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Although management is impressed by the plan and has already had detailed architectural plans prepared for the expansion, they are cautious. When the casino was

Although management is impressed by the plan and has already had detailed architectural plans prepared for the expansion, they are cautious. When the casino was first built, everyone was enthusiastic about the casino's potential, but the results have been disappointing. Management wants a thorough study made of the financial prospects for this expansion before committing funds to it.

Detailed financial data for every casino in Atlantic City are public information and are routinely exchanged. Thus, data such as that given in Tables A and B for the current year are readily available.

TABLE A Selected Annual Financial Data (000s omitted)

Revenues
Property Casino Rooms Food and Beverage Net Income
Atlantic City Casino $ 220,183 $ 14,862 $ 36,833 $ 23,921
Competitors
1 254,753 17,604 36,457 40,979
2 224,077 14,836 34,493 18,834
3 237,700 15,787 35,168 47,146
4 158,602 9,897 18,788 1,574
5 210,848 13,870 35,265 64,765
6 251,675 17,665 33,867 17,904
7 147,037 10,191 35,020 (9,075 )
8 121,581 13,469 21,863 2,246
9* 123,947 12,157 22,643 (1,176 )

* In operation in for only 6.5 months TABLE B Selected Statistics

Property Casino Space (square feet) Number of Rooms Number of Restaurants
Atlantic City Casino 50,850 521 7
Competitors
1 59,857 727 9
2 59,296 645 9
3 59,439 512 9
4 49,639 501 14
5 52,083 750 7
6 40,814 504 8
7 50,516 500 5
8 34,408 504 6
9 60,000 612 8

Background Information

Customer surveys indicated that a vast majority of the visitors to Atlantic City gambling casinos are middle-age adults who live within 150 miles of Atlantic City. Further, there are 2 distinct groups of visitors. Approximately 17 percent of the visitors are frequent visitors, averaging 24 visits per year and accounting for 67 percent of all visits. The remaining 83 percent of the clientele are infrequent visitors averaging 2 to 3 visits per year and accounting for 33 percent of total visits. The firm found that approximately 11 percent of the people living within a 150 mile radius visit Atlantic City annually. This compares with 14 percent of the people living in Las Vegas' primary marketing area who visit Las Vegas annually. Thus it appears that future market expansion is possible.

The firm also noted that there has been a change in the mix of mode of transportation for visitors. Initially 92 percent of all visitors arrived by private car, now 44 percent arrive by bus. This change is significant as there is a difference in spending patterns. Auto travelers tend to spend a couple of days in the city. Hence they eat more meals and need lodging. Bus travelers are usually day trippers who come only to gamble. They do not need lodging and generally only eat lunch, some snacks and beverages.

Required:

HCA is considering a balanced scorecard for the Atlantic City Casino. For each of the four areas within the balanced scorecard, list two or three examples of measurable critical success factors which should be included.

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