...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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...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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...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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...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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...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. Cafe staff is scheduled down to 15-minute intervals to meet...
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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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...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: 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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...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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...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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...Hard Rock Café Case Study GSCM-206 Managing Supply Operations 1. Identify the strategy changes that have taken place at Hard Rock Café since its founding in 1971. Hard Rock Café is a globally recognized brand. Since its founding in 1971, Hard Rock Café has made continuous improvements and upgrades to bring the brand to where it is today, changing with the times and markets. Hard Rock started as a London Café serving classic “American” food and eventually became a “theme” restaurant chain selling memorabilia and souvenirs in tourist destinations. From there the company transformed by adding stores, upgrading menus, moving to places that were not, at the time, tourist destinations, and most effective of all, they began playing live music and hosting rock concerts, adding to the overall customer experience. Hard Rock changed dining by making it an “experience”, an event that includes a unique experience not duplicated anywhere else. To create this unique experience, Hard Rock has invested millions of dollars into creating an acoustic and visual scenario for their customers. They also introduced into their “experience” concept their own brand merchandise, souvenirs and products, which is unique to each location which in turn provides a greater income to the company. Hard Rock is known for its museum-worthy, and quite extensive amount of Rock N’ Roll memorabilia and merchandise. Today, its memorabilia collection is estimated to be worth approximately...
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...Restaurants[edit] Hard Rock Cafe located onBroadway in the heart of Times Square The first Hard Rock Cafe (HRC) opened on 14 June 1971, in Piccadilly, London, under the ownership of young Americans Peter Morton and Isaac Tigrett. Hard Rock initially had an eclectic decor but it later started to display memorabilia. Hard Rock has amassed one of the largest collections of rock and roll memorabilia in the world. The chain began to expand worldwide in 1982 with locations in (among others) Toronto, Los Angeles, San Francisco, Chicago, Paris and Berlin.[4] Hard Rock Cafe locations in the United States vary from smaller, more tourist driven markets (Biloxi, Pigeon Forge, Key West, etc.) to large metropolises (Houston, Philadelphia, New York, Chicago, Boston, Washington DC, etc.). Hard Rock Cafe typically does not franchise cafe locations in the United States. All US cafes are corporate owned and operated, except for cafes in Tampa and Four Winds New Buffalo casino.[5] However, in the transition of the Las Vegas Hard Rock Hotel property originally owned and then later sold to Rank by founder Peter Morton, Peter retained hotel naming rights West of the Mississippi. When Peter Morton sold his Las Vegas Hard Rock Hotel to the Morgans Group, he also sold those naming rights, which then gave rise to two U.S. franchise Hotels (without cafes) in Albuquerque and Tulsa. The Albuquerque hotel no longer pays for the Hard Rock rights and reverted to its former name in June 2013. More hotels franchised...
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...Case Study: Hard Rock Café Steven Williams Devry University May 7, 2015 1. Identify the strategy changes that have taken place at Hard Rock Cafe since its founding in 1971. The first Hard Rock Cafe opened its approaches to individuals as a rule on June 14, 1971, in London by Isaac Tigrett and Peter Morton. The eatery originated as classic big city eatery and blossomed in a cult following with fans and patrons visiting from around the world. Now in the 21st century the Café has transformed into a really overall marvel. (Tigrett, 1998) Right when Hard Rock Café was introduced in 1971 it was just a direct diner that was focused on providing its patrons with a great dining experience coupled with the culture of Rock and Roll. After at some point or another hard shake proprietors comprehend that it wasn't adequate for be assorted and to be the pioneers on the support and incitement showcase so they realized another technique considering an inclusive experience: reinforced on preoccupation, sustenance and music. The founders decided to execute the thought of a restaurant as a diversion place where patrons could enjoy their food and could have an extraordinary visual and sound spot. 2. As Hard Rock Café has changed its strategy, how has its responses to some of the 10 decisions of OM changed? The Hard Rock has made its image selective and exceedingly looked for after. They offer dinners, they offer cabin rooms.. To attain that goal, they have assembled amid the time a forty...
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...Problem Set: Introduction to Operations Management (IOM OS) IOM1 Differences between Goods and Services [20 pts] Explain differences between goods and services in terms of: * Customer contact for goods is low because a customer buying goods will never come in contact where the goods are being produced. Versus for services its high because the customer is usually present during the formation of the service. * Opportunity to correct problems for goods is high because they may be exchanged or tailored versus for a service low because you can’t reconstruct a service that has already been performed. * Variability of input is low because you can always fix or change the goods being produced and output is high because you can’t change the finished product. * Measurement of productivity for goods is simple because you can count the amount of finished goods and inventory, and for services difficult because you can’t keep track of all the services being given. * Evaluation of employees for goods is easy as you can monitor the outcome but for services it is difficult because you can’t supervise all services performed. IOM2 Customization [10 pts] Discuss the impact of higher customization on complexity of manufacturing or service processes, level of worker skills, and productivity. The impact of higher customization compared to standardized products and services is that it is more labor-intensive, and more time-consuming resulting in a slower workflow. In...
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...133307 Hard Rock Café The first Hard Rock Cafe opened its doors to the public on June 14, 1971, in London, England. Founded by Isaac Tigrett and Peter Morton, two enterprising and music-loving Americans, beginning with a guitar, it is only a joke among the friends at first, later on founder of the band -Cream and Derek & the Dominoes sent a guitar of his here, and has booked a desk for a longtime. From then on, the other guitars were sent here continually, have not stopped at all times. Hard Rock Cafe was an instant classic, attracting droves of customers with its first-rate, but moderately priced casual American fare, warm service and ever-present rock 'n' roll music and sensibility. At that time it has been doing things its own way. It was initially decorated with an eye toward eclectic American. What started as an American dinner in the heart of London has blossomed into a way of life. Hard Rock In 2007, Hard Rock was sold to the Seminole Tribe of Florida, and is headquartered in Orlando, Florida. Currently, there are 191 Hard Rock locations in 59 countries including 145 cafes, 21 hotels and 10 casinos. Mission: “To spread the spirit of rock ‘n’ roll by creating authentic experiences that rock.” To spread the spirit of Rock 'n Roll by delivering an exceptional entertainment and dining experience. Hard Rock Services 1. Hard Rock Cafes 2. Hard Rock Hotels 3. Hard Rock casinos From their services I took the Hard Rock Café services Hard Rock Café Locations...
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