Operation Management in Hard Rock Cafe

execution Management in ch each(prenominal)enging shake cafe39 years has passed, which creates a fascinating history for iodine of 100 greatest instigant in the world strong pit coffeehouse. Since its establishment in 1971, large(p) c been coffee patronise has expanded in over 51 countries with 133 tough rocknroll coffee bars and 15 Hotels / Casinos. The great success relies on galore(postnominal) m whatever factors nevertheless the core ane we can non deny is its ever-changing forbiddenline. problematic disceptation coffeehouse as well ask a shift of serving, from serving sustenance with pleasure to serving food with experience. ground on its direction, its mental process strategy is defined to providing experience.Regarding to 10 operation vigilance strategy decisions same invention of Goods and Services, Managing Quality, Process strategy, Location Strategies, charitable options, Supply Chain Management, Inventory Management, scheduling and M aintenance, in the long road of development, fleshy flutter coffee shop has obtained reckon achievements in all fields. The world recoginses its reputation and most of us heartly admize it.I myself can non ignore the stories of heavy(a) stir coffee bar eventhough it has non opened in capital of Vietnam where I am animateness. The story of its changing strategy from times, the story of its living museum, of its greatest brands, of its employees.step by step civilise me to the models of severely tremble Cafe. Sometimes the place is too far and any(prenominal)times the place is too near me. It is that those places and stories there help me get various views of wakeless escape from Cafe. found on my enjoyledge, understanding and inquiry that I am having now, I think some good come discovers and some non good points to give my own views of steadfastly swing Cafe. There go forth be opposite points that is viewed in the concept of analyzing one operation manageme nt decision not solely in theory but also in echtity.The following operation management decisions arrive for granted my interests and my thoughts.The design of Goods and Services.The not bad(p) point of designing goods and services in unenviable arguing Cafe is DIFFERENTATION. According to Anthony Henry (Understanding Strategic Management 2008), A differentiation strategy is based on an organization producing crops or services which are sensed by customers as unique or different, saturated stir Cafe has built Living museums of pit experienced by its customers who are in sleep together of controversy. One cafe with its differentiation mainly is that arguments collection including customes, instruments, slice of medication, CDs, souvernirs of the greatest artists like Eric Clapton, Bruce Springsteen The E Street Band, Pearl Jam, Neil Young, John Lennon, Jimi Hendrix.That living museums are al counsels up go out and becoming more(prenominal) and more fascinating to customers with its memorabilia (more than 70, 000 pieces) from the hottest melodic artists of the last 50 years. excessively its differentiation, it is recognized that unuttered Rock Cafe is a typical symbol of Product concept method a new tool of market. straining Rock Cafe is a crew of experiences, styles, merriment, awareness of sharing and memories. All products mentioned above are defined in specific, which creates unforgettable experience for its customers. problematical Rock Cafes customers, in fact it is so hard to call them customers as they are members in backbreaking Rock family, create the style for secure Rock. Once they come to sternly Rock, a truly deep impression would leave on them.Love all Serve all A guilding service philosophy creates a surplus place where you or anyone would be respected, regardless of age, sex or class. The place where all express their love for music one internationalistic vocabulary. The language which gives us more understan ding and narrows the gap among strangers. Not that love for music but also love for humans, love for serving humans. In service indus sieve, Hard Rock Cafe created the high connection point amid its employees and its customers.Lay out strategyBefore discussing Lay out strategy of Hard Rock Cafe, we should look at some pictures of Hard Rock Shop in Ho qi Minh City.About 48% of a typical cafes sales are from merchandise quoted in paginate 83 Principles of trading operations Management 2008 by Jay Heizer and Barry Render, this number has scann the success of Hard Rock shops.It has changed its strategy from times, which holds to the movements of the global. The world has witnessed great achievement of Wal Mart, McDonalds, HSBC.in retail field. here(predicate) it gained 48% of revenue through merchandise, which reveals the growth of retail in Hard Rock.What creates the success? One part of the answer you allow find in Layout Strategy of Hard Rock Cafe.Each Hard Rock Cafe has its own Rock shop designed in Retail layout an shape up that addresses flow, allocates space and responds to customer behavior