Busi 2113 Operations Management: Hard Assessment Answer

Answer:

Introduction

Operations Management is the process that consists of different activities and processes which are associated with the development of products and services through transformation of inputs into outputs. Operation management is an essential process of each and every company whether it is operating its business in manufacturing industry or service industry. The process of operation management plays an important role in providing needed products and services in a manner which satisfies the criteria imposed by the market and customers (Slack, Brandon-Jones, & Johnston, 2013). Effective operations are important of the company wants to become successful. In the beginning of operation management process, it is very important to understand the major operational tasks and processes. Considering the importance of operation management to business, this report is focused on the operation management processes and strategies of chosen organization i.e. Hard Rock Café in United Kingdom. It includes the order qualifier and order winners of the organization which customers expect from it and what it wants to attain under its operations objectives. At the end, the report includes all the principle process and operation strategies which Hard Rock Café uses to satisfy the needs and expected criteria of its potential customers.

The position which I hold at Hard Rock Café is assistant manager in Food and Beverage department. In the organization, my role and responsibility is to manage the finances related to the process of buying food and drinks for restaurants and hotel premises. This department contributes the organization to manage its operations like ordering, sourcing and transporting of food and beverages and storage of raw materials.

Company Description (Hard Rock Café) 

Hard Rock Café is a food organization which is primarily focused on operating the casual dining outlets. The organization was founded in 1971 and its head office is situated in Orlando, Florida (Hard Rock Café, 2017). In the beginning, Hard Rock Café has started the business operations via a themed resultant concept. The restaurant welcomes its customers and guests with a great ambience. As off 2016, it has expanded its business in more than 60 countries which include 168 cafes, 23 hotels and 11 casinos. It is one of the biggest restaurants all over the world and best example of efficient operations management procedure. The success and growth of company is directly connected with its efficiency in adopting different processes and strategies of operations management (Geraghty, 2013). In addition to this, the organization is focused on implementing various techniques for effective management of personnel like kitchen staff, waiters, reception staff etc. Additionally, Hard Rock Café has adopted different operation strategies which assist it to transform its performance objectives into tangible outcomes and processes (Martin, 2008).


y;">Mission Statement 

The mission statement of Hard Rock Café is “to provide the realistic experiences to its guests that rock.” Apart from this, the major objectives and goals of this café are to serve the customers with the quality and healthy food services so that it can fulfill the demands and needs of targeted customers. It assists the organization to increase its customer base across the world. This fir considers its guests as key force. At Hard Rock Café, the operations and processes are efficient, effective and organized effectively (Hard Rock Café, 2015). It emphasizes on offering the food products by maintaining best and highest quality standards.

Core Value of Hard Rock Café


  • Professionalism
  • Integrity
  • Honesty
  • Respect for each and every individual
  • Great service delivery to the guests

Operations Management of Hard Rock Café 

For each and every organization, it is very important to manage all the operations and activities significantly so that it can offer its products and services to final consumers. Hard Rock Café is one of them that had gained effective competitive advantage through its operation management process and creation of exclusive advantage against its competing brands. Primarily, this restaurant is focused on differentiation. It indicates that they offer different products and services than other cafes in the country which people perceive as additional value. It includes the product and service features which are very difficult to imitate. Hard Rock Café is the organization that develops and manages its operations and strategies identifying its customers and their satisfactions criteria (Hard Rock Café, 2015). It assists the organization to meet the criteria and operation objectives of the company. Different aspects of operations management at Hard Rock Café are stated below:

Customers and their Satisfaction Criteria 

Customers play an important role in the process of effective management of operations and other business processes. Before offering its products and services, Hard Rock Café has determined its external and internal customers and then restaurant has developed its strategies and operations. The organization has targeted its potential customers by looking at their different behavior and characteristics. The primary customers of Hard Rock Café are the people from upper and medium classes who have identical preferences and tastes of food (Buttle, 2012). Additionally, Hard Rock Café is increasing the generation of rock and roll fans and ultimately a fashion culture, music and fad lovers. The major customers of this café are the people who love to go there to hang out with their friends and family and to relax in the ambience of soft music. The restaurant has a wide customer base and it includes the people from different income levels and social classes (Slack, Chambers & Johnston, 2009).

