Hard Rock Cafe is one of the world's leading and well-known brands in restaurant industry. Hard Rock cafe is a chain of casual eating out restaurant. First Hard Rock was opened in London, 1971. It was found by Isaac Tigrett and Peter Morton. The mission of Hard Rock and roll is to provide their customers with original experience and attract new clients. Within the 1980s, Hard Rock and roll Cafe was typically the most popular when some people employed in the hobby of going to as many locations as you can and collecting a Hard Rock and roll t-shirt bearing the Cafe company logo and the location name. The string began global expansion in 1982 when Isaac Tigrett and Peter Morton agreed to develop their own cafes across the world. At current day, it has 169 locations in 51 countries worldwide (Hard Rock and roll, 2010). And it continues to grow with several more in the works. The question being raised here is how has a small Hard Rock restaurant that originated in London, England become one of the most well-known brands over the world?
Differentiation Strategy
"The secret is never to play the overall game better than your competition, but to develop and play an totally different game. "
-Professor C. Markides of the London Business School
And, yes, Hard Rock has played another type of game - the experience game!
Hard Rock Cafe is using differentiation strategy to achieve competitive benefit on the marketplace. It is considered a smart strategy. They find the ways to identify that create value for customers and that are not easily matched or cheaply copied by challengers. Hard Rock provides meals and markets hotel rooms. Numerous others also do that. Even there are other music related restaurants. But what make the Hard Rock and roll not the same as others is that it sells a complete Rock & Spin experience.
There can be an insatiable hunger for music as a reminder of the moments in one's life and music can generally bring peacefulness in mind and happiness to people. A 20-year-old can come in there and see memorabilia from Godsmack or a 60-year-old can come in and see something from Friend Holly or Elvis Presley. Music is the tie up that binds, regardless of your age. Additionally it is about making a soundtrack to the brand that individuals recognise. When the clients go inside, it feels familiar that is certainly not simply because of how it appears, it is the sound. Hard Rock and roll is built on that idea. That is what sort of brand becomes multidimensional. And they're successful! Hard Rock products are highly appreciated by customers. Customers develop devotion to brand and it helps to beat competitors available on the market.
10 Functions Management decision making
Strategy is the route and scope associated with an organisation over the long-term, which achieves benefits in a changing environment through its configuration of resources and competences with the purpose of fulfilling stakeholders' prospects. The main aim for of any company is to make competitive edge over competitors. To create this advantage, firm must find a right strategy. Hard Rock's strategy is to provide not just a custom meal from the menu, however the complete experience with a unique visual and sound experience. The customers can find this experience at nowhere else in the world but Hard Rock and roll. And it can be achieved when managers make effective decisions in 10 Regions of Operations Management. They are simply collectively known as functions decisions.
Hard Rock and roll Cafe provides a unique experience with their goods and services offered by the restaurants. Hard Rock gives many amenities from cafes, to hotels to casinos, to reside in music and to huge Rock fest concerts. Furthermore, when Hard Rock and roll broadened to global, it given its menu for local taste because of the social norms. For instance, when they extended their chains to the Unites Stated, they changed their menu with Typical American foods such as hamburgers, chicken wings, you need to include higher-end items such as stuffed veal chops and lobster tails. And for the menu of Hard Rock and roll Cafes in British, they focuses more on seafood and lobster and less on hamburgers and beef (Heizer & Render, p. 83). Hard Rock and roll also keeps carrying on update their menu to meet the customers' need.
One of the special things about Hard Rock is its music memorabilia collection. Through the entire years, Hard Rock has gathered a assortment of items which are area of the Rock record. They not only solicit donations of music memorabilia, nonetheless they also bypass the world and buy lots of items at auctions. Nowadays, Hard Rock and roll becomes the world's major collection of such items.
Another key that contribute to the success of Hard Rock and roll Cafe is the inclusion of its own brand merchandise. About 48% twelve-monthly revenue of Hard Rock and roll comes from goods sales (Heizer & Render, p. 83). The basic Hard Rock and roll t-shirt was created when the original cafe sponsored an area basketball team. The t shirts became a popular item and lead to the creation of the line of merchandise that can be an important part of Hard Rock's business today. Aside from the classic tee, there are various styles of shirts, hats, jackets, glassware, shot glasses, etc.
Many of the items are believed to be collectibles and the clients can generally purchase at Hard Rock's cafe, hotel, and modern casino specific or from its website.
Quality:
Hard Rock Cafe identifies quality of their properties by performing numerous studies to get a genuine evaluation from its customers. They take great pride in themselves on quality from the music, food and atmosphere. Their survey is over a size from 1-7, and anything significantly less than a 7 is considered failing (Heizer & Render, p. 56). It means that they want to reach to the customers' highest satisfaction. Bottom on customer studies and reviews, their menu will be changed with the changing times to fulfill customer recommendations consequently.
