The Operations Management Strategy Of Hard Rock Cafe Tourism Essay

The Operations Management Strategy Of secure leaning coffee stool tourism Essay heavily flutter Caf, the originator of theme-eatery dining, provides a complete shake off experience by coffeehouses, hotels, casinos, memorabilia and music venues..Since the first opening on 14 June, 1971 in London, England, troublesome st bingle Caf has rapidly expanded and succeeded and straightaway heavy stir has over 171 venues in lots than 52 countries, including 134 cafes and 15 Hotels, Casinos crossways the globe. How has a sm on the whole pub turn over such(prenominal) a advantage? Lets evaluate the touch management strategies of dangerous quaver by victimization the theory of Operation Management.As an industry leader, voiceless reels schema has changed from generation to times to meet customers demands, wicked arguing CAFEs operation strategy instantly is designed to be a part of the globalise experience economy, and to get to this aim, descendly ten operations man agement decisions like Goods and Service Design, Managing Quality, physical process and Capa city Design ,location strategies, layout strategies, homophiles resources, submit chainmanagement, inventory management, scheduling, and maintenance- atomic number 18 both taken into good matteration by large(p) wave CAFEs operation management team1. Lets first blow up with Products and Service DesignWith the shibboleth Love all-Serve all, HARD contestation CAFE welcomes all type of customers with gung ho attitude regardless of sex, age of class. At HARD throw off CAFE, customers spate feel the atmosp here(predicate) of their providing experience with vibrate world which without delayhere else they undersurface feel it. The foods at HARD ROCK CAFE are analysed and well-tried by the chiefs and Operations personnel constantly re normal opinion circuit cards, and food question is ongoing.to fit the local anesthetic degustation. For example, fish and lobster are foc util ise to a greater extent at HARD ROCK CAFE Britain, and Thai Snack Combo is added into the menu at HARD ROCK CAFE Bangkok.At HARD ROCK CAFE, customers are provided a dining event that includes a alvirtuoso(predicate) optical and sound experience non duplicated e reallywhere in the world. Because the brand is so strong, 48% of sales are from merc bargainise of memorabiliaone of the largest HARD ROCK CAFE eating places in the world is in Orlando, Florida where provides over 3500 custom products, in this case meals each day with more than 1,500 seats.2. Managing QualityQuality is the fancy of the enterprise and HARD ROCK CAFE is non an exception, every individual(a) water/meal is important to HARD ROCK CAFE. They conduct numerous surveys on Quality, Food research and Suppliers research to get an honest sound judgment from their stakeholders, especially their customers. Their surveys are on a scale from 1-7, and anything less than a 7 is considered a failure. Then, according to c ustomers surveys and feedback they update their menu, music, memorabilia, service and strategy therefore to meet the quality as customers expectation.3.Process and Capacity DesignHARD ROCK CAFE uses an existing domestic model globally scarcely excessively in certain instances, when necessary, uses franchises in some locations to produce a more customised experienceHARD ROCK CAFE is a very sizable chain with capacity of providing 100,000 meals per day (including starters, sandwiches, salads, burgers, sides, entrees, desserts ..) within the U.S. this fact prove how expeditiously HARD ROCK CAFE organizes its employee schedules, material, inventory..Task 2 In the lax of the above, discuss the operations management challenges and opportunities for knotty contention when considering an expansion of its affair into capital of Vietnam.4.Location StrategiesLocation put forward make or break caper strategy and it is a major longsighted time decision. At HARD ROCK CAFE, When conside ring a new location, a careful decision making process is used, it systematically narrows the search from country to city and accordinglyprecise channel corner for the new restaurants. To go into the mighty location at the correct time, HARD ROCK CAFE start with a global view and carriage at several factors such as political risk, bullion risk, social norms, brand fit, social cost, business practices through trade research, thence levelled with very further details and marked for each unenviable Rock now aims to the area of Europe, Latin America and Asia. Not all Hard Rock businesses are operated by itself but franchised because of political risk, economic challenges such as inflation, exchange rate, enculturation may affect its get downment. Franchises are used when it is decided that local ownership volition bring a unique capability, or local conditions suggest there will be an un familiar or difficult implementation.For examples, HARD ROCK CAFE in Vietnam is franchi sed to local partner-Viet Thai International, the owner of Highland coffee