The biggest lobby group in casino industry is Indian Gaming Tribes. They are spending millions of dollars into political campaigns at both state and|
| |federal levels. Furthermore, some states realize that gaming industry will cause job openings and distribute its tax revenue, so they are willing to|
| |give permission to casino company. If more and more states are generous to casino, Harrah’s entertainment also can enlarge its properties by this |
| |effect. |
| | |
| |The casino industry's chief lobbying group abruptly switched course in May 2002 and endorsed a Virginia congressman's bill to prohibit Internet |
| |gambling. Frank Fahrenkopf, president of the American Gaming Association, said the group will support an Internet gambling ban proposed by Rep. Bob |
| |Goodlatte, R-VA., because of two changes the congressman made at the casinos' request. The most significant change addresses the casinos' concern |
| |that Goodlatte's bill would infringe on state regulation of gambling. |
| | |
| |Even though some states have legalization in their states, lobbying groups are still working for extend the casino properties and number of gaming |
| |machines. Lobbying groups campaign the benefit of state tax revenue and job opening to community. A University of Illinois sturdy said that Illinois|
| |would get a $2.2 billion shot in the arm, create 26,000 jobs and add $364.6 million in tax revenue fro gambling expansion. The Illinois Casino |
| |Gaming Association, a lobbying group for riverboat casinos, urges lawmakers to give the green light to Illinois casinos' proposal to add 6,700 slot |
| |machines and lower gaming taxes. Activating the state's still-unused 10th casino license alone would create 14,000 more jobs and improve the |
| |economy, according to the study by University of Illinois' Regional Economic Applications Laboratory. Skeptics say the study is flawed because it |
| |doesn't factor in costs associated with gambling addictions that could result from expansion. |
| | |
| |Pro casino lobbying group stress the distribution of casino to community such as increasing tax revenue creating jobs, but cons prohibits casino |
| |legalization because casino industry increases crime rate, it makes people addicted to casino, and it could be used as a money laundry. This |
| |controversy will make more responsible casino gaming environment. This controversy will be continued wherever the casino is existed. |
|Judicial |Internet gambling is illegal in all states except Nevada, where the state's legislature took steps to legalize Internet gambling so long as it |
| |doesn't violate federal law that bans wagering across state lines. Federal law enforcement officials told Congress last year that online gambling |
| |could be an avenue for money laundering for drug dealers and even terrorists. |
| | |
| |Under the revised version, if a state ever legalizes internet gambling, it would be allowed to take bets over the Web from residents in other states|
| |that also permit online wagering. So far, no state has legalized Internet gambling, but Nevada's gaming commission is studying whether Web wagering |
| |can be effectively regulated. The other change would allow Nevada sports books to continue taking bets on horse races in other states. Nevada sports|
| |books place the horse racing wagers in a common pool, which serves as the source to pay off winners. Fahrenkopf said that without this revision, |
| |casinos would be at a competitive disadvantage to the horse racing industry, which is exempt from Goodlatte's ban by the Interstate Horse Racing |
| |Act. |
Socio-cultural
|Sub-categories |Identify the primary |How often do you |Based upon your information sources used, list and briefly describe the key value drivers you believe are important to monitor|
| |sources of information |review this |in understanding the cause and effect relationship with your firm. |
| | |information? | |
|Demographics |United Nations Statistics |Monthly |Demographic is a critical factor to Identify and analyze corresponding risk on different stakeholder groups, including |
| |division | |consumers, producers, input suppliers, processors, and international traders. The aspect which population impact is that |
| |: |economies of scale make manufactured goods or infrastructure more affordable and greater demand raises prices for some items, |
| |d/databases.htm | |or increases competition for jobs. |
| |U.S. Census Bureau : | | |
| | | |Growth & Regional Shifts in population |
| | | |The US Population Increased by 1.2 Percent Since Census 2000. The United States was home to 284, 796,887 residents on July 1, |
| | | |2001. This population estimate represents a growth of 3,374,981 people since the April 1, 2000 Census. This growth corresponds|
| | | |to a 1.2 percent increase in the size of the U.S. population. Over Half of the Population Growth was due to the natural |
| | | |increase. Sixty-one percent of the growth in the US population since Census 2000 was due to natural increase defined as an |
| | | |excess of births over deaths. Thirty-nine percent of the growth was the result of net international migration. |
| | | | |
