...Operation Management decisions (Hard Rock Cafe) The success of Hard Rock Café was to a certain extent determined by the operations management decisions. Let us analyze each of 10 operations management decisions of the Hard Rock networks of cafes. 1. Location The managers of the café are very precise in determining the location of each new café (restaurant, casino, museum) etc. They choose the state, city and even street or corner with regard to customer preferences (Johnston, 2008). Governance of Hard Rock Café believes that every choice is important and that location decisions strongly affect their brand. 2. Human resources and job design The employees of Hard Rock Café are attracted not only by the brand and working conditions; they are chosen basing on their passion for music and they mostly have engaging personalities. Jobs are designed to motivate the employees and make them part of the company. 3. Layout One more issue that makes Hard Rock Cafés unforgettable, is their layout. Everything has its place, from memorabilia, screens and sound to kitchen and bar layout (Lussier, 2008). Also, the connection of bars and cafes with retail shops are a successful decision which allows to increase revenue. The circulations paths are carefully thought out and lead the customer into the Hard Rock empire. 4. Product design The product in Hard Rock Café is food; in retail stores the assortment of the stores can also be accepted as product. With museums, it is the choice of memorabilia...
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...Managing Supply Operation GSCM 206 Case - Hard Rock Café’s Global Strategy and Pearson Video Library Professor: Craig Williams Jameila Givens July 10, 2015 Week 1 Hard Rock Café’s Global Strategy Identify the strategy changes that have taken place at Hard Rock Café since its founding in 1971. Since the Hard Rock Café was established in 1971, it has constantly redesigned itself to convey the brand where it is presently, by adjusting to the times and changing when change is requested. The organization embraced numerous changes including stores, redesigning it's menu, moving to places that are not really tourist destinations, and best of all, including live music and rock shows into the general customers experience. The Hard Rock put in millions to make a visual and acoustic situation ideal for their visitors. The company also brought into their "experience" to concept their own merchandise, which is one of a kind in every area and it gives an immense income to the organization. Hard Rock is known for its extensive and museum-worthy memorabilia and products. Today, its memorabilia collection is evaluated to be worth $40 Million. Every restaurant rotates their items to keep the experience new. Their merchandise records at 48% of its sales. . As Hard Rock Café has changed its strategy, how has its responses to some of the 10 decisions of OM changed? The strategy of Hard Rock was to change from local to international with upgrades to their Manu for each restaurant destinations...
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...1. Describe three different forecasting applications at Hard Rock. a. Long-term forecasting is used to determine capacity for growth of sales per store. b. Intermediate forecasting is used in the creation of contracts for items for raw materials, such as leather to manufacture Hard Rock’s leather coats. c. Short-term forecasting is used to forecast sales by store so that the food and labor is scheduled appropriately. Name three other areas in which you think Hard Rock could use forecasting models. a. Human resources could use intermediate forecasting to evaluate if how much their employees can produce. b. The implementation of a new product and the impact to Hard Rock’s customers could be forecasted using long-term strategic forecasting. c. Long-term strategic forecasting can be used when looking at possible locations to open new restaurants to determine if the demand is going to be large enough to make the restaurant profitable. 3. Justify the use of the weighting system used for evaluating managers for annual bonuses. I think using the weighting system makes certain that managers maximize their present and future results, as well as the company’s. Hard Rock’s concept of their annual bonus considers sales from a period 3 years: • Most recent year: 40% • The prior year: 40% • 2 years ago: 20% It provides incentive for managers to be continuous efficient. If sales are down in one year, this affects the amount of bonus to be...
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...FUNDAMENTALS OF PRODUCTION MANAGEMENT CASE STUDY 1[1] Due Date: 3. 11. 2011 – until at 17.00 to Room B408[2] HARD ROCK CAFE: OPERATIONS MANEGEMENT IN SERVICE In its 39 years of existence, Hard Rock has grown from a modest London pub to a global power managing 129 cafes, 12 hotels/casinos, live music venues, a rock museum, and a huge annual Rockfest concert. This puts Hard Rock firmly in the service industry —a sector that employs over 75% of the people in the U.S. Hard Rock moved its world headquarters to Orlando, Florida, in 1988 and has expanded to more than 40 locations throughout the U.S., serving over 100,000 meals each day. Hard Rock chefs are modifying the menu from classic American—burgers and chicken wings—to include higher-end items such as stuffed veal chops and lobster tails. Just as taste in music changes over time, so does the Hard Rock Cafe, with new menus, layouts memorabilia, services, and strategies. At Orlando’s Universal Studios, a traditional tourist destination, Hard Rock Cafe serves over 3,500 meals each day. The cafe employs about 400 people. Most are employed in the restaurant, but some work in the retail shop. Retail is now a standard and increasingly prominent feature in Hard Rock Cafes (since close to 48% of revenue comes from this source). Cafe employees include kitchen and wait staff, hostesses, and bartenders. Hard Rock employees are not only competent in their job skills; they are also passionate about music and have engaging personalities...
