This study analyzes the strategies of operations management of Hard Rock Cafe and Toyota Motor Corporation. It compares their operations strategies, processes, quality management, and capacity planning.
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Running head: STRATEGIES ON OPERATIONS MANAGEMENT STRATEGIES ON OPERATIONS MANAGEMENT Name of the student Name of the university Author note
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1STRATEGIES ON OPERATIONS MANAGEMENT Table of Contents Table of Contents.......................................................................................................................1 Introduction:...............................................................................................................................2 Background:...............................................................................................................................2 Background of Hard Rock Cafe:............................................................................................2 Background of Toyota Motors Corporations:........................................................................3 Operations strategies:.................................................................................................................3 Operations strategies of Hard Rock Cafe:..............................................................................3 Operations strategies of Toyota Motors Corporation:...........................................................4 Operations process:....................................................................................................................5 Operations process of Hard Rock Cafe:.................................................................................5 Operations process of Toyota Motors Corporations:.........................................................5 Quality management:.................................................................................................................6 Quality management of Hard Rock Cafe:..............................................................................6 Quality management of Toyota Motors Corporations:..........................................................7 Capacity planning:.....................................................................................................................7 Capacity planning of Hard Rock Cafe:..................................................................................7 Capacity planning of Toyota Motors Corporations:..............................................................8 Supply chain management:........................................................................................................8 Supply chain management of Hard Rock Cafe:.....................................................................8 Supply chain management of Toyota Motors Corporations:.................................................8 Conclusions:...............................................................................................................................9 Lesson learned:.......................................................................................................................9 Recommendations:.................................................................................................................9 References:...............................................................................................................................10 Appendix:.................................................................................................................................12
2STRATEGIES ON OPERATIONS MANAGEMENT
3STRATEGIES ON OPERATIONS MANAGEMENT Introduction: Operations management is all about the process by which the business operations of an organization are managed (Hitt, Xu and Carnes 2015). Strategies are made for managing the business operations effectively and those strategies vary according to the industries of the respective companies.Those organizations which are able to develop efficient strategies on operations management are able to gain the relevant success and those which are not able to develop efficient strategies are not able to maintain the sustainability in the business. With proper strategies on operations management, efficiency in the business can be derived which also results in long term success. Elements of a successful operations management include the control in the process of production or services, enhancing the quality and capability of the products and services and efficient management of the supply chain of the business. Responsibilities are given to the skilled stakeholders of the company to manage the business operations effectively in accordance with the developed strategies (Khanna 2015). This study will analyze the strategies of operations management of Hard Rock Cafe and Toyota Motor Corporation. Both these companies are highly successful in their own industry and for this, it will be essential to analyze the strategies that they have implemented for managing their business operations. Therefore, a comparative analysis will be conducted to compare the strategies of operations management of both these companies. Background: Background of Hard Rock Cafe: Hard Rock Cafe or HRC is one of the most successful restaurant chains in the world. HRC was founded in the year 1971 in London and gradually, with this unique interior design and high-quality service, HRC became highly popular (Hardrock.com, 2019). The business of the company gradually expanded to other countries and in the year 2007, the headquarters of the company was shifted to Florida, US. Current HRC is operational in 74 countries along with having its own cafes, casinos, and hotels. Refer to the Appendix.