shops.5.Layout StrategiesIn each location, HARD ROCK CAFE is carefully considered whether they should purchase, lease in a long term, or a new construction should be set up or remodeling the existing siteIn grooming for each restaurant and bars lay out, HARD ROCK CAFE unceasingly consider food protection,the kitchen flows for food preparation for maximum revenue. totally the lightings, sound, screens, contemporary music, and circulation paths are designed to show off memorabilia and expose customers to merchandise for sale. The retail shops vex close to half the companys profit and are carefully integrated into restaurant layout, flow, and playact stations.6.Human resource and Job DesignHARD ROCK CAFEs employees take a leak not only job skills but in any case a heating around music and love to serve, convey the experience to customers. According to Jim Knight, coach-and-four ofCorporate Training Whe n you start talking about a human resource department that really is a truesupport center for such a Brobdingnagian, multinational company, you kind of build to realizethat the cafes and the individuals that consort within butt end probably stand on theirown when we were much smaller, but I think theres a role that human resourcesnow plays to sort of be the conscience of the company and make sure that weredoing the right thing by the populate, so I dont mind us universe a voice for them, anddoing what we can to help recruit, maintain, to truly train them, to develop them,to grow them. Anything that we can do to support the individuals-I think thatsreally what human resources is all about. Hard Rock Cafe carefully develops of their fleet to lead customers and provide entertainment. The enthusiasm of all staff members when they engage in leaf node is one of the reasons people continue to go backBefore starting to work for Hard Rock Cafe, they are trained for 2 long time and received a Hard Rock value card. It is not however a card but shows the experience of Hard Rock through years. All Hard Rock employees will be proud to work in a unique working environment with its own socialisation which appreciates the substantial diversity and individuality, personal and professional manner. Moreover, this training overly allows Hard Rock staff to undertake different positions or duties, that instrument one can be a waiter, retailer, front-of-the-house server or even can cover kitchen.Some Mottos of HARD ROCK CAFE spread the spirit of rockn hustle, contributing member of our communityHard Rock has the internal onward motion policy as well to encourage their employees loyalty, 60% managers of Hard Rock Cafe are promoted from hourly workers Managers performance is evaluated by a butt which is based on the 3-year-weighted moving average, and they will receive bonus when surpassing this driveAll of this human resource policy helps Hard Rock take a competiti ve advantage, earn more revenues and saving be by deciding which accompaniments would be replaced.7.Supply chain ManagementOutsourcing is a usual method that a big-scale organization, like Hard Rock, applying for its supply-chain management. Qualified suppliers or vendors are chosen to ensure enough, fresh and quality meals.Hard Rock in 2003 announced the successful participation of Avicon architect of the new supply chain and provided expertise in logistics for Hard Rock. This project led to possible pass ons, warehouse space in North America was decreased 44%, reduced operational costs by 20%, service levels were alter by 22%, the site offered real time based on their sequence visibility, transportation cost optimization, distribution network optimization, optimized contract ground and the responsibility to protect, improve operational efficiency.Menu item selection regard on supplying right dos of ingredients on qualified suppliers on time. memorial ManagementInnovative methods, such as Just-in-Time inventory control, can salvage costs and move products and services to customers more quickly. The good management of supply-chain helps Hard Rock to keep a safe and effective inventory. Foods need to be fresh and provided on time. There is not only food and merchandise, but Hard Rock too has over forty million dollars practiceed in one of the worlds largest collections of rock-and-roll memorabilia inventory which has over 60,000 pieces. Most of them are on the walls of his caf in the world. Inventory Management is responsible for cataloging the entire inventory of all the cafes. They developed inventory system through technology that tells them exactly what is in every cafe where it was in this cafe, and what is the story behind each itemEvery 5-6 years, Memorabilia of all cafes around the world are renewed by being brought back to Orlando to be refurbished, and then be replaced with new gear.9. planScheduling for Bartenders, kitchen and wait staf fs, hostesses, and retail employees is based off of sales tracking. Y When preparing and mean work schedules, they look at the sales last year and the slew for the last couple of weeks. Y They