MBA INDIVIDUAL ASSIGNMENT DECLARATION

I, Ethen Langford Von Hoffmann DECLARE THAT THIS ASSIGNMENT IS AN ORIGINAL WORK AND ANY OTHER SIMILAR WORK HAS BEEN APPROPRIATELY REFERENCED IN THIS ASSIGNMENT. SUBJECT: Research Methodology

ASSIGNMENT:

1: Focus - Management Dilemma, Research Problem and Literature Review

LECTURER:

Prof. CA Arnolds

DATE SUBMITTED:

06 June 2011

INITIALS AND SURNAME:

E.L. Von Hoffmann

STUDENT NUMBER:

S210132523

SIGNATURE:

WHAT IS THE MANAGEMENT DILEMMA THAT TRIGGERS THE RESEARCH? Within the South African restaurant sector of the hospitality industry, spousal business partners, hereafter referred to as copreneurs, are having to face complex combinations of organizational, family, relationship and emotional situations within their family businesses that bare consequences on the success of copreneurial businesses. This dilemma is making it increasingly difficult for copreneurial businesses to remain sustainable, grow, develop further or even remain viable and avoid closure (Dyer, Jr. 1986; Nicolas 2011).

WHAT IS THE RESEARCH PROBLEM THAT YOU ARE INVESTIGATING? The problem is that copreneurial businesses within the South African restaurant sector of the hospitality industry have an extremely high failure rate due to having to handle, deal and battle with an increasing diversity of challenges and pressures in order to run and maintain successful family business operations but these pressures tend to spill over into the personal relationship (Nicolas 2011:43) and can affect the work, life and relationship balance of copreneurship. SMEs in South Africa suffer failure rates of between 70 80% and that 80% of all emerging SMEs fail within their first five years of operation (Time is now right for entrepreneurs to start and run their own businesses 2006:8). These challenges and pressures are faced by all restaurant sector businesses, but coupled with the additional effects on metaphysical and emotional bonds of copreneurs, can place added pressure on the longevity, sustainability and successful management of copreneurial SMEs in this sector of the hospitality industry (Nicolas 2011).

The independent variables affecting copreneurial businesses, specifically those affecting the emotional, private life, professional and relationship perspectives will be investigated further for an understanding of the elements that could influence the dependant variable so that success of the dependant variable becomes more viable.

WHY IS IT IMPORTANT TO INVESTGATE THIS PROBLEM? When reflecting on the international arena of business, small and medium-sized enterprises (SMEs) are the main driving force and contributor to economic growth, job creation, wealth redistribution and social stability (Kuratko & Hodgetts 2007:5,7).

Internationally, SMEs are holding and coordinating the majority of businesses (Scarborough & Zimmerer 2003:21; Stokes & Wilson 2006:11; Time is now right for entrepreneurs to start and run their own businesses 2006:8) and in South Africa, contribute greatest to economic growth, unemployment reduction and are a fundamental and predominant way of doing business(Erwin 2002; Quena 2007:32; Piliso 2006:1; Fletcher, Helienek & Zafirova 2009:354; Sanders & Nee 1996).

Although the experience and rewards of copreneurial businesses, such as financial benefits, flexibility, sustainability, adaptability, high levels of motivation, willingness, trust and spending more time with loved ones are attractive and can enhance a relationship for some couples, for others it may be a recipe for disaster as it can strain relationships severely (Nicolas 2011:43; Fletcher et al 2009).

It is therefore important to investigate this problem so that copreneurs in the restaurant sector of the hospitality industry, and any other industry where copreneurs are or anticipate operating, may be better informed of, and have, a clearer understanding and insight into factors, dynamics or rather independent variable, that influence their copreneurship and success. O'Regan, Hughes, Collins & Tucker (2010) revealed that copreneurial family businesses placed more focus on survival thinking in their business as opposed to strategic, or informed, thinking and action. The Author agrees with the argument of O'Regan et al (2010) that the opposite, or rather strategic thinking, is required when a business is experiencing rapid change or flux, as presented by adverse or challenging times, so that consistency of business operations and competitive advantage can be maintained and preserved. This allows the business to achieve an understanding of the dynamism of the external environment and facilitates dynamic evaluation and response to counter threat impacts.

Threats and risks, if not understood and managed, may have negative effects on copreneurial operations. Without further investigation and insight into the field of copreneurship, copreneurs will continue to face the ongoing challenges and independent variables, possibly none the wiser, that affect the dependant variable, that being the success of copreneurship. One such prime example of a negative effect is described by the EU Report 2008 where particular note is made of the sacrifices of personal interests and the negative effect that has copreneurs bringing in the importance again of the work, life and relationship balance or managing thereof.