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4STRATEGIES ON OPERATIONS MANAGEMENT Background of Toyota Motors Corporations: ToyotaMotorsCorporationisanautomotivemanufacturingcompanywhichhasits headquartersinToyota,Japan.Afterfoundedintheyear1937, thiscompanybegan expanding its business worldwide and currently, the vehicles manufactured by the company are available and popular worldwide (CORPORATION., 2019). The brand name of Toyota has gained a high reputation for which the numbers of sales of its manufactured vehicles are on the higher side and for this, the organization is known as one of the most successful automotive manufacturing companies in the world. Operations strategies: Operations strategies of Hard Rock Cafe: Since the start of its business operations in London, HRC has emerged as one of the most popular restaurant and pub chains in the world. This has been possible mainly due to the presence of an efficient operations management of the company. With its innovative themes in terms of designing the interiors of the cafes and menu cards, HRC has developed the strategies which are unique and highly attractive. Most important of all, the themes and types of services have been consistent in all the cafes regardless of different countries. HRC has maintained its brand image in all the countries where its business is operational (Thai 2018). The music which is played in the cafe to entertain the guests is modified over time in the process of making those apt with modern times. Even the menu and layout also keep on modifying to match with the changing preferences of the customers. This means that the operations strategies of HRC are modified and are highly adaptable to the changes. This strategy makes the company one of the most successful in the industry since long a period of time. Along with the cafes, HRC also has its retail shops in which the merchandizes of the company are sold and those are extremely popular among the customers. The retail business of the company is also highly successful and contributes hugely to the business growth. The employees are chosen as such that they have the relevant competencies that are required in the industry and also have personalities which are engaging. HRC regularly conducts surveys with the customers in the process of improving the quality of food and music and the overall service. This contributes to the excellent customer service and brand image for which the company is famous for. The strategies of business operations also involve the focus on the marketing of the business. With the help of the website and by marketing through television
5STRATEGIES ON OPERATIONS MANAGEMENT programs and social media, HRC has been able to catch the attention of a large number of targetcustomers(Bhasin,2019).Eventheprocessbywhichthecompanykeeps communicating with its customers is also innovative as well as an efficient one. The operations managers of the company play the key roles in making the operations up to date and innovative one. The cafe at the headquarters at Orlando, Florida is the largest of all and preparesmorethan3500mealsinadayalongwithservingover1500customers (Hardrockhotelorlando.com, 2019). Despite the fact that it is a challenge for the company to maintain such workflow, however; over the years; HRC has been hugely successful to provide high customer services for all the customers who visit the cafe. These high-quality services are not only limited to this single cafe. In fact, each of the cafes of HRC around the world has been highly successful in proving quality services and food to the customers. This is the main reason for sustainability in the success that HRC has maintained over the years. Refer to appendix... Operations strategies of Toyota Motors Corporation: Like HRC, Toyota Motors Corporations has been extremely successful in its own industry and known for maintaining its brand value over the years. The designs of the vehicles are always made attractive ones and the changes are made in accordance with the changing preferences of the customers. Along with this, the operations strategies of the company are based on manufacturing innovative products along with using the latest technologies to provide high-quality products to the customers (Monden, 2019). This is the reason why the vehicles manufactured by the company are popular in almost all over the world. The investments made in R&D have helped the company make efficient strategies through which the quality of services has been excellent. The focus of the company is on constant improvement of the production system, re-engineering, use of innovative technologies and satisfaction of the employees. Through these operations strategies, Toyota has been able to manage all its vital business operations efficiently and has emerged as one of the most successful companies in the industry.
6STRATEGIES ON OPERATIONS MANAGEMENT Operations process: Operations process of Hard Rock Cafe: The success of operations management is always dependent on the process by which the operations are conducted. Being a multinational company, it is always a challenge for HRC to manage all the operations process in all the cafes around the world efficiently. In order to maintain the brand image, it is highly important to provide the equal quality of services in all its cafes around the world. In this process, the service design of the company has been developed as such that customers in all the cafes can feel a similar ambiance for which HRC is known for (Kuisma and Niemi 2016). The culture of hard rock songs in the process of keeping the target audiences engaged and entertained has been one of the main highlights of the successful operations process of HRC. By targeting a specific group of audiences, HRC develops the plans which meet with the expectations of the target group efficiently. TheprocessdesignofHRCinvolvespreparationoffood,routingoforder,making reservations and others. This involves all the important internal business processes that HRC is focused on. Most important of all, HRC is well aware of the quality and competencies that their employees require to handle these tasks. Therefore; the responsibility is only given to those staffs who have the required skills to handle these tasks efficiently. In the process of management of the business operations, the quality of the services is also given