Hardrock Café Case

HARDROCK CAFÉ CASE 8

  1. List representative companies with whom Hardrock Café competes? How would you position Hardrock in terms of their business focus (i.e. operational excellence, customer intimacy, or product leadership? Why?

    1. competitors:

      1. Plant Hollywood

      2. The Rank Group

      3. .

      4. .

      5. add more examples as appropriate

    2. Hardrock’s business focus:

Hardrock café’s focus on operational excellence is to always offerstandard services to its customers.

In terms of customer intimacy hardrock is focusing in employingvarious aspects that will make the customers to feel close to thebusiness.

Hardrock is also focusing in restructuring its product leadership

    1. Why did you make this choice:

      1. Hardrock focus in terms of operational excellence can be clearly shown by the fact that they are measuring and comparing its actual performance as costs against company standards and benchmarks. Their main focus, therefore, is to maintain their standards so as to compete favorably in the market.

      2. The firm also focuses to continue innovating thus bringing new product as well service offerings to the table in their attempts to maintain operational excellence.

      3. The maintenance of operational excellence has also called for the reengineering of the core business processes for efficiency and effectiveness of operations to be realized.

      4. In terms of customer’s intimacy the company is considering the situation where they could open a new Cleveland restaurant so as to improve the business’ closeness with its customers.

      5. Data centralization as well as standardization aimed that the data was more reliable as well as timely with easy access a phenomenon that was aimed at improving customer’s intimacy.

      6. The Hardrock team also created an increasing sophisticated and customer enticing Web sites which encouraged Hardrock’s customers via ticket giveaways, coupons as well as other incentives of registering as a part of Hardrock online community as a form of customer’s intimacy.

      1. As far as product leadership the firm focused on restructuring its leadership through addressing the management and transactional control sides of hardrock problems. The product leadership team resolved to invest in integrated merchandizing, point-of-sales, and accounting systems

  1. What problems did Hardrock in its information management of three core business functions, namely: restaurant operations, merchandising, and financial management? How did this problem impact Hardrock’s ability to transact, manage and innovate?

Business Functions:

Information Management Issue

Impacts

restaurant operations

Lack of coordination in daily activities considering customer’s wants while maintaining high standards and keeping costs under control.

Lack of coordination of these aspects would lead to the business losing customers and hence poor sales.

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merchandising

In terms of merchandizing the challenge was how to link the transactional data with the customer demographics.

As a result, customers would lack trust with the firm’s merchandizing ability.

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financial management

Corporate financial management team had problem since after capturing all financial information on Excel spreadsheets which they later re-entered, into a single accounting system the firm would still run only individual location financials.

This process had numerous errors, extended monthly, quarterly as well as annual financial closings, and made it very difficult for the analysis of either trends or forecasting business performance

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  1. What steps did Hardrock take to address these issues through business process changes and investments in information technology? What were the impacts of these changes?

Business Functions:

Process and IT Changes

Impacts

restaurant operations

The firm’s leadership team resolved to invest in integrated point-of-sales as well as open new selling points

Integrated points of sale enhanced improved operations where standards would be maintained putting into consideration costs.

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merchandising

The Hardrock team resolved to create an increasing complicated as well as customer enticing Web sites where customers were encouraged via the coupons, ticket giveaways, as well as other incentives to be registered as part of the Hardrock’s online community

The net result of these activities happened to be that customers began to link their personal information with their Hardrock transaction histories

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financial management

Improve the control financial system and information

This would help the firm to manage its activities effectively hence register success in its operations.

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  1. Compare and contrast a Point-of Sale (POS) System and a Customer Relationship Management (CRM) System.

Points of Comparison

POS

CRM

Centralization

Point of sales had a decentralized form of operation where customer’s issues were tackled from different decentralized edges

In customer relationship management system all customer’s issues were received at a similar point and hence tackled from a common point

price

In points of sale prices have a high chance of differing from one point to the other

In CRM prices will be uniform

Uniformity

Hard to achieve uniformity in terms of services

Uniformity is easily achievable

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  1. What information systems were involved in the capture of qualitative data about customer interests and purchasing patterns relevant to Hardrock’s business strategy? Explain how these were used.

Information System

Uses in Data Capture

The Customer Relationship Management (CRM) System.

All the qualitative information that was offered by various customers went into Hardrock’s information system.

The system had tools for tracking a variety of ways different customers interacted with Hardrock and their Web site. The system also stored demographic data on the customer and music, performing artist, as well as travel/vacation preferences

More recently, integration of social media has greatly helped in obtaining qualitative data of customers from sources such as Twitter and Facebook.

The interaction that has been enabled by the social media has helped the firm to obtain the qualitative data concerning their customers especially in terms of their preferences.

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