Anglia Vending Services Case Management Consulting

Anglia Vending Services Case
Introduction:

Anglia Vending Services (AVS) is a part of a contract catering service called the Anglia Food Service a large company in the UK. The board has conducted a strategic review and decided that AVS is no longer core to their future strategy so they are looking for a buyer for AVS due to declining sales and profits. There are potential buyers that expressed interest like their own management team who will seek an investment loan by the Martins Private Equity Company. The management team as well as (MPE) believe this is a good investment for the medium term that could result in a turnaround but the manager in charge wants an independent review of the proposed acquisition. As a management consultant I have been called in by MPE as an expert in this industry to look at AVS management team’s business plan. The AVS Company is known for good customer relationships so the senior staff at AVS are reluctant about customers talking to outside sources such as consultants. I am given a limited number of customers to contact that have been briefed by the AVS team as a result they have been giving very positive responses about AVS. There are concerns that need to be addressed concerning long term prospects for AVS. The parent company has fixed five year contracts but those contracts that AVS have are rolling ones renewed every year for three to five year periods. Therefore, the management team believe that they can pick up a lot of new business. I realize the downside of this flexibility in the market. AVS could lose all its existing contracts within three to five years. Although they may be able to replace them with new business it will be at a higher cost which will have an impact on their profits. I feel the business model the management team at AVS is using is not a viable