Hrc 10 Strategic Om Decisions

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Submitted by to the category Business and Industry on 03/13/2011 01:46 AM

Critically evaluate the operations management strategy of Hard Rock Cafe as

described in the attached case materials (50 marks).

Hard Rock Café: At a Glance

Hard Rock Café (HRC) was founded in 1971 as a rock ‘n roll theme pub in London. After 40 years of existence, through strategic franchising and expansion as well as efficient operations management, Hard Rock Café has expanded into a theme restaurant/hotel/casino chain operating in 40 countries around the world. Its 120 and growing cafes and different venues greet more than 50 million customers a year, employ more than 7000 people worldwide and the Hard Rock brand recognition is 92% worldwide, topping it on the list along with other giants like Coca Cola. In this part of the report, we will go through operation management analysis of Hard Rock Café, mainly based on the 10 major decisions of Operation management as suggested in (Render & Heizer, 2011).

Hard Rock Café: 10 major Operations Management decisions

10 major decisions of OM

1. Design of goods and services

2. Managing quality

3. Process and capacity design

4. Location strategy

5. Layout strategy

6. Human resources and job design

7. Supply-chain management

8. Inventory, material requirements planning, and JIT

9. Intermediate and short-term scheduling

10. Maintenance

10 major decisions of OM

1. Design of goods and services

Figure 1:Hard Rock Café's products and services

First of all, the managers at Hard Rock Café always keep in mind that the products that they are offering to customers are not only meals, drinks or souvenirs but intangibly the full experience of Rock & Roll once they enter through the door.

The revenues of HRC comes approximately 40% from selling merchandise and the rest from dining menus, drinks, hotels and casinos and organized rock concerts. However, this revenue contribution does not make an implication that any of these lines of products and services is of more importance. In fact, all of these...

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