Critical Evaluation Of The Operations Management Commerce Essay

The essay is about to critical measure the operations direction scheme of Hard Rock Cafe as described in the instance stuffs, and discourse the operations direction challenges every bit good as the chances when Hard Rock Cafe sing expand their concern in Hanoi-Vietnam. In the essay, text edition, cyberspace, academic researches will be mentioned to back up the critical evaluates operations direction, challenges and chances issues.

Harmonizing to Heizer EL at. , ( 2011 ) , “ Operations direction is defined as any activities that relate to the creative activity of goods and services through the transmutation of inputs and end products ” , while operation directors play an of import function in the direction procedure. “ The direction procedure contains be aftering, forming, staffing, taking, and commanding ” . ( Heizer el at. , 2011 ) .

In the instance stuffs provided, we will measure 10 critical determinations of Operations directions which are goods and service design, managing quality, procedure and capacity design, location scheme, layout scheme, HR and occupation design, supply-chain direction, stock list, programming and last determination is care to see whether how good Hard Rock cafe applied these determinations in their operation direction ( Heizer el at. , 2011 ) . We will measure few determinations amongst those 10 determinations to allow people hold a wide position of how Difficult Rock Cafe applies these determinations to run their concern.

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For goods and service design, what services/products should Cafe give to clients? That is really of import issue to Hard Rock Management. As we ‘ve known, Hard Rock is in cordial reception industry. If they provide products/services wrongly, it would take the company to ruin. Follow the Hard Rock instance survey, due to the planetary economic alterations, differences in concern jurisprudence, a batch of hazard factors that make Difficult Rock Cafe alterations from planetary Strategy into multi-domestic scheme. Multi-domestic scheme is “ a scheme that companies in each market makes their operating determinations independently of others oversea markets ” ( hypertext transfer protocol: //tutor2u.net ) .

In here, company decided to franchise a big figure of their coffeehouse by fall ining with opened cafe such as in Manchester and Birmingham, which try to pull local occupants involve in their concern due to this topographic point is non a common topographic point for tourer, where people in here are rather conservative. This determination would do them to redesign their goods and services to run into with the local gustatory sensation. Differences state would hold different cultural, linguistic communications, concern patterns. For illustration: Hard Rock cafe in Kuwait would necessitate to alter their bill of fares because they ca n’t eat porc. All merchandises are related to porc are prohibited every bit good as intoxicant while in US where people can eat porc, imbibe intoxicant with no limitation due to difference faiths and jurisprudence every bit good ( Muslim in Kuwait and chiefly Catholic, Protestant, Buddhism in US ) . ( hypertext transfer protocol: //www.hardrock.com )

Another issue is pull offing quality. Base on Rose EL at. , ( 2005 ) , “ direction quality is looked at 4 issues: quality planning, quality control, quality confidence and quality betterment ” . Hard Rock Cafe has been focused on quality control and betterment by study. It has been done on a regular basis with rate from 1 to 7. If the mark is non reached score 7 that mean the nutrients and services will be reviewed. The company has changed their bill of fare to fit with local gustatory sensation every bit good as upgrade their bill of fare. They are non merely concentrate on their traditional nutrient such as beefburgers and beefs but besides look for high category of nutrient like fishes, lobsters. Although clients go to Hard Rock Cafe because they love music, atmosphere, environment, that is the chief ground but high quality of nutrient which show in bill of fare would be value-added to Hard Rock Cafe repute and brand clients come once more. Cianfrani el at. , ( 2009 ) told that: “ Quality direction could alter some of the direction rules. This can assist exceed degree direction to increase the company ‘s public presentation every bit good as satisfy the client ‘s demand ” . This issue is really of import for the company which they are strongly focused on client because most of the Hard Rock Cafe ‘ clients are tourers while a minority is a local occupant ( Heizer el at. , 2011 ) .

When the company changes their services/products, they besides need to believe of their existing supply concatenation direction. Mentzer et al. , ( 2001 ) stated that: “ Supply concatenation direction is seen as a mechanism to keep competition in domestic markets, in visible radiation of increasing planetary competition ” . The company chooses to upgrade their bill of fare that would reconstitute their supply concatenation direction because they will necessitate new providers every bit good as possibly extinguish some old providers. Hard Rock Cafe does non desire excessively much on beefs and beefburgers ; they want to add more expensive material such as fishes and lobsters which would pull a wider scope of clients every bit good as lift the degree of Hard Rock Cafe one measure higher.

Top degree directions besides need to see on the distribution web of new providers. Where are their warehouses, distribution centres, figure of networking, who are their clients? What are payment footings? Can they present goods so we play subsequently or we need to play upfront before they bringing goods? All those things need to see really careful because it will impact to the cost of the repast subsequently on. If the warehouse of new provider is excessively far, it would make a large job when we run out of nutrient to fix repast for clients. Furthermore, if the company has to do full payment before they deliver goods, it would be an issue to direction degree to see because if we can pay them subsequently in a certain twenty-four hours after we receive goods, that is so much better, we can utilize that money to make something else to do more money and pay the provider subsequently.

