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Hard Rock Cafe Analysis

Essay by   •  September 28, 2017  •  Case Study  •  612 Words (3 Pages)  •  1,075 Views

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HARD ROCK CAFE

Case Analysis

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  1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models.

The core forecasting applications that Hard Rock Café is using are short-term, medium-term and long-term sales forecasting. The short-term forecasting is used for instant control of daily sales, production and stock availability along with handling of short term cash, the medium-term forecasting is used for minor strategic decisions like the use of vendors for food, chicken, beef etc. However, the long-term forecasting is used for future sales analysis, establishing capacity plan, future demand & supply management. Hard Rock can also use forecasting applications to predict customers future demand, they can also use it to analysis opening a new restaurant, these applications can be used for event planning and future expected prices of products and expenses.

  1. What is the role of the POS system in forecasting at Hard Rock?

The POS or point of sales system is very useful for organization decision makings and management, it also helps a lot in providing data for future analysis and forecasting because it has details like most required or sold items, minimum items sales, total customers, customers data etc.

  1. Justify the use of the weighing system used for evaluating managers for annual bonuses.

Yes, it can be said that the weighting system is well justified because it is based on true figures which allows to compute if the managers have met the standards or not, if the sales are up to the mark than the managers are allowed to have the bonus based on the sales and vice versa.

  1. Name several variables besides those mentioned in the case that could be used as good predictors of daily sales in each café.

One very useful variable is to check every day bills of each cafe this can help to monitor every day sales of all the cafés, daily detailed or partial sales report generation through POS software is also a good variable, all the POS of the cafés can be linked to each other than a total sales and comparison report can be generated from the systems, another important variable is to email all these system generated reports to Tod to counter analysis daily sales of each café. The food stock can also be monitored and used as a variable to check what was in and what was out so the difference will clarify the sales.

  1. At Hard Rock’s Moscow restaurant, the manager is trying to evaluate how a new advertising campaign affects guest counts. Using data for the past ten months, develop a least squares regression relationship and then forecast the expected guest count when advertising is $65,000.
  2.  

HARD ROCK’S MOSCOW CAFÉ (Figures in $ thousands)

Month

1

2

3

4

5

6

7

8

9

10

Guest Count

21

24

27

32

29

37

43

43

54

66

Advertising

14

17

25

25

35

35

45

50

60

60

Least Square methods is the equation that defines the relationship between the guest count and the advertising, the guest count is a dependent variable and the advertising is the independent variable.

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Formula: ŷ= a + bx

ŷ = Guest Count/ Dependent Variable

a = y – axis – intercept

b = regression line slope

x = advertising expenses / independent variable

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