| | | |Some parts of the nation are growing much faster than others. The fastest growth, as usual, was concentrated in the West, |
| | | |where the population rose 19.7 % between 1990 and 2000. Close behind was the South (17.3%). Growing more slowly were the |
| | | |Midwest (7.9%) and the Northeast (5.5%). |
| | | | |
| | | |Nevada remained the nation's fastest-growing state, with its population increasing 19.7% between 1990 and 2000. Nevada's |
| | | |population had climbed by a staggering 66.3% since April 1, 1990 Arizona was 2d in population growth during the recent 10-year|
| | | |period, with a 40% increase, followed by Colorado (30.6% ), Utah (29.6%) and Idaho (28.5%). California recorded the largest |
| | | |numeric increase of any state: 4.1 million persons. |
| | | | |
| | | |Reflecting the movement of the population during the 1990s and continuing a decades-old southwesterly trend, the nation's |
| | | |center of population moved 12.1 miles south and 32.5 miles west during the decade to a point about 3 miles east of Edgar |
| | | |Springs, MO.(See Appendix) |
| | | |Age Structure |
| | | |The United States has seen a rapid growth in its elderly population during the 20th century. The number of Americans aged 65 |
| | | |and older climbed to 35 million in 2000, compared with 3.1 million in 1900. For the same years, the ratio of elderly Americans|
| | | |to the total population jumped from one in 25 to one in eight. The trend is guaranteed to continue in the coming century as |
| | | |the baby-boom generation grows older. Between 1990 and 2020, the population aged 65 to 74 is projected to grow 74 percent. |
| | | |The elderly population explosion is a result of impressive increases in life expectancy. When the nation was founded, the |
| | | |average American could expect to live to the age of 35. Life expectancy at birth had increased to 47.3 by 1900 and the average|
| | | |American born in 2000 can expect to live to the age of 77. |
| | | |Because these older age groups are growing so quickly, the median age (with half of all Americans above and half below) |
| | | |reached 35.3 years in 2000, the highest it has ever been. West Virginia's population continued to be the nation's oldest, with|
| | | |a median age of 38.6 years; Utah was the youngest state, with a median age of 26.7 years. Population and the workforce |
| | | |continue to age with the baby boomers. |
|Culture/language |United Nations Statistics |Monthly |Culture refers to the set of values, ideas, and attitudes that are accepted by a homogeneous group of people and transmitted |
| |division | |to the next generation. |
| |: | |
| |d/databases.htm | |Diversity of culture and language |
| |U.S. Census Bureau : | |- At the beginning of the century, 1-in-8 U.S. residents was of a race other than white; at the end of the century, the ratio|
| | | |was 1-in-4. The black population remained concentrated in the South and the Asian and Pacific Islander population in the West|
| | | |through the century, but these regional concentrations declined sharply by 2000. Among the races, the American Indian and |
| | | |Alaska Native population had the highest percentage under age 15 for most of the 20th century. From 1980 to 2000, the |
| | | |Hispanic-origin population, which may be of any race, more than doubled. The total minority population people of Hispanic |
| | | |origin or of races other than white increased by 88 percent between 1980 and 2000 while the non-Hispanic white population grew|
| | | |by only 7.9 percent. African Americans and Hispanics will make up the majority of the U.S. population by the year 2050. |
| | | |In addition, in the United States roughly 45% of all net additions to the labor force in the 1990’s non-White. This diversity |
| | | |of race requires necessity of understanding the influence of culture and diversity on organizational conflicts. |
| | | | |
| | | |Cross cultural communication |
| | | |When you live and work in another culture and actively strive to develop cross-cultural understanding and allow yourself to |
| | | |adjust to the culture, you make fundamental changes in the way you think, feel and behave. We can refer to this as informal |
| | | |on-the-job training and it can be very effective. For many people an informal approach may be all that is needed for them to |
| | | |quickly adjust to another culture. Success with an informal approach to cross-cultural self-training depends on the |
| | | |personality, knowledge and experiences of the individual. Formal training programs in cross-cultural communications also |
| | | |bring about the changes in people that are necessary for them to interact cross-culturally. Perhaps one of the most |
| | | |effective ways to bring about cross-cultural understanding and intercultural interaction skills is to combine both language |
| | | |and cultural training in an intensive program of instruction. The study of language is a considerable aid to cross-cultural |
| | | |understanding because embedded in a people’s language is their cultural logic and their rules of social interaction. Most |
| | | |languages have built-in ways to talk to people of different social statuses. The Japanese language is a prime example. |
| | | | |
| | | |Religion |
