- April 27, 2014
- Posted by: essay
- Category: Term paper writing
– Exit Strategies mode
The company should also prepare the exit strategy. Taking into consideration the fact that the company will not expand its chain in India and Brazil consistently but will focus on the major cities only, Hard Rock Café can exit the market selling out its business to its rivals, who may be interested in purchasing facilities and business of the company. Alternatively, the company can provide its outlets in India and Brazil with a large autonomy and provide them with the possibility to buy out the business in the course of certain time (Nitzan and Bichler, 2009). For instance, Hard Rock Café can grant them franchise instead of the ownership, while outlets operating in India and Brazil will operate as independent companies on the ground of franchising agreement with Hard Rock Café. In such a case, outlets in India and Brazil will form their own companies and brands but they will operate under the franchise of Hard Rock Café (Garvin and Artemis, 1997). Therefore, they will conduct their marketing operations, pay taxes, develop their business and conduct other business operations, while Hard Rock Café will only maintain franchising and gain the agreed share of profit of these companies. In such a way, the company can exit the market and still obtain profits from franchising.
B) Functional strategies, including product, marketing and operations decisions
Functional strategies play an important part in the business development of Hard Rock Café’s business in India and Brazil. In this regard, Hard Rock Café can focus on the development of the restaurant business in India and hotel and casino business in Brazil. The company should focus entirely on the specific functions of each outlet. For instance, the company should not try to open a casino in India because this step may confront the deterioration of the public image of the company in this country, where gambling is a sort of vice. Each outlet should have the clear and standardized organizational structure that will facilitate operations of the company. Outlets should be developed on the ground of existing units of the company and follow their lead. Therefore, Hard Rock Café will have a homogeneous organizational structure that will facilitate the interaction between the company and its businesses in India and Brazil.
In this regard, the company should focus on the development of its products and services which should be of the high quality and meet standards of the company as well as local specificities. The company should distinguish food and non-food products and services. Restaurants of Hard Rock Café in India will offer food to their customers along with restaurant services. Hotels and casinos may offer food but in minimal quantities and in a different environment compared to Hard Rock Café restaurants in India (Breneman & Taylor, 1996). Instead, hotels and casinos will focus on non-food products and services. However, the quality of products and services should be high for both India and Brazil.
In addition, the company should distinguish the local and British market and products. They are different and the company cannot use absolutely identical products in the UK and India or Brazil. Instead, all products and services should be adapted to local requirements and traditions. Otherwise, the company may fail to introduce them successfully.
The company should focus on marketing and branding because they are closely intertwined in the contemporary business environment. The company should use its brand to promote and develop the marketing of its products and services in India and Brazil. Hard Rock Café is a renowned multinational brand. Therefore, the company can exploit its brand to enter and promote its products and services in Indian and Brazilian markets.