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Posted on May 1st, 2014, by

The organizational structure for the implementation of the both strategies should be decentralized, especially for New Zealand’s project because its franchising model; and the local management team is large, and local managers have substantial experience. The important decisions will made at lower organizational levels. The organizational structure will have a form of teams.

For instance, management team of the case in New Zealand will consist of the restaurant’s general manager, the financial manager, the sales and marketing manager, the HR manager, and the administrative manager. The team’s skills include excellent leadership ability, ability to perform as a team player, good oral and written communication skills, excellent decision-making abilities, basic computer skills, good basic training and education ability, adequate problem-solving skills, good planning ability, and basic day-to-day restaurant operation work. Each of the team’s members has additional technical skills that are specific to his or her field of work.

The strategic control system for managing the implementation of the business launch is an important part of the market entry strategies. Neely (2002, p.22) states that assessing performance is an increasingly important task for managers and other corporate stakeholders. But assessing performance is also very difficult to do. Unlike purely internal measures of performance, such as defects per million, marketing performance depends on external, largely uncontrollable actors, such as customers and competitors. (Paley, 2005, p. 12) Further, it acts as a mediator between these external actors and various internal corporate processes, such as accounting, manufacturing, research and development, and finance. (Neely, 2002, p.27)      In order to control the launch of business on the markets, and to ensure that the launch is supported by the marketing mix effectively, the following measures will be undertaken:

  • Customer Satisfaction Surveys. Measurement of satisfaction is typically accomplished by surveys, often extensive, of the customer base; (Neely, 2002, p.28)
  • Brand equity, brand awareness and customers’ loyalty. Measuring this strength has typically taken two different approaches: the behavioral approach and the financial approach;(Neely, 2002, p.31)
  • Benchmarking and competitors performance analysis;
  •  Balanced Scorecard approach;
  • Control over financial performance;
  • Control over the sales volumes;
  • Measurement of effectiveness of the chosen media channels on a quarterly basis.

The major stakeholders who have an interest in Hard Rock Café’s international operations are first of all the shareholders, the local community, the employees, the government or local authorities and media. It needs to be mentioned that Hard Rock Café is a socially responsible company that realizes the importance of stakeholders for their business. Corporate responsibility is a very serious issue and public is very concerned about it and about the changes that happen around because of the consequences of the corporations’ activities.

There are some companies, innovators and opinion leaders who are conscious about their corporate responsibility programs and are focused on sustainable and equitable development and Hard Rock Café is one of these market leaders. Therefore the issues of sustainability influence the operations of Hard Rock Café are the part of the strategic management system.  It is recommended for Hard Rock Caféb to adopt the transnational strategy that is based on needs for global integration and local responsiveness. It allows improving information flow within the organization and increasing interdependence among subsidiaries results in more informal contacts and the creation of cross cultural teams. (Daniels and Radebaugh, 2001, n.a.)

Corporate social responsibility is a voluntary measures that show the concern of the organization about the social and environment elements that are involved or may be influences by their operational activity. (Reed, 2002, p.166) It is no longer acceptable for a corporation to experience economic prosperity in isolation from those agents impacted by its actions. Any company must now focus its attention on both increasing its bottom line and being a good corporate citizen.  The business model of Hard Rock Café involves the corporate social responsibility and this way deliver two kinds of benefits: private (for the shareholders) and public (for all the stakeholders that are influenced by the organizational activity had to be amended or reshaped in order to be competitive and implement these strategies well. It has to be mentioned that the organi­zations that have a strong social responsibility policies prepare, control and if needed revise their special short term and long term strategic plan depending on the current situation and new factors of influence that may appear in order to hold the leading positions in the constantly changing environment. (Reed, 2002, p.166)

Another important point of discussion is the use of information technology by Hard Rock Café. It is especially important factor to consider in the modern hospitality business. All information may be collected, processed and presented electronically.  The information technology has a crucial impact over the organizational structure of any organization including the one researched that includes the formal lines of authority and communication, the information and data that flow along those lines” (Sabath and Autry, 2001, p.91). Organizations that are extensive users of information technology (which would be consistent with operating automatic replenishment programs) tend to adopt decentralized organizational practices. (Bresnahan, Brynjolfsson & Hitt, 2002)

Additionally, the launch of the hotel in Brazil requires the adoption of the new Destination Management System (DMS).  Nowadays hotels involve IT tools to facilitate and improve customers’ experience before, during and after the visit, as well as for coordi­nating all partners involved in the production and delivery of tourism (Schoefer, 2003, n.a.)

Latest trends in the E-tourism have resulted in the new pattern of consumers’ behavior – consumers prefer cheap fares and online sales. Clearly it becomes the major threat for the traditional tourism-related sectors of economy. The use of DMS may be considered a very effective tool for hotels because it helps to improve their operations, manage their inventory and maximize their profitability. (Cantoni, Kalbaska and Inversini, 2009, p.148 ) The advantages also include the adoption of the unified system for planning, budgeting and controlling and coordinating their properties centrally. (Cantoni, Kalbaska and Inversini, 2009 p.149) The process of multimedia development goes on, DMSs utilization of the opportunities presented by multimedia and Internet also develops. Market players such as hotels use various interactive demonstrations of certain destinations and their particular attractions that allow the consumers make their travelling choice in accordance with the personal expectations.

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