| | | |We should improve understanding of the myriad influences of religion in contemporary global affairs. In politics, religion is |
| | | |related with international relation. According to NBER Working Paper (September 2002) on average, religious beliefs are |
| | | |associated with good economic attitudes, where good' is defined as conducive to higher per capita income and growth. Yet |
| | | |religious people tend to be more racist and less favorable with respect to working women. These effects differ across |
| | | |religious denominations. This paper also says that Christian religions are more positively associated with attitudes conducive|
| | | |to economic growth. |
|Psychographic |THE AMERICAN GAMING |Weekly |Psychographic segmentation trends.(See Appendix) |
| |ASSOCIATION | |American consumers face an increasingly diverse and complex marketplace. One in six Americans say they have been the victim of|
| |: |a major consumer fraud or swindle at some point, and three in four report having a "bad buying" experience in the past year |
| |.org/ | |according to AARP. |
| | | | |
| | | |Consumer Behavior |
| | | |The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how |
| | | |the psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products), the |
| | | |psychology of how the consumer is influenced by his or her environment (e.g., culture, family, media),the behavior of |
| | | |consumers while shopping or making other marketing decisions, t limitations in consumer knowledge or information processing |
| | | |abilities influence decisions and marketing outcome, how consumer motivation and decision strategies differ between products |
| | | |that differ in their level of importance or interest that they entail for the consumer, and marketers can adapt and improve |
| | | |their strategies to more effectively reach the consumer. |
|Social change |International Labour |Weekly |Social class |
| |Office : | |Social Class may be defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar |
| |United Nations, Women's | |values, interests, and behavior can be grouped. Social class is determined by occupation, source of income (not level), |
| |Indicators and Statistics | |educational attainment. |
| |database | | |
| |UNIDO | |Globalization |
| |: | |Economic globalization rapidly has proceeded and causes new phenomenon. Since it is the fact that globalization is a forceful |
| |hotel- | |and irreversible process, future policy alternatives for countries and regions have to be analyzed in a global context. |
| |Wall Street Journal | |This globalization might destroy jobs and lower wages, produce a race to the bottom and cause financial crises. |
| | | | |
| | | |Leisure preference |
| | | |According to Editor Francis McGuire (Clemson University), the increasing number of older people represents not only a numeric |
| | | |change but also a change in the nature of this population. The older population is healthier, wealthier, and more |
| | | |leisure-oriented than at any other time in human history. |
|Public opinion |THE AMERICAN GAMING |Daily |Consumer perception |
| |ASSOCIATION | |Public opinion can have impact on expansion of business. Opponents of expanded gambling argue that the benefits in tax revenue|
| |: |and economic development are more than offset by potentially harmful side effects, including gambling addiction and |
| |.org/ | |bankruptcies. Even though it is still an issue that does create strong feelings on both sides of casino industry, the public |
| | |opinion has changed dramatically in the last 10 years. |
| |istration/News_Bureau/1997| | |
| |-98/97-132.html | | |
|Education |UNESCO Institute for |Quarterly |Education Level |
| |Statistics : | |The level of education has slightly increased since 1990.(See Appendix) |
| | | |By 2000, 8 years after most had graduated from high school, 26 percent of the 1988 eighth-grade cohort reported that they had |
| |United Nations | |attained a bachelor's degree, and another 3 percent reported earning a master's or higher degree (e.g., a Ph.D. or |
| |Educational, Scientific | |first-professional degree) Close to one-half of the cohort (46 percent) reported that they had gained some postsecondary |
| |and Cultural Organization | |credits but had earned either no credential or one below a bachelor's (an associate's degree or certificate). The remaining 24|
| |(UNESCO) Institute: | |percent of cohort members had not enrolled in any postsecondary education after high school. Low socioeconomic status students|
| | | |were less likely to have enrolled in postsecondary education and less likely to report that they had attained a bachelor's or |
| |USNEI : | |higher degree by 2000 (See Appendix) |
| | | |
| |I/us/org-us.html | |Dropout Rate |
| |National Center for | |In October 2000, there were 3.8 million 16- through 24-year-olds who were not enrolled in a high school program and had not |
| |Education Statistics : | |completed high school (status dropouts), accounting for about 10.9 percent of the 34.6 million people in this age group, |
| | | |according to the NCES report "Dropout Rates in the United States: 2000". Though there has been a decline in the status dropout|
