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Posted on April 27th, 2014, by

The company needs to develop effective operating decision and people process (HR) in India and Brazil. The autonomy of outlets will allow them to maximize the effectiveness of their operating decisions and people process because they will be able to take decisions fast and respectively to current challenges and problems they face in the market and their operations. The centralized management from the headquarter of the company would be ineffective in such a situation.

C) Organizational structure for the implementation of the strategies

The organizational structure before and after the international market expansion of Hard Rock Café to India and Brazil will be quite different. In fact, the company will expand consistently its organizational structure after entering Indian and Brazilian markets. At the moment, Hard Rock Café’s organizational structure is traditional and focuses on the UK and European markets only. The organizational structure of the company is homogeneous while managers and employees working in the company are culturally close to each other. As the company going to enter Indian and Brazilian markets, Hard Rock Café will have to expand the scope of its operations and to develop business in absolutely new cultural environment that may need considerable structural changes. For instance, the management style in Brazil and India is different from that in the UK. Therefore, the company will need to adapt its management style to local specificities and to develop human resource management respecting local traditions and norms. In addition, the company will have to provide outlets in India and Brazil with larger autonomy to maintain their effective operations and fast decision making process. Therefore, local executives will have more autonomy compared to their colleagues in Europe, for instance. Nevertheless, such changes would have positive effects on the marketing performance of the company in Brazil and India because they will provide outlets of the company with the flexibility and autonomy essential in the contemporary globalized business environment.

The change of the organizational structure related to the Hard Rock Café entering the market of Brazil and India will contribute to the higher flexibility of the organization. The larger autonomy of outlets operating in Brazil and India will help the company to increase the flexibility. Local managers will become more responsible for their decision making process because their decisions will define the overall performance of outlets in Brazil and India. They will not rely on the headquarter in the UK. Instead, they will take decisions autonomously. In addition, their management style will affect the organizational performance and influence the development of outlets in Brazil and India. Top executives of Hard Rock Café will only define the strategic direction in the development of the company and, therefore, they will take strategic decisions mainly.

D) Strategic control system

Control system

The development of the effective control system is crucial for the successful business development and international market expansion of Hard Rock Café. In this regard, the company should introduce the position of control officers who supervise and monitor operations of Hard Rock Café outlets in India and Brazil. Control officers should be top executives of the company, who will supervise India and Brazil businesses of the company. They may have assistance, who can help them to monitor the situation in Brazilian and Indian outlets of the company. They will conduct auditing of the business of Hard Rock Café in India and Brazil on the annual business. They will also conduct the assessment of the marketing performance and correlate it to the marketing strategy of Hard Rock Café. If outlets in India and Brazil fail to meet strategic goals and strategic plan, control officers should recommend changes or encourage managers of the outlets to introduce changes that would accelerate their business development and improve their marketing performance.

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