Posted at 11.20.2018
39 years has passed, which creates a fascinating history for just one of 100 most significant brand on the globe - Hard Rock and roll Cafe. Since its establishment in 1971, Hard Rock and roll Cafe has widened in over 51 countries with 133 Hard Rock and roll Cafes and 15 Hotels / Casinos. The great success depends on many many factors but the core one we can not deny is its changing strategy. Hard Rock Cafe took a transfer of providing, from offering food with entertainment to serving food with experience. Predicated on its direction, its operation strategy is described to providing experience.
Regarding to 10 operation management strategy decisions like Design of Goods and Services, Handling Quality, Process strategy, Location Strategies, RECRUITING, Supply Chain Management, Inventory Management, Arranging and Maintenance, in the long highway of development, Hard Rock and roll Cafe has obtained respected achievements in every fields. The world recoginses its reputation and almost all of us heartly admize it.
I myself can not ignore the reviews of Hard Rock and roll Cafe eventhough it has not opened up in HaNoi where I am living. The storyline of its changing strategy from times, the storyplot: of its living museum, of its best brands, of its employees. . . . step by step take me to the places of Hard Rock and roll Cafe. Sometimes the place is too much and sometimes the place is too near me. It really is that those places and experiences there help me get different views of Hard Rock and roll Cafe.
Based on my knowledge, understanding and research which i am having now, I take the right points plus some not good details to give my own views of Hard Rock Cafe. There will be other "points" that is seen in the idea of analyzing one operation management decision not only in theory but also in reality.
The following procedure management decisions take my passions and my thoughts.
The spectacular point of designing goods and services in Hard Rock Cafe is DIFFERENTATION. Matching to Anthony Henry (Understanding Strategic Management - 2008), "A differentiation strategy is dependant on an organization producing products which are identified by customers as unique or different", Hard Rock Cafe has built "Living museums of Rock and roll" experienced by its customers who are in love of Rock and roll. One cafe using its "differentiation" mainly is the fact Rock's collection including customes, equipment, little bit of music, CDs, souvernirs of the best performers like Eric Clapton, Bruce Springsteen & The E Street Music group, Pearl Jam, Neil Young, John Lennon, Jimi Hendrix. That living museums are always kept up to date and becoming a lot more exciting to customers with its memorabilia (more than 70, 000 portions) from the hottest musical musicians and artists of the previous 50 years.
Besides its differentiation, it is known that Hard Rock Cafe is an average image of Product notion method - a new tool of marketing. Hard Rock and roll Cafe is a mixture of activities, styles, entertainment, awareness of sharing and memories. All "products" mentioned above are described in specific, which creates remarkable experience for its customers. Hard Rock Cafe's customers, plus its so difficult to call them "customers" as they are participants in Hard Rock family, create the style for Hard Rock and roll. After they come to Hard Rock and roll, a truly deep impression would leave in it.
"Love all - Provide all" - A guilding service beliefs creates a particular place where you or anyone would be respected, regardless of era, sex or school. The place where all point out their love for music - one international terms. The language which gives us more understanding and narrows the space among strangers. Not merely love for music but also love for humans, love for providing humans. In service industry, Hard Rock and roll Cafe created the "high interconnection point" between its employees and its own customers.
Before discussing Construct strategy of Hard Rock and roll Cafe, we have to look at some pictures of Hard Rock and roll Shop in Ho Chi Minh City.
http://rockpassion. vn/files/2009/12/Rock-Shop. JPG
http://plantation3. static. flickr. com/2698/4111182160_50a6c75eb4. jpg
Ph»i cnh c»a Hard Rock Tp. H»" Ch Minh (Scence of Hard Rock Cafe HCM)
"About 48% of the cafe's sales are from goods" - quoted in Page 83 - Ideas of Businesses Management - 2008 by Jay Heizer and Barry Render, this number has shown the success of Hard Rock and roll shops.
It has transformed its strategy from times, which adapts to the activities of the global. The planet has witnessed great achievement of Wal - Mart, McDonald's, HSBC. in retail field. Here it gained 48% of earnings through goods, which reveals the progress of retail in Hard Rock and roll.
What creates the success? One part of the answer you will find in Layout Strategy of Hard Rock Cafe.