| | | |rates during the 1990s.since the early 1970s, they have remained stable since the late 1980s. |
| | | |The status dropout rate for Whites in 2000 remained lower than the rate for Blacks, but over the past three decades, the |
| | | |difference between the rates for Whites and Blacks has narrowed. However, this narrowing of the gap occurred during the 1970s |
| | | |and 1980s. Since 1990, the gap has remained fairly constant. In addition, Hispanic young adults in the United States continued|
| | | |to have a relatively high status dropout rate when compared to Asian/Pacific Islanders, Whites, or Blacks. (See Appendix) |
| | | | |
| | | |Training |
| | | |Educated staff or employee is a key to customer service, as education level of people, including smart customers, continue to |
| | | |slightly increases. |
|Nationalism | |Attitude of foreigners & Anti-immigration |
| |/methods/inter-natlinks/sd| |People who compete with immigrants in the labor market have more negative attitudes towards foreigners. In addition, an |
| |_natstat.htm | |increased concentration of immigrants in local neighborhoods increases the likelihood of negative attitudes. Racial prejudice |
| | | |exerts a strong influence on anti-foreigner sentiment. The generally rising trend towards greater racial prejudice, and the |
| | | |decline in the strength of educational attainment in reducing negative attitudes towards foreigners, contributes to the |
| | | |increasing anti-foreigner attitudes between 1988 and 1997. The negative attitude strengthens due to possible terrorism or war.|
Socio-cultural
|Sub-categories |List and briefly describe the three main forces which you believe will drive changes |
| |in the way you do business in each of the subcategories of sociological environment. Be sure to link |
| |these to the value drivers identified on the previous form. |
|Demographics |Population aging is one of the most distinctive demographic events for future decades. The shift in age structure associated with population aging |
| |has a dramatic impact on a broad range of economic, political, and social conditions. By 2050, the number of older persons in the world will exceed|
| |the number of young for the first time in history. By 1998 this historic reveal in relative proportions of young and old had already taken place in |
| |the more developed regions. Population aging has major consequences and implications for all facets of human life. This event influence on economic |
| |growth, savings, investment, consumption, labor markets, pensions, taxation and intergenerational transfers. This also causes change of customer |
| |taste, preference, and interest. In social area, population aging has impact on health and healthcare, family composition and living arrangements, |
| |housing and migration. (See Appendix). |
| |Medical revolution enabled life expectancy longer than before regardless of the natural increase in population. We are in the midst of a worldwide |
| |longevity revolution. The average life expectancy on this planet will soon pass age 60. The twentieth century brought us a phenomenal increase in |
| |the amount of time we spend alive. In this 100 year period, we added an extra 30 years to our lives as average life expectancy increased over 50% in|
| |most developed nations. This increase in the 20th century was more than the increases in the previous 19 centuries put together. With these events, |
| |customer demand and target markets should be tracked and identified. |
|Culture/language |Multicultural workforce is the modern phenomenon of increasing workplace. Today's work force is more diverse than in the past. It spans continents |
| |and cultures. Managing this work force creates new problems and opportunities for organizations and the executives who run them. As we are in an era|
| |of globalization and diversity, the conflicts organization confronts are much more complex, multifaceted, and intense. So the staffs can not manage |
| |well without adequate understanding of the sources and approaches to organizational cultural conflicts. Organizations must expand the understanding |
| |of people's behavior at work to include the diversity and complexity of today's business environment. Value adding managers will investigate |
| |cultural differences that affect motivation, team effectiveness, and global leadership. Over the long term, possibly with exposure to multiple |
| |cultures at young age in school setting, the coming generations will feel more comfortable with people who do not look or speak like themselves. For|
| |those currently at the helm, education appears to be the most viable long term plan, as ignorance of other cultures seems to be the sub-issue of |
| |cultural conflicts both inside and outside the workforce. With these efforts, it should be recognized that no organization is exempt from the |
| |principles regarding the influence of culture and diversity. |
| | |
| |Other issue includes communicating in a diverse environment, the global transfer of organization culture and practices, and cultural considerations |
| |in joint ventures. |
|Psychographic |Varied consumer preference, changed disposable income, changed lifestyle are major concerns associated with psychographics. Psychographic |
