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 Hard Rock Café Location Strategy

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Case Study 4 Hard Rock Café Location Strategy

1.From Munday’s Standard Market Report Checklist, select any other four categories and provide three subcategories that should be evaluated?

A) Demographics (local, city, region, SMS, with trend analysis 1. Economic indicators: - Changes in foreign currencies - Inflation rates- Unemployment rates

B) Visitor Market 1. Hotels ` - Current number of hotels in market are - Age of existing hotels in market area - Occupancy rate of current hotels, as well seasonality of occupancy - Rates of new hotel construction (could indicates per year during last ten years) C) Political Risk - What type of government system is in place - Nationalization of major industries - Reduction of foreign interest in local business ventures
D) Real Estate Markets - Liquidity of real estate - Current vacancy rates/occupancy rates - Number of real estate properties owned by global companies - Real estate turnover rates (how often are properties sold and converted to new business venture) - Cost of buying versus leasing commercial real estate

3. Why does the Hard Rock put such serious effort into its location analysis?

Location decisions for Hard Rock Café begin with a global view which involves analyzing a country, then a region within the country and then finally a city location (Amer,1999). Specifically, within this assessment, it consists of studying and evaluating political risks, currency risks, social norms, social costs, local business practices and whether the brand will fit the market or not. The company must insure that the market will provide large enough long term populations with high enough levels of disposable income and tourism rates (Amer, 1999). Identifying the right…...

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