Hard Rock Café is looking to open a new location and consider three strategic cities: London, Paris, and Barcelona. The three locations have their own merits and demerits, and for this reason, it is essential to examine numerous factors to decide which alternative is the best. Hard Rock Café will use Factor-Rating Model to scrutinize the most vital factors for each location. The Factor-Rating Model is a popular method for assessing location alternatives because of the wide variety of factors. The model has six steps, which include listing the essential success factors, assign a weight to each factor, develop a scale for each factor, score each location for each factor, obtain the weighted score, and decide based on the maximum point score. (Heizer, Render & Munson, 2016).
The most relevant factors, referred to as key success factors, selected for the analysis of the new location for Hard Rock Café include:
Accessibility: It is essential to consider local transport links, particularly main roads and motorways in the area, which allow daily business operations and not hampered by poor transport links (Fox, 2017).
Security: Knowing the risks of potential criminal activity in the area can help prepare and take adequate precautions.
Competition: Your proximity to other competing businesses could be crucial to your success. If there is too much competition, it may be a warning sign to expand your horizons to a new location (Fox, 2017).
Cost of living: it is vital to investigate the average business rates such as rent, utility bills, and taxes in the area to ensure you can afford the premises (Fox, 2017).
Hard Rock Café is looking for the best location for the business, and various factors have been used to assess the identified three locations.
From the Factor rating Model above, the best location from the model is London city, which has scored well in the relevant success factors listed.
Before picking your business location, it is vital to list vital success factors and analyze them critically. The factor rating Model is the best method to analyze your identified factors.
Fox, J. (2017). Six factors to consider when choosing a location for your business. Virgin. Retrieved October 14 2020, from https://www.virgin.com/about-virgin/latest/six-factors-consider-when-choosing-location-your-business
Heizer, J., Render, B., & Munson, C. (2016). Operations Management: Sustainability and Supply Chain Management. Pearson.
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