Question 1
Read the Hard Rock Café's Global Strategy case study on pages 53 and 54 of the course textbook. Analyze the case, and write an essay of at least 500 words that answer these questions in detail: Identify the strategy changes that have taken place at Hard Rock Café since its founding in 1971. As Hard Rock Café has changed its strategy, how has its responses to some of the 10 decisions of OM changed?
Question 2
Starbucks is one of the best-known coffeehouse chains in the world. Each store sells a variety of innovative products to complement the array of coffee choices available. However, 75% of current stores are located in the United States, and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behavior (such as recessions). Recently, Starbucks began initiatives to sell its specialty coffee beans for home use, presenting a chance for a large increase in revenue and diversification. However, Starbucks faces fierce competition seeking a piece of the lucrative market share, and the threat of consumer behavior changes, given that its reputation rides on a singular product. Perform a SWOT analysis for Starbucks. Explain why you identified the elements you did.
Question 3
Susan has a part-time business producing seasonal plywood yard ornaments for resale at local craft fairs and bazaars. She currently works eight hours per day to produce 16 ornaments.
a. What is her productivity, and how did you determine it?
b. She thinks that by redesigning the ornaments and switching from use of a wood glue to a hot-glue gun she can increase her total production to 20 ornaments per day. What is her new productivity?
c. What is her percentage increase in productivity, and how did you determine it?