Mis Hardrock Case

Sec7 MIS2301 Spring 2014

Hard Rock Café case

Jia Han

1/31/14

1. What problems did the Rank Group find with the Hard Rock’s three main internal information systems (restaurant operations, Merchandising, and financial)? Why was this a problem?

Internal information system | Problems | Why |

Restaurant operations | * Lack of operation standards between franchised restaurants so it is difficult for the corporate to analyze sales as a whole * No efficient way of tracking all transactions on a grand scale * Flow of business process are in mess * Lack of information security * Difficulty for corporate office to analyze sales record | * There were different owners/franchisers implemented their restaurant management system. The restaurant operations, merchandizing data, and financial information were all reported and reported uniquely from business to business * Lack of good certain hardware and software and processes were broken and communication was even worse |

Merchandising | * No chain wide merchandising system, no consistency in inventory system * Inventory are either over or under purchase * Inaccurate sales report | * The merchandise inventory system that was being utilized was controlled by restaurant managers with no prior merchandizing experience and therefore did not understand the importance of keeping a quality inventory record * No automated system to keep track of inventory purchased or ordered |

Financial | * There was too much recording taking place, unable to detect discrepancy * The financial system wasn’t updated frequently enough to catch the missing loot | * 50 ledgers and 90 finance staff members were costly, inefficient time wise and there was more room for error * No one trusted the system thus no one use the financial system anyway because the inconsistencies in the reporting process and transportation of the information itself faced large inaccuracies * Different applications are used, like...