Under its operations, Hard Rock café offers its products and services considering the needs and demands of above mentioned customers. In addition to this, organization develops its food products looking at the satisfaction criteria of above customers (Rahimi and Kozak, 2017). The satisfaction criteria of this restaurant’s customers can be categorized under two terms order qualifiers and order winners. These are the criteria which need to be considered by Hard Rock Café in the marketplace. The order qualifiers and orders winners for Hard Rock Café are given below:

Order Qualifiers and Order Winners of Hard Rock Café 

An order qualifier is a feature of the product or service which is needed in order for the product to even be looked by the customers. These are the satisfaction criterions which a company should meet for its customers by considering itself as possible supplier. The company ensures that their order qualifiers are as good as their competing brands. Moreover, order winner is the characteristic which will win the bid of purchase of customers (Chaudhuri and Boer, 2016). These are the customer satisfaction criterions which win the orders. In this, a company needs to become better than competing brands. For Hard Rock Café, order winners and order qualifiers are given below:

Order Qualifying criteria at Hard Rock Café:

  • Fast service
  • Affordable prices
  • Hygiene
  • Convenience

Order Winning criteria at Hard Rock Café:

  • Highest quality food
  • Unique menu and taste of food
  • Layout and ambience
  • Opening time of restaurant
  • Wide range of food products in the menu

Hard Rock Café can become the order qualifier to its customers due to convenience that is flexibility and durability in its business operations. Its taste that means the variety and quality it provides to its targeted population. At Hard Rock Café, the food service is faster and prompt that show that the restaurant operations are very speedy. Furthermore in comparison to its competing brands, it is more affordable so the cost is a performance indicator which Hard Rock Café uses in its operational strategies to make it order qualifier (Geraghty, 2013). Looking at the order winning standards of Hard Rock Café, it is identified that quality is consistent its product offerings that shows that there is no compromise on quality standards. Furthermore, food is served on time to the guests coming to dine in the restaurant. Thus, speed is a consistent factor that has assisted the organization in getting more orders. The customers of the company rely on Hard Rock Café that it will provide highly standardized services. There is a wide range of food products that shows flexibility in its operations. On the basis of demands of different customers like different taste so restaurants keep high variety that assist them to win orders in the marketplace (Rashid, et al, 2015).  

Operations Objectives 

Considering the above criterions of customer satisfaction, Hard Rock Café has established its operational objectives. The restaurant is implementing effective and attractive strategies to attain these performance objectives. The operation objectives of Hard Rock Café are stated below:

Quality

From the analysis of customer satisfaction criterions, Hard Rock Café found that most of the guests are looking for the higher quality of food products, so this restaurant plans to provide quality and highly standardized products to its targeted customers. This café offers a wide range of food products under its menu and products are prepared by using fresh vegetables and fruits. To analyze the quality of its food products, Hard Rock Café takes the feedback of its customers. It is evaluated by surveying the customers regularly on their satisfaction on a scale of 1 to 7. The employees are properly trained to make the food products by using quality ingredients and specific processes (Litvin, Goldsmith and Pan, 2017). Under this objective, this café aims to meet all the standards and makes sure that it provides excellent quality and freshness to every guest. This objective will enable the organization to attract more customers towards its food and dining services.

Cost

The second and very important performance objective at Hard Rock Café is cost. Under this objective, the company aims to minimize the cost of production so that it can provide the products on affordable prices. Hard Rock Café considers that the best way to reduce the cost is to focus on the demands of customers. This restaurant has adopted Just-in-Time technique that reduces the wastage and storage cost (Schrempf, 2014).

Speed

For an organization, it is very important to manage the speed of its processes and operations so that it can complete its procedures on predetermined time. At Hard Rock Café, this performance objective aims to reduce the waiting time for customers’ orders. The café has developed its operations and activities effectively so it can serve food to guests rapidly.

