Factors affecting the Performance of Skinny Raven Casino

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The main purpose of this policy analysis paper is to investigate factors that have affected the performance and effectiveness of the Skinny Raven Casino. The study further is aimed at recommending some policy measures that the company should take in order to maintain its profitability and improve embracement by the public. Skinny Raven Casino is a hotel complex at the xamish tribal land in Washington operating 24 hours every day of the 7days in a week. It is a state-of-art building built with the fullest explanation of bomber and architecture. It opened its doors in June 1998 and since then it has been performing extremely well until the recent past when it experienced slight decline in its net revenue in terms of the percentage of sales in the last few years. In the year 2004 Skinny Raven Casino made 8.3 million dollars on the portfolio of 56.8 million dollars revenue and in the year 2006 it made 8.3 million dollars on 81.6 million dollars revenue. This statistics clearly indicates that in the past years the casino has been progressing well but in the last few years the performance has not been impressive.

This paper will therefore critically analyze management issues, public relations aspects as well as employee factor on how it has contributed to the decline in profitability of this business; it also posits some recommendations the board and the entire management of the casino should take into consideration so as to salvage the business and make it a hub for entertainment and food.

Problem statement

Skinny Raven casino has experienced financial problem in the last few years due to disconnect and disorientation in the management structure of the business. It has experienced a high turn over of staff whereby there has been regular exit by the staff due to one reason or another. Employees who still stick to their jobs are characterized with frequent absenteeism and low morale. This situation is dire because it has even compromised customer service which is a fundamental element in any business establishment no matter of which type. The relationship between the management and the employees’ fraternity is not cordial because basing on the sentiments of some of the employees it seems the company is not taking into regard some pertinent issues inflicting the employees for instance staff who have small children who need more time to childcare, issues of long working hours and meager compensations. Increasing health cost is another problem that has incapacitated the business extensively because according to the remarks of Tom the VP of finance and controller, the cost has increased by 10% in the last three years.


The public

The welfare of Skinny Raven Casino matters a lot to the surrounding population because this business has resulted in infusion of money into the local money cycle attracting establishment of other businesses which greatly boosts the socio-economy of the area. The casino employs a lot of young men and women who are skilled and even those who are unskilled hence it greatly aids in checking the problem of unemployment in the area. Rebounding back of the business and its proper maintenance of it is the greatness concern of the public because it plays a critical role in their lives.


Skinny Raven Casino is the major employer in xamish tribal land and therefore the strength of this business has great impact on the existing workforce and aspiring tribal members who wish to get jobs there to boost their livelihoods. It is a fact in business philosophy that when the profitability of a business is low, it is logical to halt new recruitment of employees or even to the worst some business can resort to staff rationalization or retrenchment so as to reduce cost and make the business relevant in the market. This is the fear and concern of these people because if things turn to the worst livelihoods of many people will be affected ranging from the employees themselves and their dependants

Proprietors and board

From the onset the casino is atypical business enterprise that the owners invested a certain capital in it with the expectation of getting reasonable return on investment. With the trend at which the business is moving it means that the objectives of the entrepreneurs of making profit will not be met. The staffs are demoralized which means that the service that the business has been offering is questionable and sales have reduced drastically. This is a great concern to these businessmen because every person who runs a business wishes that the firm is profitable and the staff is motivated. This has not been the case because from the study there has been increasing turn over rate, unexplained absenteeism forcing them to replace hence paying a lot of money in terms of overtimes.

Background of the problem

Management and financial problems have indeed impacted negatively on the business and some of the root factors that build up this situation are the phenomena that board started to employ untrained managers who are not competent to handle critical business elements for instance the issue of human resource management which is the bedrock of any business. From the study there is a clear indication that the employees are virtually from a single tribe hence the business has been turned in a tribal game that is played by only a certain section of people in the society. The management has been trying to address this situation through summons and discussion with individual employee but to some extent this initiative has not yielded much because the management seems not to be reading from the same script with employees and trying to understand the requirements and demands of the employees. The hall mark to this problem according to my analysis is the aspect that the staff are not motivated due to the fact that the management don’t have in place proper managerial profile that caters for the interests of the employees. This reality shoved the staff to leave job hence the situation of escalating staff turn over, low morale in them hence they cannot aggressively make sales which has an effect on the general performance of the business.