Location for Hard Rock Cafe would a large issue to see when choose the location. A batch of things would impact such as political hazard, currency hazard, societal norms, trade name tantrum, and concern patterns ( Heizer el at. , 2011 ) . Political hazard is defined as “ Probability of loss due to political instability in the purchaser ‘s state that may ensue in cancellation of a licence or otherwise impact the purchaser ‘s ability to do payments. Political hazards are insurable hazards, and overlap with the political constituent of force majeure hazards ” ( hypertext transfer protocol: //www.businessdictionary.com ) . It is the chief concern when taking location. Thailand will be a good illustration. Recently, Thailand has a batch of work stoppages which would do investors worry. It will besides impact tourer industry due to a batch of cancellation circuit to Thailand during work stoppage ( hypertext transfer protocol: //www.thaipro.com ) . While concern pattern is another issue Hard Rock Cafe demand to concern. “ The regulative model in Thailand is rather good but whether it is put into pattern is a different issue ” ( hypertext transfer protocol: //www.reuters.com ) . The concern environment in Thailand late is traveling down. Corruptness is increasing severely. If company wants to spread out concern in Thailand, this issue would be sing carefully while most of the concerns try to avoid bribing, they want to make clean concern particularly some companies come from developed states such as United State, Australia. Maintenance would acquire affect as the scheme of Hard Rock Cafe has changed to franchise with opened eating house or cafe . This mean they need to redesign the current cafe/restaurant so that will suit local cultural but it will non lose the Hard Rock ‘s ocular visual aspect.

Securency Company is an illustration for corrupting. Securency is a joint company between Reserve Bank Australia and British company call Innovia Films. “ Several former and functioning Securency executives engaged in graft to win trades in Vietnam, Nigeria, Malaysia and Indonesia. ” Securency Company has been investigated and graft for some middle-men in order to win the trades oversea has been probed. If Hard Rock Cafe gets involve in this sort of graft, this will destruct all the repute that Hard Rock Cafe has tried to construct up decennaries ago every bit good as it will take to shuting down a batch of concern if the graft is proved.

Human resource direction is besides an of import affair for company. Armstrong ( 2006 ) stated that: “ Human resource direction is the strategic and consistent attack to the direction of an organisation ‘s most valued assets: the people working there who separately and jointly lend to the accomplishment of the aims ” . Nowadays, most of the company is truly pay attending about human resource. It can assist the company win over their rivals. For eating house industry, merchandises are of import but services could be an excess point to pull client come back. How Difficult Rock could make it? The company needs to supply the “ better services, cheaper monetary value and faster response ” to vie with their rivals ( Blackwell et al. , 2001 ) .

Staff turnover is another issue particularly in eating house industry due to really high turnover of employees, around 80 % to 100 % per twelvemonth ( Heizer el at. , 2011 ) . Hard Rock Cafe is successfully in keep really low per centum of staff turnover by Lashkar-e-Taiba employees make full in each twenty-four hours schedule what day/shift they would wish to work base on their degree and how of import they are at each displacement. The intent is to equilibrate work and normal life of staff every bit good as will non allow over-employee between two displacements. This method works really good as Hard Rock staffs love that method and it helps to cut down the staff turnover which is per centum of staff turnover in eating house industry is really high.

Although staffs at Hard Rock Cafe are music lover, happy with the working environment but for normal living life, they can non populate without money. So company should hold sensible salary system in order to assist their staffs afford to normal life cost. There is an accusing of an anon. server staff in of the Hard Rock Cafe in United Kingdom that he/she was acquiring paid under the national lower limit rewards which is 2.06 lb per hr while national minimal rewards is around 5.73 lb per hr ( hypertext transfer protocol: //news.bbc.co.uk ) . Employees in Hard Rock Cafe in London are trusting on tips of client to force their rewards to national minimal rewards. These tips could come from hard currency, recognition card tips but we do non cognize all those tip will be distributed reasonably to staffs or the company will maintain them and give portion of it staffs merely. This affair is really of import. Salary would a tool to stimulus the public presentation of employees which could do them work harder, dynamic and enthusiasm. If this affair is proven, the company will be fined and leads to rivals get derive more market portion which is belong to company.

In order to spread out concern in Ha Noi, Vietnam, Hard Rock needs to look at challenges and chances before make concluding determination. These challenges and chances are mention below:

Based on General Statistics Office of Vietnam, Ha noi is about 3345 km2 with more than 6.5 1000000s of people which is around 1935 person/km2 ( hypertext transfer protocol: //www.gso.gov.vn ) . We can see in here, will little country with a batch of people live in, so it is really difficult to happen location to open a new concern in here. Location is a chief concern of company which is easy to entree ; locate around Central Business District where a batch of traveller and people can see their logo. Furthermore, existent estate monetary value in Ha Noi is really high comparison to other metropoliss so that company would necessitate to see rental or purchase it out ( hypertext transfer protocol: //vietbao.vn ) . That would be added to the cost of repast which would be an issue in competitory with other rivals.