Dependence

This is one of the most important operation objectives at Hard Rock Café. The café has a specific process for its guests by providing food products in timely manner. The employees at Hard Rock Café are well-qualified and highly skilled so that they can serve food on time. The restaurant is open on weekends and weekdays as well (Singhal and Singhal, 2012).

Flexibility

The final operation objective of Hard Rock Café is flexibility which refers to the elasticity of processes and change in its services which are making its business operations more flexible as per the needs and preferences of customers. At Hard Rock Café, flexibility can be seen from its food menu because it provides the food of different cultures and regions. It makes changes in its food menu by analyzing the changing demands and tastes of its targeted customers.

Principle Operational Tasks used to satisfy these criteria 

There are some principle operation tasks which can be used by Hard Rock Café to satisfy the above criterions of customers and to meet the operational objectives. Principle operational tasks of Hard Rock Café are given below:

Vertical Integration 

Vertical Integration is one of the most significant principle operational tasks that are undertaken by Hard Rock café. Vertical Integration is a model of management and macro-economic that can be adopted by any organization. This approach is used where the different companies in supply chain are unified through a single owner too offer the specific service. Through this, the companies ensure the customers that their demands and needs will be fulfilled. At Hard Rock Café, there are several types of customers such as tourists who arrive from foreign countries. As per the statistics, 70% of Hard Rock’s guests are from diverse countries (Heizer & Render, 2014). Looking at this figure and trend, this restaurant has adopted the vertical integration model under its operations which make sure that they have started to offer the traditional food of different countries so that they can satisfy the needs and tastes of visitors from other countries. The current figure indicates that Hard Rock Café has carried out its operations in more than 40 countries globally so it is very important to adopt vertical integration model. All the important decisions and sales of restaurant are managed from its headquarter Orlando, Florida. Top management ensures that their café offers varied dishes under its menu. By the use of this principle operation task, this firm is able to satisfy the customers’ criterions and attract more customers (Swink, et al, 2014). In the future, it will be able to experience intensive growth and make the position in list of leading restaurants in the world.

Quality Management 

In addition to above principle task operation, Hard Rock Café uses the different approaches of quality management in its operations, By using these processes and techniques, Hard Rock Café is making efforts to provide food products with effective service and quality (Silva, 2005). This organization reviews that quality of food menu on the continuous basis. The operations management of the company is responsible for this task. Under the process of operation management, establishing highest quality standards and monitor to meet those standardized requirements is a key to growth and success of Hard Rock Café. Under the quality management principle, the organization uses different techniques like Just-in-time and Six Sigma techniques (Kafetzopoulos and Gotzamani, 2014). Hard Rock Café is successful when this restaurant utilizes its intangible product i.e. food products as a medium to offer entertainment experience and excellent dining service. From the analysis of company and its customers, it can be stated that guests of hard Rock Café are satisfied with different and attractive visual and sound experience which cannot be found in any other food outlet.  Thus, this café adopts quality management principle by maintaining a quality analysis role for its operation personnel. These staff members of organization use quality standards and measures to identify different issues and weaknesses. After this analysis, the organization implements needed changes so that it can safeguard the compliance (Lelieveld, Holah and Napper, 2014).

Thus, vertical integration and quality management are two most important principle operation tasks in which Hard Rock Café is engaged. It enables the organization to make other strategies and processes which are given below:

Operations Strategies and Processes 

In addition to above principle tasks and operation models, Hard Rock Café is using different processes and strategies which assist the organization to attain the above customer satisfaction criterions and operation objectives. Some of the major operation strategies and processes of Hard Rock Café are given below:

To gain an enhanced brand presence, Hard Rock Café has implemented an effective layout strategy so that it can attain its objective. The cafes, restaurants and casinos of Hard Rock Café have different needs for layout. At Hard Rock Café, the operation managers adopt impactful layout design for effective work-flow in the limited space which is available to the firm in the premises. Layout strategy plays an important role at Hard Rock Café as it is able to generate long term competencies via ideal layout (Bowie, et al, 2016). The main purpose of layout strategy is to promote an efficient and profitable layout that can assist the organization to attain its competitive requirements. At this restaurant, layout strategy can provide a better flow among different areas like dining areas, bar and kitchen that can decrease the waiting time. In this way, the layout strategy of Hard Rock Café assists it in creating its operations smoother.