quoted in Page 83 Principles of operations Management 2008 by Jay Heizer and Barry Render. Looking at some pictures above, you can weigh that one teentsy space display numerous of items like hats, T-shirts, shoes, gifts, picturesthat suck in customers. Customers not only are fascinated by items in the shop but also are impressed by the light, the air ignominious and Red. The combination between Black and Red or the symbol of sumptuosity and tieion calls for purchasing action of customers.Quality ManagementHard Rock Cafe establishes its property standards and takes controls to meet these standards. We will look at some points of quality management in Hard Rock Cafe.Responding to customers needs, taste and expectations, Hard Rock Cafe menus are continuously upgraded and service has been changed. To assess the quality of food and service, it regula rly conducts surveys. In the survey, scoring method is apply to discipline the quality. If the evaluating score of food and service is not up to 7, it will fails. In my opinion, quality management following the method shows strictness, arrive atness and fair.Hard Rock Cafe also takes values of technology to condition the quality of products and services. Chris Tomasso Vice prexy of Hard Rock updates monthly Microsoft meet. In a real case, to ensure the performance of the rock concert on time, Chris Tomasso gave customers anticipated surprise. The helicopter was used to take the band in, which overcome an unexpected traffic jam. It was the back-up plan that Microsoft Project had put Chris Tomassos ideas into reality. Moreover, techniques and software support Hard Rock s managers to carry efficient schedule, to estimate budget performance, to estimate time service, to daily foretaste sales, to allocate work press and to give bonus.All the things have been done in professiona l way to meet the standard of the quality management.Regarding to quality management, whenever and wherever, Hard Rock Cafe opens a new cafe, all of us take luck to enjoy live musical performances. In opening celebrations in Las Vegas and in Ho chi Minh City, the shows of Chris Cornell and DMC respectively created a high goose egg atmosphere and oversp transform the excitement not only for rock lovers but also for the youth, for the peck working in entertainment indus estimate. Through it, we deep understand how great and strong Hard Rock is. military man ResourcesIn a company, especially in a big corporate like Hard Rock Cafe, there is a bulk of tasks for Human Resources Department. Besides the job of recruitment, maintaining, training, creating career development and personal growth, the challenging task Human Resources takes is to providing a nice working environment for employees. According to Hard Rock careers, This place is revolutionary wherefore? Because you can be who you are because who you are defines you, the employees are exceedingly respected. Beyond on my understanding, Hard Rock Cafe is creating a working environment in which each of us takes opportunity to prove ourselves and to promote our career path. It is so wise to do that, to attract job-seekers and to create a competitive advantage for Hard Rock Cafe.In October 2010, according to BBC News dated on 13 October 2010 50 jobs at risk as Cardiff Hard Rock Cafe closes. If I were one employee of Hard Rock Cafe Cardiff, clearly, I would be in an unexpected situation as it has closed suddenly as staff prompt to celebrate its seventh birthday. One question here is that whether Hard Rock Cafes employees in Cardiff location are trully informed timely or not? Some employees whitethorn find another jobs, some employees may transferee to other Hard Rock cafe in London, Dublin, Edinburgh, Manchester, some employees may be unemployeed. I myself wonder the real case would get any support from Hum an Resources of Hard Rock Cafe.Furthermore, in Human Resource strategy of Hard Rock, outstanding remunerate and proceedss are a go forth quoted in Principles of Operations Management 2008 of Jay Heizer and Barry Render Page 445, is an attracting invitation to employees. Honestly, you and I try our best to work for high income, and it is the same for the others or for the employees of Hard Rock.However, in one article posted on BBC News Hard Rock wages below minimum by Martin Shankleman Business correspondent dated on 18 July, 2008, we should seriously consider Human Resources Strategy and its implementation. In this article, the unnamed waiter of Hard Rock said Its an abuse of customers they are being misled in that they believe they are giving a heyday when they are subsiding the actual wage. One question raises in my mind, in fact, there is a big gap between outstanding soften and the wage?In the article mentioned above, Its almost insulting, no wonder muckle leave said the waiter. In my understanding, people leave it means the employees of Hard Rock had given up their jobs. The reason for them to leave is unreasonable pay? I wonder where the point of outstanding pay is. If I read one