Integrative Cases:

Managing Strategy at
Caesars Tahoe

Organizational Development

Submitted to:
Lecturer: Mr. Jayendra Rimal

Submitted By:
Subash Silwal
Date: Aug 30, 2010
Important Facts:

1. Caesars Tahoe has been in Business for seventeen years. Since opening there
have been numerous changes in strategic focus. In its initial operation it has to
bear major financial losses. It was forced to sacrifice long-term focus for short
term gains. It was all because of lack of direction and confusion.

2. Caesars Tahoe’s location has a scenic beauty but with environmental

restrictions leaving the lake’s natural attraction the most significant source of
tourism.

3. Las Vegas is famous for the ability to offer thrills and attractions due to which
visitors keep coming and the city keeps booming. In order to attract customers,
it has to compete with three big giants Las Vegas casino- hotels.

a. One of the tough competitors is Harrah’s Tahoe which has been in this
business for last forty years. It has been successful because of its
location as it is the most accessible casino property for California
visitors and its consistency in providing reasonable priced products and
services.

b. Another one is Harvey which has the largest casino core properties but
unfortunately failed to take advantage of its size relative to its position
in the market.

c. Finally, Horizon is owned by a hotel holding company and is

associated with no other identifiable casino company. It competes
through somewhat desperate measures, such as unusual betting options
and low price.

4. Tahoe Regional Planning Agency (TRPA), a bi- state agency oversees the
building, signage, land usage, transportation and general development issues
of South Shore.

5. South Shore has a poor infrastructure as its sidewalks, roads are in bad
condition due to which transportation to and from the Tahoe basin is
extremely difficult. However, there is a redevelopment plan which is placed
for rejuvenating selected areas of the city.

6. Caesars Tahoe customers approached gaming as their amenity. The revenue

generated from it was huge.
 7. Caesars Tahoe was able to turn a previously under-performed area into
performing assets which has resulted into high number of rooms, huge space
for casino etc. It has increased its full-time workers and is able to generate
60% turnover annually. Relatively it brand is recognized worldwide.

Drawing Inferences from the facts:

1. Caesars' luck runs out as rivals hit it big in Vegas, Atlantic City

2. Company's gaming losses contribute to stock freefall

3. Due to hotly competitive environment of gaming today, Caesars Tahoe no

longer reigns supreme.

4. It has not increased the pie as some said it would, it has sliced the pie into
smaller pieces.

Stating the Problem;

Developing alternative solutions: