Desert Palms Hotel & Casino

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Case Study Analysis Desert Palms Hotel and Casino has a great potential in growing and expanding. Having Robert Hoffman as its general manager gives the company edge over other competitors due to his management abilities and skills that he gained through years of hard work. The plan of establishing a water park can increase revenues but it can also create cost in terms of investment. Capital and cost should be taken into consideration when making decisions because these two factors can affect the overall profit of the company in the long run. The lure of gambling to young people should also be taken into consideration since the water park will most likely cater families with children (Pearce and Robinson 2008). Development and Analysis of Alternatives Three alternatives are established: 1) to continue establishing a water park, 2) to intensify advertisements, and 3) to work on additional amenities for the company. Establishing a water park in the area is a good move to gain more customers by taking advantage of the climate in the area. It is also a good way to increase revenues by acquiring more customers especially families who want to have enjoyment and relaxation. Having two kinds of services in one place is like taking advantage of a service package. It saves time and cost for families because parents can take pleasure in playing casino while their children can enjoy in the water park (Pearce and Robinson 2008). Increase revenues due to sales in food and lodging can also be attained. However, getting young people in gambling may arise due to the fact that the water park and the gambling area are just beside each other and it might not be a good influence for young children to be near gambling places like casino. Lastly, the fact that the company has just started to boost its revenues might give them difficulty in sustaining the expenses needed to

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