There is a dire need for policy analysis so to try and come up with new strategies and remedies so as to bring back the business to the status it was or even better because it is a potential idea and it have a great impact to many lives from the employees to the general public living around that place

Alternative policies

Reform the management team and enhance incentive schemes for the staff

It is a common fact that successful businesses in the world are those that are spearheaded by dedicated and competent team leaders. This yield great success because they comprehend what they do and are people who are focused; competent management personnel is also very critical in the sense that they manage other people who are below them because this responsibility is indeed complicated and need people who have impeccable skills so as to take appropriate control of them and keep them motivated so as to move the business forward and make it profitable. Incentive scheme is a very critical instrument in the management circles of a business; it involves the philosophy of setting targets that the employees should hit at a given period of time then the business or organization reward handsomely the best performing staff through bonuses or gifts. This idea will make the staff to take the job with a lot of seriousness and interest with the aim of attaining the targets and win the incentives hence improving the profitability of the business and make the staff motivated to do their jobs. It therefore worth noting that behind most of today’s successful service organizations and businesses stands on a firm commitment to effective and inclusive management of HR issues including recruitment, selection, refresher trainings, incentives/ motivation and retention of employees in the business..

Introduction of service marketing and proper customer service

In the service industry which is characterized by competition and other influencing market forces a business or company must strategically position itself so as to have a competitive edge and maximize its sales. The most demanding jobs in service businesses are frontline jobs and the employees are expected to be swift and very efficient in their execution of operational tasks, as well as being courteous and helpful in dealing with clients. Frontline employees involving those in the service and cashiering are key inputs for delivering service excellence and creating competitive advantage for the business. Service staffs play a very important role in the service profit chain because of the fact that Customers encounter with service staff is the most important aspect of the service. From the company’s perspective, the service levels and the way in which the service is delivered by the frontline staff can be a very important source of differentiation as well as in the process of defining a competitive advantage. It is therefore prudent for any service industry and business to develop a dedicated staff in customer service through motivation and regard of their service.

Reduce on the cost on health care

From the remarks of the VP finance and controller the cost of health care cost at the Skinny Ravens Casino have risen by 10% in the last three years. Health care of employees is a central welfare issue that every business or organization must take with seriousness it deserves because of the fact that if the health of the staff is not proper it translates to reduced output which in turn takes toll on the profitability of the business. Business should encourage and train its staff on preventive strategies against common diseases so as to reduce regular health complaints and expenses that is incurred in seeking medical attention

Recommended policy

From my own analysis regarding the policy issues affecting the company I would recommend the first alternative policy on reforming the management team and enhancing incentives. Employees of this business seem dissatisfied and their welfare not taken care of properly and this phenomenon is the fundamental cause of problems facing the company. Developing a professional team of managers will to a great extent turn around the face of the business through proper management of human resource issues concerning the staff. Incentives is a critical initiative in the process of enhancing individual performance in any organization or company; coming with an incentive scheme and improving the terms of the employees will to a great extent reverse the trend. Some might argue that management is not an important element in checking on this situation of Skinny Raven Casino, but proponents of this position should know that management structure is the heart of any business because it determines the general output of the business because they are the decision makers as well coordinators of the business.

Implementation & funding

Implementation of this policy to a great percentage should be taken by the board and top management by introducing a new culture of approaching through establishment of the suggested ideas and sharing it out with the employees. Funding of this program will come from the appropriation of the business profits towards development

Monitoring and evaluation

M&E are very critical initiatives in gauging successfulness or failure of a project. Skinny Raven Casino should establish regular monitoring and evaluation mechanisms so measure and assess the progress that they have made in reengineering the business and help in making timely interventions.