Another challenge is cultural differences. Cultural differences could do a batch of job which Hard Rock needs to happen out when be aftering to make concern in Vietnam. Eye contact is an of import to state whether we respect opposite individual or non. For Western cultural, when people are speaking, it is impolite if we do non look at each other ‘s eyes. But in many Asiatic states such as Japan and Vietnam, they can non look at their higher-up ‘s eyes otherwise it means you have no regard for them. If you do that so, that mean you show your regard to them ( Moran el at. , 2007 ) .

Posture/Gesture can do misinterpretation every bit good if two concern work forces from difference states with difference cultural. In Vietnam, it would be friendly if two people stand near, remain small spread between two people but in western manner, it should be a spread ( at least one metre ) when they are speaking to each other, it is consider polite. On the other manus, handshaking would differences between Asiatic cultural and Western cultural. Western people prefer steadfast handshaking, that show their regard to concern spouse every bit good as trustworthy while in Asia, particularly in Vietnam, house handshaking should be avoided while people think it is ill-mannered, un-educated, non being friendly to think. Those things are really of import because if they do non understand Vietnamese cultural, it might make jobs between flat direction of Hard Rock towards their employees. This is non good for concern as it will make the spread between degree direction and employees, hapless public presentations, people might desire to discontinue due to defeated, do non like working environment.

Currency hazard is another hazard factor. At the minute, the exchange rate between US dollar and Vietnamese dong is really high which is 1 US dollar can alter to 19500 VND ( www.eximbank.com ) . If Difficult Rock would wish to convey their goods over from US to maintain original gustatory sensation, it would do the monetary value of each repast addition due to value of VND is decrease plus no transportation cost from US to Hanoi if they buy those merchandises in Vietnam. The rise and autumn of exchange rate could do company hold more competitory advantage to rival but it would be a catastrophe subsequently on so that advantage would turn to disfavor every bit Hard Rock Cafe scheme wants local occupants get affect along with tourers.

In Vietnam legal model is rather good but it is non applied. Intellectual belongings right is an illustration. It is non protected even Vietnam has signed a batch understanding which promised to protect the right of first publication but it does non set it in pattern ( hypertext transfer protocol: //www.vietnam-ustrade.org ) . The per centum of right of first publication violation is still high at 85 % , same at twelvemonth 2007, 2008 ( hypertext transfer protocol: //phapluattp.vn ) . Hard Rock Cafe can be set up today but following few hebdomads, another Cafe might be unfastened and all the repasts, layout, manners, music would be similar or somewhat differences. It will impact the trade name name of Hard Rock if clients come in, still though that is Difficult Rock Cafe and they have bad serves or nutrient toxic condition.

Disregard those challenges above, Ha Noi is still a possible topographic point for investor to see when unfastened concern in here. First, Hanoi is capital of Vietnam with labour force 1.6 million of people while 43 % of them are under age of 35 ; it means 400.000 people enter the market every twenty-four hours ( hypertext transfer protocol: //industrialzone.vn ) . Furthermore, GDP per capital of Vietnam is about $ 1156 USD/year which is really low comparisons to US. It means, company has more option in choosing staffs but pay less money than in US market ( hypertext transfer protocol: //www.dfat.gov.au ) . That would salvage a batch money for company while in US immense money has been paid off for HR and vocalists. This is an advantage when unfastened concern in Hanoi.

Second, supply concatenation direction would non be a job because people can come to Hanoi by three chief ways: railroad, roadway and air passage. Hanoi is besides a get downing point of a batch national main road such as Number 1A national main road, Number 3, 5 national route and NoiBai airdrome is about 40km off merely every bit good as near to 5 large industry zones which they can provide most of the demands for Hard Rock ( hypertext transfer protocol: //industrialzone.vn ) . It is easy to present goods for company on a regular basis and on clip so company will non be run out of stock even in peak period.

Third, since 1990, economic sciences of Vietnam is turning really fast. GDP of Vietnam is about 7 % turning continuously while GDP per capital is at $ 725 USD in 2006 goes up to $ 1156 USD in 2010 which is about double in 4 old ages clip. We can see bright economic system, turning really fast which is a possible market with around 90 1000000s of people ( hypertext transfer protocol: //www.dfat.gov.au ) . That could open for Hard Rock a batch of opportunities while invest in Vietnam as a batch of US companies did it long clip ago such as IBM, Intel and many more US companies. Intel is good illustration in investing. They merely announced to make up one’s mind to do the $ 1 billion investing in a comparative fledgling to the hi-tech game – Vietnam ( hypertext transfer protocol: //www.usatoday.com ) . This determination is good intelligence for Vietnam which could make a hundred 1000 occupations in Hanoi and Ho Chi Minh City every bit good as could convey back immense net incomes for Intel in the hereafter as labour cost in Vietnam is rather inexpensive but extremely educated.

In decision, ten operation direction determinations play an of import function in making concern of company. Those determinations mentioned supra are non all of 10 determinations but it would demo out how of import 10 operation direction determinations in pull offing quality, better public presentation of employees, create new goods/services in order to accommodate to the fast changing of planetary economic. If Hard Rock Cafe can go on to execute as they are making right now, it would be the strength and a competitory border toward their rivals.