Each Hard Rock and roll Cafe has its Rock and roll shop designed in Retail structure - a strategy that addresses movement, allocates space and responds to customer tendencies" - quoted in Web page 83 - Principles of Businesses Management - 2008 by Jay Heizer and Barry Render. Considering some pictures above, you can see the particular one small space display numerous of items like hats, T-shirts, shoes, products, pictures. . . that catch the attention of customers. Customers not only are fascinated with items in the shop but also are impressed by the light, the colour Black and Red. The blend between Black colored and Red or the symbol of luxury and interest demands "purchasing action" of customers.
Hard Rock Cafe establishes its quality benchmarks and takes controls to meet these expectations. We can look at some points of quality management in Hard Rock and roll Cafe.
Responding to customers' needs, flavour and targets, Hard Rock Cafe menus are continuously upgraded and service has been changed. To assess the grade of food and service, it regularly conducts research. In the survey, scoring method is utilized to classify the quality. If the evaluating score of food and service is not up to 7, it will fails. For me, quality management following a method shows strictness, clearness and good.
Hard Rock Cafe also takes benefits of technology to ensure the quality of products and services. Chris Tomasso - Vice Leader of Hard Rock and roll updates monthly Microsoft Project. In a genuine case, to ensure the performance of the rock and roll concert on time, Chris Tomasso offered customers "anticipated surprise". The helicopter was used to take the group in, which defeat an urgent traffic jam. It had been the back-up plan that Microsoft Job acquired put Chris Tomasso's ideas into fact. Additionally, techniques and software support Hard Rock 's managers to keep efficient schedule, to estimate budget performance, to estimate time service, to daily forecast sales, to allocate labor force also to give extra. Everything have been done in professional way to meet up with the standard of the quality management.
Regarding to quality management, whenever and wherever, Hard Rock Cafe opens a new cafe, all of us take chance to enjoy live musical performances. In opening activities in NEVADA and in Ho Chi Minh City, the shows of Chris Cornell and DMC respectively created "a higher energy atmosphere" and overspread the thrills not limited to rock lovers also for the youngsters, for individuals working in entertainment industry. Through it, we deeply know how great and strong Hard Rock and roll is.
In an organization, especially in a large commercial like Hard Rock Cafe, there's a lot of responsibilities for Human Resources Department. Besides the job of recruitment, keeping, training, creating profession development and personal development, the challenging task Human Resources requires is to providing a nice working environment for employees. Relating to Hard Rock and roll professions, "This place is innovativeWhy? Because you can be who you are - because who you are defines you", the employees are highly reputed. Beyond on my understanding, Hard Rock and roll Cafe is creating an operating environment where each folks takes opportunity to prove ourselves and to promote our job path. It really is so smart to do this, to get job-seekers and also to generate a competitive advantages for Hard Rock and roll Cafe.
In October 2010, regarding to BBC Media dated on 13 October 2010 "50 careers at risk as Cardiff Hard Rock and roll Cafe closes". EASILY were one worker of Hard Rock Cafe Cardiff, obviously, I would take an unexpected situation as "it has closed out of the blue as staff ready to celebrate its seventh birthday". One question here's that whether Hard Rock and roll Cafe's employees in Cardiff location are trully up to date timely or not? Some employees may find another jobs, some employees may transfer to other Hard Rock and roll cafe in London, Dublin, Edinburgh, Manchester, some employees may be unemployeed. I myself question the real circumstance would get any support from RECRUITING of Hard Rock and roll Cafe.
Furthermore, in People Learning resource strategy of Hard Rock and roll, "outstanding pay and benefits are a start" quoted in "Principles of Functions Management - 2008 of Jay Heizer and Barry Render - Web page 445", is an attracting invitation to employees. Genuinely, you and I try our better to improve high income, and it is the same for the others or for the employees of Hard Rock.
However, in one article put up on BBC Media "Hard Rock wages 'below minimum' by Martin Shankleman - Business correspondent" dated on 18 July, 2008, we have to seriously consider Human Resources Strategy and its own implementation. In this specific article, the unnamed waiter of Hard Rock and roll said "It's an misuse of customers - they are simply being misled for the reason that they believe they may be giving a suggestion when they are subsiding the actual wage". One question boosts in my mind, in fact, there exists a big distance between "outstanding pay" and "the wage"?
In this article mentioned previously, "It's almost insulting, no surprise people leave" said the waiter. In my understanding, "people leave" this means the employees of Hard Rock had abandoned their jobs. The explanation for those to leave is unreasonable pay? I ask yourself where the point of spectacular pay is. EASILY read one article in a single book, If I noticed only things written on Hard Rock and roll website, I would take only 1 aspect of the coin or I'd see a very important factor in one route without arguments, without responses, without factor.