will also consider any event in the area and seasonality. We alsotake a look at sales trend for the past couple weeks, and then what we dofrom that is we come up with a sales forecast. The sales forecast is basically thatnucleus that we write the schedule from. This allows Hard Rock Cafe managers can predict the volume of people may get in and enjoy in its restaurants and prepare a pretty right human, foods and services Just-In-Time to and the costs.With successful scheduling the good reputation of the Hard Rock Cafe is enhanced. Considerations Employee preferences Changing sales forecasts Scheduling Software Profitable for both employee and the caf10. caution sustenance for Hard Rock is based or soly on food preparation and storage. They have to make sure food is stored and prepared cor rectly.Quality and look are light upon to success. At HARD ROCK CAFE, they review menu and music time by time based on the surveys done. All kitchen, bar, retail shop, lay out and equipment are maintained regularlyregarding Memorabilia, Maintenance of inventory is done every 5-6 years, when the memorabilia was removed from a coffee shop, and refurbished. The cafe, which is then filled with new itemsIn order to strengthen the brand recognition, Hard Rock Cafe creates its own website www.hardrock.com and maintain a cable goggle box program weekly on VH-1. More than 100,000 hits received through Hard Rock website and 92% of recognition is a truly great result repaying for Hard Rock effortsQuestion 2 In the light of the above, discuss the operations management challenges and opportunities for Hard Rock when considering an expansion of its business into capital of Vietnam.As mentioned in above Location Strategy, HARD ROCK CAFE in Vietnam is franchised to local partner. Viet Thai Inter national Joint Stock Company, owner of the famed coffee shop chain Highlands Coffee, last 2009 signed a franchising pledge with UK-based Hard Rock International to develop four Hard Rock Cafe, location in Vietnam. Besides, the first newly opened coffee shop on January 22, 2010 in commercial and residential Kumho Asiana Plaza in the softheartedness of the city, District 1, they are planning to open three new stores in the capital of Hanoi, northern Hai Phong city and central Da Nang city in 2012. according to director David Thai The expansion of the Hard Rock Cafe, franchising in Vietnam to tap the potential of a growing economy and expanding young population, the target customers of the chain.Lets look at the operations management challenges and opportunities in detail that HARD ROCK CAFE/Viet Thai may face with when considering an expansion of its business into HanoiDemographicsPopulation of Areanot like Starbucks caf which using geographic Information Systems (GIS) to help loca tion analysis of population, Hard Rock Cafs customers mostly tourists and business visitors who come from another locations, so Hard Rock Caf doesnt concern much on Hanois population.However, the opportunities Hard Rock may have is that more and more people in Hanoi love Rock Roll music, and the labor cost is low-priced . on the other hand, local people are not familiar with high-intensity work, style and culture of unique business like Hard Rock Caf and they may not meet the service standard requirement, furthermore, the Vietnamese is very modest, so they may not feel confident to show their personality as judge by Hard Rock Cafe.Economic Indicators.Hanoi has the highestHuman discipline Index among the cities in Vietnam According to a recent ranking of PricewaterhouseCoopers, Hanoi will be the fastest growing cities in the world in terms of GDP growth in 2008-2025. 17 The non-State economic sector is expanding rapidly, with more than 48,000 enterprises are operating under the E nterprise Law (up to 3 / 2007). 18 mountain is a powerful sector of the city. The economic structure has undergone significant changes, with tourism, finance, and banking now playing an increasingly important role. Along with economic growth, Hanoi appearance has changed dramatically, especially in recent years. Infrastructure is constantly upgraded, with new routes and an better system of public transportAccording to General Statistics Office in 2010, the total domestic product (GDP) of Hanoi increased by 11% compared to 2009. . total revenue and social services at 30.5% compared with 2009, in which the total retail sales increased 31.2%. Consumer Price Index (CPI) rose 9.56% in 2010 compared with 12 months of last year, the gold price index rose 37.02%, the U.S. dollar price index rose 7.44%. The average growth rate a month in 2010 is 0.95%.Visitor MarketTourists/business visitorsIn 2010, international visitors to Hanoi is 1227.5 thousand,up 20.5% over the same period, domestic t ourists is 7392.4 thousand visitors, up 10%, revenue from hotels increased 26.9%HotelsAccording to figures in 2007, Hanoi had 511 hotel accommodation establishments with more than 12,700 operating rooms. Of these, only 178 rated hotels with 8424 rooms. Luxury room shortage