Read and watch the video case study for the Operations Management in Services at the Hard Rock Cafe at the end of chapter 1. Your task is to perform a critical analysis on the Hard Rock Cafe in answering the following questions:
From your knowledge of restaurants, from the video, from the Global Company Profile that opens this chapter, and from the case itself, identify how each of the 10 OM strategy decisions is applied at Hard Rock Cafe. Do not simply rehash the definition, but discuss how they are APPLIED ...
How would you determine the productivity of the kitchen and wait staff at Hard Rock?
How are the 10 OM strategy decisions different when applied to the operations manager of a service operation such as Hard Rock versus an automobile company such as Ford Motor Company?
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Operations Management Case Analysis: Hard Rock Café Victoria Armishaw Chris Finneran Presentation Overview • Chapter 1 Overview • Hard Rock Café Case Study Video • Chapter 1 Compared to Hard Rock Café • What Should Hard Rock Café Do? • Group Activity What is Operations Management? Operations Management Activities that relate to the creation of goods and services through the transformation of inputs to outputs Essential Functions to Produce Goods & Services: • Marketing • Production/Operations • Finance What do Operations Managers do? • Operations managers: • Plan • Organize • Staff • Lead • Control 10 Major Decisions of OM 1. Design of Goods and Services 2. Managing Quality 3. Process and Capacity Design 4. Location Strategy 5. Layout Strategy 6. Human Resources and Job Design 7. Supply-Chain Management 8. Inventory Management 9. Scheduling 10. Maintenance Challenges Operations Managers Face: Past • Local/National Focus • Lengthy Product Development • Little Concern for Environment • Low-Cost Standard Products • Low-Bid Purchasing • Large Lot Production Present • Global Focus • Rapid Product Development • Environmentally Sensitive Production • Mass Customization • Supply-Chain Partnering, Joint Ventures • Just-in-Time Performance Productivity • Productivity is the ratio of outputs (goods and services) divided by inputs (resources such as labor and capital) Units produced Productivity = --------------------- Input used • When calculating productivity, quality may change due to external elements or a lack of exact measurement units • Service productivity is also difficult to measure each experience is unique and provides no tangible data. Products vs. Services • A product is a tangible object Examples: Clothing, Equipment, Food, Shoes, Vehicles, Electronics • A service is an intangible product Examples: Restaurant, Education, Entertainment, Lodging, Health Services Hard Rock Café History • Opened in 1971 by Isaac Tigrett and Peter Morton • American style diner in London • Live Music • Clothing/Merchandise • 60,000 Memorabilia Pieces Circulate Restaurants • 1982 first US café – today over 175 locations in 55 countries • 1995 First Hard Rock Hotel and Casino Las Vegas, NV • 2010 First All-Inclusive Resort Hard Rock Strategy • Café Restaurant Food w/ Entertainment Food w/ Experience • Operations Managers work to Provide Unique Experience • 10 Management Decision Strategies • Watch Which Markets to Expand into • Layout of Restaurant Maximizes Revenue Chapter 1 & Hard Rock Café • Products • Food • Clothing • Jewelry • Watches • Glassware • Pins • Service • Enthusiastic Wait Staff • Chefs • Entertainment • Overall Experience Chapter 1 & Hard Rock Café Hard Rock Managers • Plan Strategic Pathways to Exploit Merchandise • Organize Experience Strategy • Staff and Schedule based on sales forecasting and trends • Lead Staff • Control Day to Day Operations Hard Rock Productivity • Order Placement to Table Time • # of Specific App/Entrée/Dessert Sold • Table Turnover Rate • Customer Satisfaction • Yearly/Weekly Trends Monitored • Creates Efficiency • Creates Motivation • Creates Focus • Creates Excellent Reputation/ROG • Creates Hard Data Hard Rock Today • Over 175 Restaurants, 55 Countries • 2 Concert Venues • 19 Hotels (6 Coming Soon) • 8 Casinos • 4 All-Inclusive Resorts • Business Meeting Space • Spas • http://memorabilia.hardrock.com/ • http://www.hardrock.com/locations.aspx?view=2&viewall=1 Hard Rock Today • New Menu Released March 2014 • Still Offer Survey on Bottom of Receipt • https://www.hardrocksurvey.com/ • “Love All Serve All” Mission • Take Time to Be Kind (Humanitarian) • Save the Planet (Environmental) • All is One (Entertainment Industry) What Hard Rock Should Do… • Only Build Cafés, Hotels, Casinos • Failed Amusement Park 2009 • Continue Unique Experience • Keep Up with Current Trends Group Activity $ Sales $ PPA 4572.31 32.66 4091.77 41.33 3617.05 33.80 App Sales 59 42% 34 34% 46 43% $ Alcohol $ Dessert $ Features 400.33 9% 299.04 7% 245.62 5% 600.41 15% 420.56 10% 540.23 13% 523.90 14% 399.04 11% 366.58 10% • Server A • Server B • Server C Weekly Sales Report by Category Guest Count 140 99 107 Works Cited • http://www.hardrock.com/corporate/history.aspx • http://www.hardrock.com/locations.aspx?view=2&viewall=1 • https://www.universalorlando.com/Restaurants/CityWalk/Hard-Rock-Cafe.aspx (pic) • http://www.greatsampleresume.com/Sample-Operation-Manager-Resumes.html (pic) • http://www.glassdoor.com/Interview/Hard-Rock-Cafe-Interview-Questions-E8400.htm (pic) • https://rockshop.hardrock.com/Mens/Departments/Tops/product/HRO_Mens_LoveAllServeAll_Classic_T_White/ (pic) • https://www.myamcat.com/aspiration/featured_module/featured_module_operations.php (pic) • http://www.the3dstudio.com/product_details.aspx?id_product=525247 (pic) • http://www.hardrock.com/corporate/management.aspx (pic) • http://www.hardrockhotels.com/punta-cana.aspx (pic) • http://www.insidefortlauderdale.com/menu/4571/hard-rock-cafe-hollywood-fl (pic) • http://www.sharmnight.com/2013/03/the-new-hard-rock-cafe-in-nabq/ (pic)