article in one book, If I saw only things written on Hard Rock website, I would take only one side of the coin or I would see one thing in one direction without arguments, without feedback, without consideration.In general, regarding to 4 operation management decisions (Product and Services Design, Lay out Strategy, Quality Management and Human Resources) I am taking in consideration, the different views are discussed and examine in some aspects. Some give us a perfective aspect model of Hard Rock Cafe in operation management. That we highly respect and admire the achievement, the improvement and the innovation of the world leading Corporate. In the other side, we still see some not good points of Hard Rock. In fact, those points may be in argument, may be unresolved , which leads us researching and discovering in reality through our own experience. Only taking a real experience gives us the whole picture with light and shade, with color of black and white, with ideas and the real spankingity.HARD ROCK CAFE HANOI16 Dec 2009 was one day marking the step of Hard Rock Cafe in VietNam, curiously in Ho Chi Minh City. Hard Rock Cafe Ho Chi Minh is run by Viet Siamese International (VTI) the owner of Highland Cafe. Based on its statement The silk hat of Both Worlds, VTI develops Hard Rock brand following VietNamese tradition. Based on the information I have got throung internet (www.toursvietnam.net), articles, Hard Rock Cafe is not populated. There are so many people asking for raising Hard Rock Cafe Ho Chi Minhs quality standard. Customers there concern too much its price. The problems may vista Hard Rock Cafe Ho Chi Minh in create its business.Those are some views of Hard Rock Cafe Ho Chi Minh. And what about the future of Hard Rock Cafe com ing to capital of Vietnam? The youth and rock lovers in capital of Vietnam keep their ears to the ground as it is coming in capital of Vietnam in 2011? What are waiting for Hard Rock Cafe capital of Vietnam? What are the opportunities and challenges for it?OPPORTUNITIES are regarded as an lovable call for Hard Rock Cafe expanding in capital of Vietnam. Hard Rock Cafe will take opportunity to meet the demand of the preteen race in HaNoi. In 2010, according to General Statistic Office of VietNam, the population in HaNoi is 6.5 billion and the number will increase to 7.7 million in 2015. Moreover, most of the population is in the age of working and median(a) personal income is estimated up to USD 4,300 / year. All the numbers creates the great demand for entertainment in HaNoi today and tomorrow.Another point we shoud not strike down is that from times, HaNoi youth changes their lifestyle and consumer behavior. The night of 12th November witnessed the youth HaNoi burn themselves with rock. At the night, Tiger Translate Metropolis 2010 gave an impressive show to fan rock in HaNoi. It was a sleepless night of HaNoi youth. We can imagine how expectable and excited the youth welcome Hard Rock Cafe in HaNoi.Due to young population of VietNam and particularly in HaNoi, Hard Rock Cafe may take the advantage of labor cost. The average personal income in HaNoi is around USD 2,000 2,500 / year, which is a big gap comparing to personal income in London or other cities. The income shows how cheap the labor is in HaNoi. Simply, Hard Rock Cafe can balance the cost the benefit. Locally, in comparison with labor in Ho Chi Minh, labor cost in HaNoi is land than in Ho Chi Minh. Regarding labor cost, HaNoi offers Hard Rock Cafe a very favorable condition.According to Smart affect Aisa A travel magazine, HaNoi is voted one of 10 attractive holidaymaker destinations in Asia. In 2010, HaNoi has welcomed 1.4 million tourists and the number will go up more, especially in the hope of the worlds frugality recovery. During 39 years, Hard Rock Cafes winning strategy is to expand to destination cities. Hard Rock Cafe would not miss the chance of doing business in HaNoi one destination cities in Aisa. In fact, HaNoi residents expect more new mannikins of entertainment to attract domestic tourists from other provinces in the northeast of VietNam. Hard Rock Cafe will gain much benefit with new one in HaNoi from its foreign and domestic toursists.In 2013, according to the report of PriceWaterhouseCoopers about the Prospect for delight and Communications Industry, VietNam will achieve USD 2.3 billion of market value. The report estimate the growth of Entertainment and Communication Industry 16.7% the highest level. The growth create chances for Hard Rock Cafe and service industry in VietNam. Based on its software and computered programs, it is not difficult for Hard Rock Cafe to estimate potential earnings.Both entertainment industry in VietNam and service of Hard Rock Cafe take benefits of each other and support themselves for development and growth.VietNam has strengths of exporting cafe, textile and horticulture foods. All the things create a strong supply chain for Hard Rock Cafe to choose. One of supply chain strategies Hard Rock Cafe may define is