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Mandatory assignment 'Project 2', for operations and management....

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Project #2

Problem 1: The first problem asks for the discussion of how Hard Rock Cafe’s strategy has changed since its founding in 1971. The cafe went from one small location in London to a multinational chain. When Hard Rock Cafe first opened, it was a much simpler cafe than it is now. As it began to grow in the market, Hard Rock Cafe differentiated itself from other competitors through a new strategy. The new strategy entailed giving consumers a unique experience through its entertainment, music, and food. Also, most of its locations were just in cities in which many people visit, but Hard Rock began opening more locations outside of the cities that typically attract tourists. Hard Rock Cafe also aims to be more flexible with its menu, especially in its locations outside of the United States. As Hard Rock Cafe continues to grow, its ultimate goal is to attract both repeating and new customers. Problem 2: The second problem asks how Hard Rock Cafe’s responses have changed in terms of the 10 decisions of operations management. In order to remain a strong competitor in the market, the cafe must continuously respond to demands from consumers. The location of each cafe is a factor that determines what changes need to be made to please the consumers of that particular area. When Hard Rock Cafe started in London, it focused primarily on serving lobster and fish. The foods served changes when looking at a local population’s tastes in food. The cafe also adjusted its strategy in terms of where to open new locations. As mentioned earlier, the first location was in London, but then more were opened only in cities that attract many tourists. Hard Rock is now diving into areas outside of tourist cities in attempt to increase presence in the market. Besides adjusting menus and opening new locations, Hard Rock Cafe’s supply chain management has also changed. A little less than half of its sales come from consumers purchasing merchandise, which led to Hard Rock including a retail store with every restaurant. Again, this is also a result of consumers enjoying the unique experiences offered by this restaurant. In the feedback loop (Appendix A), consumer experiences lead to strategy operations, which also leads to marketing research in other countries, and finally, making changes based on research. There are also additional resources, such as money, that help implement the changes needed. Problem 3: The third problem asks how Hard Rock Cafe fits into the four international operations strategies, global strategy, transnational strategy, international strategy, or multidomestic strategy. Out of these four, Hard Rock Cafe fits best into the Multidomestic Strategy. It is characterized by the use of a chain’s domestic model around the world, which is what Hard Rock Cafe does in its locations outside of the U.S. In addition, Hard Rock Cafe is a franchise. Hard Rock Cafe is similar to Heinz, McDonald’s, and The Body Shop, all of which also fit into the category of Multidomestic Strategy. The feedback loop presents the relationship between two systems, which both involve international operations. The loop on the left (Appendix B) involves local owners of the franchise, and those owners are able to accommodate more easily to local demands. This will then attract more customers in a particular area, which ultimately increases demand and expands Hard Rock Cafe. The loop on the right (Appendix B) depicts how market research leads to changes made to the restaurant, which will finally improve multidomestic operations. Appendix:

Appendix A:

Appendix B:

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