Caalveta Case Study

1313 words - 6 pages

MGT 520 - Fall 2013
September 24, 2013
Calveta’s Dining Services, Inc: A Recipe for Growth?

Founded in 1972 by Antonio Calveta
$2 billion Senior Living Facilities – SLF dining service company serving quality food.
Number of employees 15,000
Servicing 976 SLF in 2009
Not a part of any other industry
2007 Antonio Calveta COE and founder retired and his son, Frank Calveta was replaced as the CEO.

Antonio’s Operating Values
Develop every Calveta employee to their full potential
Provide highest quality food and personalized service at reasonable cost
Provide unique features and innovative ideas for their menus
Make profit continually using every ...view middle of the document...

Most Important Challenge:
Should Calveta purchase Great Southwest Dining Services?
Is this the best strategic move?

Acquiring GSD and restructuring the organization
The advantages of choosing this option are:
Higher chances of attaining goals and will obtain desired market penetration
Increases Calveta’s geographic coverage and market share
GSD is presently in a good position, when the revenue generation is taken into consideration.
Calveta would attain a great deal of customer potential as it was maintained by GSD.
The organization hierarchy could be restructured so that it could accommodate significant growth while preserving the company’s core values.

The disadvantages of choosing this option are:
Very risky
Plagued with labor issues and management turnover
Quality of service may suffer.
Higher debt load
Does not have a strong balance sheet but has great income potential.

Jennifer Calveta COO of firm:
Could have been CEO instead of her brother
Very detail oriented and concerned about preserving the company’s culture
Is concerned about the acquisition of business for growth expansion
Is concerned with the organizations structural modification

1. What role (if any) have Calveta’s values played in the organization’s success?
Calveta has clearly defined values to guide the staff’s behavior. The immense growth of the organization confirms that Calveta’s is doing an excellent in embedding their values in their employees’ actions and management decisions. The values necessitate the inclusion of everyone and the exclusion of none. The organization’s values enabled all levels of management to usher the employees toward a continuous growth.

2. Does Calveta’s operating approach offer a sustainable competitive advantage?
Calveta’s operating approach offered a unique competitive edge over many of its competitors. While their competitors focused on highly regularized systems and standards, Calveta chose to build local food service teams and menu offers to serve each facility distinctively. Additionally, Calveta’s wait staff treated the residents like family following their behavioral standards. This type of customer service garnered rave written reviews from the facility’s residents. Finally, implementing programs that increase efficiency while satisfying the needs of bed ridden or immobile residents confirm a very innovative operating approach that resulted in a sustainable competitive advantage.

3. Why haven’t other food service providers copied Calveta’s approach?
Calveta’s competitors were not focused on conducting a profitable business without straying away from its core values. Passion, customer service and efficiency remained at the forefront of every decision. On the other hand, their competitors were focused on growth, meeting financial goals and increasing market share. Rarely do we find companies who keep both service and profit as a priority.

4. Given Calveta’s communication...

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