University Report: HOTL6003 Talent and Culture Analysis of MAdE Group

This report examines the business situation of MAdE Group, a Melbourne-based hospitality group, focusing on talent and culture aspects and analyzing the issues faced by the company. The report employs a PESTLE analysis to identify political, economic, social, technological, legal, and environmental factors impacting the organization. The analysis reveals that the company's business was significantly disrupted due to unethical business practices, particularly concerning the underpayment of employees, leading to substantial financial penalties and the voluntary closure of restaurants. The report highlights the importance of ethical business conduct, adherence to labor laws, and effective HR management. Recommendations are provided to guide similar hospitality businesses in avoiding such pitfalls, emphasizing the need for robust HR practices and ethical considerations to ensure sustainable business operations. The conclusion summarizes the impact of legal and economic factors and emphasizes the need for ethical business practices to prevent future disruptions.

RUNNING HEAD: TALENT AND CULTURE
TALENT AND CULTURE
Name of the Student:
Name of the University:
Author’s Note:

1TALENT AND CULTURE
Executive summary
This report analyses the business scenario of MAdE Group, a Melbourne based hospitality
group. This business of this company is disrupted due to the economic and legal factors. This
officials of this company underpaid several employees of this company. This organisation was
following unethical business practices. As a result of this, the officials of this company has to
pay a huge amount of money as compensation and fine. This organisation is voluntarily shutting
down its restaurants.

2TALENT AND CULTURE
Table of Contents
Introduction:....................................................................................................................................3
PESTLE analysis:............................................................................................................................3
Political factor:.............................................................................................................................3
Economic factor:..........................................................................................................................3
Social factor:................................................................................................................................3
Technological factor:...................................................................................................................4
Legal factor:.................................................................................................................................4
Environment factor:.....................................................................................................................5
Recommendation:............................................................................................................................5
Conclusion:......................................................................................................................................5
References:......................................................................................................................................6

3TALENT AND CULTURE
Introduction:
MAdE Establishment Group is a collection of Hellenic-inspired restaurants by a family of
foodies. Calombaris is a current shareholder of this Melbourne-based hospitality group. This
paper aims to use PESTLE analysis for this hospitality group to identify the key issues faced, by
this company. Due to the scandal over employee’s wages, this organisation has collapsed
voluntary administration.
PESTLE analysis:
Political factor:
The business of a restaurant chain can be affected by several political factors like political
stability, health and safety regulation fixed by the Australian government. It can be said that
Australia is a politically stable country. However, this organisation has to follow the health and
safety regulation set by the Australian government to do its business successfully
(Austrade.gov.au 2020).
Economic factor:
Several economic factors like minimum wage and economic situation of a country can
influence this business organisation (Zarubina and Mikheeva 2017). The economic condition of
Australia is stable. Without following the minimum wage policy of the Australian government,
this organisation underpaid its staffs. As a result of this, this hospitality group has to pay near
about $7.8 million (the Guardian 2019). Besides that this organisation have closed has to close
certain restaurants.

4TALENT AND CULTURE
Social factor:
Social factors like organic food, local food and brand reputation can create an impact on
the business of a company. Celebrity chef George Calombaris was aware of the impact of the
socio-cultural factors. However, the brand reputation of this company has decreased for the
ongoing scandal over employee’s wage (ABC News 2019). The business of this organisation has
disrupted due to the scandal. This organisation is not successful to utilise the brand reputation.
To generate brand reputation a business organisation has to follow the ethical business practice.
The officials of this hospitality group have damaged the brand reputation by following the
unethical business practice. So it can be said that social factors can influence the success of a
business organisation.
Technological factor:
The success of a business organisation in the 21st century relies on the successful use of
technology. Implementing the computer-based system and advanced online payment system can
help a business organisation to provide better customer satisfaction (SHTAL et al. 2018).
However, this hospitality group was successful to implement technology in the business.
Legal factor:
Rules and legislation create an impact on the restaurant business. MAdE restaurant group
was following unethical business practices. That is the reason this Melbourne based organisation
has to close its business. Sandra Parker, the Fair Work Ombudsman, has investigated the
underpayment of the employee issue. As a result of this MAdE Group not only has to provide a
huge amount of money to the employee, who were underpaid but also close the majority of the
restaurant. This organisation had to pay $200,000 to the Australian Government (ABC News
2019). According to the Leigh Small, the CEO of MAdE Group, the employees were incorrectly

