...Sustainable Competitive Advantage Approach Calveta whish is operating dining services is provide their services in senior living market by managing the food service operation to the senior living facilities (SLFs) in the United States. Calveta is very experience in preparing the healthy and nutritious food for old people that is suitable for the residence in the senior living facilities (SLFs). Other than Calveta, there are several players in the senior living market that providing dining service such as Culinair, Robertson and Pinehurst. All of them has operating in a wide market and had diversified their business in hospital, education, sports, business and industry sectors which SLF in one of their division business. The Calveta’s competitors are also having a big amount of revenues compared to Calveta. However, Calveta has their own strategy to maintain their family business in the senior living market. According to the Michael Porter’s competitive advantage strategy, there are two basic types of competitive advantage, first is cost leadership and second is product differentiation. Both competitive strategies can be more broadly narrow that result the third competitive strategy which is cost focus and differentiation focus. The companies is said to be stuck in the middle if they are unable to position in one these strategic advantage and they are unable to compete their business with other competitors in the industry. Competitive advantage is created by using resources...
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...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 family values and the customized services they offered to the SLF residents. Frank was named CEO of the company over his other siblings including his sister Jennifer Calveta who was more suited for the job, now Frank was left with the option of expanding their business by acquiring Great South West Dining (GSD) or to enter into the hospital segment and diversify their business and at least try and come close to meeting his promise to his father. Analysis The United States Census Bureau’s survey showed that only 25% of the total SLF’s in USA had contracted to food services, this survey alone shows that there is a great potential for growth in the SLF’s segment and therefore it would have been meaningful for Frank to buy Great South West Dining...
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...Calveta Dining Services, Inc.: Case Analysis Abstract Calveta Dining Services, Inc. was a $2 billion, privately held firm that managed foodservice operations for nearly 1,000 senior living facilities (SLFs) in the United States. It was built on Antonio Calveta’s passion for food and traditional family values. It made better food that was more nutritious for the residents of the SLFs whose current food budgets did not exceed. It also provided with not only higher-quality food but also more personalized service. Presently, Calveta Dining Services ran food services for 976 SLFs and employed 15,000people. When Antonio retired from his 35 years of leadership, he named his eldest son, Frank, as the new CEO and was asked to double the company’s revenues within five years, of which2 years have passed without any credible strategy adopted yet. He did not want to disturb the special company culture or risk their reputation for quality food services on the race to double the revenue. Now he finds it difficult to carry out his father’s directives. The humanistic and emphatically pro-employee company culture should not be disturbed while the growth strategy takes place. Currently, he is in a dilemma whether to expand beyond the SLF market and he is worried if he could continue to maintain the quality level, for which Calveta is renowned, in this process. Analysis In order to increase the revenue as promised to his father, Frank has to consider growth strategies for his organization. He...
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...3. Why haven’t other food service providers copied Calveta’s approach? The reason why haven’t other food service providers copied Calveta’s approach this is because Calveta use differentiation focus approach for their business and this approach make other food service difficult to copy their operation. First reason is because most of the competitors might have not started as a traditional family company. As we know Calveta Dining Services was built on Antonio Calveta’s passion for food and traditional family values. Calveta Dining Services had their own family recipes and it difficult for other food service copy Calveta’s approach. The other one, it is too expensive for competitors to imitated calveta’s approach. This is because base on Calveta’s third goal is related to the innovation, which is to provide more personalized service to bedridden residents, “At Your Service” a catering program that allowed residents to pre-order their meals for the next day. Calveta staff delivered menus each morning and returned early afternoon to collect residents’ selections, which they submitted to the kitchen via personal digital assistant (PDA). Beside that about forth goal it is regarding to the developing employees. Under Calveta human resources culture they had implementing pay-for-performance plan, wide-ranging training program, and the career progression program and among others. The Calveta’s managers also will get high compensation if they left the company. This shows that it is...
