HARD ROCK HARD ROCK CAFECAFE

Unit 2: Operations Strategy Unit 2: Operations Strategy for Competitive Advantage for Competitive Advantage

MISSIONMISSION To provide a unique experience to its To provide a unique experience to its

customerscustomers

STRATEGYSTRATEGY Multi-domestic strategyMulti-domestic strategy

• Use existing domestic globallyUse existing domestic globally

• Franchise, joint ventures, subsidiariesFranchise, joint ventures, subsidiaries

• Global experience strategyGlobal experience strategy

SPECIFIC APPROACHES USED BY SPECIFIC APPROACHES USED BY OM TO ACHIVE STRATEGIC OM TO ACHIVE STRATEGIC

CONCEPTS:CONCEPTS:How they deal with the ten decisions of How they deal with the ten decisions of

OM?OM?

Goods and service designGoods and service design

They try to transform all Goods and They try to transform all Goods and Services into a part of the unique Services into a part of the unique experienceexperience

QualityQuality

The main product is the experience The main product is the experience so the quality of food and products is so the quality of food and products is not essentialnot essential

Process & capacity designProcess & capacity design

Educate employees to provide a Educate employees to provide a quality entertainment.quality entertainment.

Facilities design by means of Facilities design by means of exclusivity, buying unique objects exclusivity, buying unique objects and organizing important music and organizing important music events.events.

Location selectionLocation selection

Considerations when choosing a Considerations when choosing a locationlocation

Political RiskPolitical Risk Currency RiskCurrency Risk Social NormsSocial Norms Brand FitBrand Fit Social CostsSocial Costs Business PracticesBusiness Practices

Layout designLayout design

They try to create a connection They try to create a connection between generations and music.between generations and music.

Human resource and job Human resource and job designdesign

Employees and singers for Employees and singers for performances are an integral and performances are an integral and expensive part of the total system expensive part of the total system design.design.

InventoryInventory

Unique objects related to Rock Unique objects related to Rock HistoryHistory

FoodFood MerchandisingMerchandising 106 Locations in 38 countries 106 Locations in 38 countries

including Cafes and Hotelsincluding Cafes and Hotels

SchedulingScheduling

70 % of their guests are tourists so 70 % of their guests are tourists so they need flexible schedules in their they need flexible schedules in their restaurants in order to provide restaurants in order to provide services adapted to different cultures services adapted to different cultures and demands.and demands.

MaintenanceMaintenance

Movement of their unique objects all Movement of their unique objects all over the world.over the world.

Provide new different activities and Provide new different activities and performances all the time.performances all the time.

Create new locations.Create new locations.