Hard Rock Cafe Case Study

But with the change towards globalization, there were other social factors and issues that come into play. Hard Rock Cafe© has to take into account the political and social factors of the region where they place a location, in order to optimize their chance of success. Also, they must study the culture of the area as well and be able to learn to adapt to what the people Of that area like the most. Each Hard Rock Cafe© location has merchandise and items that are unique to that location. 2.

As Hard Rock Cafe© has changed its strategy, how has its responses to some of the 10 decisions of MM changed? Some of the ten decisions of MM include goods and service design, location selection, supply-chain management, and inventory. Goods and service design of the Hard Rock Cafe© are based on location. Depending on the region, the meal is different; based on the location the food is particularize specifically for that region. The location selections were at first influenced by tourism. Starting from one cafe© in London, Hard Rock Cafe© expanded to cities with high tourism.

Later on they took political and social factors, and economic fluctuations into consideration, and expanded to other cities where tourism wasn’t as high, such as Nottingham, England and Birmingham. Supply-chain management is “the decisions that determine what is to be made and what is to be purchased”. For the Hard Rock Cafe©, the supply-chain managements get complicated, as the new locations are placed further apart from the existing locations. Inventory decisions in the Hard Rock Cafe© include the selling of merchandise unique to each location other than food. This lows for more revenue to be made. . Where does Hard Rock fit in the four international operations strategies outlined in Figure 2. 9? Explain your answer. The Hard Rock Cafe© fits in the Multiplicities Strategy, where it has low cost reduction, and high local responsiveness. In a Multiplicities Strategy, “authority is decentralized with substantially autonomy at each business. ” This strategy maximizes the competitive response for the local market. This is exactly what the Hard Rock Cafe© has done by establishing facilities in over 50 entries, with each location selling merchandise unique to its region.

With success in the home market, moving the management and process to another market, and not necessarily the same product is what the Hard Rock Cafe© has done. I personally saw this when I went to the Hard Rock Cafe© in Medallion, Colombia this past summer. Having been to the New York location as well, I noticed differences in not only the menu, but merchandise sold as well. The idea, management, and process all stays the same, but the product changes to adapt to what fits the consumers of the region.

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Hard Rock Cafe Case Study

In order for employees to be the best in giving the experience to customers, Hard Rocks management also ensures the whole cafe© environment is conducive to such. Its facility, layout strategy, inventory management, and capacity plan among others all backs up to make the working environment favorable for employees. This is all part of the Cafe©’s techniques in human resources and job design. F. Inventory Hard Rock Cafe©’s collection of memorabilia plays a very important role in delivering the ‘experience’ focus selling of the theme restaurant.

They have an approximately 60,000 piece collection contains Rock and Roll memorabilia, which enhances the experience for customers. To maintain their $40 million inventory, the company must use an extensive and detailed cataloging system. Since the memorabilia within the restaurants is replaced and refurbished every five to seven years, knowing what is contained and where it is located is critical to preserving the collection. G. Scheduling Scheduling at the Hard Rock Cafe is also taken very seriously.

With 23 departments and over 600 people on the payroll in the Orlando location, many factors have to be taken into account Sales, community events, seasonality, and trends are tracked so a sales forecast can be made to schedule efficiently and maximize revenue. 3. Where does Hard Rock fit in the four international operations strategies outlined in Figure 2. ? Explain your answer. Hard Rock Cafe© fits in the Multi-domestic operations strategy. Using this strategy, Hard Rock tries to achieve maximum local responsiveness by customizing both their product offering and marketing strategy to match different national conditions.

Its signature burger may be tweaked according to the taste of the locale. Each restaurant is dynamic and unique; its design and menu depend on the culture and preferences of its location. Only 50% of Hard Rock’s cafes all over the world are franchised. This mitigate the risk factors and differences in business practices and employment law. Local partners are however encouraged to engage their customers in a unique experience, one that is distinct and not duplicated anywhere else in the world.

Hard Rock has sustained its brand over the years from initially branching out with a global strategy and into adapting a multi-domestic star taste. Reaction: There are notes and key learning from Hard Rock’s strategy, which may be applicable to other companies, including those from industries that are different from that of Hard Rock’s: a. Hard Rock’s multi-domestic strategy may have worked well for the company, but it does not necessarily apply to all. A multiplicities strategy can be costly, as each local subsidiary may need to build value chain operations to meet local demands.

Thus it is often economically difficult to apply in industries that have intense cost pressures. In addition, decentralization control of value activities to local managers and franchisees can create powerful subsidiaries that behave as autonomous units. This can cause confusion, misalignment, and overall conflict. Currently, Hard Rock Cafe has expanded globally in destination cities in Europe, Latin America and Asia. Franchising, a key aspect of the multi- mommies strategy, helps the company achieve a larger scale with a more recognizable brand name, offer franchisees fewer supports but long-term contracts.

Moreover, franchising is an effective way to reduce cost, avoid political risk and cultural differences and connect local knowledge. B. Hard Rock is known for being cool, fun, and creative. With this there is a need for the company to always come up with something new and distinctive. There are more new local and global competitors coming up?the company must always keep itself ahead so it can continue reaching and inspiring its unique target audience.

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