Hard Rock Cafe company Case Study
From there the company adopted many more transformations Including adding stores, upgrading Its menu, moving to places that are not typical tourist destinations, and most effective of all, including live music and rock concerts into the overall customer experience. Hard Rock elevated dining to a whole new level by shifting to “experience” selling, a dining event that includes a unique visual and sound experience not duplicated anywhere else in the world”. To create this unique experience, Hard Rock invested millions in creating a visual and acoustic scenario perfect for their guests.
They also introduced into their ‘experience’ concept their own merchandise, which is unique in each location and provides a huge income to the company. Hard Rock is known for its extensive and museum-worthy memorabilia and merchandise.
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Today, its memorabilia collection is estimated to be worth $40 Million. Each restaurant rotates the items to keep the experience new. 2. As Hard Rock Cafe© has changed its strategy, how has its responses to some of the 10 decisions of MM changed? A.
Design of goods and services Hard Rock Cafe© opted to put more value on local taste which meant a whole new lot f customized menus. For Instance, Hard Rock focuses less on hamburgers and beef and more on fish and lobster In Its British cafes. Each meal goes through design, testing and evaluation Just to deliver talents Hard Rock experiences. “As an average customer only visits Hard Rock Cafe© once a year, the quality must be exceptional every time. ” In addition, surveys are done on a regular basis” to enhance customer experience at the cafe©.
This Is Hard Rock Cafe©’s commitment In making total experience as Its edge over competition.
D Managing Quality Each item on Hard Rocks menu must receive a seven out of seven on quality surveys otherwise it is a failure. ” This strict quality standard requires them to completely review their menus and conduct food research to guarantee its customers with the world class quality the cafe© is known for. C. Location Strategy “70% of the Cafe©’s customers are tourists. Thus, decline in tourism has an adverse effect on its business.
This paved way for an opportunity for Hard Rock to develop non-standard tourist destinations as growth drivers during economic uncertainties.
Repeat business from locals will make them less dependent on tourists” and establish a new market segment altogether. D. Layout Strategy Hard Rock Cafe© maintains an attractive layout in the store, attuned to local taste. The lighting, sound, and music, among others, are also important considerations in its layout decisions.
Having no two similar cafes seals its experience differentiation strategy. Hard Rock’s operations managers also efficiently lay out their kitchen facilities to carry out the company’s principle of “serving hot food hot and cold food, cold.
Additionally, the restaurant and bar layout are customized to guide the circulation of customers to memorabilia and merchandise. ” The objective is to persuade customers to buy a souvenir and the overall positive brand experience will make them consider visiting Hard Rock again. E.
Human Resources and Job Design The employees are the foundation of Hard Rocks success. The Cafe© prides itself in having robust training for all its recruited employees. Its belief is to always keep employees motivated and well-supported so that it won’t be hard for them to deliver service with a smile.
Its employees must also fit to Hard Rocks core values which are passion for music and service. In order for employees to be the best in giving the experience to customers, Hard Rocks management also ensures the whole cafe© environment is conducive to such.
Its facility, layout strategy, inventory management, and capacity plan among others all backs up to make the working environment favorable for employees. This is all part of the Cafe©’s techniques in human resources and Job design. F.
Inventory Hard Rock Cafe©’s collection of memorabilia plays a very important role in delivering he ‘experience’ focus selling of the theme restaurant. They have an approximately 60,000 piece collection contains Rock and Roll memorabilia, which enhances the experience for customers. To maintain their $40 million inventory, the company must use an extensive and detailed cataloging system.
Since the memorabilia within the restaurants is replaced and refurbished every five to seven years, knowing what is contained and where it is located is critical to preserving the collection. . Canalling Scheduling at the Hard Rock Cafe is also taken very seriously. With 23 departments and over 600 people on the payroll in the Orlando location, many factors have to be taken into account. Sales, community events, seasonality, and trends are tracked so a sales forecast can be made to schedule efficiently and maximize revenue.
3. Where does Hard Rock fit in the four international operations strategies outlined in Figure 2. 9? Explain your answer. Hard Rock Cafe© fits in the Multi-domestic operations strategy.
Using this strategy, Hard Rock tries to achieve maximum local responsiveness by customizing both their reduce offering and marketing strategy to match different national conditions. Its signature burger may be tweaked according to the taste of the locale.
Each restaurant is dynamic and unique; its design and menu depend on the culture and preferences of its location. Only 50% of Hard Rocks cafes all over the world are franchised. This mitigate the risk factors and differences in business practices and employment law.
Local partners are however encouraged to engage their customers in a unique experience, one that is distinct and not duplicated anywhere else in the world. Hard Rock has sustained its brand over the years from initially branching out with a global strategy and into adapting a multi-domestic strategy. Reaction: There are notes and key learning from Hard Rocks strategy, which may be applicable to other companies, including those from industries that are different from that of Hard Rocks: a.
Hard Rocks multi-domestic strategy may have worked well for the company, but it does not necessarily apply to all.
A multiplicities strategy can be costly, as each local subsidiary may need to build alee chain operations to meet local demands. Thus it is often economically difficult to apply in industries that have intense cost pressures. In addition, decentralization control of value activities to local managers and franchisees can create powerful subsidiaries that behave as autonomous units. This can cause confusion, misalignment, and overall conflict. Currently, Hard Rock Cafe has expanded globally in destination cities in Europe, Latin America and Asia.
Franchising, a key aspect of the multi-domestic strategy, helps the many achieve a larger scale with a more recognizable brand name, offer franchisees fewer supports but long-term contracts. Moreover, franchising is an effective way to reduce cost, avoid political risk and cultural differences and connect local Knowledge. B. Hard Rock is known for being cool, fun, and creative. With this there is a need for the company to always come up with something new and distinctive.
There are more new local and global competitors coming up?the company must always keep itself ahead so it can continue reaching and inspiring its unique target audience.