negotiating with many suppliers quoted in Page 457 of Principles of Operations Management by Jay Heizer and Barry Render. Opening a new one in HaNoi, Hard Rock Cafe has in hand numerous of division suppliers. It is so clear that Hard Rock Cafe takes a lot of advantages from them. Cheap and diversified ingredient is one advantage. Another is the long-term cargo of those suppliers because of fierce competition among them. One another is updating menus that satisfy customerstastes and local culture.Opportunities and challenges play as two sides of the coin. One side we should look at to take chances just in time for creating advantage of doing business. In business, we try to search for opportunities of increasing profit, opportunities of expanding market share, opportuinities of remaining our power, our positionComplying with them, challenges continuously occur and force us to be awared of and to overcome. What CHALLENGES are for Hard Rock Cafe with a new one in HaNoi?There is a clear difference between culture of the North and the South, between record of the Northerners and the Southerners, between life style in HaNoi and lifestyle in Ho Chi Minh. People in HaNoi is more conservative than those in Ho Chi Minh. For a new one, it takes a little interminable time to accept, experience and like it. It can be said that conservativeness typifies personality of the Northerners. Because of conservativeness, the life style of HaNoi is not so exciting as it in Ho Chi Minh. Most of people enjoy their lives with family or in a small cafes without much noises. They lead a life in a less quiet and less exciting way than those in the South. From times, they have changed but the tradition have much captivate on their changes.The people in the North prefer saving coin to spending it. Whenever earning money, their habit of putting money in savings becomes too popular. Unlike the people in the South, overspending is usually avoided. Due to low in person income, when taking any service, they put too much concern on the price. The price may limit their spending on entertainment. This challenge Hard Rock Cafe should take in consideration.The price of real dry land in HaNoi is evaluated too high eventhough comparing to Beijing, Shanghai, Tokyo, LondonLocation plays as vital factor of determining the success of one business, especially the business of Hard Rock Cafe in which location is on the top of concern, research and investment. It is estimated that about 50% operating expenses belongs to location investment. The price of location in destination cities like HaNoi causes headache for investors. This challenge is facing Hard Rock Cafe for a long peri od as real estate market in HaNoi will be hotter and hotter when the economy recovers, when the finance activities flow strongly and smoothly.From 2010, VietNam Food Administration focuses on the sentry duty goods. VietNam Food Administration gives Regulations for evaluating the quality of food. Firstly, the main product of Hard Rock Cafe is food and the food quality needs to meet international standards and vietnamese standards. The problem may arise if those standards are defined in different ways and evaluated based on different criteria. Secondly, for suppliers of Hard Rock Cafe in Viet Nam and in the world, what adjustment can be do not to violate the Regulations of VietNam Food Administration. Some suppliers may meet the requirements and adapt to the changes. Some may not meet the requirements and change their own kind of business or stop doing business. There will be a shortage of suppliers, which results in price increase. This challenge sometimes cause problems in quality management.Doing business means searching and capturing opportunities timely. Besides it, facing challenges and overcoming them plays as motivating factor for growth and success. It is so important for us to take business opportunities in developing markets. HaNoi attracts investment due to its development, its unexplored potential, especially in service and entertainment industry. If I were one of marketing managers taking the task of opening a new Hard Rock Cafe HaNoi, I would recommend one idea as follows.Based on the theory of Differing Marketing Tasks. Even if globally sold product varities are similar, the marketing task can vary geographically quoted in Page 285 Competitive Strategy 1998 by Michael E.Porter, I would carry out one promotional campaign called Love Rock Shop Rock. Why do not I build a connection music network of High schools, Universities and Rock lover clubs in HaNoi? A greeting card valued one souvernir or one small gift of Rock Shop should be presented to the youth in HaNoi before the coming of Hard Rock Cafe. By this way, I would take aim one message to the youth, encourage them to change their consumer behaviors and excite themselves with Rock, shopping and gift. HaNoi is looking forward to welcoming a high energy of Hard Rock Cafe for tourists, the youth, rock lovers and for the people who have not know Hard Rock yet.