Supply Chain Management 

When it comes to discuss about the operation management strategies, it is very important to consider the supply chain management and logistics processes of a company. Supply chain management process of Hard Rock Café can also assist the organization to satisfy its customers’ expectations and criterions. At Hard Rock, the supply chain decisions are taken based on different suppliers, market demands and inventory management costs. It is adopted by the operations manager of restaurant. Under this strategy, Hard Rock has found the global resources to achieve maximum advantages via effective supply chain (De Haan and Sacristán-Díaz, 2016). For a big scale organization like Hard Rock Café, outsourcing is one of the most popular techniques. The organization has various benefits use to effective implementation of supply chain strategies and processes such as enhancing the service level to its guests and decreasing the operational costs. To attain its operation objective related to quality and cost, Hard Rock Café has connected with the qualified suppliers and vendors. It assists the organization to provide highest quality of meals to its customers (Stadtler, 2015). In 2003, the restaurant had declared the involvement of Avicon i.e. an architect firm of new supply chain and it has provided supply chain and logistics experts to Hard Rock Café. It pushed the organization to get realistic results like warehouse space in North America was reduced by 44% and operational costs by more than 20%. Moreover, the choice of food products is also dependent on the timely supply of suitable quantity of raw materials and ingredients by qualified suppliers (Jacobs and Chase, 2013).

Inventory Management 

Nowadays, there are various companies which implement their inventory management decisions by using different technologies and software of inventory management. At Hard Rock Café, operation management uses the variations in demands and previous records to forecast the future changes that are needed in the inventory (Wild, 2017). So that firm can manage its stock and inventory accordingly. Inventory is an important and expensive asset for each and every organization. Hard Rock has also made a huge investment in inventory purchasing. Its major purpose is to develop a balance between inventory investment and customer services and y using effective techniques and software such as OM, POM, POS etc. This process helps this restaurant to manage its raw material and other stock that is required in food preparation at Hard Rock Café. The organization can convert above objectives into tangible results by adopting these processes and strategies. This decision making assists the restaurant in managing its processes and operations successfully (Buckley, Burton and Mirza, 2016).

Thus, there are various principle tasks and strategies at Hard Rock Café, where the organization is different from its competing brands in restaurant industry. These practices will lead the organization to meet the above customer satisfaction criteria and operational objectives. The organization will be able to get positive results by effective implementation of processes and strategies.

Conclusion 

From the above operation management report on Hard Rock Café, it can be concluded that Hard Rock Café is one of the largest food chain all over the world. In order to manage its operations and processes, the organization has made various efforts and implemented different strategies. It is able to manage its service operations effectively. The above analysis includes different aspects of operations management in context of Hard Rock Café in United Kingdom. About this organization, it can be stated that it is using more effective operation management than its competitors. Thus, the introduction of updated technologies and internet sources has assisted to fulfill the gaps which were existed in the restaurant supply chain process.

From this analysis, it is very clear that Hard Rock Café has aligned its supply chain, logistics, inventory management to provide an excellent experience to its customers and guests at its cafes and restaurants. To meet the operational objectives and customer satisfaction criteria, it is very important to analyze the changing needs and preferences of customers and then work accordingly. The organization needs to analyze the issues which can affect its operations so that it can move forward to attain a significant profits and market share. It will enable the organization to achieve its operation performance objectives i.e. quality, cost, speed, dependability and flexibility. These objectives are linked with one another and they can enhance the operations of Hard Rock Café. Thus, it can be concluded that each and every organization needs to focus on its operations and activities to generate revenues and profits in today’s competitive business environment.

