Critical Evaluation Of The Operations Management

Critical Evaluation Of The Operations ManagementThe try out is about to critical evaluate the trading motions caution stpacegy of gravely rock n roll Caf as draw in the case materials, and discuss the operations prudence ch every(prenominal)enges as well as the opportunities when concentrated stir Caf considering expand their demarcation in capital of Vietnam-Vietnam. In the essay, textbook, internet, academic researches entrust be evokeed to support the critical evaluates operations focus, ch eitherenges and opportunities plys.According to Heizer el at., (2011), Operations management is defined as any activities that relate to the cr extinguishion of proficients and function through the transformation of inputs and outputs, while operation managers play an important role in the management process. The management process contains planning, organizing, staffing, leading, and controlling. (Heizer el at., 2011).In the case materials set asided, we go out evaluate 10 c ritical decisions of Operations managements which argon goods and service design, managing quality, process and capacity design, location strategy, layout strategy, HR and job design, supply-chain management, inventory, scheduling and last decision is forethought to see whether how well dense rock candy caf applied these decisions in their operation management (Heizer el at., 2011). We will evaluate few decisions amongst those 10 decisions to let good deal exact a broad view of how saturated shake up Caf applies these decisions to operate their avocation.For goods and service design, what service/products should Caf give to customers? That is rattlingly important issue to Hard rocknroll Management. As weve known, Hard Rock is in hospitality industry. If they provide products/services wrongly, it would lead the confederacy to bankrupt. survey the Hard Rock case study, due to the ball-shaped economic changes, digressions in tune law, a part of risk factors that shew Hard Rock Caf changes from global Strategy into multi-domestic strategy. Multi-domestic strategy is a strategy that companies in severally market makes their operating decisions independently of others oversea markets (http//tutor2u.net).In here, fellowship decided to franchise a large number of their cafes by joining with sacrificeed caf such as in Manchester and Birmingham, which try to entice local residents involve in their byplay due to this perplex is not a common place for whirlist, where people in here be quite conservative. This decision would make them to redesign their goods and services to strike with the local taste. Differences country would have different ethnic, languages, business practices. For example Hard Rock caf in capital of Kuwait would require to change their menus because they cant eat pork. All products ar related to pork are verboten as well as alcohol while in US where people can eat pork, drink alcohol with no restriction due to difference religions and law as well ( Moslem in Kuwait and mainly Catholic, Protestant, Buddhism in US). (http//www.hardrock.com)Another issue is managing quality. Base on Rose el at., (2005), management quality is looked at 4 issues quality planning, quality control, quality assurance and quality emendment. Hard Rock Caf has been focused on quality control and improvement by survey. It has been d whizz regularly with rate from 1 to 7. If the score is not r to each oneed score 7 that mean the foods and services will be reviewed. The federation has changed their menus to match with local taste as well as upgrade their menu. They are not scarcely focus on their traditional food such as hamburgers and beefs nevertheless also look for gamey class of food like fishes, lobsters. Although customers go to Hard Rock Caf because they love music, atmosphere, environment, that is the main reason and high quality of food which show in menus would be value-added to Hard Rock Caf reputation and make customers come a assoil. Cianfrani el at., (2009) told that Quality management could change some of the management principles. This can do go by train management to increase the companys performance as well as satisfy the customers need. This issue is very important for the company which they are strongly focused on customer because most of the Hard Rock Caf customers are tourists while a minority is a local resident (Heizer el at., 2011).When the company changes their services/products, they also need to think of their existing supply chain management. Mentzer et al., (2001) stated that Supply chain management is seen as a mechanism to maintain competition in domestic markets, in light of change magnitude global competition. The company chooses to upgrade their menu that would restructure their supply chain management because they will need new suppliers as well as maybe eliminate some old suppliers. Hard Rock Caf does not want too much on beefs and hamburgers they want to add more expensive thrust such as fishes and lobsters which would attract a wider range of customers as well as lift the level of Hard Rock Caf one step higher.Top level managements also need to consider on the distri yetion network of new suppliers. Where are their warehouses, distribution centers, number of net operatives, who are their customers? What are payment foothold? Can they carry goods then we play later or we need to play upfront out front they delivery goods? All those things need to consider very careful because it will affect to the cost of the repast later on. If the warehouse of new supplier is too far, it would create a rangy worry when we escape out of food to prepare meal for customers. Moreover, if the company has to make full payment before they deliver goods, it would be an issue to management level to consider because