Melco Crown taps into horizontal management structure: Bernstein

Melco Crown’s latest leadership appointments represent a “significant change” in its operational organizational structure, said Bernstein in a note on Monday.

Last week, Melco Crown Entertainment announced a number of new appointments to its leadership team, including chief marketing and brand officer Mr Frederic Winckler; new property president of City of Dreams, Macau, Gabriel Hunterton;  property president of Altira Macau and Mocha Clubs, Andy Choy; and senior vice president, hotels and food & beverage, Jarlath Lynch.

“The new management appointments are in operational and marketing roles and, in our view, signify a significant change, in the operational organizational structure at Melco Crown.”

“Previously, under Ted Chan as COO, MPEL’s operational organizational was highly centralized with virtually all operational/marketing functions reporting into the COO. Under the new structure, it is now clear that property management is devolved directly to property presidents,” said Bernstein.

According to analysts, the change means that Melco Crown is taking up a more horizontal management structure, with property presidents taking more responsibility over their individual operations.

However, the appointment of Winckler and Lynch raises some questions with respect to reporting lines and some aspects of strategy “especially in light of the new CMO with heavy digital marketing and luxury brand expertise but lack of gaming experience,” noted Bernstein.