Recommendations

After conducting the above analysis, it is hereby recommended that Hard Rock should adopt some more effective strategies and processes. In the future, this café can make its operations smoother by using both qualitative and quantitative productivity criteria to evaluate the performance aspects of wait staff and kitchen operations. These criteria can guide the organization to make the productivity decisions. To know about the effectiveness of its processes and operations at restaurants, Hard Rock Café should use the comments and complaints of customers. It will help the firm to monitor the productivity of staff and its processes. On the basis of this feedback, it can improve its processes and operations. It will enhance the ability of organization to meet the operations objectives. In addition to customer orientation, the organization should make efforts to become employee centered as well (Martin, 2008). There should be empowerment program for the employees and staff at restaurant. It will make them feel more motivated and engaged in their work activities. It will be beneficial for the organization to go ahead with these recommendations. These recommendations can be implemented by the organization by developing a systematic plan. The above recommendations will assist the organization to meet the objectives and handle the supply chain issues. Moreover, the organization will be able to make the staff more responsive towards operations and reduce the food serving time at restaurants. Thus, it will enable the Hard Rock Café to provide exceptional and excellent dining experience to its guests and customers.

References

Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Taylor & Francis.

Buckley, P.J., Burton, F. and Mirza, H. eds., 2016. The strategy and organization of international business. Springer.

Buttle, F, 2012. Customer Relationship Management: Concepts and Technologies (Second Edition). Oxford: Routledge.

Chaudhuri, A. and Boer, H., 2016. The impact of product-process complexity and new product development order winners on new product development performance: The mediating role of collaborative competence. Journal of Engineering and Technology Management, 42, pp.65-80.

De Haan, J.A. and Sacristán-Díaz, M., 2016. Measuring performance at the supply chain level: the role of the chain director. Working Papers on Operations Management, 7(1), p.1.

Geraghty, L., 2013. It's not all about the music: Online fan communities and collecting Hard Rock Café pins. Transformative Works and Cultures, 16.

Hard Rock Café, 2015, Hard Rock History, Available from https://www.hardrock.com/corporate/history. [Accessed on 20 June 20, 2018].

Hard Rock Café, 2017, Home- Hard Rock, Available from https://www.hardrock.com/. [Accessed on 20 June 20, 2018].

Heizer, J. H., & Render, B., 2014, Principles of Operations Management: Sustainability and Supply Chain Management. Prentice Hall.

Jacobs, R. and Chase, R., 2013, Operations and supply chain management, McGraw-Hill Higher Education.

Kafetzopoulos, D.P. and Gotzamani, K.D., 2014. Critical factors, food quality management and organizational performance. Food Control, 40, pp.1-11.

Lelieveld, H.L., Holah, J. and Napper, D. eds., 2014. Hygiene in food processing: principles and practice. Elsevier.

Litvin, S.W., Goldsmith, R.E. and Pan, B., 2017. A retrospective view of electronic word of mouth in hospitality and tourism management. International Journal of Contemporary Hospitality Management.

Martin, S., 2008, Hard Rock wages 'below minimum, BBC News.

Rahimi, R. and Kozak, M., 2017. Impact of customer relationship management on customer satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing, 34(1), pp.40-51.

Rashid, I.M.A., Rani, M.J.A., Yusuf, B.N.M. and Shaari, M.S., 2015. The Impact Of Service Quality And Customer Satisfaction On Customer's Loyalty: Evidence From Fast Food Restaurant Of Malaysia. International Journal of Information, Business and Management, 7(4), p.201.

Schrempf, J., 2014. A social connection approach to corporate responsibility: The case of the fast-food industry and obesity. Business & Society, 53(2), pp.300-332.

Silva, A., 2005, The Ten Commandments of Quality Management: Best Practices to Develop New Leaders And Create a Quality Environment. USA: iUniverse.

Singhal, K., and Singhal, J., 2012, Imperatives of the science of operations and supply-chain management. Journal of Operations Management, 30(3), 237-244.

Slack, N., Brandon-Jones, A. & Johnston, R. 2013, Operations Management, Pearson education.

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Swink, M., Melnyk, S.A., Cooper, M.B. and Hartley, J.L., 2014, Managing operations across the supply chain (pp. 248-249), New York, NY: McGraw-Hill/Irwin.

Wild, T., 2017. Best practice in inventory management. UK: Routledge.


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