3
16 CAPITAL Marc \'V'eiswasser What's In a Title? ORGANIZATIONAL CHART Quite n l ot Ius Ch:'Ulged in !Iv: casillO industry since 1978 when New Jersey lxaunc dle second stl!te to l egalize gaming: techno I08iOO MV.tnCes in gacnl's and plt)"er tracki n g,SIOt m'f1lue o.. er raking Table Games ' e n ~ , and billion dollar Mega C'\Sinos are the norm. I'm sure )'0 0 can think of ()(her dunge> [00; h owever the one big dunge to be h ere is the coosoliduion of gaming prqxrties nrxl an interesting efft'Ct it rns on the Of!,"'alliz.1tiornl cnm. A few casino co mpanies thac stand oU{ as the major players are: • HHr.lh's Enterta inmen t- the wadd 's l argest g.\ming comp.1.oy with 40 propenies and ownership interests in another 5 Casinos, and more than 70,000 employees. MG M Rcsons International- anoth er powerhouse with 17 properties in 4 states and Viet Nam, and a 50% ownership interest in 4 properties including one in Macau , and also the $8+ billion Cit), Center in las Vegas. All combined around 66,000 e m p ! ) ' r e Penn Nntionltl Gaming- 19 gaming facilities and around 16,000 employccs. • Boyd Gaming Corpor-.ttion- 16 propeuies in 6 different stn te'S , with around 1 ~ , ( ) ( ) ( ) employees. GAMING & LEISURE • Isle ofC1pri- 1 4 properties in 6 different states, with around 7,500 emplo}'ees. • Pinn;\ c!e Entertainment- 7 properties in 4 different states, and more than 8,000 emp!o)'etS. When industry consoLid.1tion happen due to a bu) 'ou t or merger, other changes occur too . Besides rebr.mding and retraining toa uain the consistcncy of prodUCLS and servicc(s), there is also a need to look at redundancy in the various department s and to consider consolidating respons ib iliti es for efficiency and cost savings. A good example would be in the Pur chas ing dep..mm cnt there would not be the need for a Vice President (VP) of Purch<tSil1g at 9 diHerent properties when 1 Corporate VP cou ld h andle the purchasing for all of he properties, and due to the in crt'll.Se in bulk purchas ing would gct stronger 5a\·ings. As an Organizational (Org) Chart ('X.'Ullple, take a look at The G= I Old D.,!" 0 '8 a""" In "the g = l old days," which were as recent:lS 4: }'catS ago, this may h. ' \\'e lx-en a typ ical Org chart at a li\rge O1.Sino with becwren 2,000 and 3,OOOS!ot machines. ' Ille structure consi sts of more top byers at the upper level tha n we will see in the other chart, but it was very common to sec a: CEOlPr esident reponing to the Bo.ud • Genel'dl Manage r- repo ning to the President Vice Presidents- reporting to the Gener.l.1 Manager Directors- reponing to the Vice President WINTER 2010 Managers- reponing co the Director • Supervisors- reporting to the Man.1ger Also, depending o n the compmy and their policies, there n'tly nwe been an oiliho()( of these tides such as Senior Dir ectorNice President or ExecUtive DirectorMce President . TIlC::SC were usually giwn to to\l11 members wid, icher longevity in the comp :Uly, or to entice new employ I."CS onto the r eam. 1lX'SC last [WO ritles are nO( JXU! r i he "typical" org d'li.lIl cl the 2010's. Now let's take 11 look ar the Pr ese nt Day Org Chart. '111is is at a property with around the $.1me number of Slot machines, but wieh a struccure chat is leaner and more consist ent with the tough economic times of oda)"s environment. Here w e $("(' that it is possible for two whole la)'elS, the Director, and Gcneml Manager titles. to be eliminated. As we have written about in the lXISt, a Director's title ae onc property could be the Vice President title at another property, so it mOl}' be possible toeiimin.1.te the VP tide and have the Director r epo rting to the President . Dut in this lW1icul ar iosmna: the ~ l 1 n a g c r is n1:ortlng to the Vice President. This property might use the title of l..rod Maooger or Senior ~ f . 1 n ' B e r if th ere was a second in command in tile absence of the Vi ce President, or conversely just stick with the Managertide, which couJd occ as . M . ~ e r o n J)..Ity (MOD) in the VP 's ab;toce. 702.547.4545
