Crown Resorts is the public company of Australia. The shares of the company are registered on the Australian Securities Exchange under the code "CWN". Crown has contributed a lot to the economy of Australia by fulfilling its responsibilities in providing jobs and training, developing tourism, and launching different programs of corporate responsibility. Crown is operating two big resorts in Australia, Crown Melbourne, and Crown Perth. Tourism interest has grown rapidly because of technological advancement and broadening the standards of life enjoyment across a big part of the world. Unfortunately, Covid-19 wreaked havoc worldwide however tourism is distinctly affected area in the enterprise world. Crown Resorts is one of the booming companies in the tourism industry of Australia.

Financial and Non-financial outcomes

Financial outcomes usually focus on short-term success of the business. However, non-financial performance demonstrates different areas of the business in which long-term strategic success of an organization is affected. These non-financial measures are not expressed in terms of monetary values. This means they prioritize the other side of the business rather than dollar signs and look forward to the success of the organizations. Before the pandemic of COVID 19, Crown had performed various programs like providing training, employment opportunities, increasing tourism and fulfilling different sorts of corporate responsibility to enhance the economy of Australia. Financial year 2020 was very challenging for the Crown as its operations, staff and the community was broadly affected by the COVID-19 pandemic. For the first time Crown was forced to shut its properties and it happened because of the pandemic as it must close its major activities.

PART A

The operational activities of Crown Resorts which are affected due to the pandemic of COVID-19 are listed out in the following points:

I. Supply chain

The Crown has been involved with the large number of suppliers, those affected by the COVID-19 pandemic and is supporting them by extending the provision of contracts which were about to expire and also providing flexible terms for the payment of bills to those suppliers. During the reporting period, Crown was controlling approximately $1 billion of goods and services from direct suppliers of approximately 5,500. The operational activities of Crown was reduced by COVID-19 which substantially affected the total spending of the business. The direct suppliers of Australia were controlling approximately 97% of total spending from Crown's Australia. Food and beverage, corporate and financial services, operating supplies and equipment including gaming and IT hardware, and property services are the main types of goods and services purchased by Crown. Moreover, Crown is also controlling $10 million of goods and services from operation of overseas during the reporting period (https://www.crownresorts.com.au/CrownResorts/files/76/761354c1-ff70-4614-ad09-ff85704e97a1.pdf).

II. Changes in capital assets

The financial assets of the company was $37.5 million in 2019, however it was $29.3 million in the year 2020. Likewise, the amount of investments in associates has been reduced from $206.9 million to $186 million. The Crown Resorts further acquired property, plant and equipment for the business which is shown by the value increased to $4,871.2 million in 2020 than that of $4,259 million in the year 2019. The long-term interest-bearing loans and borrowings have been taken by the business. The loan value is increased from $791 million to $1,121.8million in 2020.

III. Interruptions to trade

Due to COVID 19, the year 2020 has been extremely challenging. There are restrictions for people to travel which reduces the trading activities of the business. The pandemic of covid 19 has adversely affected the operation of the company, their staff and community. It was further advised to close gaming operations and an important part of the non-gaming activities at Crown Melbourne and Crown Perth for an increased period. The increased amount of uncertainty to restart the operational activities have forced them to close their business which significantly interrupts the economic side of the business. 95% of the employees were affected by the closure of the business.This further reduces the number of staff employed that means 95% of the employees were affected by the closure of the business. Likewise, it also caused the board to decide not to declare final dividends on the ordinary shares.

IV. Changes to financial outcomes

The reported NPAT in the year 2019 was $402.9 million. However, in the year 2020 net profit after tax is $81.9 million which was reduced by 80.2% as compared to the previous financial year. Total revenue of the company was reduced to 2237.2 million from 2929.2 million in 2020. Total capital invested is 4678.1 million and 4714.3 million in 2019 and 2020 respectively. Return on sales and investment turnover of the company is 13.75% and 0.62 in 2019. Similarly, in 2020, Return on sales and investment turnover of the company is 3.66% and 0.47. Therefore, the return on investment of the company was 8.61% and 1.7% in 2019 and 2020 respectively. The theoretical revenue of the resorts is identified as $2,091.1 million which was down by 29.2% and theoretical EBITDA before closure costs and significant items is $516.1 million which was reduced by 36.4%.

V. Closure of Crown's Operations

As relevant State and Federal government suspended some of the Crown's operating activities like gaming and non-essential services because of the COVID-19 pandemic during financial year 2020. Gaming activities remained closed until 30 June 2020 at Crown Melbourne and Crown Aspinalls. Crown Perth continued its gaming activities and some of the services of food and beverage venues under restrictions of the Western Government. However, during the mandatory closure period, the hotels were opened to provide hotel quarantine services for the overseas travellers, other activities were closed or limited during that tenure of time as the direction of the government. Crown did not generate any gaming revenues which was down by 22.7%, however, it continued to incur expenses to balance operations and other corporate responsibility.

Part B

Suggestions:

1. Business Process Reengineering (BPR)

Business Process Reengineering can be used by Crown Resorts for identifying, analyzing, optimizing and also monitoring its business processes with major focus on its revenue increase and reduction of costs which has drastically gone up in 2020 (Chalupa and Petricek, 2020). The company needs to revisit is operational strategy and its process and look for optimization for the pre-opening and closure costs. More focus should be placed on quality, time reduction and customer satisfaction that can lead to enhancement in its revenue. Quality management, process modelling and optimization play important role in human resource management as well which the company is struggling as a result of mandated closure (Chalupa and Petricek, 2020). Crown resorts should work on its value chain and decide on the process optimization accordingly as value chain will assist in identification of costs that are incurred in the company and thus, focus can be put on those costs that are impacting the business and profitability.

2. Strategy for Performance Management

In the times of financial crisis which the Crown Resorts has been facing due to decline in revenue, EBIDTA and difficulties in legal compliance hitting the reputation of the company, strategic performance management is required. The current strategy has not been working for the company as it has resulted in underachieving of the performance target for profitability as per the company (Crown Resorts, 2020). The company needs effective planning along with better understanding of level of service demand and needs to link strategies with its goal to achieve better operating performance (Ylmaz and 2018). This is the need of the hour as company has not been able to manage its cost especially high closure cost and decline in performance outcome in relation to its revenue. Crown resorts needs a more realistic balance scorecard putting more emphasis in its current strength for achieving the financial objectives and more emphasis has to be given on the performance in legal and regulatory compliance as it has been drawn into various investigation for compliance and regulatory breach. Such factors impact the reputation of the organization and thus impact the long-term performance.

3. Financial Performance Management

From the financial reports of the company, it can be observed that the sales or the revenue of the company has been declining majorly due to impact of Covid-19 but the situation could have been handled more effectively rather than getting involved in compliance issues and focus could have been placed in recovering from the current situation and look for more opportunities for business expansion. The Crown resorts needs to anticipate the level of service demand, customer pricing behavior, size and scale of hotel operation, create revenue centers and use alternative products and services during off season for revenue enhancement (Murimi, Wadongo and Olielo, 2021). Crown resorts needs to focus on right customers, right pricing, right product, right distribution channel, right communication at the right time in the post Covid-19 period to regain its revenue.t

conclusion of above essay