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...Forecasting at Hard Rock Café Managing Operations Across the Supply Chain Trapanger Stephens DeVry University Dr.Thomas Knopp 1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models. Sales forecasts: • Long range forecasting: in setting a capacity plan • Intermediate term forecasting: for locking in contracts for leather goods (used in jackets) and for food items as beef, chicken, and pork • Short term forecasting: daily forecasts which contain the effect of special events in the town (including staff forecast) Human Resources: • Bonuses for managers: a 3-year weighted moving average is applied to cafe sales and if the cafe general managers exceed their targets, a bonus is computed • Staff recruitment: Adapt the necessary workforce according expected demand. • Staff management: Determine necessary roles on each section of the restaurant. Menu planning/placement: • Regression analysis. • How could affect price variations on one product to the rest of the elements on the menu • How could affect reorganizations of the menu to the sales. Other possible areas of application: • To include seasonal forecasting in the menu planning • To predict customer...
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...Case Study: Forecasting at Hard Rock Café 1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models. Hard Rock uses long-range forecasting in sitting capacity plan, intermediate-term forecasting for locking in contracts for leather goods (used in jackets) and for such food items as beef, chicken and pork, and short-term sales forecasts are conducted each month, by cafe, and then aggregated for a headquarters view. Hard Rock could use forecasting for menu items according to season (types of food people generally eat depending on time of year), forecast developing areas where new cafes could be build, and forecast changes in retail as fashion changes. 2. What is the role of the POS system in forecasting at Hard Rock? Point of Sale (POS) system is the heart of the sales forecasting system. POS system captures transaction data on nearly every person who walks through a café’s door. Sale of each entrée represents a customer and everyday those sales are transmitted to the headquarters in Orlando where the financial team begins to forecast monthly guest counts, retail sales, banquet sales, and concert sales in each café. General Managers of each café can also tap into that same information in order to prepare for the daily forecast of their individual cafe. 3. Justify the use of the weighting system used for evaluating managers for annual bonuses. Hard Rock doesn't limit its use of forecasting...
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...Lisa Nash Case Study: Hard Rock Café DeVry University Managing Supply Operations Professor Albert Lapierre March 14, 2014 Case Study: Hard Rock Café The definition of forecasting is to compile previous data and predict what will happen in the future. Forecasting will help determine to outcome of future sales projections in the business world. The Hard Rock Cafe` uses the following forecasting types: moving averages, weighted moving averages, exponential smoothing, and regression analysis. The reason that Hard Rock uses forecasting is for the long term, short term, purchasing orders, and buying supplies in their Cafés, hotels, and night clubs. The sales forecast for the company is used by the month, year or five year plans depending on the department and its financial responsibility. It is important that the financial choices are made wisely because it will determine how long the company will need to be in contract with various vendors that supply meat, produce, and condiments just to name a few. When there is a desire to expand the business it is very important to have a forecast report to present to the lending institution so there will be an appropriate amount of funds requested to complete the expansion. The method used to determine a manger’s bonus is the weighted measure 40/40/20 and it is based on the last 3 years of sales at their store. If the store has met their sales goal then the manager will receive their bonus. The POS is formatted based on...
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...Case Study 4 Hard Rock Café Location Strategy 1.From Munday’s Standard Market Report Checklist, select any other four categories and provide three subcategories that should be evaluated? A) Demographics (local, city, region, SMS, with trend analysis 1. Economic indicators: - Changes in foreign currencies - Inflation rates- Unemployment rates B) Visitor Market 1. Hotels ` - Current number of hotels in market are - Age of existing hotels in market area - Occupancy rate of current hotels, as well seasonality of occupancy - Rates of new hotel construction (could indicates per year during last ten years) C) Political Risk - What type of government system is in place - Nationalization of major industries - Reduction of foreign interest in local business ventures D) Real Estate Markets - Liquidity of real estate - Current vacancy rates/occupancy rates - Number of real estate properties owned by global companies - Real estate turnover rates (how often are properties sold and converted to new business venture) - Cost of buying versus leasing commercial real estate 3. Why does the Hard Rock put such serious effort into its location analysis? Location decisions for Hard Rock Café begin with a global view which involves analyzing a country, then a region within the country and then finally a city location (Amer,1999). Specifically...