if we can pay them later in a certain sidereal day after we receive goods, that is so much better, we can use that capital to do somethin g else to make more money and pay the supplier later.Location for Hard Rock Caf would a big issue to consider when select the location. A cumulus of things would affect such as political risk, specie risk, social norms, brand fit, and business practices (Heizer el at., 2011). Political risk is defined as Probability of evil due to political instability in the buyers country that may result in cancellation of a evidence or otherwise affect the buyers ability to make payments. Political risks are insurable risks, and overlap with the political component of force majeure risks (http//www.businessdictionary.com). It is the main concern when choosing location. Thailand will be a good example. Recently, Thailand has a lot of strikes which would make investors worry. It will also affect tourist industry due to a lot of cancellation tour to Thailand during strike (http//www.thaipro.com). While business practice is another issue Hard Rock Caf need to concern. The regulative framework in Thailand is quite good but whether it is put into practice is a different issue (http//www.reuters.com). The business environment in Thailand recently is going down. Corruption is increasing badly. If company wants to expand business in Thailand, this issue would be considering carefully while most of the businesses try to avoid bribing, they want to do clean business curiously some companies come from developed countries such as United State, Australia. nutrition would bushel involve as the strategy of Hard Rock Caf has changed to franchise with opened restaurant or caf. This mean they need to redesign the current caf/restaurant so that will fit local heathen but it will not lose the Hard Rocks visual appearance.Securency Company is an example for bribing. Securency is a articulation company betwixt Reserve Bank Australia and British company call Innovia Films. Several former and armed service Securency executives engaged in bribery to win deals in Vietnam, Nigeria, Malaysi a and Indonesia. Securency Company has been investigated and bribery for some middle-men in value to win the deals oversea has been probed. If Hard Rock Caf gets involve in this kind of bribery, this will destroy all the reputation that Hard Rock Caf has tried to build up decades ago as well as it will lead to closing down a lot of business if the bribery is proved.Human election management is also an important matter for company. Armstrong (2006) stated that Human resource management is the strategic and dogged approach to the management of an organizations most valued assets the people working there who individually and collectively get to the achievement of the objectives. Nowadays, most of the company is really pay attention about human resource. It can help the company win over their competitors. For restaurant industry, products are important but services could be an plain point to attract customer come back. How Hard Rock could do it? The company needs to provide the bet ter services, cheaper price and faster response to compete with their competitors (Blackwell et al., 2001).Staff turnover is another issue especially in restaurant industry due to very high turnover of employees, some 80% to century% per year (Heizer el at., 2011). Hard Rock Caf is successfully in keep very low section of staff turnover by let employees fill in each day schedule what day/shift they would like to work base on their level and how important they are at each shift. The purpose is to balance work and normal life of staff as well as will not let over-employee between two shifts. This method works very well as Hard Rock staffs love that method and it helps to reduce the staff turnover which is percentage of staff turnover in restaurant industry is very high.Although staffs at Hard Rock Caf are music lover, happy with the working environment but for normal living life, they cannot live without money. So company should have reasonable profit system in order to help their s taffs afford to normal living cost. There is an accusing of an unidentified waiter staff in of the Hard Rock Caf in United Kingdom that he/she was acquiring paid under the national minimal wages which is 2.06 pound per hour while national minimum wages is round 5.73 pound per hour (http//news.bbc.co.uk). Employees in Hard Rock Caf in London are relying on tips of customer to push their wages to national minimum wages. These tips could come from cash, credit card tips but we do not know all those tip will be distributed fairly to staffs or the company will keep them and give part of it staffs simply. This matter is very important. Salary would a tool to arousal the performance of employees which could make them work harder, dynamic and enthusiasm. If this matter is proven, the company will be fined and leads to competitors get gain more market share which is belong to company.In order to expand business in Ha Noi, Vietnam, Hard Rock needs to look at challenges and opportunities before make final decision. These challenges and opportunities are mention belowBased on General Statistics Office of Vietnam, Ha noi is about 3345 km2 with more than 6.5 millions of people which is some 1935 person/km2 (http//www.gso.gov.vn). We can see in here, will small area with a lot of people live in, so it is very hard to find location to open a new business in here. Location is a main concern of company which is easy to access locate around Central Business District where a lot of traveler and people can see their logo. Moreover, real estate price in Ha Noi is very high compare to other cities so that company would need to consider lease or buy it out (http//vietbao.vn). That would be added to the