Calveta Dining Services, Inc.

: RIMS Case Study

CALVETA DINING SERVICES, INC.

Suraj K (PB 1140) Sec. B 28 August 2011 Dr. B.V. Krishnamurthy

Ramaiah Institute of Management Studies

Calveta Dining Services, Inc.: RIMS Case Study

Abstract
Calveta Dining Services, Inc is a privately held firm that managed food service operations for about 1000 senior living facilities in America. Antonio Calveta the founder of the company retired from the company in 2007 with a dream of doubling the revenue of the company in a span of 5 years. Frank Calveta the eldest son of Antonio was named CEO of the company then. 2 years hence in 2009 Frank realized that, to fulfill Antonios dreams he has to do something innovative or expand the business. But his sister, the COO, Jennifer Calveta is holding on to company customs and resisting an expansion. Frank is a good leader and a canny business man but he is now in a dilemma of what to do to show his respect to his father. He has got some options to do; now its the time to make a decision. The scenario is How Frank achieve the goal of doubling revenue causing least damage to company values?

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Running head: PAPER TITLE

Analysis
The five basic goals or the Antonios Way were to be followed strictly in the methodology of achieving growth. They are 1. Prioritizing SLFs in the quality and service. 2. To not hinder quality with a decent cost cutting. 3. Innovation with menu and service. 4. Employee development. 5. Good profit and good revenue for better growth. This shows that maintaining the goodwill and culture of the company is to be given high priority while making a solution. Certain other factors to be considered while making a decision are They had an advantage of public consideration for providing fresh food rather than their competitors who provided canned food. The employee satisfaction can be proved by the fact that more than 80% of the employees were happy with the company. The number of elderly would increase from 12.8% to 20% in 21 years. It shows that there is a bright future in this field of business. Calveta Dining Services holds the 4th rank in this field of business.

From all the facts given in the case study it is understood that there are three options for the company to attain their goal. They are:

Calveta Dining Services, Inc.: RIMS Case Study

1) Continue with current way of business & restructure the organization for more efficiency. 2) Enter in to hospital sector business also. 3) Acquiring GSD, restructuring that organization & spreading companys network.

Interpretation
Option-1: Continue with current way of business & restructuring the organization. Advantage

Company culture can be maintained. No additional fund required. Service quality can be maintained.
All the 4 points of Antonios Way is followed.

Less risky.

Disadvantage Chance of achieving the goal is less. The fifth point of Antonios Way is not possible in this methodology. Growth and exploration of new markets are strained

Ramaiah Institute of Management Studies

Calveta Dining Services, Inc.: RIMS Case Study

Option-2: Spreading firms business to hospital sector also. Advantage Calveta's cost control system is very efficient and attractive, so it can shine in this field of business. There can be growth in the company in a different sphere. Customers are of similar nature.

Disadvantage There is a high risk in entering after the consequences of recession in 2008-09. Have to face financial challenges. Spreading might cause a dilution of the cultural integrity of the organization.

Option-3: Purchase GSD & restructure the organization. Advantage Easy to attain the goal. The customers of the new company would join Calveta automatically. More geographical coverage. Restructuring of organizational hierarchy helps in increasing efficiency.

Ramaiah Institute of Management Studies

Calveta Dining Services, Inc.: RIMS Case Study

Disadvantage Difficult to maintain the culture. Heavy debt burden. Comparatively higher risk. As of now company is not profitable Labor problems may arise.

Inference
After taking all the options in to consideration I think the best option to be selected by the company is the second option, that is enter into hospital segment. Although there is Recession in the field, it is expected to be ended soon. Risk is comparatively less and the goal can be achieved with ease. Since hospitals also serves foods similar to SLFs it is very easy to handle this segment of business. There would not be much costing involved in entering this business segment. Since they have sound experience the employees also will find it much easier to work. The number of hospitals will be much greater than the number of SLFs, so future seems to be very bright for the company.

Ramaiah Institute of Management Studies