| |Segmentation is grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions)|
| |An intensive psychographic perspective that connects with behaviors, demographics, and media usage provides a deeper understanding of why customers |
| |visit or purchase products and services, and how to reach and influence them. To segment and understand markets from a lifestyle and product-related|
| |perspective is critical factor to deal with different numbers of market segments, to positioning the product, brand or firm to appeal to segments, |
| |to niche marketing and related approaches, and forecasting and determining market potential |
| |(See Appendix) |
|Social Change |Technological Change including communications revolution and transportation revolution make people have more diverse interest and tastes in their |
| |lives, because it is easy to exchange information and travel. Secondly, liberalization, for example, trade barriers reduced and capital controls |
| |reduced, globalization is an inevitable aspect. The speed of technological advance combined with the growing public appetite for personal growth and|
| |new lifestyle challenges at all ages |
| | |
| |In more advanced countries rapid liberalization in connection with sound fiscal policies have resulted in macroeconomic stabilization. In less |
| |developed countries we had to witness a slow process of liberalization, budget constraints and inflation. In all cases additional structural reforms|
| |are necessary. Now an emphasis must be laid on a changed role of government, enterprise sector reform, human resources development and improvement |
| |of the physical infrastructure. |
| | |
| |A full understanding the success or failure of different political systems, globalization, democratization, development and economic growth are all |
| |rooted in this basic idea of social change. Social movements are defined as non-institutionalized collective action geared to promote or resist |
| |change in social structures. Based on the premise that a large part of significant social change in modern societies stems from collective action, |
| |management should examine social movements. These movements will then be examined in light of specific American social movements, such as the civil |
| |rights movement, the labor movement, the women's movement, analyzing conditions that lead to the formation of social movements. |
| | |
| |Lastly, Social class and leisure preference are built up in source of income, occupations, and education attainment.. |
|Public opinion |Customer preference and freedom of life are concerned in the modern society. According to Harrah’s entertainment survey, “Freedom of choice in how |
| |to live” defines the American dream for most of respondents (both casino gamblers and non-gamblers) Whether increased access to casino gaming causes|
| |changes in public perceptions about gaming, or whether changing perceptions increases pressure for better access is unclear. What is clear, though, |
| |is that gaming is enjoying wider acceptance as a form of entertainment. In 1999, 57 percent of the American public considered gaming in a casino a |
| |"perfectly acceptable" form of entertainment for all adults. Another 28 percent declared it acceptable for others but not for themselves. About 25 |
| |percent of Americans believe that casino gambling is morally wrong. The percentage believing that casino gambling is morally wrong is much higher in|
| |the southern part of the United States than in other regions. |
| | |
| |Casino gaming is now less frequently viewed as either sin or vice, and more frequently as a legitimate recreational activity for adults. Eighty-two |
| |percent of Americans agree that Casino gaming can be a fun night out. And 88 percent agree that People should be able to go into a casino, have |
| |their own budget, and spend their disposable income the way they want. The American public also demands social responsibility on the part of casino |
| |operators. Eighty-three percent agree that Casino companies today should have programs to discourage compulsive gambling, and 90 percent agree that |
| |Casino companies today should have programs to discourage underage gambling. |
|Education |Quality of labor supply is related with quality of products and services, which have impact on business profits. Major concern of industry within |
| |education will be training employees. More educated customers expect higher quality of services and products. Qualified employee can result in |
| |higher productivity and better brand images. In addition, understanding cultural problems need a different type of education (See culture |
| |sub-category) |
|Nationalism |Possibility of war and terrorism enforce people to have negative attitude of foreigner. People’s concerns are safety and securities, which result in|
| |unfavorable attitude towards foreigners. |
| |High unemployment caused by economic depression adds stronger rejection to anti-immigration. In other words, the view of defending the freedom of |
| |citizens is shown especially in labor market. |
Technology