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...NEGOTIATING & COMMUNICATING Answer all questions to the best of your ability. There are no right or wrong answers. Name: Age: 18-24 ___ 25-30 ___ 31-35 ___ 40-45 ___ 45 & above ___ Gender: Occupation: |How likely are you to do each of the following when NEGOTIATING? | | |Neither Likely | | | | |Very Unlikely | |nor Unlikely | |Very Likely | | | |Unlikely | |Likely | | |I’ll come up with a plan so that I can steer the negotiation to go | | | | | | |my way. | | | | | | |I’ll do things expressly to make sure that the negotiation stays | | | | | | |friendly and comfortable. | | | | | | |I’ll go out of my way to make sure that the outcome for the other | | | | | | |person is fair. ...
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...played a significant role in the business’ success. They motivates and empowers the members of the staff to ensured that the staffs feel the Calveta viewed every staff as valued members of the organization and understands that their job is to take care of their clients respectfully. The same approach was used with the clients ensuring them that the goal of the organization was to fully take care of their needs. Calveta is like a big family that every member of Calveta will help each other during working hour or even after work. They encourage their employees to improve themselves by providing training for them. When employee have skills, they might repay Calveta by identifies new opportunities, cost reduction or productivity improvement that will result in Calveta growth. It is also about the quality of the food prepared which is fresh and according to the guests tastes. The food quality provided by Calveta received high ratings from Senior Living Facilities (SLF) residents and managers. Calveta providing services with polite altitude that serve every customer like their family. This goal is differ from other larger competitors, who relied on highly regularized systems and standards to serve a large number of clients efficiently. Question 2 Does Calveta operating approach offer a sustainable competitive advantage? As we know, Calveta is one of the successful companies which provide healthy and nutritious food to the senior living facilities (SLF). They gained higher profit...
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...rP os t 4261 MARCH 4, 2011 JAMES L. HESKETT PATRICIA GIRARDI op yo Calveta Dining Services, Inc.: A Recipe for Growth? tC On a June day in 2009, Frank Calveta, president and chief executive officer of Calveta Dining Services, Inc., struggled as he prepared to present growth strategies to his father, founder and former CEO Antonio Calveta. Calveta was a $2 billion, privately held firm that managed food service operations for nearly 1,000 senior living facilities (SLFs) in the United States. When Antonio retired in 2007 after 35 years of leadership, he named his eldest son, Frank, CEO and told him to double the company’s revenues within five years. Two years in, Frank confided, “I can’t let my father down. I can’t abandon the special company culture we have or risk our reputation for quality food service. But after two years in this job I still don’t have a credible strategy for meeting those two promises and also growing the business as aggressively as my father wants.” Calveta Background No Calveta Dining Services was built on Antonio Calveta’s passion for food and traditional family values. Having immigrated from a poor village in southern Italy, Antonio, often working 16-hour days, grew into a shrewd, competitive restaurateur. Beginning in 1966 with a neighborhood restaurant in Brooklyn, New York that featured old family recipes, Antonio eventually started a second restaurant and then a third. Antonio recounted how his company had...
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...Question 2. Does Calveta’s operating approach offers a sustainable competitive advantage? Main Issue Yes, Calveta’s is able to create and maintain a sustainable competitive advantage throughout its operating approach. Analysis of issue A. Possess own principles or strategies “Antonio’s Way”. In order to increase or twice the revenue as promised to his father within five years, Frank need to consider on the growth strategies for his organization. With these, Frank is always concern about the principles or strategies that proposed by his father and it’s applied throughout the organization, which is “Antonio Way”. This principles conveys the ultimate aim of Calveta’s which is quality of services and customer satisfaction, leads the development of employees in Calveta’s, maintaining the stability of profitability growth. As a fact, “Antonio way” provides a clear track of direction for Calveta’s in terms of operations on how to manage the organization effectively. “Antonio Way” also helps Frank in managing the organization. For instances, when frank in the dilemma of continuing or expanding calveta’s operation into hospital segment or acquiring Great Southwest Dining , Frank used “Antonio Way” as a guideline to make a better decision that related with calveta’s operation. This aspect highlights that such principles will provide an efficient channel of operation for the organizations and maintain sustainability of the competitive advantage of calveta’s through...