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...HARD ROCK CAFÉ : WHAT DISCRIMINATES THEM FROM COMPETITION RELATED TO OPERATIONS Many companies in the restaurant business have come and gone, however, Hard Rock Café remains strong and keeps its reputations all over the world. There are several reasons that have contributed to the success of Hard Rock Café. First of all, flexibility is important for Hard Rock Café’s success. They are flexible with design, food and entertainment of their restaurants based on the local market they serve. That means that they customize themselves in accordance with local customs and traditions and life style. Another strategy that Hard Rock Café has is that they focus on new experience economy. In other words, Hard Rock Café focuses more on selling experience than just food. Food is not excellent but good enough to satisfy the customers but the delivering food with exceptional entertainment and dining experience is important. Indeed, 70% of Hard Rock Café’s customers are travelers who want to have new experiences in the places to visit. Music is universal and it has no boundaries, everyone likes music. Hard Rock Café uses music to its business’ advantage. They sell Rock and Roll, Hard Rock experience along with serving their food.That’s why they attract tourists from all over the world. Hard Rock Café also makes big revenue from their merchandise sales. Hard Rock Café name is well recognized brand all over the world. They are not only selling their hat, t-shirt and jacket but also using them...
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...Sudhanshu Kumar e-mail:sk4724@students.poly.edu MG 6303-Operations Management CASE#1 Chapter#2 “Hard Rock Café’s Global Strategy” Q1. Identify the strategy changes that have taken place at Hard Rock Café since its founding in 1971? Ans. Hard Rock Café has been serving food and rock music with enthusiasm since the opening of its first café in London in 1971.The strategy changes that have taken place are as follows: 1. Hard Rock introduced the concept of ‘experience economy’ to its café operations .The strategy was to incorporate a unique ‘experience’ into its operations which was similar to mass customization in manufacturing. 2. The experience concept provided a unique dining event that included a unique visual and sound experience which was not duplicated anywhere else in the world as the staff of Hard Rock café served customers with enthusiasm and showed passion for rock music. 3. Special consideration was given to the supply chain management for the restaurant and its accompanying retail store by introducing collectible merchandise of various artist such as Kurt Cobain, Jon Bon Jovi, and Green Day etc and sshowcasing its collection of rock and roll memorabilia. It also introduced location specific merchandise, such as tees, apparels and fashion merchandise which contributed to 48% of café sales. 4. Special preferences was given to menus for local taste and introducing new international food items into its menu by taking reviews from customers about...
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...Case Study: Hard Rock Cafe - Florence Challenge Hard Rock Cafe is an international restaurant franchise with a strong internal culture and external brand, and it recruits individuals that fit this unique culture. For its new venue in Florence (Italy), Hard Rock decided to supplement its hiring with Facebook, since traditional channels often proved slow and inefficient for sourcing candidates. Hard Rock not only needed to source 120 server to manager-level positions in four weeks, but also had to find candidates that fit their unique culture. Converting fans to hires through social engagement and branding Solution • Hard Rock recognized that its consumers and candidates were often the same person, and launched a multi-faceted Facebook campaign to leverage their strong ‘fan brand.’ • Hard Rock created a Facebook page from scratch, installed the Work for Us app, and uploaded their open positions. They allowed candidates to submit applications directly within Facebook. • They also ran Facebook Ads targeting people around Florence who ‘liked’ such items as ‘Rock and Roll’ and particular rock bands. Dynamic demographic and interest targeting honed in automatically on users that responded most to the job content. • Fans brought to the Page by ads could use social features embedded within the app to socially broadcast jobs. This drove viral fan growth, as the Page went from 0 to 1,000 fans in less than 24 hours and to 6,100 fans in 4 days. • The Hard Rock team responded to applicant...