In basic, regarding to 4 procedure management decisions (Product and Services Design, Construct Strategy, Quality Management and RECRUITING) I am taking in consideration, the various views are talked about and analyzed in a few aspects. Some give us a perfect style of Hard Rock Cafe in operation management. That we highly value and admire the achievements, the improvement and the invention of the world leading Corporate. In the other aspect, we still see some not good details of Hard Rock. In fact, those things may maintain argument, may be unresolved, which leads us researching and discovering the truth is through our very own "experience". Only taking a real experience provides us the whole picture with light and color, with color of dark and white, with ideas and the real life.
16 Dec 2009 was 1 day marking the step of Hard Rock Cafe in VietNam, particularly in Ho Chi Minh City. Hard Rock Cafe Ho Chi Minh is run by Viet Thai International (VTI) - the owner of Highland Cafe. Based on its declaration "The Best of Both Worlds", VTI grows Hard Rock brand pursuing VietNamese tradition. Based on the information I have acquired throung internet (www. toursvietnam. net), articles, Hard Rock Cafe is not populated. There are so many people asking for bringing up Hard Rock Cafe Ho Chi Minh's quality standard. Customers there concern too much its price. The issues may face Hard Rock and roll Cafe Ho Chi Minh in producing its business.
Those are some views of Hard Rock and roll Cafe Ho Chi Minh. And how about the future of Hard Rock Cafe arriving to HaNoi? The youngsters and rock addicts in HaNoi keep their ears to the ground as it is coming in HaNoi in 2011? What exactly are looking forward to Hard Rock and roll Cafe HaNoi? What exactly are the opportunities and problems for this?
OPPORTUNITIES are thought to be an attractive demand Hard Rock Cafe expanding in HaNoi. Hard Rock and roll Cafe will need opportunity to meet the demand of the young populace in HaNoi. In 2010 2010, regarding to General Statistic Office of VietNam, the population in HaNoi is 6. 5 million and the number will increase to 7. 7 million in 2015. Moreover, most of the populace is in the age of working and average personal income is approximated up to USD 4, 300 / calendar year. All the statistics creates the fantastic demand for entertainment in HaNoi today and tomorrow.
Another point we shoud not miss is the fact from times, HaNoi youngsters changes their lifestyle and consumer patterns. The night of 12th November witnessed the youth HaNoi "burn themselves" with rock and roll. At the night, Tiger Translate Metropolis 2010 gave an extraordinary show to buff rock in HaNoi. It had been a sleepless night of HaNoi youth. We are able to consider how expectable and fired up the youth pleasant Hard Rock Cafe in HaNoi.
Due to young populace of VietNam and particularly in HaNoi, Hard Rock and roll Cafe may take the good thing about labor cost. The average personal income in HaNoi is around USD 2, 000 - 2, 500 / yr, which is a huge gap comparing to personal income in London or other cities. The income shows how cheap the labor is HaNoi. Simply, Hard Rock and roll Cafe can balance the cost - the benefit. Locally, in comparison with labor in Ho Chi Minh, labor cost in HaNoi is lower than in Ho Chi Minh. Regarding labor cost, HaNoi offers Hard Rock Cafe a very favorable condition.
According to Smart Travel Aisa - A travel newspaper, HaNoi is voted one of 10 attractive holiday destinations in Asia. In 2010 2010, HaNoi has welcomed 1. 4 million vacationers and the quantity will rise more, especially in the hope of the world's market recovery. During 39 years, Hard Rock and roll Cafe's winning strategy is to expand to "destination" towns. Hard Rock and roll Cafe wouldn't normally miss the potential for conducting business in HaNoi - one "destination" metropolitan areas in Aisa. In fact, HaNoi residents expect more new kinds of entertainment to get domestic vacationers from other provinces in the North of VietNam. Hard Rock and roll Cafe will gain much profit with new one in HaNoi from its overseas and home toursists.
In 2013, in line with the survey of PriceWaterhouseCoopers about the chance for Entertainment and Communications Industry, VietNam will achieve USD 2. 3 billion of market value. The survey estimate the progress of Entertainment and Communication Industry: 16. 7% the best level. The growth create chances for Hard Rock Cafe and service industry in VietNam. Based on its software and computered programs, it is not difficult for Hard Rock and roll Cafe to estimate potential income. Both entertainment industry in VietNam and service of Hard Rock and roll Cafe take benefits of the other person and support themselves for development and expansion.
