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(a) Evaluate how Hard Rock Café’s location decision creates a competitive advantage to the firm. (10 marks)

Location is a major long-term decision, may make or break the business plan. The goal is to optimise the value of the location to the firm. Location decisions begin with a global perspective on political risk, currency risk, social standards, brand fit, social cost, market practices. The reason why Hard Rock Café's location decision has a strategic advantage over other companies in the industry is that Hard Rock's location is mainly in some regions and countries with developed tourism industry and stable exchange rate and political situation, such as Malaysia, Indonesia, Vietnam, etc. Hard Rock expands its cafés to more than 157 locations throughout the world. Most of the locations are the tourist destination. Their strategy has gained success over the decades. However, this strategy also makes Hard Rock dependent on tourism. For example, as the economy decreases, there would be fewer people who would spend their money on travel, it would have an effect on Hard Rock's production. To solve this problem or risk, the chose for Hard Rock Café is to locate in other cities which are not rush tourist cities in order to less depend on such a fragile business. This is a positive step for Hard Rock since it will make Hard Rock less dependent on tourists, thereby creating its competitive advantage. (b) Suggest the best layout design for Hard Rock Café. Support your answer by evaluating with other types of layout strategies. (10 marks)

There are the different 7 type of layout for operation the different business, that is include the retail layout, warehouse layout, process-oriented layout and another. For the best layout design for Hard Rock Café, that is process-oriented layout, this layout is focus on low volume, high- variety production, and it also can call the job shop. The layout is a combination of similar machines and equipment that allows them to handle a wide variety of products or services, such as cafe counters, kitchen tables location, and so on. Despite the high cost of labor , but this layout provides for their cafe to be able to have an effective flow between the bar, restaurant and kitchen, which greatly reduces waiting time and reduces transport. Compared with other type of layout such as the retail layout, although this type of layout is also directly facing customers, it is not suitable for Hard Rock Cafe, because this type of layout is more suitable for large locations, such as supermarkets, goods placement and so on.

(c) Recommend the best capacity expansion option for Hard Rock Café. Justify your answer. Why do you think capacity decisions are important for organisations like Hard Rock café? (10 marks)

Hard rock café should choose attempts to have an average capacity with incremental expansion. If company choose this kind of expansion, company don’t need to waste more money like using leading demand with incremental expansion. At the same time, company also don’t need to bear more risk like using leading demand with one-step expansion. So, we continue compare to the third option of expansion, it is capacity lags demand with incremental expansion, if company choose this one, which mean that their customer need to wait a long time for their service or product, and this will lead to the company lost the market position at the end. Based on the option available, we can see the attempts to have an average capacity with incremental expansion is the best option for Hard rock café. Capacity planning is very important to an organization, in order to meet the needs of customers, the company needs to be constantly upgraded. If the company stays the same, changes with the times and gradually develops its technology, the company will be eliminated by the market and no longer needed by customers, because they will have better choices. Therefore, how we make the decision on capacity planning is very important, if company fail to take consideration for capacity, company will get lose at the end. The capacity decision will affect the company's ability to meet the demand in the future. If the company ignores this problem when making decisions, the products of the company will be in short supply in the future, so customers will turn this demand to other competitors, and the company will lose its market position. Then, if the company's forecast is wrong, such as overestimating or underestimating, it will directly affect the company's operating costs. If the company overestimates the production capacity, it will waste the cost, because all the capacity expansion needs a certain cost, and the increase of the company's cost can't provide customers with lower price and good quality goods, so it loses its competitiveness. https://www.ukessays.com/essays/commerce/capacity-planning-and-decisions-commerceessay.php Capacity planning is to make sure company have the best capacity to meet the customer need and it is link together with another decision of operation management. In other words, before company make the capacity decision, they need to think about is this investment will have the profitable outcome or capture the bigger market and since capacity is one of the competitive advantage, company need to consider other element such as marketing, finance department, company mission....