MAN 4504 ASSIGNMENT 04 2
MAN 4504 Assignment 04: Forecasting at Hard Rock Café
Decision-making is one of the compulsory tasks of managers. In some cases, managers
make decisions without establishing or having a clear vision about the company’s future.
Seemingly, uncertainty is an issue that any business with a going concern has to deal with.
Although Hard Rock Café is a healthy business, forecasting, therefore, regarding the volume of
sales, demand, and size of the firm is crucial to help the managers know what might happen to
their organization in future.
Firstly, Hard Rock Café apparently uses some of the most complex forecasting strategies
and applications. With more than 145 restaurants in 60 countries, the café utilizes complex and
multiple forecasting applications. Some of the applications it uses for forecasting include long-
range forecasting (utilized in setting a capacity plan) and intermediate-term forecasting (this tool
aids the company to manage contracts for leather items). Essentially, the point-of-sale (POS) tool
works as the central system for all sales forecasts, which assists Hard Rock Café in capturing
data for transactions involving all the people that enter the café (Heize, Render & Munson,
2017). Furthermore, POS system links all the restaurants to the headquarter in Orlando. The
work of the café’s point-of-sale system is to record data for each entrée sales then send it to the
Orlando headquarters on a daily basis.
Moreover, Hard Rock Café also uses a weighting system to evaluate managers which
helps in determining daily bonuses. However, the weighting system, to a broader extent, works
as a useful tool for assessing the individual performance of the managers. It allows the managers
at the headquarter to access, comparing and analyzing the information about activities such as
forecasts on sales, number of customers, and size of staff (Heize, Render & Munson, 2017).