In addition, Hard Rock Cafe not only targets the actual quality of food and items, but also targets the visible and auditoria quality as the grade of the initial experience. The experience itself is their product. The employees at Hard Rock and roll Cafe are accountable for giving the very best quality of their products to its customers. The waiters, chefs and crews give their effort through their services through catering customers and providing them also the best food which meet their taste and personal preferences.
The process and capacity design is exactly what drives your choice of the locations of the facilities. Hard Rock Cafe creates products in an reliable manner, by analyzing them for cost success and by labor requirements.
Location selection:
Understand that location is a significant long-time, and can make or break business strategy; Hard Rock and roll has to choose the right location's strategy to expand its cafe chains.
Because of Hard Rock's customers are those who not only patronize the meals they offer, but also love music, Hard Rock Cafe chains need to choose places which is convenient to its respected customers. Furthermore, in addition they should be place in the areas that are fewer competitors concerning their line of business. Another important that would have to be concerned is the positioning decision must also get worried with some obstacles such as: political risk, currency risk, and public norms.
Hard Rock Cafe has widened to more than 157 locations across the world. And approximately a 70% of Hard Rock customers are tourists. That is good so far as the best holiday regions are traditionally good marketplaces; however, this plan also makes Hard Rock to depend on the tourism. For example, when the market will go downturn, there would be less people who spend their money for travel, it'll influence to the productive of Hard Rock and roll. Seeing this downside, Hard Rock advances another strategy is signing a long-term rent for cities that aren't standard tourist vacation spot such as Manchester and Birmingham. This is a good move for Hard Rock and roll because it can make Hard Rock and roll less reliant on the tourists (Heizer & Render, p. 83).
Layout design:
Hard Rock and roll cafe are present for 39 years and it increase its business to a global ability managing 129 cafes, 12 hotels, casinos, live music venues and an enormous Rockfest concert (Heizer & Render, p. 56). Each cafe is a "museum in the surroundings of any bar-restaurant. " The business also added new designs and memorabilia to its place to be able to fully capture more customers. Light, sound, screens, modern day music and blood circulation plans are made to show memorabilia and expose items to customers.
Human learning resource and job design:
"The design, memorabilia, music, and videos are important elements in the Hard Rock 'experience' but it falls on the waiters and waitresses to make the experience come alive" (Heizer & Render, p. 445).
Hard Rock's school of thought is to employ only individuals who are best trained. The human tool department supports the entire theme restaurant strategy giving aggressive screening, including an analysis of the way the employee will contribute to the Hard Rock experience. Their hiring decision isn't just on encounters and qualifications, but also on the candidate's interested in music, their potential to tell a tale, and convey the experience to customers. These decision conditions ensure that their employees' interests and right fit with the business. And that can steer clear of the hiring problem, thus decrease the turnover.
They give great advantage offer and effective indoctrination and training, empowerment. In addition they admit culture of variety and give attention to team world and even outside volunteer work. Hard Rock and roll also creates a vibrant working environment so that employees desire to be an integral part of a team. They know that so long as they can make the employees feel important and become a part of that team, the employees would want to stick with their employer. Using adaptable schedules are also great strategy and could be the difference between employees keeping yourself and going out of the restaurant. The individuals resource division of Hard Rock recognizes that they responsible for a critical element in Hard Rock's strategy. So they need to recruit and retain the individuals capital that is essential to satisfy that quest and strategy.
Supply-chain management:
Hard Rock work with qualified suppliers to ensure fresh, quality dishes. Menu item selection will depend on providing right amount of ingredients from certified suppliers on time
Inventory:
Their inventory includes unique things related to rock history, the memorabilia, special accessories and a particular menu. The collection includes 1, 000's of pieces, worthed at $40 million appreciated memorabilia are catalogued, each part is known where to be. Memorabilia of all cafes round the world are renewed each 5-6 years
Scheduling:
Understanding that arranging performs an important role to the succesful of Hard Rock. A good arranging can bring to the organization better by providing customers promtly, and much more efficiently by minimizing cost (Heizer & Render, 647). To have an efficient scheduling's strategy, Hard Rock and roll Cafe used the scheduling software, and sales forecast.
When forecasting sales in service industry, business must consider several factors related with their business. For Hard Rock and roll Cafe, they have to take into these things to consider: community happenings in the region, seasonality, holidays, time of day, day of week, sales development in last few weeks, and meals dished up is essential for effective forecasting of sales. Occurrences happening in the region, and using historical data for the entire year prior is also a highly effective way to the sales forecast. Hard Rock Cafe must understand these factors immediately affect sales in the restaurant because by exact forecasting and supplying the client what they need, they can achieve successful in their business
Considering seniority is important in staff arranging. The employees who've worked for the company for a long period are usually more experience and convenient about the work. Thus, strategically scheduling each of them in each move will distribute the experience and competence. Also be observed that 70 percent70 % of the guests are travellers so this means that they need to have versatile schedules in their restaurants in order to provide services adapted to different cultures and demands.