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...1. What role (if any) have Calveta's values have played in the organization's success to date? Calveta adopted the heritage from the family with hard work, and made the Company personal, familiar, and unique. The Company was the manifest of Calveta’s personality with his attention on the sophisticated details. The values secured a safe and risk avoiding status inside the company and between the employees. They secured the differentiation from the competition, and secured Calveta’s fourth largest competitor in the market. With the 40% retention rate the values are secured a constant base for the stable business operation. By the satisfaction surveys 90% of the employees were satisfied and expressed the personal dedication for the company in return of the compensation and treatment get form Calveta’s 2. Does Calveta's operating approach offer a sustainable competitive advantage? In short-term: yes. In long-term as the Company needs Calveta’s daily contribution to keep the competitive values: no. As it was seen after his retirement the Company depending on Calveta’s personal management. The way Calveta’s treated its employees also made the organization more rigid. The existing model of circulating managers around the customers was against the personalized service (emloyees must know the SLF’s resident’s names… The CEO must meet all the employees in the organization). With the growth demand set by Antonio was more against those competitive advantages. As the current market provides...
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...Summary Report of Introduction Case: Calveta Dining Services To: Antonio Calveta From: Frank Calveta For your information, Calveta under a stable growth for past few years, and profit for the company was increasing. Besides that, less than 2% of the clients terminate the contract with the company within a year, good news to the company and clients no much complain on the food and services quality. However, there are some issues that I need to report here, which are the clients complain about the managers that assign to the SLFs. No other matters but they say we move the managers to other bigger SLFs or other big job for them, and replace with the new managers here. As a result, a client from the Seaside Commons Senior Living Center argue that, the new managers that assign to the SLFs was less efficient, and the line employee under this new manager, was stressed because the manager even don’t know what he or she was doing. Finally, they plan to change the vendors. Besides that, I also discover this issue that we should discuss for, which is about the organization chart. The hierarchies for the company, for me I think it is too gap, from the CEO, until the front line manager, which is the staff that closer to the client. This will cause the problem of information transfer from the lower to higher, or higher to lower. Report from lower manager, need pass through a lot of stages, and then only can reach to the top management, also for any order from top...
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...Calveta was a firm that managed food service operations for senior living facilities (SLFs) in the US. It was built on the passion for food and traditional families value of Antonio Calvelta, who was known as founder and former CEO of Cavelta Inc. Antonio had begun his restaurant in 1966 and entered the senior market in 1972. He made better food that was also more nutritious for residents in SLFs but not exceed their food budgets. In 2007, Antonio named his eldest son Frank (CFO) as the new CEO of company and told him to double the company’s revenues within 5 years. By June 2009, Calveta Dining Services (CDS) ran food services for 976 SLFs and employed 15,000 people. Despite the firm’s rapid growth, Frank couldn’t find a credible strategy to keep the company’s culture and reputation and grow the business as aggressively as his father wants. According to the Centers for Medicare and Medicaid Services, there were roughly 18,000 nursing homes in the US in 2008. 66% of the facilities were operated for profit, the rest as non-profit and government owned. Of these facilities, 55% were run by large chains. In 2008, Calveta’s $2 billion in annual revenues represented 10% of the total market, making it the 4th largest company in the market. Calveta’s growth outpaced the industry average, growing revenues by 52% in the past three years. However, Calveta’s total revenues were dwarfed by global dining service competitors Culinair, Robertson, and Pinehurst, all of which operated internationally...
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...4261 MARCH 4, 2011 JAMES L. HESKETT PATRICIA GIRARDI Calveta Dining Services, Inc.: A Recipe for Growth? On a June day in 2009, Frank Calveta, president and chief executive officer of Calveta Dining Services, Inc., struggled as he prepared to present growth strategies to his father, founder and former CEO Antonio Calveta. Calveta was a $2 billion, privately held firm that managed food service operations for nearly 1,000 senior living facilities (SLFs) in the United States. When Antonio retired in 2007 after 35 years of leadership, he named his eldest son, Frank, CEO and told him to double the company’s revenues within five years. Two years in, Frank confided, “I can’t let my father down. I can’t abandon the special company culture we have or risk our reputation for quality food service. But after two years in this job I still don’t have a credible strategy for meeting those two promises and also growing the business as aggressively as my father wants.” Calveta Background Calveta Dining Services was built on Antonio Calveta’s passion for food and traditional family values. Having immigrated from a poor village in southern Italy, Antonio, often working 16-hour days, grew into a shrewd, competitive restaurateur. Beginning in 1966 with a neighborhood restaurant in Brooklyn, New York that featured old family recipes, Antonio eventually started a second restaurant and then a third. Antonio recounted how his company had entered the senior market in 1972: I...
