Please complete this case study:

Where to Place the Hard Rock Cafe

Video Case

Some people would say that Oliver Munday, Hard Rocks vice president for cafe development, has the best job in the world. Travel the world to pick a country for Hard Rocks next cafe, select a city, and find the ideal site. Its true that selecting a site involves lots of incognito walking around, visiting nice restaurants, and drinking in bars. But that is not where Mr. Mundays work begins, nor where it ends. At the front end, selecting the country and city first involves a great deal of research. At the back end, Munday not only picks the final site and negotiates the deal but then works with architects and planners and stays with the project through the opening and first years sales.

Munday is currently looking heavily into global expansion in Europe, Latin America, and Asia. Weve got to look at political risk, currency, and social normshow does our brand fit into the country, he says. Once the country is selected, Munday focuses on the region and city. His research checklist is extensive, as seen in the accompanying table.

Hard Rocks Standard Market Report (for offshore sites)

• A.Demographics (local, city, region, SMSA), with trend analysis
  • 1.Population of area
  • 2.Economic indicators
• B.Visitor market, with trend analysis
  • 1.Tourists/business visitors
  • 2.Hotels
  • 3.Convention center
  • 4.Entertainment
  • 5.Sports
  • 6.Retail
• C.Transportation
  • 1.Airport
  • 2.Rail
  • 3.Road
  • 4.Sea/river
• D.Restaurants and nightclubs (a selection in key target market areas)
• E.Political risk
• F.Real estate market
• G.Hard Rock Cafe comparable market analysis

Site location now tends to focus on the tremendous resurgence of city centers, where nightlife tends to concentrate. Thats what Munday selected in Moscow and Bogota, although in both locations he chose to find a local partner and franchise the operation. In these two political environments, Hard Rock wouldnt dream of operating by ourselves, says Munday. The location decision also is at least a 10- to 15-year commitment by Hard Rock, which employs tools suchas locational cost-volume analysis to help decide whether to purchase land and build, or to remodel an existing facility.

Currently, Munday is considering four European cities for Hard Rocks next expansion. Although he could not provide the names, for competitive reasons, the following is known:

EUROPEAN CITY UNDER CONSIDERATION

IMPORTANCE OF THIS FACTOR AT THIS TIME

FACTOR

A

B

C

D

A. Demographics

70

70

60

90

20

B. Visitor market

80

60

90

75

20

C. Transportation

100

50

75

90

20

D. Restaurants/nightclubs

80

90

65

65

10

E. Low political risk

90

60

50

70

10

F. Real estate market

65

75

85

70

10

G. Comparable market analysis

70

60

65

80

10

Case Study Questions

1. From Mundays Standard Market Research checklist, select any other four categories, such as population (A1), hotels (B2), or restaurants/nightclub (D), and provide three subcategories that should be evaluated. (See item C1 [airport] for a guide.)
2. Why does Hard Rock put such serious effort into its location analysis?
3. Under what conditions do you think Hard Rock prefers to franchise a caf?

Each Case Study paper is to consist of the following components:

1. Title page and two written pages with no more than 500 words.
2. Answers to individual questions (as assigned) Each assignment will have specific questions you need to address. You should create a sub-headed section for each one.
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