importance by the management of HRC. The choice of locations that HRC makes for opening their cafes also is an important success factor. The locations that the company chooses are always in the popular areas of the cities and for this, the business process involves proper R&D on the culture and popular locations of a particular city before starting its business operations (Elliott, 2019). The themes that are developed are different and unique from other cafes and the themes are maintained equally in all the cafes of the company. All these processes make HRC highly successful in the industry. Operations process of Toyota Motors Corporations: The operations process of the company is focused on using the lean manufacturing method in which the importance is given on reducing the wastes. This helps the company to control its budget and thus, the end products which are sold are available at affordable rates to the customers (Coetzee et al 2019). With the help of proper R&D and re-engineering, Toyota has been extremely successful in the industry. Even if some of the models of vehicles that are
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7STRATEGIES ON OPERATIONS MANAGEMENT produced by the company fail to establish its market presence; Toyota rather than considering those as wastes; focuses on altering the design within the similar facility of production. This process helps significantly in reducing the overall production cost. Toyota also uses robotic technology which helps in mass production and also in the process of bringing in control in the overall process of production. The lean production method also helps the company to reducethemanufacturingtimealongwithenhancedmanagementofthefactories (Hovemeyer, 2019). This is an important factor for the long-term success that the company has achieved so far. Proper inspection is conducted in the process of evaluatingthe production process and if any types faults are found in production, then it is interrupted and after finding the causes of the errors, then strategies are developed to eliminate those errors. The strategies on the manufacturing of the hybrid vehicles have brought in huge success for the company due to their high market demands. Toyota is always focused on conducting market research and this forms an important aspect of its operations process. Due to these advanced and innovative strategies, Toyota has always maintained competitive advantages in the industry with success. Quality management: Quality management of Hard Rock Cafe: The operations managers of the company are also responsible for assessing the quality of the services. HRC maintains a specific quality for all the services and the responsibility of the operations managers is to ensure that all the services that are provided to the customers by HRC meet with the standards of quality that HRC maintains. This is an important strategy which helps HRC to maintain its quality successfully in all the cafes. The ambiance along with the quality of food and music are also the success factors of quality management of HRC (Chang 2016). This is because; the management of HRC has always maintained a particular standard for music and food which are required to be followed by all its cafes. Along with the cafe, services at the hotels of the company are also maintained as such that the high quality is maintained in all the business. One of the other processes by which HRC maintains its quality is through the methods by which it is able to adapt to the market demands. This means that HRC has always been successful to identify the changing market demands and the recent trends and therefore; the standards of services are developed as such that those are able to meet with the demands and match up with the changing trends. Further;
8STRATEGIES ON OPERATIONS MANAGEMENT HRC also engages its staffs to receive training and take feedback from the customers which help in understanding the quality that the customers expect (Ramazonava 2016). All these factors help HRC to maintain its quality significantly and for establishing successful quality management. Quality management of Toyota Motors Corporations: Toyota Motors Corporations has been always known for the high-quality products that it manufactures. The strategies on continuous improvement in the process of production make the company extremely successful in the industry. This means that with the help of R&D, Toyota has been able to understand the market demands and faults in its production processes (Araki et al 2018). Through this, it assesses the quality of the production and re-engineering strategies are used to meet with the required quality of the vehicles. A standard is maintained which is followed by the staffs to ensure that the quality is maintained without fail. Despite the growing competition in the industry, Toyota has been always successful to maintain its brand image and this is due to the high quality of the vehicles that it has manufactured since a long period of time. In the process of manufacturing of hybrid vehicles, Toyota always ensures that the quality of these vehicles is of a high standard and better than that of all the othercompetitorsintheindustry.ThesearethefactorsthatmakeToyotaextremely successful in the process of quality control and have also helped the company to effectively manage its quality control process with success. Capacity planning: Capacity planning of Hard Rock Cafe: HRC has a specific target for its capacity which all the staffs in all the cafes need to maintain. These capacities define the quality of service and the support for the customers that it has provided for a long period of time. The management of HRC always analyze the demands that are persistent in the local markets and the capacity design is developed as per those demands (Rautiainen 2018). That is in the process of attracting the customers, the capacity design always involves the identification of the products or services that are extremely demanding in the local market and likewise the strategies are developed to meet with those demands. This is one of the success factors in the capacity planning of the company for a long period of time. Capacity utilization is always on the focus of the company and the
