calveta final slides
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Calveta Dining Services
Fletcher Gardnier Wong Jia Chuin Chai Chin Ming
Samantha Low Jonel Chua
Harvard Case 2 : Group 2
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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
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Define Calveta’s key success factors to date. What role (if any) have Calveta’s values played in
the organization’s success?
Question 1:
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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”
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Antonio’s Way
• Antonio’s 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
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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
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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
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Question 2:
•Calveta’s fifth goal is profitable growth. Goals one through four are more ethical in nature. Is goal five
inconsistent with the first four?
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The Five Goals
1. Food
2. Service
3. Budgets and Innovation
4. Developing Employees
5. Growth
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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
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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
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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.
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Question 3:
What are the internal challenges and external threats that Calveta
is facing?
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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 –Antonio’s Way at threat
• Financial resources – hinders growth – no debt philosophy
Macro-environment ThreatsPEST Factors1. Political2. Environment
al3. Social4. Technology
Microenvironment Threats
1. Customers
2. Competito
rs
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Question 4:
How, if at all, should Calveta’s organization structure and practices be changed to
accommodate growth and effective communication, while maintaining the
company’s culture?
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Company Culture
Calveta’s company culture revolves around Antonio’s Way• High Level of Personalised Service• Strong Employee Development Program
Managers were promoted from frontline employees• Retained Emphasis on Antonio’s Way• Allowed Strong Internal Communication
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Calveta’s Growth
Two Factors have led to a breakdown in Antonio’s Way & Internal Communication
• Hiring Managers unfamiliar with Antonio’s Way• Viewing Transfers to large accounts as a promotion
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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
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Internal Communications
• Ineffective communication is damaging growth and company culture
• Implement Briefing System• Increase opportunities for communication• Reduce the number of accounts per manager
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Question 5:
Evaluate Calveta’s possible sources of future growth. Should Frank Calveta move forward with an expansion into
the hospitality sector? With the proposed acquisition?
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Advantages of Hospitality Sector
• Fits the Core Competency of Calveta
• Vertically Integrated
• 75% of the market is still un-contracted
• Stable and sustainable growth
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Disadvantage of Hospitality Sector
• Intensive Competition
• Possible reduction in market size
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Advantages of GSD
• Expansion of geographic regions
• Ageing Demographic
• Potential clients accounts
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Disadvantages of GSD
• High investment debts
• Risks
• Differences
• Time
• Effort
• Reputation
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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.
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Questions & Answers
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The EndThank You