The benefits of this investigation could be far reaching in the field of copreneurship as factors affecting copreneurship are not limited to the restaurant sector of the hospitality industry, but may be generic and applicable across a diverse variety of industries. Copreneurs, pending their own circumstances and independent variables, may be able to take the findings from this research and apply practices within their own copreneurships to better aid their efforts and influence the sustainability, success of longevity of their business, relationships and lives (O'Regan et al 2010; Fletcher et al 2009)

Copreneurs share implicit trust as theres no concern that who youre working with is not aligned to your thinking (Nicolas 2011:46). One benefit of running a business as a married couple, as noted by Nicolas, is that both partners of many copreneurial businesses have the same aims both inside and outside work but work/life balance can be a double edged sword (Nicolas 2011:46). With these as some of the benefits of copreneurial business, it is a good underpinning to justify the requirement for further research into this topic. It is also noted form the literature reviewed that very little focus has been given to the attributes that spousal partner dynamics bring to copreneurship and this presents a clear gap in current research. Here reference is given to the very dynamic of copreneurship that differs from one spousal couple to another. Examples of this are where one spouse is involved in a corporate career as well as being a copreneur with his spouse or when both spouses are purely involved in the copreneurship, also called dual careers.

This research will foster and aid towards finding improved balance as indicated by Nicolas 2011 and Roper through clarifying roles, vision, shared values and bringing complimentary skills to the copreneurship. Dyer, Jr. 1986 further shared that the close relationship depended upon between copreneurs may be at risk due to variables such a tension that result from blurring of work and family responsibilities and roles and that family involvement may lead to poor business management and in turn impede successful factors.

The purpose of this study is therefore to attain a better understanding of the nature pertaining to the independent variables, those being copreneurial and family relationships, work and life and their effect on the dependant variable, that being the success of copreneurship in the restaurant sector of the hospitality industry.

WHAT IS THE PRIMARY RESEARCH OBJECTIVE OR FOCUS OF THE STUDY? The primary research objective of this study is to improve the success of copreneurs in the restaurant sector of the hospitality industry. Here the author will look closer at aspects influencing and affecting copreneurship businesses such as financial turnover, profit, market share, personnel satisfaction, market needs addressing, community involvement or social upliftment, engagement, employment contribution, lifestyle and flexibility.

WHAT ARE THE SECONDARY RESEARCH OBJECTIVES, QUESTIONS OR FOCI? The secondary research objectives of this study are to obtain and offer a better understanding of the independent variables and their effect on the dependant variable. Figure 1 below displays a representation of the independent and dependant variables. Here the author will look closer at aspects influencing and affecting independent variables such as sibling relationships and tangibility, spousal dynamics, spousal values system, spousal and sibling available skills, vision and role philosophy, spousal personal interests/hobbies, spousal personal time and spousal friendship base and engagement.

It is important to the author to gain a well balanced understanding of these elements through personal interviews to collect sufficient data for analysis. The author further hopes to make recommendations from the findings that might better aid copreneurs in their businesses thereby contributing to improved copreneur success.

INDEPENDENT VARIABLES

DEPENDANT VARIABLE

RELATIONSHIP WORK LIFE

Figure1

SUCCESS OF COPRENEURS

REFERENCE LIST Barnett, F. & Barnett, S. 1988. Working Together: Entrepreneurial Couples. San Francisco, CA: Ten Speed Press. Dyer, W.G. Jr. 1986. Culture Change in Family Firms: Anticipating and Managing Business and Family Transitions. San Francisco, CA: Jossey-Bass. Erwin, A. 2002. Government thinks big on small enterprises. [Online] Available: http://www.sundaytimes.co.za/2002/02/17/business/news/news12.asp March 2002). Fletcher, D, Helienek, E, & Zafirova, Z 2009, 'The Role Of Family Start Ups In The Emergence Of A Small Business Sector In Bulgaria', Journal of Enterprising Culture, 17, 3, pp. 351-375, Business Source Complete, EBSCOhost, viewed 5 June 2011. Kuratko, D.F. & Hodgetts, R.M. 2007. Entrepreneurship: Theory, process, practice. 7th Edition. Mason: Thomson South Western. Melien, W, Chen-Chieh, C, & Wen-Long, Z 2010, 'Relationships of work-family conflict with business and marriage outcomes in Taiwanese copreneurial women', International Journal of Human Resource Management, 21, 5, pp. 742-753, Business Source Complete, EBSCOhost, viewed 5 June 2011. Nicolas, S 2011, 'TWO'S COMPANY', Director (00123242), 64, 8, pp. 42-46, Business Source Complete, EBSCOhost, viewed 5 June 2011. O'Regan, N, Hughes, T, Collins, L, & Tucker, J 2010, 'Strategic thinking in family businesses', Strategic Change, 19, 1/2, pp. 57-76, Business Source Complete, EBSCOhost, viewed 5 June 2011. Piliso, S. 2006. Blood money. Sunday Times, Business Times. 23 April:1. (Accessed 26

Qhena, G. 2007. Awakening South Africas entrepreneurial spirit. Succeed, May:32. Sanders, J.M. & Nee, V. 1996. Immigrant self employment: the family as social capital and the value of human capital, American Sociological Review 61(2): 231249. Scarborough, N.M. & Zimmerer, T.W. 2003. Effective small business management: An entrepreneurial approach. 7th Edition. Upper Saddle RIver: Prentice Hall. Stokes, D. & Wilson, N. 2006. Small business management entrepreneurship. 5th Edition. London: Thomson Learning. Time is now right for entrepreneurs to start and run their own businesses. 2006. Big News, August:8.