Calveta

798 Words Oct 5th, 2011 4 Pages
Calveta Dining Services, Inc. Jinu JosephPA1115 |

Abstract

Calveta Dining Services, Inc. was a $2 billion, privately held firm that provided food services to almost 1000 senior living facilities (SLF’s) in the United States. Antonio Calveta, the founder of Calveta Dining retired in 2007 after 35 years of leadership and he named his eldest son Frank as the new CEO and told him to double the company’s revenues within a space of 5 years. The dilemma that Frank was facing was that even after 2 years into this job of his he did not have any credible strategies to fulfill his father’s promise or to attain aggressive growth as his father wanted. Calveta Dining Services owed its success to Antonio Calveta’s passion for food, traditional
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2. The financial challenges of getting into the hospital segment was there but it was always achievable. 3. The greatest positive to Calveta Dining Services was the working culture by which they could prosper in any segment.

Interpretation
The interpretation that can be derived from the above analysis is that it would be better for Frank to think about diversifying the business rather than acquiring GSD. Even Frank knew that it was a huge risk to acquire GSD considering the heavy debt the business would be in after the acquisition, besides Calveta Dining would find it difficult to train GSD employees to the work culture of Calveta Dining. Frank should not make this decision only with the purpose of meeting his father’s goal because this may harm the firm in the long run. Frank had his own problems organizational restructuring to do for Calveta Dining and in such a circumstance if Frank acquired GSD then his problem woul grow from bad to worse because it would not be an easy task to change the entire work culture of GSD within a short span of time, and apart from the debts of acquiring GSD Frank would also need to generate funds for the training of the staff teaching them Antonio’s way. The reason for a few customer dissatisfaction was in the the promotion from within

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