9STRATEGIES ON OPERATIONS MANAGEMENT strategy is developed in order to maximize the utilization of the capacity so that the services to the customers are of high quality and unique from the competitors in the local market. Capacity planning of Toyota Motors Corporations: As discussed earlier, Toyota has been hugely successful in the industry due to the efficient use of the lean manufacturing process. The strategies on capacity planning are also developed as per the use of lean production. This means that the planning is made on reducing the cost and time for the production along with ensuring that wastes in the process of production are controlled efficiently (Toma and Naruo 2017). The cost-effectiveness in the process of production has been always in the strategies on the capacity design that the company maintains with success. Due to this, Toyota has always been successful to deliver cost- effective vehicles to its customers and thus, has been able to attract more customers over the period of time than the other competitors in the industry. The focus of the capacity planning is on increasing the efficiency in the process of production continuously and this reflects on the quality of the products that the company has supplied till now. Supply chain management: Supply chain management of Hard Rock Cafe: Supply forms an important aspect of business for all the companies and this is not exceptional for HRC. The decisions of the supply chain are made by assessing the demands in the market, the cost of services and the cost of inventory management of the business. These costs tend to increase or decrease according to the market scenario and the management of the company has been extremely successful in managing these costs effectively. The supply levels have some targets which the company always tends to achieve and thus, strategies are developed as such that those targets are achieved with success. The fluctuations in the demand of the market are also properly assessed by the company and the operations managers are given these responsibilities to manage the supply chain of the business effectively. Supply chain management of Toyota Motors Corporations: Lean manufacturing is also used in the process of management of the supply chain of the company. This means strategies have been developed as such that the supply chain brings in efficiency and managed within reduced cost and time. This also helps the company to reduce the cost of inventory management effectively. The process of supply chain management of
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10STRATEGIES ON OPERATIONS MANAGEMENT the company is automated and by using advanced technologies (Mao 2018). This means that the traditional method of management of the supply chain which was extremely complicated has been replaced by automated ones. This helps the company to manage the inventories effectively as well and ensures that the stock management is handled efficiently. The real- time processing of the data along with managing the invoices and payments effectively make the company one of the most successful in the market and in the process of achieving a competitive advantage. Conclusions: Lesson learned: By assessing the operations management and operations strategies of Toyota and HRC, it has been possible to learn about how these companies have been able to provide high-quality services to the customers along with maintaining the sustainability in the business for a long period of time. Along with this, it has been also possible to understand how the process of quality control and capacity management can be planned. The way these multinational companies manage all their employees, customers and the business operations effectively can be used as the learning materials in the vision of enhancing the business operations of the companies of the small and medium sector with success. Recommendations: The strategies on operations management of both these companies are advanced and efficient ones. The modern-day companies need to learn from these companies about the processes which can be applied in the strategies of operations management. Along with proper market research and implementation of high-quality services can make any business successful such as these companies. It is important to maintain sustainability in the business through these effective strategies.In terms of operation strategies, R&D can help significantly in the process of researching the market demands and the risks from the environment. Therefore; by conducting a proper method of R&D, organizations can overcome all the external challenges and the loopholes in terms of service and production can be eliminated significantly.
11STRATEGIES ON OPERATIONS MANAGEMENT References: Araki, K., Ji, L., Kelley, G. and Yamaguchi, M., 2018. List of todo of R&D and International Standardization for Realizing that most of the EVs Run by the Solar Energy. Bhasin, H. (2019). Marketing Strategy of Hard Rock Cafe - Hard Rock Cafe Strategy. [online]Marketing91.Availableat:https://www.marketing91.com/marketing-strategy-of- hard-rock-cafe/ [Accessed 10 Jun. 2019]. Chang, J.C., 2016. The Impact of Servicescape on Quality Perception and Customers' Behavioral Intentions. Advances in Management and Applied Economics, 6(4), p.67. Coetzee, R., Jonker, C., van der Merwe, K. and van Dyk, L., 2019. The South African perspective on the lean manufacturing Respect for People principles. SA Journal of Industrial Psychology, 45(1), pp.1-11. CORPORATION., T. (2019). Toyota Motor Corporation Official Global Website. [online] Toyota Motor Corporation Official Global Website. Available at: https://global.toyota/en/ [Accessed 10 Jun. 2019]. Elliott, S. (2019). Campaign Offers Choice Between a Hard Rock and a Place. [online] Nytimes.com.Availableat: https://www.nytimes.com/2010/11/22/business/media/22adnewsletter1.html[Accessed10 Jun. 2019]. Hardrock.com. (2019). Home | Hard Rock. [online] Available at: http://www.hardrock.com/ [Accessed 10 Jun. 2019]. Hardrockhotelorlando.com.(2019).HardRockLiveOrlando.[online]Availableat: https://www.hardrockhotelorlando.com/hard-rock-live.htm [Accessed 10 Jun. 2019]. Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management research. Journal of Operations Management, 41, pp.77-94. Hovemeyer, R. (2019). Lean Manufacturing Made Toyota the Success Story it is Today | InvestinginourEconomy.[online]Rcbi.org.Availableat: http://www.rcbi.org/index.php/viewarticle/130-capacity-magazine/spring-2007/features/336-