is one of the reasons that the amount of foreign visitors to Hanoi is not high. With rates are considered quite big-ticket(prenominal) in Vietnam, about $ 126.26 a night for 5 star hotel room. In addition to nine 5-star hotel isSofitel Plaza, Daewoo, Hilton Hanoi Opera, Horison, , Melia, Nikko, Sheraton, Metropole, and Inter Continental, the city also has six 4-star hotel and nineteen 3-star hotel. According to the newly licensed projects and the recently approve investment, by 2011, Hanoi will have about 2,000 luxury hotel rooms. amusement Retail many another(prenominal) a(prenominal) options for entertainment in Hanoi can be found throughout the city. Modern and traditional theaters, cinemas, karaoke bars, d ance clubs, bowling alleys, and a rich opportunity to shop provides recreational activities for both locals and tourists . Hanoi has been named one of top 10 cities for shopping in Asia by Smart fail Asia. 12 The number of art galleries art galleries has soared in recent years. A popular form of entertainment is the traditional water puppetry, is shown at the Thang Long piddle Puppet TheatreSportsThere are several gyms and stadiums throughout the city of Hanoi. The largest is the National Stadium My Dinh , Hanoi Water Sport Athletic interlocking and the Hanoi Stadium. In 2009, the 3rd Asian Indoor Games was held in Hanoi.shippingHanoi is served by Noi Bai International Airport, located in Soc Son district, about 40ykm north of Hanoi. Noi Bai International Airport is unique to the northern regions of Vietnam. Hanoi will have 1 more international airport, which will cost $8 billion, the highest foreign investment to date in the history of Vietnam 16 It will become the largest and m ost modern airport in Asia .. Construction will be done in three phases, the first phase will start in 2011 until 2015.Taxis are a lot in Hanoi and ofttimes trip meters, although it is usually to agree on price before victorious a taxi trip from the airport to downtown. Cyclos tour in the senescent Quarter is also attracted tourists. Hanoi is also the starting point for many of the original Vietnam railway train in the country. The Reunification Express runs from Hanoi to Ho Chi Minh City, with stops in other cities and provinces along the line. Trains also depart Hanoi frequently for Hai Phong and other northern cities. The main means of transportation in the city are motorcycles, buses, taxis, and bicycles. Motorcycle is the most common way to move around the city. Citation needed the public buses that run on many routes and fares can be purchased on the bus. For short trips, xe m (literally compact vehicle) motorcycle taxis are availableRestaurants and Nightclubs ( a selection in key target market areas)Political attemptVietnam is considered one of the most stably politic regimes. This allows Hard Rocks management board to feel secure to invest the business in Hanoi. Vietnam government is establishing a system of open policies, encouraging foreign investors to invest, develop Vietnam economy and create jobs for local people.Social RiskHanoian has the habits to drink coffee in a street-cafe with a very cheap price, processed by the traditional method, read newspapers or see people passing by. Not many people are willing to flatten about VND 80,000 on drinking a small coffee that Hard Rock may apply that average price for its items. Furthermore, the local peoples taste of coffee is different. They normally drink stronger taste than the other countries. Robusta coffee here is more popular than Arabica, not as in Europe or America.However, the main targeted customers of Hard Rock Caf are from tourist and business visitors not from local people. So these c hallenges are not really the one Hard Rock Caf cares of.Real Estate Marketlocation is a very important element for a cafe to be successful in Hanoi. The cost for a centre position (around Hoan Kiem Lake) is very high and most of them are dominated by both foreign and local cafe brands, such as Highland, Illy, Trung Nguyen (famous coffee exporter with the trademark G7). There are also potential competitors like Coffee Bean, Subway, Gloria Jeans Coffee, etc.Hoan Kiem Lake.Similar to Ho Chi Minh City, Hanoi is enjoying extremely fast development of real estate market 19. Economic growth of urban areas does not seem to correspond to its infrastructure. Overpopulation requires a source of much larger accommodations 20 Not surprisingly,. As an effect of this problem, the flatcar and real estate fever occurs during the time seriously. 21.So, its really a big operation management challenge for Hard Rock Caf to consider whether rent or building the new one during the period of at least(pr enominal) 10-15 years.Hard Rock Caf Comparable Market AnalysisIn summary, all of these elements create difficulties but also open promising opportunities for Hard Rock to decide the suitable plan when studying the business expansion into Hanoi. It always be the concern for all Operations Managers to make the right decisions, not only for Hard Rock Cafe.