5TALENT AND CULTURE
classified and underpaid because of the wrong procedure. It was a failure of the HR function of
this organisation (ABC News 2020). However, it can be said that MAdE Group is the example of
how legal factor can disrupt a successful business.
Environment factor:
The success of a restaurant chain can be affected by environment-related factors. The
management team of a business organisation has to focus on the environment-related factors to
accomplish the business objectives (Sanjeev and Jauhari 2012). Rule and regulation about the
environment, set by the Australian government must be followed by this hospitality group to do
successful business in Australia. An appropriate waste management system must be used by this
Melbourne based hospitality group.
Recommendation:
In this part, the recommendation for the MAdE Group will be provided. This Melbourne
based hospitality group should follow ethical business practices. This organisation should follow
the minimum wage policy of the government. As the CEO of this organisation stated that it was
the fault of the HR department of this company. This company has to develop an efficient HR
team to manage the human resources of this company. The Legal team of this company should
monitor the business operation to check whether this organisation is doing its business by
following the rules and regulations of not. Besides that, the senior executives and CEO of this
company have to monitor closely the business operation to prevent any kind of unethical
business operation further.

6TALENT AND CULTURE
Conclusion:
Thus, this report concludes that the successful business operation of MAdE Group is
disrupted by the legal factors and economic factors. This organisation had to pay a huge amount
of money and shut down the majority of its business. In future, this company has to follow the
ethical business practice to avoid any kind of disruption.

7TALENT AND CULTURE
References:
ABC News, 2019. George Calombaris's Made Establishment Underpaid Workers $7.8 Million.
[online] ABC News. Available at: <https://www.abc.net.au/news/2019-07-18/george-
calombaris-made-establishment-backpays-underpaid-workers/11320274> [Accessed 5 April
2020].
ABC News, 2020. Former Masterchef Judge George Calombaris's Restaurant Group Goes Into
Administration. [online] ABC News. Available at:
<https://www.abc.net.au/news/2020-02-10/george-calombaris-restaurant-empire-in-voluntary-
administration/11951504> [Accessed 5 April 2020].
Austrade.gov.au, 2020. Business - Austrade. [online] Austrade.gov.au. Available at:
<https://www.austrade.gov.au/International/Invest/Why-Australia/Business> [Accessed 5 April
2020].
Bertozzi, F., Ali, C.M. and Gul, F.A., 2016. Resource Based View of an Organization and
PESTEL Analytical Tool; An Analysis of Hotel Corallo, Rimini. EPH-International Journal of
Science And Engineering (ISSN: 2454-2016), 2(11), pp.57-71.
Sanjeev, G.M. and Jauhari, V., 2012. Responding to the emerging strategic and financial issues
in the Indian hospitality industry. Worldwide Hospitality and Tourism Themes.
SHTAL, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T.
and TOIBOLDINOVA, Z.G., 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS, 39(12).

8TALENT AND CULTURE
the Guardian, 2019. Unions Call For George Calombaris To Lose Masterchef Job After Staff
Underpaid By $7.8M. [online] the Guardian. Available at:
<https://www.theguardian.com/food/2019/jul/18/celebrity-chef-george-calombaris-fined-for-
underpaying-staff-by-78m> [Accessed 4 April 2020].
Zarubina, E. and Mikheeva, S., 2017. Promotional Event for Holvi Restaurant. Case: Big Band
Camp 2017.