Hard Rock Cafe Inc. Operations Management & Productivity

Hard Rock Cafe Inc. is a food service, hospitality, and gaming business originally focused on operating casual dining restaurants. Founded in London in 1971, the company developed its brand through the themed restaurant experience. Customers are typically greeted with an ambiance of rock and roll. The company experienced significant growth and expansion in the 1990s. Today, Hard Rock Cafe is diversified, with operations in the food service (themed restaurants) industry, gaming (casino) industry, and hospitality (hotel) industry. The company has also achieved global status, with restaurants, hotels, and casinos in more than 70 countries. In 2007, the Seminole Tribe of Florida bought the company. At that point, the Hard Rock Cafe Inc. headquarters were moved to Orlando, Florida. This business case is an example of how the differentiation generic strategy can support business development. Also, this case of Hard Rock Cafe sheds light on the importance of effective operations management to facilitate business growth and expansion in industries with high competition.

Question 1 (Marks: 15)
The case study shows that the Hard Rock Café makes use of Supply chain Management principles.
Q.1.1 Discuss what is supply chain management. (3)

Q.1.2 Explain the role and importance of a supply chain for an organisation such as the Hard Rock Café. (6)

Q.1.3 The Hard Rock Café has attained global status as mentioned in the case study above, like all organisations the firm is subjected to supply chain challenges. Explain any three supply chain challenges an organisation such as the Hard Rock
Café may experience. (6)

Question 2 (Marks: 15)
Operations management is an important function for any organisation and is pivotal in ensuring efficiency within an organisation.
Q.2.1 Why is operations management so important for an organisation such as the Hard Rock Café? (3)

Q.2.2 The product life cycle consists of four phases, discuss all four phases adapting the phases to the Hard Rock Café. (12)

Question 3 (Marks: 25)

Q.3.1 Explain the concept of benchmarking. (5)

Q.3.2 Discuss how the Hard Rock Café can utilise benchmarking to improve their performance. (5)

Q.3.3 There are three process structures for service, briefly discuss the service shop process. (5)

Q.3.4 Discuss why do you think the Hard Rock Café will be regarded as a service shop
process. (5)

Q.3.5 Discuss professional service processes and provide two examples of these services. (5)

Question 4 (Marks: 20)

Q.4.1 Given that the Hard Rock Cafe applies quality management by maintaining a
specific quality assessment role for the operations manager, discuss any three features of kaizen. (6)

Q.4.2 Like any successful restaurant, the Hard Rock Café places its customers at its core,
briefly describe the seven guidelines that the restaurant would have followed when managing how they designed the service. (14)

Question 5 (Marks: 25)
The case study shows that the Hard Rock Café makes use of Supply chain Management principles.
Q.5.1 Illustrate a simple transformation process for the Hard Rock Café. (5)

Q.5.2 There are four characteristics of operations management, discuss each of these
characteristic’s with reference to the Hard Rock Café. (20)

SECTION B – POE (100 Marks)

Question 1 (Marks: 15)

Q.1.1 Inventory management concerns itself with two main areas, identify these two main areas. (2)

Q.1.2 There are various reasons the Hard Rock Café would hold inventory, explain any five reasons for holding inventory. (5)

Q.1.3 Hard Rock Café will be in possession of various types of inventory, identify and explain any four types. (8)

Question 2 (Marks: 20)

Q.2.1 Briefly discuss what is meant by capacity. (2)

Q.2.2 Capacity planning is adjusted to address changes in demand at the Hard Rock Café. Explain why this done. (3)

Q.2.3 Several important questions must be addressed when capacity is planned, list any five questions that the Hard Rock Café must answer when planning for capacity. (5)

Q.2.4 Explain and relate each of the five steps of the theory of constraints to the operations of the Hard Rock Café. (10)

Question 3 (Marks: 20)
The case study shows that the Hard Rock Café makes use of Supply chain Management principles.
Q.3.1 Do you think that the Hard Rock Café makes use of time horizons when forecasting? Justify your answer. (2)

Q.3.2 Explain the two primary uses of forecasts.

Answers to Above Questions

Answer 1.1: Supply chain management is defined as the process which involves the flow of goods and services and includes all the processes that are essential in transforming raw materials into final products. In simple terms, it is defined as the management of raw materials from their procurement to the delivery of the final product at its destination.

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