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?

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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

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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