Since its founding in 1971, Hard Rock has gone thru many strategy changes. The company started out as just a small London cafe, and now has 110 cafes thru ought the world, hotels, casinos, live music venues, a rock museum, and an annual Rock concert. Hard Rock also makes a significant amount of their revenue, 48%, from retail merchandise. Hard Rock Café is the number one themed restaurant in the world, and is one of the most highly recognized brands. While the restaurant remains American-style cuisine, they have gone from solely burgers and chicken to also include high-end items like lobster tails and stuffed veal chops. The ten critical decisions of Operation Management are listed below along with how Hard Rock applies each principle.
Design of Goods and Services. This critical decision deals with service and product design. Hard Rock’s product is the food they produce. They put a lot of effort into creating and testing their products for cost efficiency and customer satisfaction before they are sold in their restaurants.
Managing Quality. When creating new products, Hard Rock only puts items on the menu if they know they can get the ingredients from qualified suppliers. Every step of the production process is built to create a quality product. Also, managers hire motivated people and train them well to create a positive restaurant experience for customers.
Process Strategy. Hard Rock works to create products in an efficient manner, analyzing them for cost, quality, and labor requirements. The whole production process, from receiving ingredients, storage, grilling, baking, and frying is designed to create a quality meal for the customer (Heizer and Render, page 3).
Location Strategies. Hard Rock Café has always catered largely to tourists in recent years, and normally builds restaurants in “destination” cities. Their largest restaurant and one of the biggest restaurants in the world is located in Orlando, Florida.
Layout Strategies. Hard Rock...
References: Heizer, Jay and Render, Barry (2006). Operations Management (8th Edition). New Jersey: Prentice Hall.
Hard Rock Information. Retrieved 8/27/08 from www.hardrock.com/corporate.
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