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Calveta Dining Services

Fletcher Gardnier Wong Jia Chuin Chai Chin Ming


Samantha Low Jonel Chua
Harvard Case 2 : Group 2
Key Issues
Double revenues within 5 years
Preservation of cost-control model
Preserve company culture pro-employee and employee growth and progression
Functional flexibility
Reputation of quality food service
Expanding into new segments to promote profitability
Hospital segment
Difficulty of integration into company culture upon acquisition of new business
Retaining or improving customer loyalty
Tradeoff between clients desire for consistency of staff and employee progression
Define Calvetas key success factors to
date. What role (if any) have Calvetas
values played in the organizations
success?
Question 1:
Grunert & Ellegaard (1992): key success factor is a skill or resource that
a business can invest in, which, on the market the business is operating
on, explains a major part of the observable differences in perceived value
and/or relative costs
Antonios Way
Antonios way, the seven core elements of values and desired
behaviours
Quality, service, charity, education, respect, growth and profitability
Certain key success factors are more important to the industry in
question
Most important elements: food quality, service and education
Cost structure
Cost-control model
Long term contracts
Demand for freshness

Financial strength
Cash flow management
No-debt philosophy

Customer Satisfaction
Continuous innovation and personalized service
Retaining customer accounts
Industry recognition

Employee Engagement and Satisfaction
HR culture
Empowerment, engagement & motivation
Promotion from within
High retention rates
Cost savings and success for organization

Emphasis on service and product quality
High quality meals and service at lowest cost possible
Strong customer loyalty
Value of key success factors depends on changeability

Question 2:

Calvetas fifth goal is profitable growth. Goals one
through four are more ethical in nature. Is goal
five inconsistent with the first four?
The Five Goals
1. Food
2. Service
3. Budgets and Innovation
4. Developing Employees
5. Growth


First Goal (Food)
Inconsistent with growth
Unique serving of food
Demands high quality and fresh food

Second Goal (Service & Budgets)
Consistent with growth
Uses Cost-Control Models
Negotiate for the best prices
Third Goal (Innovation)
Consistent with growth
Always coming out with new recipes and services
Cleaning industry was harder to penetrate.

Fourth Goal (Developing Employees)
Consistent with growth.
Aggressive management-progression structure
Offers educational programs/seminars/customized programs


Fifth Goal (Growth)
Overall consistent throughout the four goals
Primary objective in an organization
Can be achieved with the help of all the four goals.
Question 3:
What are the internal challenges and
external threats that Calveta is facing?
Internal Factor
External Factor
Negative Positive
Strengths
Weaknesses (Internal Weaknesses)
Opportunities Threats (External Threats)
High set of values
Loyal Customers
Years Of Experience
Personalized Service
Well Define Niche
Focus on Employee Development
HR System

Improve Infrastructure Hospital Market
Potential Takeover of GSD
Restructuring Organizational Structure
Procedure to support growth and address
customer complains
Expand to other geographical locations
Market share still available in market (75%)


Organization Structure- Unable to find growth
strategy that fit core competency
Market Share- Hindered due to lack of
infrastructure
Employees capability- decline due rising diversity
Organizational Structure Antonios Way at
threat
Financial resources hinders growth no debt
philosophy

Macro-environment Threats
PEST Factors
1. Political
2. Environmental
3. Social
4. Technology
Microenvironment Threats
1. Customers
2. Competitors
Question 4:
How, if at all, should Calvetas organization structure
and practices be changed to accommodate growth and
effective communication, while maintaining the
companys culture?
Company Culture
Calvetas company culture revolves around Antonios Way
High Level of Personalised Service
Strong Employee Development Program

Managers were promoted from frontline employees
Retained Emphasis on Antonios Way
Allowed Strong Internal Communication
Calvetas Growth
Two Factors have led to a breakdown in Antonios Way & Internal
Communication

Hiring Managers unfamiliar with Antonios Way
Viewing Transfers to large accounts as a promotion


Transfers
Calveta has promotion focused employee development plan leading to:

Decreased Service Quality
Inefficient Communication
Loss of Customers

Link performance to pay, rather than account size
Internal Communications
Ineffective communication is damaging growth and company culture

Implement Briefing System
Increase opportunities for communication
Reduce the number of accounts per manager
Question 5:
Evaluate Calvetas possible sources of future
growth. Should Frank Calveta move forward
with an expansion into the hospitality sector?
With the proposed acquisition?

Advantages of Hospitality Sector
Fits the Core Competency of Calveta
Vertically Integrated
75% of the market is still un-contracted
Stable and sustainable growth
Disadvantage of Hospitality Sector
Intensive Competition
Possible reduction in market size

Advantages of GSD
Expansion of geographic regions
Ageing Demographic
Potential clients accounts

Disadvantages of GSD
High investment debts
Risks
Differences
Time
Effort
Reputation
Conclusion
Acquire GSD as it is unlikely for Calveta to reach its
goal of doubling their profits in 5 years if they were to
go into SLF.
Questions & Answers
The End
Thank You