Hardrock Case Study

Topics: Customer relationship management, Customer service, Marketing Pages: 3 (641 words) Published: September 21, 2011
1.What problems did the Rank Group find with the Hard Rock’s three main internal information systems (restaurant operations, merchandising, and financial)? Why was this a problem?

Restaurant Operations-Different management systems adopted by the franchisees -No unified standards for all outlets
-Flow of business processes are in a mess
-Lack of communication
-Used the Linux box network which is prone to hackers-Customers will not be able to taste the signature food designed for Hard Rock -Decrease in customer satisfaction as every outlet provides different standards of food offered -Difficulty for corporate office to analyze sales record

-Lack of security
Merchandising Inventory System
-Rely on inexperienced restaurant managers to order inventory -No consistency in inventory system
-No automated system to keep track of inventory purchased or ordered-Inventory are either over or under purchase -No stock available for customer purchase
-Inaccurate sales report
Financial System-System was not updated daily or automatically -There are 3 set of books maintained by Operation, Finance, and Management department -Different applications are used (Lotus Notes, Microsoft Excel Spreadsheets, Lawson Software Financial Module) -Lawson system had 50 different ledgers for each restaurant-Unable to detect discrepancy -Unable to generate an accurate income statement

-No consistency in the ledgers
-May lead to pilferage

2.What’s the solution?

Restaurant Operations-Bought back the brand from all the franchisees and unify the brand name -Implemented a million-dollar data warehouse system from Vienna (MicroStrategy) -Able to store all restaurants Point-of Sales customer data -All records are updated and reported daily

Merchandising Inventory System-Installed a chain wide merchandise system to manage inventory (Radius Inventory Management...
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