|Sub-categories |Identify the primary sources |How often do you |Based upon your information sources used, list and briefly describe the key value drivers you believe are |
| |of information |review this |important to monitor in understanding the cause and effect relationship with your firm. |
| | |information? | |
|Communication systems | |Monthly |The value drivers for those different new trends in technology would be the High Tech Wireless Equipment. Indeed |
| | | |there is constant improvement of the different kind of communication devices. Everything is made smaller and |
| | | |easier to use, with a speed of information. So it responds to the customer expectation in terms of easiness of |
| | | |use and rapidity and efficiency of the equipment. |
| |Wireless Systems Design | | |
| |Magazine, Dec. 2002 | |These are some important value drivers that will have a noticeable impact on businesses: |
| | | | |
| | |-Smart Phone Devices: customers have everything they need included in that particular device and more precisely, |
| |om | |internet access. Indeed IDG reports that “mobile phones could outnumber traditional landlines around the world by|
| | | |2006” (Sept.24, 2001). And “mobile phone will overtake PCs as the primary devices for internet access by 2003” |
| | | |(IDC research, Nov. 16 2000). Small devices for effectiveness of delivery of information and speed of |
| | | |communication anywhere the person goes. Finally “US mobile phone users will spend more time on the wireless |
| | | |Internet than making wireless phone calls by 2010” (eMarketer, Mar. 30, 2001). |
| | | | |
| | | |-WLNA Service: internet access on airlines. Lufthansa is the first one to have implemented this on board. Also |
| | | |American, Delta, and United are developing the service in conjunction with Boeing, and hope to be able to make |
| | | |high-speed satellite Net access available on 1,500 of their planes (Associated Press, June 2001.) Where the |
| | | |customer will go, he will have the possibility to access any information. |
| | | | |
| | | |-Fingerprints Sensors in security: for all wireless devices as well as security systems in companies. It ensures |
| | | |an effective protection of private information like credit card numbers, codes or anything like that, and secures|
| | | |them, rendering it useless for thieves. It will be a sensitive issue to take in consideration for the future |
| | | |security of any business. (Wireless System Design, scientific journal). |
| | | | |
| | | |E-commerce: Harrah’s will probably have more customers on the internet due to this new technology. They may |
| | | |experience a lower rate of customers on site, in other words less people in their physical plants. |
|Transportation systems | | |The main value driver concerning transportation systems is security. |
| | | | |
| | | |- The US government spent $2.9 billion on security in 2002. Information technology will play an important role in|
| | | |preventing future attacks and improving the nation's domestic security. Transportation will be closely |
| | | |controlled, especially in airports and all imports and exports are closely controlled. It will accommodate people|
| | | |more safely. People have still a large choice of other transportation alternatives, cars, buses, trains, |
| | | |bicycles, subways. |
| | | | |
| | | |-Other important value drivers are Oil: indeed the political situation with Iraq is very uncertain and one of the|
| | | |main reasons for all those threats of war is Oil, because the Golf Persian is the world’s largest reserve of Oil.|
| | | |Moreover other statistics on oil indicates that the reserves will go drastically down in the future and there is |
| | | |forty years left of oil in the natural reserves. So transportation will be affected drastically by maybe a “war |
| |Senator Conrad Burns, | |for oil”. |
| |Republican of Montana. | | |
| | |As a result, of those value drivers, the heavy security in the US continent may render customers more reluctant |
| |cts.html | |to travel and the problem of oil will certainly increase in the future because at some point the price of gas |
| | | |will go up, and people will not take their car as often. |
| | | | |
|Safety and security | |Weekly |Security is one of the focuses for the coming years. |
| | | | |
| | | |-Awareness of people: people pay more attention and are more cautious after Sept. 11 and this is emphasize too |
| | | |with the actual threat of war between the US and Iraq. That is why casinos will have to show to the customers |
| | | |that they are safe in their properties, to keep an important flow of visits. Moreover they will have to respect |
| | | |all the safety regulations, like sprinklers, fire alarm etc… |
| | | | |
| | | |-Internet crime: The numbers of cyber crimes has increased and a lot of military computers for example have been |
| |Business Week Online, Dec. 31,| |cracked with confidential data, as well as company’s computers and personal hard drives. So the government |
| |2002 | |decided to fight against those crimes and make them stop by reinforcing software’s security. Therefore, solutions|
| | | |that detect, prioritize, assess, remedy, and track vulnerabilities should be present within an infrastructure to |
| | | |stay one step ahead. |
