hard rock global strategy
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TRANSCRIPT
Hard Rock Café’s Global Strategy
Operations Management
Professor Chuang
Group : Putri, Pia
Hard Rock Café (HRC) Milestone
HRC Global Concept
Case Study Questions
Conclusion
Hard Rock Cafe Global Strategy | Operations Management | 2013
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Hard Rock Café Milestone
• 1971: First café in London.• 1979: The café stated covering its walls with rock ‘n’ roll
ephemera.• 1982: It began expend and open restaurants in various
parts of the globe.• 1995: Casinos and hotels, theme park, festival• 2008: Over 140 café in 36 countries and expanding.• 2013: 175 Hard Rock locations in 55 countries.
Hard Rock Cafe Global Strategy | Operations Management | 2013
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HRC’s Concepts
Mission statements tell an organization where it is going.
Strategy tells the organization how to get there.
Hard Rock Cafe Global Strategy | Operations Management | 2013
Hard Rock Café Mission:To spread the spirit of Rock ‘n’ Roll by delivering an exceptional
entertainment and dining experience. We are committed to being an important, contributing member of our community and offering the Hard Rock family a fun, healthy, and nurturing work
environment while ensuring our long-term success.
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Question 1
Identify the strategy changes that have taken place at Hard Rock Café since its
founding in 1971.
Hard Rock Cafe Global Strategy | Operations Management | 2013
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Establish café & hotel in many tourist destination
Elevated dining into “experience” dining level
Introduced the HRC merchandise
Strategic Development
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Question 2
As Hard Rock Café has changed its strategy, how has its responses to some
of the 10 decisions of OM changed?
Hard Rock Cafe Global Strategy | Operations Management | 2013
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• Goods and services design• Location selection• Supply-chain management• Inventories• Process and Capacity Design• Managing Quality
Some of the 10 decisions of OM changed
Hard Rock Cafe Global Strategy | Operations Management | 2013
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Question 3
Where does Hard Rock fit in the four international operations strategies
outlined in Figure 2.9? Explain your answer.
Hard Rock Cafe Global Strategy | Operations Management | 2013
Four International Operations Strategies
Cos
t Red
uctio
n C
onsi
dera
tions
High
Low
HighLowLocal Responsiveness Considerations
(Quick Response and/or Differentiation)
Standardized product Economies of scale Cross-cultural learning
ExamplesTexas InstrumentsCaterpillarOtis Elevator
Global Strategy Transnational Strategy
Move material, people, ideas across national boundaries
Economies of scale Cross-cultural learning
ExamplesCoca-ColaNestlé
International Strategy
Import/export or license existing product
ExamplesU.S. SteelHarley Davidson
Multidomestic Strategy Use existing
domestic model globally Franchise, joint ventures,
subsidiaries
ExamplesHeinz The Body ShopMcDonald’s Hard Rock Cafe
Use existing domestic model globally
Franchise, joint ventures, subsidiaries
ExamplesHeinzMcDonald’sThe Body ShopHard Rock Cafe
Multidomestic Strategy
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Conclusion
The HRC’s global operation management strategy successfully combines:
MusicInternational locationsGlobally branding merchandiseThe world wide web attention to each quest experience
The HRC is in the top 10 of the world brands recognition.
Hard Rock Cafe Global Strategy | Operations Management | 2013