HARRAH’S ENTERTAINMENT Harvard Case Solution & Analysis

HARRAH'S ENTERTAINMENT  Case Solution

Question 1: What are the different types benefits brought about by the use of data analytics at Harrah’s? Quantify two categories of benefit. That is, what is the financial value of what Harrah’s is able to do with all that data + analytics?

Answer:

Different types of benefits:

Harrah’s Entertainment is a big company that offers different benefits to its customers, including Casino, hotels, restaurants, and rooms.

Casino generates cumulative net income of $ 1.338 million in 1996, $1.66 million in 1998 and $2.42 million in 1999.

In the recent month, Food and beverages generates $4.25 million, and Rooms’ revenue is $ 2.53 million in 1999.

Two categories of benefit:

Casino is offering highest benefit as compare to other types of categories that is $ 2.42 million as well as its highest cost consuming of about $ 1.24 million in 1998.

Second category that offers profit is food and beverages, which had a profit of $ 1.96 million in 1996 and it is increasing in following years and reached to $4.25 million in 1998.

Financial value:

Data and analytics would help Harrah to calculate the expected Revenue from expected target customers, as in the case target customers are 953 and 578 that generates revenue of $39,270 and 39,473 respectively. Moreover, Data will help Harrah to budget the theoretical value in preceding months.

Question 2: Why is it important to use “customer worth” rather than the observed levels of play?

Answer:

The customer worth system that has been introduced by the senior management of the organization in the business culture and operations in far more efficient and effective than the historically applied and developed systems for operations by the management of the organization.

This has allowed the management of the company to positively supplement the aggressive approach towards competing in the industry with the competitors of the organization in the markets the business operates.

The newly developed and adopted system facilitates the management of the company in comprehensively estimating and projecting the customer trends and behavior in contrast to the historical systems and approaches pursued and used by the management of the company.

The systems adopted by the management of the company allow the organization to analyze the customers and the target market segment through the customer worth rather than his past behavior and trends which have been adopted and applied in the previous systems and this resulted in an inefficiency of the management of the company to accurately understand and predict the customer trends through the systems.

The failure of the management of the company to accurately and comprehensively predict the customer worth in the past resulted in many inefficiencies for the business that caused immensely for the organization in terms of adopting approaches and policies that would have allowed the organization to aggressively target the potential customers in the markets by understanding their needs and aspirations...........

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