MBA Operations Management - Case Study Guides - 07: WHERE TO PLACE THE HARD ROCK CAFE

 

WHERE TO PLACE THE HARD ROCK CAFE

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1. The attached report details the information that Munday collects and analyzes about each site. As such, it provides the answer
to the first question.
LO 8.6: Understand the differences between service- and industrial-sector location analysis
AACSB: Analytical thinking
2. The ratings of the four cities are
A = 80.5, B = 64.5, C = 71.5, and D = 79.5. So City A is a close
first choice over City D. In reality, they are so close that other
considerations may be included, or sensitivity analysis on scores
or weights performed.
LO 8.3: Apply the factor-rating method
AACSB: Analytical thinking
3. Expansion is the lifeblood of any global organization. Good
decisions mean a 10- to 20-year cash flow. Bad ones mean a
10-plus year commitment to a money-losing location.
LO 8.1: Identify and explain seven major factors that affect location decisions
AACSB: Application of knowledge
4. Hard Rock considers political risk, crime, currency, and other
factors in location decisions abroad. In Russia and Colombia,
corruption is so endemic that having a local partner who can
understand and handle these issues is a necessity.
LO 8.1: Identify and explain seven major factors that affect location decisions
AACSB: Ethical understanding and reasoning

 

  HARD ROCK CAFE
STANDARD MARKET REPORT (OFFSHORE)
Executive Summary
Introduction
 Purpose
 Product Type (e.g., franchise or company owned, cafe,
hotel, casino)
 Overview of City/Market (e.g., set context) including
history, macro-economic summary
Demographics (Local, City, Region SMSA, or
equivalent)
 Population (Trend analysis, if possible)
1. Number
2. Age
3. Households
4. Average Household Income
 Economic Indicators (Trend analysis, if possible)
1. Cost of Living Index (compared to national average)
2. Unemployment
3. Size of Workforce
4. Employment by sector
5. Major employers
Visitor Market
 Tourism/Business Visitor (Trend analysis, if possible)
1. Number
2. Origins
3. Length of Stay
4. Average Spend
5. Size of Party
6. Reasons for Visit
7. Frequency of Repeat Visits
8. Seasonality
9. Method of Transportation
 Hotels (Trend analysis, if possible)
1. Hotel Room Inventory
2. Occupancy Rates (Annual and monthly for
seasonality)
3. Room Rates
4. Function Room Demand
5. Recent Development
6. Future Development
 Convention Center (Trend analysis, if possible)
1. Size
2. National Ranking
3. Days Booked per annum

 

HARD ROCK REPORT (CONT’D)
4. Attendance
5. Future Bookings
6. Expansion Plans
7. Major Conventions
Attractions
 Entertainment (Including location, seats, attendance)
1. Theaters (Including live performance space)
2. Cinemas (Including IMAX)
3. Theme Parks
4. Zoo/Aquarium
5. Historic Sites
 Sports (Capacity, annual attendance, location, age
of facility, etc.)
1. Soccer
2. Rugby
3. Baseball
4. Minor Leagues
 Retail (Size, tenants, visitors, seasonality)
1. Regional Shopping Centers
2. Discount Shopping Centers
3. Shopping Districts
Transportation
 Airport
1. Age
2. Passengers Annually
3. Airlines (Indicate hub city)
4. Direct Flights
 Rail
 Road
 Sea/River
Restaurants (A selection of restaurants in key areas of the
target market)
1. Name
2. Location
3. Type
4. Seats
5. Age
6. Estimated Gross Sales
7. Average check
8. Size of Bar
9. Outside Dining Facilities

 

HARD ROCK REPORT (CONT’D)
Nightclubs (A selection of clubs/casinos etc. in key
areas of the target market)
1. Name
2. Location
3. Type
4. Seats/capacity
5. Age
6. Estimated Gross Sales
7. Average check
8. Size of Bar
9. Music type (e.g., live/disco/combination)
Real Estate Market Overview
1. Introduction
2. Retail Rents
3. Recent Developments
4. Future Developments
HRC Comparable Market Analysis
1. Identify comparable existing HRC markets
2. Explain similarities (e.g. regional population, visitors,
hotel rooms, seasonality, etc.)
3. Prepare city P&L spreadsheet analysis
Conclusion
1. Estimate of Gross Food & Beverage Revenue for
market in General with backup and comparables
2. Estimate of Gross Merchandise Revenue for market
in General with backup and comparables
3. Preferred locations
4. Sizzle (How will we make ourselves special in this
market?)

 

 

 

 

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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University

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1. Operations Management Ebooks - Free Downloads

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3. Slides - 12nd Edition - Free Downloads

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