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MGM Resorts International

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Background of MGN Resorts International

MGM Resorts International is a multinational company incorporated in 1986, and it operates mainly as a parent company and via its chain of subsidiaries. The company owns a series of hotels, casinos, and entertainment resorts spread across the US and Macau. The company has signed several lease agreements as part of its growth strategy. For instance, the lease between MGM Resort and BREIT venture in which MGM is allowed to lease tangible assets of Bellagio (Gray et al.2021). MTM Resorts International has experienced significant expansion since 2016 through its business development strategy. It now owns close to 56% shares in MGM China which is the holding company of MGM paradise.

MGM Resorts International operates in a highly competitive industry, competing against hospitality companies and other gaming companies. The company's gaming business also competes with other state-sponsored lotteries. Similarly, the company's operations have been adversely affected by the covid 19 pandemic resulting in the closing of its resorts and reduced operating hours. These effects have placed the company in an unprecedented situation increasing the risks associated with its operation. For instance, the ability of the company to pay some of its obligations resulting from the lease agreement is at stake.

In summary, this paper has done a SWOT analysis of MGM Resorts International in which the company's strengths and weaknesses have been evaluated. Similarly, an in-depth evaluation of the company's opportunities and threats has been conducted and presented in the Internal Factor Evaluation (IFE) matrix and External Factors Evaluation (EFE) matrix. In addition, the company's financial health has been assessed through the computation ratios, which have indicated that the company's financial position has been adversely affected by Covid 19.

References

Gray, H. M., Louderback, E. R., LaPlante, D. A., Abarbanel, B., Kraus, S. W., & Bernhard, B. J. (2021). Who holds a shared responsibility view of minimizing gambling harm? Results from a multi-wave survey of casino gamblers. Psychology of Addictive Behaviors.