cost of meal which would be an issue in competitive with other competitors.Another challenge is cultural differences. Cultural differences could cause a lot of problem which Hard Rock needs to find out when planning to do business in Vietnam. Eye contact is an important to tell w hether we respect opposite person or not. For western sandwich cultural, when people are talking, it is impolite if we do not look at each others eyes. But in galore(postnominal) Asian countries such as Japan and Vietnam, they cannot look at their superiors eyes otherwise it way you have no respect for them. If you do that so, that mean you show your respect to them (Moran el at., 2007).Posture/ move can make misunderstanding as well if two business men from difference countries with difference cultural. In Vietnam, it would be friendly if two people stand close, remain little gap between two people but in western way, it should be a gap (at least one meter) when they are talking to each other, it is consider polite. On the other hand, handshake would differences between Asian cultural and Western cultural. Western people prefer firm handshake, that show their respect to business partner as well as trustworthy while in Asia, especially in Vietnam, firm handshake should be avoided while people think it is rude, un-educated, not being friendly to guess. Those things are very important because if they do not understand Viet holdse cultural, it might create problems between level management of Hard Rock towards their employees. This is not good for business as it will create the gap between level management and employees, poor performances, people might want to quit due to disappointed, do not like working environment.Currency risk is another risk factor. At the moment, the exchange rate between US dollar bill and Vietnamese dong is very high which is 1 US dollar can change to 19500 VND (www.eximbank.com). If Hard Rock would like to bring their goods over from US to keep original taste, it would make the price of each meal increase due to value of VND is decrease plus no shipping cost from US to Hanoi if they buy those products in Vietnam. The rise and fall of exchange rate could make company have more competitive emolument to competitor but it would be a disa ster later on so that advantage would turn to disadvantage as Hard Rock Caf strategy wants local residents get involve along with tourists.In Vietnam legal framework is quite good but it is not applied. ingenious property right is an example. It is not protected even Vietnam has signed a lot agreement which promised to protect the copyright but it does not put it in practice (http//www.vietnam-ustrade.org). The percentage of copyright infringement is mollify high at 85%, same at year 2007, 2008 (http//phapluattp.vn). Hard Rock Caf can be set up today but next few weeks, another Caf might be open and all the meals, layout, styles, music would be similar or slightly differences. It will affect the brand name of Hard Rock if customers come in, still though that is Hard Rock Caf and they have bad serves or food poisoning.Disregard those challenges above, Ha Noi is still a potential place for investor to consider when open business in here. Firstly, Hanoi is capital of Vietnam with la bor force 1.6 million of people while 43% of them are under age of 35 it means 400.000 people enter the market every day (http//industrialzone.vn). Moreover, gross domestic product per capital of Vietnam is around $1156 USD/year which is very low compares to US. It means, company has more option in selecting staffs but pay less money than in US market (http//www.dfat.gov.au). That would save a lot money for company while in US huge money has been paid off for HR and singers. This is an advantage when open business in Hanoi.Secondly, supply chain management would not be a problem because people can come to Hanoi by three main ways railway, roadway and airway. Hanoi is also a starting point of a lot national highway such as Number 1A national highway, Number 3, 5 national road and NoiBai airport is around 40km away only as well as close to 5 big industry zones which they can supply most of the needs for Hard Rock (http//industrialzone.vn). It is easy to deliver goods for company regul arly and on time so company will not be run out of stock even in nib period.Thirdly, since 1990, economics of Vietnam is growing very fast. gross domestic product of Vietnam is around 7% growing continuously while GDP per capital is at $725 USD in 2006 goes up to $1156 USD in 2010 which is nearly double in 4 long time time. We can see bright economy, growing very fast which is a potential market with around 90 millions of people (http//www.dfat.gov.au). That could open for Hard Rock a lot of chances while invest in Vietnam as a lot of US companies did it long time ago such as IBM, Intel and many more US companies. Intel is good example in investment. They just announced to decided to make the $1 billion investment in a relative newcomer to the high-tech game Vietnam (http//www.usatoday.com). This decision is good news for Vietnam which could create a hundred thousand jobs in Hanoi and Ho Chi Minh city as well as could bring back huge profits for Intel in the future as labor cost in Vietnam is quite cheap but highly educated.In conclusion, ten operation management decisions play an important role in doing business of company. Those decisions mentioned above are not all of ten decisions but it would show out how important ten operation management decisions in managing quality, improve performance of employees, create new goods/services in order to adapt to the fast changing of global economic. If Hard Rock Caf can continue to perform as they are doing right now, it would be the aptitude and a competitive edge toward their competitors.