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...MGT 520 - Fall 2013 September 24, 2013 Calveta’s Dining Services, Inc: A Recipe for Growth? CASE STUDY Synopsis: Founded in 1972 by Antonio Calveta $2 billion Senior Living Facilities – SLF dining service company serving quality food. Number of employees 15,000 Servicing 976 SLF in 2009 Not a part of any other industry 2007 Antonio Calveta COE and founder retired and his son, Frank Calveta was replaced as the CEO. Antonio’s Operating Values Develop every Calveta employee to their full potential Provide highest quality food and personalized service at reasonable cost Provide unique features and innovative ideas for their menus Make profit continually using every employee as an important tool to the company Create relationship with clients by personalizing their services Frank Calveta Issues as CEO Has the father’s request to double the company and income within 5 years on his shoulders Must continue to sustain Antonio’s Way Must maintain unique food preparations and customer service Must figure out innovative ideas for growth and expansion without changing the way they do business Has to determine which opportunity will be beneficial for the organization Expanding its business to hospital segment The hospital segment presented a more reasonable fit with Calveta’s core competencies Hospital administrators might perceive Calveta’s skills at cost control as a means to reducing expenses. Trends toward the provision of fresher, more healthful...
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... 1. Abstract Calveta Dining Services is provides services for senior living facilities (SLFs) in the United States (US). The founder of Calveta Dining Services, Antonio Calveta is originated from a poor village in Southern Italy. He is noticed for the passion for food and traditional family values. Calveta Dining Services is taken over by Frank Calveta upon the retirement of his father, Frank Calveta. Frank Calveta was appointed as the new CEO for the Calveta Dining Services. It seems that Frank is having difficulties in keeping the father’s goal for company which is to double the company’s revenue within five years while still maintaining the quality values and culture of company which is the backbone of the company. The main issue which been noticed is can Calveta Dining Services go beyond and achieve Frank Calveta’s goal. In addition, Frank Calveta need to maintain the culture of the company and in the same time he also must overcome the challenges of communication and organizational problems faced in Calveta Dining Services. 2. Introduction This case is mainly focusing on the expansion of Calveta Dining Services. Calveta Dining Services was established in 1972 by Antonio Calveta. He had a lot of passion for food and also traditional families were maintained ever since in his business. In June 2009, Calveta Dining Services employed 15,000 people and serve 976 Senior Living Facilities (SLF). ...
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...Question 1 Three inputs relevant to the ‘Calveta’ case include: a) Environment: Calveta currently only has a 10% share of the total SLF market. The United States Bureau’s has predicted that the number of elderly will climb from 39 million in 2009 to 72 million by 2030. Hence, many analysts predict that the number of elderly living in SLFs will increase. Furthermore, only 25% of SLFs are contracted for food service. b) History: Calveta’s “no debt philosophy”. In line with ‘old school traditions’, Calveta did not carry much debt and most of the Company’s growth was due to prudent cash flow management. c) Resources: Calveta’s reputation has played large role in the Company’s success. Calveta is known in the SLF food service market as providing fresh tasting food and a unique and personalised approach to service. Question 2 Where is Calveta on the sigmoid curve? E E A A Calveta Calveta Calveta is facing a very important decision – to acquire or not to acquire GSD. I believe that Calveta is somewhere between A and E on the sigmoid curve; there is still great opportunity for Calveta to expand and grow however, Frank’s hesitation and desire to maintain “Antonio’s Way” is holding potential growth at bay. If Calveta continues to hesitate, other smaller SLFs will make the move first, leaving Calveta behind. Question 3 Calveta’s sustainable competitive advantage is largely due to the company’ ability to provide fresh ingredients...
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