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Hard Rock Cafe

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by

Millie Hand

on 9 February 2014

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Transcript of Hard Rock Cafe

Strategic Group Analysis
Criteria for the inimitability of strategic capabilities.
Culture and history
Path dependency

Complexity
1. Internal linkages
2. External linkages

Casual Ambiguity
1. Characteristics ambiguity
2. Linkages ambiguity

Change
1. To innovate
2. To keep ahead
Industry Life cycle Analysis
Industry: Themed Restaurants.
Background
A Strategic Analysis
TOWS
SWOT
PESTEL
STRATEGIC CAPABILITIES OF HARD ROCK CAFE “VRIN”
V=value to customers

R= Rare capabilities

I= Inimitability

N= Non-substitutability

The above capabilities (VRIN) are the core competences of Hard Rock Cafe.

HRC International - 1971
Restaurants, hotels, casinos, live music venues.
Merchandise including clothing, jewlerry/watches and accessories.
We will be analyzing specifically the restaurant side of the business within the UK
HRC restaurants key principles:
All food is made fresh by hand
Classic American cooking with a Southern flair
Loud rock music. HRC dont believe in "background music"
HRC displays "epic" memrobilia throughout their restaurants and frequently have gigs.
Pizza Hut
(650)

Giraffe
(49)

Pizza Express
(400)

Hard Rock Cafe
(2)

Gourmet burger Kitchen
(50)

Jamie's Italian
(35)

Planet Hollywood
(1)

TGI Fridays
(58)

Prezzos
(160)

Nandos
(296)

Rainforest Cafe
(1)

Number of Outlets

Price

Political & Legal
Economic
Social
Technological
Environmental
• Health regulations relating to food sourcing and preparation.
• Hygiene standards.
• Labour laws.
• Levels of disposable income.
• Economic growth.
• Inflation.
• Exchange rates.
• Health consciousness.
• Attitudes towards ‘eating out’.
• Religion – types of meat.
• Vegan and vegetarian groups.
• Ageing population.
• Specialised equipment.
• Social media.
• Carbon footprint awareness.
• Biodegradable.
Strengths
Weaknesses
Opportunities
Threats
• Power of the brand.
• Managerial experience.
• Diverse menu.
• Sufficient resources.
• Price.
• Busy – need reservations.
• Restaurant is loud – might deter some customers.
• Increasing market – now we’re coming out of a global recession.
• New ways of improving efficiency.
• New cafes.
• Competition is strong (i.e. Planet Hollywood).
• Brand may deter customers – may see it as overrated.
SO
ST
WO
WT
Have sufficient resources to create new cafes.
• Use the brand to fend off competition and entice customers – better marketing?
• Use the managerial experience to create a USP.
• With the increasing market (and potentially increasing customers), the restaurants are likely to get busier so create more than one café in a country to help with this.
• With new ways of improving efficiency, this may help reduce the price that customers have to pay.
• Lower prices to create a competitive advantage to help with competition.
The Value Chain
Value chain describes the categories of activities within an organization which together create a product or a service.
Inbound logistics
Procurement
Operations
Marketing and sales
Services
Human resource management
For an organization to achieve competitive advantage by delivering value to customers, it should know which of the above activities is more important in creating that value to customers and which is not.

USING STRATEGIC CAPABILITIES TO IT's ADVANTAGE.
Location of restaurants
Raw materials are sourced from local suppliers
Menus are plan to have local taste
Committed and experience chefs cook to the taste of customers
Customers enjoy loud background music whilst eating their meals.

Porters 5 forces
Bargaining power of Customers: HIGH
A lot of choice for the customer
Concentration of the customer is low
The buyer competiton threat could be considered high

Threat of new entrants: HIGH
Low capital requirement to set up a single restaurant
Extremely high failure rate of new restaurant businesses
Economies of scale can be gained as restaurant gets bigger
Large saturated comeptition within the UK and international maket for restaurants
Not a very high experience curve when looking at the industry
No major government barriers
If successful high likelhood of retaliation by a large competitor
Wide levels of differentiation between restaurant styles

Threat of Substitutes: HIGH
There is a high substitution of the 'dining out' experience

Bargaining Power of Suppliers: HIGH
High competition within this industry
Market is in maturity
Relativley high fixed cost when starting a restaurant
There is many variations of the dining out experience


Ansoff's Matrix
Existing Products
New Products
Existing Market
New Markets
HRC Hotels
HRC Restaurants
HRC live music
HRC Casinos
HRC Memorabilia
HRC Rock park (closed)
Full transcript