|Food/nutrition | |Monthly |-“Smart Packaging”: a new way of packaging elaborated to improve the freshness of the product and respect the |
|/packaging | | |conservation rules that will inform the consumer when the product is deteriorating or when it is not edible |
| | | |anymore. This new type of packaging will possibly decrease the number food born illnesses as well. |
| | | | |
| | | |-Bioterrorism: According to the Bioterrorism Act of 2002. The US will be nationally prepared for Bioterrorism and|
| | | |other public health emergencies, will enhance controls on dangerous biological agents and toxins, protecting |
| | | |safety and security of food and drug supply and finally enhance drinking water security and safety as well. |
|Computing | |Monthly |Artificial intelligence: |
| | | |Effectiveness and power of computers and hardware represents a rapid growth in the computing sector. The new |
| | | |maxim now is “distributed intelligence” which means the human brain and the computer memory associated together. |
| | | |So businesses and especially casinos have the benefit now of storing more information and use that outstanding |
| | | |memory shaft. Memory capacity is huge and may be very useful for very big businesses that have many units like |
| | | |Harrah’s. They will have the ability to improve their database systems to keep track of their customers. |
| | | | |
|Software/multimedia | |Monthly |-Efficiency Control: Business tries to catch up with the constant growing technology. Now software’s are design |
| | | |to control the management information systems. Managers can rely on software’s now to control its performance .It|
| |. | |will be very efficient for databases of customers as well as financial performance. It is a critical success |
| | | |factor now because it more and more developed and companies that will not have those custom design software’s |
| |Business Week | |will fall behind and lose an advantage in competition. |
| | | | |
| | | |-Teleconferencing: |
| | | |This is now the way by which people work and communicate. They can work at home and face-to-face communication |
| | |has a tendency to disappear. Now everybody do business with teleconferencing. It is a way of protection and |
| |s_8718691.html | |security too, because people can stay home instead of being in a popular business area like Wall Street that is |
| | | |exposed to terrorist attacks. Between casinos they may use that system to avoid moving from one casino to the |
| | |other one, it may reduce costs of transportation too. |
|Energy systems | |Monthly |Energy Conservation: |
| | | |There are new policies to use safe and non-pollutant energy to be environmentally friendly. Eco-protection is a |
| | | |critical issue nowadays. Whenever possible people must find alternative energies or recycle ones to conserve |
| | | |safer environment. For casinos they must find a way to cut their energy costs because it is a big issue for them.|
| | | |
| |om/ | | |
| | | | |
| | | | |
| | | | |
| | | |
| | | | |
|Architecture/facilities | |Monthly |Remodeling of traditional hotel design and architecture: |
|design | | |With a touch of natural settings such as an eco-tourist African spa; and Fantasy Hotels, which demonstrate the |
| | |need for hotel rooms to provide an element of escape and fantasy. Those are the themes of the future hotels |
| | | |because the design is really important in our society today. Those coming years will symbolize a real celebration|
| | | |of the hotel evolution as a design and cultural entity. It will be “New Hotels for New Nomads” and works of art. |
| | | | |
| | | |
Technology
|Sub-categories |List and briefly describe the three main forces which you believe will drive changes |
| |in the way you do business in each of the subcategories of technological environment. Be sure to link |
| |these to the value drivers identified on the previous form. |
|Communication systems |Wireless High Technology impact on Harrah’s: |
| | |
| |-The Smart Phone Devices: Harrah’s will have to take into consideration the change of behavior of consumers due to this technological advancement. |
| |People will have the tendency to gamble with their phones instead of traveling and play in a casino. |
| | |
| |-WLAN Services: this technology would impact Harrah’s in terms of wireless network for its hotels and casinos. Customers will be able to stay maybe |
| |longer in Harrah’s properties due to this new service offered. For example if some business men’s stop in Harrah’s property, they will have the |
| |advantage to access and control their business from Harrah’s in their hotel room. It is a whole way of doing business, to “bring your office with |
| |you wherever you go”. |
| | |
| |-Fingerprint Sensors: This new invention will facilitate every security codes that are needed in businesses to protect crucial and confidential |
| |information. Especially in Harrah’s they will be able to protect their safes and earnings. |
|Transportation systems |-Security: The heavy security will maybe make customers more hesitant to travel especially if they use airplane because the controls are more and |
