Production Manager

The role of Production Manager on the topic of commercialisation of the Marx’ family business emphasises the requirement of accepting and adhering to Australian and
New Zealand Food Standards Code. Regulatory inspections will need to be carried out and corrections made immediately to ensure the long-run survival of the business.
Sexton and Robinson (1989) suggest, “Minority entrepreneurs have had fewer opportunities to develop relevant experience and have fewer contacts who can provide
assistance”. This is relevant to the Marx family as they are part of a minority group in Australia, therefore having no immediate network of contacts to consult with
on the area of food standards. They also lack relevant education in directing even a small-sized business within Australia. As Rosa (2003) states, “Education
influences business survival rates and venture success”. Thus, it would be rational to educate the members of the Marx family so that they understand and have the
capabilities to correct potential disputes to ensure business survival.
Legal Advice
The Marx family must be careful to ensure that all food standards are met. They must meet industry standards so that they don’t get knocked back for unsanitary
practice, Furthermore, they must outsource legal documents to lawyers regarding ownership, remuneration and salaries (25% ownership each) so that arguments don’t arise
over financial situations. They must outsource marketing information to data retention experts (Maybe summit ltd) so that they get accurate information and can’t get
hit with lawsuits regarding illegal use of consumers information. Also they should liaise with lawyers to create an exit plan so that if the restaurant is not
successful they can exit out of the business without losing everything they have
Marketing advice
Data retention strategy.
An important part of the strategy, is to identify where the majority of Belorussian people are located in victoria. This would allow the family to advertise to the
right demographic in terms of ethnicity. The most suitable strategy for the family to use for their venture would be to conduct market research, which ‘involves the
gathering of information about a particular market, followed by analysis of that information’ (Frederick, O’Connor & Karatko 2013).
It is important to identify where the Belorussian community is located in Melbourne. Belorussian food is well known in terms of its type of cuisine compared to for
example, Greek or Italian cuisine. Therefore in order to capitalize on their competitive advantage of bringing a different cuisine to the market, the Marx family must
promote their business to an area where it will receive as much publicity within the local community. Once a strong level of interest has been generated, “word of
mouth” will take over and slowly gather more and more customers. Quality of the food and level of customer service must be heavily focused on as this will help spread
word of mouth and help with the restaurant’s reputation.
Using food exhibitions as an advantage to help to publicise the restaurant would also help spread the word about the business in being that the public would be able to
sample the food and gather information about the business. It would also give the family a chance to see and understand their completeness in that environment.
Human Resources (HR)
Staffing will become a fundamental issue for the Marx family in the next step of commercialisation. Their ability to manage HR will play a vital role in the success of
their venture (Bratton & Gold 2012). Currently, the requirement for staff is at a general manager (GM) level. The board recommends the hiring of an experienced GM with
significant experience in grass-root ventures. In the future, the board also recommends the hiring of casual staff to mitigate other incurred staffing costs such as
superannuation. It is thought that the 25% casual loading will be better suited until the restaurant is more established.
The best way to handle the hiring of new staff will sit with the GM, however, the Marx family should consider the put strategies in place to keep staff turnover low.
Lashley (2002) identifies that the hospitality industry has a very high staff turnover, and that this should be mitigated through soft HR strategies put in place by
the owners and management.

Banker & Venture capital advisor
Marx family is at very premature stage which is just an idea.Further there are some complications in the family’s internal structure regarding the way to choose for
getting the business itself on ground.
When looked at external factors like greek crises,chinese slowdown and syrian refugee crises.Small businesses would be affected,Marx’s family won’t be an exceptional
one.Tourist industry would have sluggish growth due to bearish economy which cuts disposable income and limits spendings towards necessity rather than leisure
activities(Busenitz.etl,2005).
There is positive side of it to that they can get the feedback & response of the locals and improvise accordingly before capturing the larger market in summers.
After considering the facts micro and macro facts it would be justifiable to say that there cash flow for year would be negative which cuts the option of bank
funding.In addition to this they don’t even have some collateral to mortgage and their stay is also unclear.
Venture capitalist are a good option but for that Marx’s family should have proper understanding of each other and should be able to run the business till some
point.This would make the real business potential visible.

Conclusions and Final Recommendations

• The Marx family must seek to educate all members of the family on Food Standards that are bounded in Australia. However, gaining such education may be time-
consuming and potentially costly. Therefore, the Marx family may choose to hire an external auditing service to ensure they meet Industry standards.

• Must have a Lawyer put together ownership and remuneration plan. Also create an exit plan so that they can exit out of a loan without losing it all

• Must outsource marketing information

• Identify competitors in St Kilda, and identify competitive advantage that the family restaurant has.

References

Bratton, J & Gold, J 2012, Human Resource Management: theory and practice, 5th Edn, Palgrave Macmillan, London.

Busenitz, L, Fiet, J, & Moesel, D 2005, Signaling in Venture Capitalist—New Venture Team Funding Decisions: Does It Indicate Long‐Term Venture Outcomes?
Entrepreneurship Theory and Practice, 29(1), 1-12.

Cooper, AC, Gimeno-Gascon, FJ, & Woo, CJ, ‘Initial human and financial capital as predictors of new venture performance’, Journal of Business Venturing, Vol 9, pp.
371-395.

Collin, F. Collin & S.M.H. Collin 2001; “Dictionary of Business” ©Bloomsbury Publishing Plc 2004; © A & C Black Publishers Ltd 2006,
<http://search.credoreference.com.ezproxy.lib.rmit.edu.au/content/entry/acbbusiness/swot_analysis/1>, Accessed: 3:52 – 7/9/2015

Frederick, HH, O’Connor, A & Kuratko, DF 2013, Entrepreneurship: Theory, Process, Practice, 3 edn, Cengage Learning Australia.
Kelly, D, Hayward, R, Hammer, R & Hendy, J 2011, Taylor and Francis publishing ‘Business Law’ Pg:118 <http://reader.eblib.com.au.ezproxy.lib.rmit.edu.au/(S
(4azcnczgdr3afb0zicqkbjsl))/Reader.aspx?p=683950&o=116&u=xhlfN2WUpjOfRFOUr0gZjA%3d
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Lashley, C 2002, ‘Costing Staff Turnover in Hospitality Service Organisations’, Journal of Services Research, vol. 1, no. 2, pp. 3-24.

No News Is Bad News: Sensegiving Activities, Media Attention, and Venture Capital Funding of New Technology Organizations. (2013). 24(3), 865-888.

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