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...Hard Rock Café Global Strategy Case Study Hard Rock Café Global Strategy Strategy Changes Since the founding of Hard Rock Café in 1972 the company has gone through many changes. From a local pub in London to now having about 106 locations worldwide, one of the biggest strategy changes include the choice to incorporate globalization. The Hard Rock has created a global brand that include hotels and restaurant across the globe. With the changing of times, adopting an experience strategy was also necessary for the overall success of the company. Hard Rock realized that customer’s no longer wanted a quick bite to eat but rater wanted to have a unique experience as well. They began to incorporate music and memorabilia with delicious food. Responses to Changes Location Selection The Hard Rock has become a global sensation and the company continues to establish operations in the best tourist sites around the world. With tourist being their most visitors, this strategy fits them well as tourist are always looking for special things to do while traveling. Human Resource The Hard Rock has choose to carefully select the right candidates for each position within the company. Hiring decisions are based on who can best satisfy the needs of its customers by giving each a unique experience because of their passion and commitment to the industry. Goods and Services The Hard Rock is known for the different experiences they offer; from music venues, tasty meals, and fancy hotel...
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...value added suggestions for the class? Remember in an online class you are scattered all over the place and at different points in your lives. It's interesting to hear (read) the varying perspectives. From P.41: The Hard Rock Mining Company has just completed the first year of operations at its new strip mine, Lonesome Doe. Hard ROck spent $10M for the land and $20M in preparing for mining operations. Hard Rock is subject to environmental statutes requiring it to restore the Lonesome Doe mine site on completion of mining operations. Based on its experience, Hard Rock forecasts that restoration will cost about $10M when it is undertaken. Of those costs, about $4M is for restoring the topsoil that was removed in preparing the site for mining operations (prior to opening the mine). The rest is directly proportional to the depth of the mine, which in turn is directly proportional to the amount of ore extracted. QUESTIONS: 1. Should Hard Rock recognize a liability for site restoration in conjunction with the opening of the Lonesome Doe Mine? If so, for what amount? 2. After Hard Rock has operated the mine for 5 years, new technology is introduced that reduces Hard Rocks future restoration costs to $7M, $3M of which relates to restoring topsoil. How should Hard Rock account for this change in future liability? The answer to the questions on the two situations depends on how assets and liabilities are defined and how they should be valued. Hopefully, this chapter will provide...
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...Juan Badia English 1301 Guillory 21 October 2014 To be a Rock and Not to Roll It is easy to get caught up in the earthly possessions that we have. It is far more difficult to let go of your greed and to find your own happiness before your death. This was especially prevalent in the 1970’s when Led Zeppelin produced “Stairway to Heaven.” America was in the middle of an economic downfall that essentially left two classes: rich and poor. Led Zeppelin wrote “Stairway to Heaven” to enlighten those who have lost their way in greed and materialism. They gained their listeners attention by drastically changing their otherwise hard rock tone to a softer power ballad, using a storybook method to make their argument, and using appeals such as ethos, pathos and logos throughout the song to make a long lasting connection to their audience. When “Stairway to Heaven” aired in 1971, avid Led Zeppelin listeners were taken aback by the song’s sound. Led Zeppelin is known for its hard rock tone and musicality. “Stairway to Heaven” and its musicality begins as a very slow, depressing guitar arpeggio and a story begins to take place. Slowly and deliberately, more and more instruments are introduced to the whole of the song as the true purpose of the song comes to light, ending in a more typical, upbeat Led Zeppelin sound. The composers wanted to grab their listeners’ attention by being so drastically different. What they had to say was worth the initial sacrifice of being the opposite of...
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...My name is Keith . I am 5 Feet 11 inches tall. I weigh 250 pounds. I am 34 years old I have Red hair, Blue Eyes, and fair skin due to Irish ancestry. I was born, raised, and currently reside, Louisiana. My immediate family is middle class. Although I have many close relatives who are successful. "Epic Inspiration" I enjoy watching the latest movies and social networking such as Facebook and Myspace. I enjoy Heavy Metal and Hard Rock music. I am always going to the next "Big Event" Concert. I am the type of person to say what I mean and mean what I say. I enjoy growing vegetables and am an avid jalapeno eater. I am a smoker and a social drinker. The food where I live is "Epic" Crabs, Crayfish, Shrimp, and oysters. Absolutely nothing compares to "New Orleans Cuisine" I enjoy indulging myself in the endless dishes that can be derived enjoy the simplest things in life. I could live in complete poverty and be fine. . Due to financial hunger I left high school early to pursue an immediate career. I have worked since I was sixteen. My firs job was working as hired help in a local Covington restaurant as the grill man. After working there for a while I practically ran the show. I was the Backbone. But as I turned 17 I knew it was not enough. My Uncle needed help to run his carpet business so I worked by day as his...
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