| |more numerous, as a consequence for Harrah’s they will maybe have less customers that travel to come at their property because of that inconvenience|
| |that all those control represent for them. Furthermore Domestic and international travelers may decrease as well or may choose some other |
| |alternatives. |
| | |
| |-Oil: the situation with Iraq is very delicate concerning the problem of Oil, which is one of the main reasons the US wants to go to War against |
| |Iraq (New York Times). It may results that the stake for oil will make the price of gas increase and so people will use less their car and won’t |
| |have the same mobility. For Harrah’s and other company’s it may result in fewer visitors. |
|Safety and security |-Awareness of people: due to the risky situation and the tension with Iraq, people are conscious of the danger and may not be willing to go and |
| |spend their money in casinos or may not be willing to enjoy gambling because the serious situation and threat we are in. |
| | |
| |-Internet Crimes: those are really a threat for every company and for Harrah’s a s well. They should protect their hard drive and all their critical|
| |information about their casinos. Or pay attention to their websites if customers decide to purchase something, the use of credit card is not really |
| |safe those days. So they really have to take all the measures possible to protect themselves. |
|Food/nutrition/packaging |-Smart packaging: The consciousness of people about healthy food has an impact on Harrah’s who has restaurants and delivers food to customers. They |
| |have to respect the regulation concerning food safety and security. Moreover there is a tendency of people for vegetarian food () so they |
| |will have certainly to adapt their menus or use dieticians help to come up with healthy vegetarian menus or buy software that would help them |
| |calculate the calories to respond to customer demand for healthy and equilibrated food. |
| | |
| |-Safety: this is extremely important for not only Harrah’s but also all the companies. They will have to show to the customers that they enforce |
| |those new laws on food safety or make sure they receive healthy and secure products for their customers, so they may have to spend some money for |
| |controlling food. |
|Computing |-Artificial Intelligence: this is the future and the substitution of the human brain. Now the capacities of computers are tremendous. The computers |
| |are taking the place of humans, they will be some changes, for example for the detection or security and the control we won’t need people to ensure |
| |those functions. So Harrah’s can adopt that high computing power that is probably more effective than personnel to control its operations. It could |
| |as a result reduce the amount of employees and be as or more efficient in security. For the customer service for example it could replace it by an |
| |artificial intelligence system. |
|Software/multimedia |-Efficiency Control: the software’s and new harder capacity may be crucial to use for Harrah’s. It would facilitate and lighten all the functional |
| |areas a manager has to supervise by himself. If the costs of the software’s are expensive sue to the fact that the demand is important, the |
| |competition will be hard and it will be favorable only for those who have the most capital and that are big in size and well developed. |
| |-Teleconferencing: is the new way of doing business and working, thus Harrah’s has to consider this option for the communication system between its |
| |different units, and it may as well reduce its costs. |
|Energy systems |-Energy consumption: people always make the choice that will be less costly for them. In the case of Harrah’s it would be necessary to find ways to |
| |reduce their energy costs, and thus have to use some new electricity saving cost energies. |
|Architecture/facilities design |-Modernization: if we consider a project of expansion, Harrah’s would have to consider the renewal in architecture and design, and try to come up |
| |with some original ideas for future theme for casinos and respond to that new trend of new elements for customers for escape and fantasy. It would |
| |be a interesting competitive method to analyze and study in depth, a brand new concept for Harrah’s casinos. |
| |-Moreover the importance of the design of casinos, as well as the location, are very important considering the flows of people that circulate each |
| |day. So the plans have to be well analyzed, planned and studied to maximize the capacity of the infrastructure and facilitate the access to |
| |customers as well. |
| | |
| |-Safety and security building codes: Fire code, sprinkler & alarm systems and smoke control forum. There is a high concern on security and laws have|
| |been reinforced since September 11th. |
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[1] TechTarget :
[2] Infoworld :
[3] Infoworld :
[4] IDC is the provider of technology intelligence, industry analysis, market data, and strategic and tactical guidance to builders, providers, and users of information technology.
[5] Wireless Systems Design Magazine, Dec. 2002
[6] Harrah’s entertainment Inc survey in 2002
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