Maintenance:
Hard Rock and roll Cafe is redesigning its restaurant to support the changing its preferences. Kitchen, club, retail shop structure and equipment maintenance and maintenance of memorabilia. The menu review and studies are also need to be maintenanced to meet up with the customers' need.
Expansion into Hanoi
As we critically above, by using effectively operations management strategy, The Hard Rock Cafe is becoming such an effective business. Because the first Hard Rock and roll Cafe opened in 1971, and its own name has extended to grow and be successful. Nowadays, The Hard Rock and roll Cafe has turned into a well-known brand on earth. Considering an growth of its business into Hanoi, Vietnam - there are operations management opportunities and issues for Hard Rock and roll to be considered.
Vietnam is a expanding country with a land of opportunities. It is a new rising market, which is a potential investment destination. The prospect of franchise in Vietnam is huge. Corresponding to global franchisers, Vietnam is a not place for franchises: a young consumer market, high economic growth and steady politics. The climb of the center class in Vietnam also reveals an evergrowing market opportunity.
Opportunities:
Products and services design and quality:
Vietnamese economy is just about the quickly growing in Southeast Asia. The economy has been growing continuously at 7-8 percent in recent years. Growing economy point to accelerating poverty lowering, and is viewing living standards rise as throw-away income increase. Additionally, Vietnam has a populace greater than 80 million, and about two-thirds of Vietnamese aged below 30 years, who are brand-conscious, trendy and adore the Traditional western lifestyle (Vietnam Reports, 2010). Especially in the cities, consumers demand is surging for higher quality products and services. And the neighborhood production cannot gratify them. Thus, franchising businesses that present high-end products and services with a Western lifestyle may help meet that growing demand.
Therefore, as for products and services design and quality, Hard Rock and roll is doing very well if they expand their business in Hanoi. Hard Rock and roll brand is well received by local customers who relate them with superior quality, excellent customer's service, and a Traditional western life-style.
Location:
Vietnam is obviously a safe location to enter as a result of politically stable. Understanding that franchises can create jobs for locals, and they can help drive its market, Vietnamese Government increase economic development and stimulus package deal in the Vietnamese market by using versatile guidelines, and welcomes international investment. In addition, Hanoi is a capital of Vietnam and is also also a vacation spot of travel and leisure from many countries. And that is clearly a good fix for Hard Rock because its main goal customers are the tourists.
Human learning resource:
One of the advantage for Hard Rock and roll available its cafe in Vietnam is the low cost of labor. Also, there a wide range of young Vietnamese nowadays are actually passionate about Rock & Move music, and also have the capability to convey the knowledge to the client. So it's totally easy for the restaurant to find the right employees that fix to the image of Hard Rock and roll Cafe.
Supply-chain management:
As for the supply-chain management, in Hanoi, Hard Rock can easily find the certified suppliers to acquire raw materials with an inexpensive price but still ensure its fresh, quality foods to serve the clients.
Challenges:
Considering an growth of its business into Hanoi, and to achieve success in Vietnam, Hard Rock Cafe should take the following concerns into account:
Hard Rock needs to aware of the cultural variations. They must take local culture, behaviors, and tastes under consideration and adjusts their market strategy accordingly to be successful in this market.
They also have to be very sensitive to product prices and franchising fees for growth in Hanoi. Vietnamese are very price-conscious and local incomes are substantially lower than a great many other countries in the region. Moreover, local buyers may not be familiar with and are hesitant to invest huge amount of money in a fresh business concept. This type of of the market will require a flexible approach.
Human reference:
Another concern for Hard Rock's individuals resource when it comes to decision enlargement into Hanoi is picking the right get good at franchisees. This is the most challenging and time-consuming task of most in the global development of Hard Rock franchise. They need to remember to find, evaluate and execute diligence on master-franchise candidates. They also need to consider the added cost of training and support across many times zones.
Conclusion
The strategy of Hard Rock and roll has been led by the differentiation. The Hard Rock and roll has made unique its products and its own services. Hard Rock and roll Cafe has brought the idea of the 'experience current economic climate' to its cafe procedure. At Hard Rock, the experience theory isn't only to give you a custom meals from the menu, but also distributed the heart of rock'n spin to its customers. It really is successful employing this experience strategy, and Hard Rock Cafe became an extremely recognized brand across the world because of its functions management.
After carefully evaluated the businesses management strategy of Hard Rock and roll Cafe and considered all the opportunities and obstacles for Hard Rock Cafe when contemplating an enlargement of its business into Hanoi, I strongly believe that the business enterprise will be heading successful upon this market. With a big young consumers market, growing throw-away income, steady politic, and also as the local people have become more receptive to international brands; Vietnam is unquestionably a good destination and a perfect time for Hard Rock and roll Cafe to enter to the market and franchise its brand.
