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Case Study1

Hard Rock Cafe Inc. is an international food service, hospitality, and gaming business that was founded in London in 1971. It is known for its themed restaurant experiences focused on rock and roll ambiance. The company experienced significant growth in the 1990s and now operates restaurants, hotels, and casinos in over 70 countries. In 2007, the Seminole Tribe of Florida purchased Hard Rock Cafe Inc. and moved its headquarters to Orlando. The success of Hard Rock Cafe is partly due to its effective operations management, which addresses the 10 key decisions around service design, quality management, capacity, and location. It competes against other dining and entertainment brands.

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92 views2 pages

Case Study1

Hard Rock Cafe Inc. is an international food service, hospitality, and gaming business that was founded in London in 1971. It is known for its themed restaurant experiences focused on rock and roll ambiance. The company experienced significant growth in the 1990s and now operates restaurants, hotels, and casinos in over 70 countries. In 2007, the Seminole Tribe of Florida purchased Hard Rock Cafe Inc. and moved its headquarters to Orlando. The success of Hard Rock Cafe is partly due to its effective operations management, which addresses the 10 key decisions around service design, quality management, capacity, and location. It competes against other dining and entertainment brands.

Uploaded by

Ronald Malicdem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Case Study: Hard Rock Café Inc.Hard Rock Cafe Inc.

is a food service, hospitality, and gaming


business originally focused on operating casual dining restaurants. Founded in London in 1971,
the company developed its brand through the themed restaurant experience. Customers are
typically greeted with an ambiance of rock and roll. The company experienced significant
growth and expansion in the 1990s. Today, Hard Rock Cafe is diversified, with operations in the
food service (themed restaurants) industry, gaming (casino) industry, and hospitality (hotel)
industry. The company has also achieved global status, with restaurants, hotels, and casinos in
more than 70 countries. In 2007, the Seminole Tribe of Florida bought the company. At that
point, the Hard Rock Cafe Inc. headquarters were moved to Orlando, Florida. This business case
is an example of how thedifferentiation generic strategy can support business development.
Also, this case of Hard Rock Cafe shedslight on the importance of effective operations
management to facilitate business growth and expansion in industries with high
competition.The success of Hard Rock Cafe is partly linked to the firm’s effectiveness in
addressing the business needspertaining to the 10 decisions of operations management. Also
relevant are the productivity principles and concepts on personnel and other areas of the
business organization. Hard Rock Cafe directly and indirectly competes against other firms, such
as Hooters, Twin Peaks, and Planet Hollywood, as well as food service chains like McDonald’s,
Burger King, Starbucks, and Dunkin’ Donuts.Hard Rock Cafe: 10 Decisions of Operations
ManagementThe 10 decision areas of operations management are critical considerations for
managers to improve business operations. The goal is to develop operations that satisfy
business objectives, while minimizing problems that cause inefficiency of operations. At Hard
Rock Cafe, these 10 decisions are applied to ensure that the brand, company reputation, and
financial targets are met. The company’s success is dependent on operations management,
among other factors in the business and industry environment.1. Service and Product Design.
Hard Rock Cafe applies service and product design decisions to maintain the Hard Rock
ambiance and brand image. For example, such ambiance and image represent the hard rock
culture, with emphasis on what the music genre means to the company’s target customers.
Managers assess different attributes of target markets and apply modifications to the products
and services to suit the specific demands of the local market. Still, these products and services
consistently follow the general specifications of the Hard Rock Cafe brand image.2. Quality
Management. Hard Rock Cafe applies quality management by maintaining a specific quality
assessment role for the operations manager. The manager uses the firm’s quality standards to
identify issues and weaknesses in operations. Recommended changes are then applied to
ensure compliance throughout Hard Rock Cafe. For example, the company adjusts quality rules
as a response to changes in the market condition, with consideration for social trends that
affect the business.3. Process and Capacity Design. Hard Rock Cafe’s process and capacity
design refers to internal business processes and the target capacity of facilities. Internal
business processes include food preparation, order routing, reservations, and others. The target
capacity of Hard Rock Cafe facilities is based on the condition of the local markets. The
company applies process and capacity design decisions to maximize capacity utilization.
Capacity planning is adjusted to address changes in demand based on seasonal events in the
local market, such as festivals and holidays.4. Location. Hard Rock Cafe decides about the
location of its businesses based on market analysis and industry analysis. Market research is
applied to determine if the market can support aHard Rock Cafe in terms of revenue and
profitability targets. Industry statistics are used to determine if expanding the firm through
additional locations is feasible. The company’s executives Chapter 1: operations and
productivity
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