VietNam has talents of exporting cafe, textile and agriculture foods. Everything create a strong supply string for Hard Rock and roll Cafe to choose. Among supply chain strategies Hard Rock Cafe may define is "negotiating with many suppliers" - quoted in Webpage 457 of Principles of Procedures Management by Jay Heizer and Barry Render. Opening a new one in HaNoi, Hard Rock Cafe has at hand numerous of ingredient suppliers. It really is so clear that Hard Rock and roll Cafe takes a whole lot of advantages from them. Cheap and varied component is one edge. Another is the long-term determination of these suppliers because of fierce competition included in this. One another is updating selections that satisfy customers'tastes and local culture.
Opportunities and difficulties play as two factors of the coin. One aspect we should look at to take chances just with time for creating advantage of doing business. Running a business, we try to search for opportunities of increasing income, opportunities of widening market talk about, opportuinities of remaining our vitality, our position. . . Complying with them, challenges continuously arise and force us to be awared of also to overcome. What Problems are for Hard Rock and roll Cafe with a new one in HaNoi?
There is a difference between culture of the North and the South, between personality of the Northerners and the Southerners, between life style in HaNoi and lifestyle in Ho Chi Minh. People in HaNoi is more traditional than those in Ho Chi Minh. For a fresh one, it takes a little longer time to simply accept, experience and like it. It can be said that conservativeness typifies personality of the Northerners. Due to conservativeness, the life span design of HaNoi is not thrilling as it in Ho Chi Minh. Most of folks enjoy their lives with family or in a little cafes without much noises. They lead a life in a less noiseless and less enjoyable way than those in the South. From times, they may have changed however the custom have much affect on their changes.
The people in the North choose saving money to spending it. Whenever earning money, their habit of putting profit personal savings becomes too popular. Unlike people in the South, overspending is usually averted. Because of low in person income, when taking any service, they put too much concern on the purchase price. The purchase price may limit their shelling out for entertainment. This task Hard Rock and roll Cafe should take in consideration.
The price of real property in HaNoi is assessed too much eventhough looking at to Beijing, Shanghai, Tokyo, London. . . Location works as essential factor of identifying the success of one business, especially the business enterprise of Hard Rock Cafe - in which location is at the top of concern, research and investment. It's estimated that about 50% operating expenses belongs to location investment. The price tag on location in "destination places" like HaNoi triggers headache for shareholders. This obstacle is facing Hard Rock and roll Cafe for a long period as real estate market in HaNoi will be "hotter and hotter" when the economy recovers, when the funding activities flow highly and effortlessly.
From 2010, VietNam Food Administration targets the Safety goods. VietNam Food Administration gives Regulations for evaluating the grade of food. Firstly, the key product of Hard Rock Cafe is food and the meals quality must meet international expectations and vietnamese benchmarks. The trouble may arise if those requirements are defined in several ways and evaluated predicated on different criteria. Second, for suppliers of Hard Rock and roll Cafe in Viet Nam and in the earth, what adjustment can be made never to violate the Rules of VietNam Food Administration. Some suppliers may meet up with the requirements and adjust to the changes. Some may not meet the requirements and change their own kind of business or stop doing business. There will be a shortage of suppliers, which results in price increase. This concern sometimes cause problems in quality management.
Doing business means looking and capturing opportunities timely. Besides it, facing troubles and overcoming them takes on as motivating factor for growth and success. It really is so very important to us to use business opportunities in developing marketplaces. HaNoi appeals to investment because of its development, its undiscovered potential, especially in service and entertainment industry. If I were one of marketing managers taking the task of opening a new Hard Rock Cafe HaNoi, I would recommend one idea as follows.
Based on the idea of "Differing Marketing Responsibilities. Even if globally sold product varities are similar, the marketing process may differ geographically" quoted in Page 285 - Competitive Strategy 1998 by Michael E. Porter, I would carry out one promotional campaign called "Love Rock and roll - Shop Rock and roll". Why do not I build a "connection music" network of High academic institutions, Universities and Rock lover clubs in HaNoi? A greeting card respected one souvernir or one small present of Rock and roll Shop should be shown to the youngsters in HaNoi prior to the coming of Hard Rock Cafe. By this way, I would send one note to the children, cause them to become change their consumer behaviors and excite themselves with Rock, shopping and gift. HaNoi is getting excited about welcoming a "high energy" of Hard Rock and roll Cafe for holidaymakers, the youth, rock lovers as well as for the individuals who have not know Hard Rock yet.