Calveta Dining Services Case Study:

Overview:
Calveta Inc. is a privately held firm that manages food services to around 1000 Senior Living Facilities
(SLFs) with revenues of over $2.02 Billion (in 2008). In June 2009, they employed 15,000 people and had
5 basic goals commonly referred to as Antonios Way on which they were running the company. Frank
took over the company from his father and is charged with doubling the companys revenues within 5
years. Frank currently has 3 years remaining and views the acquisition of GSD as the only way to
achieve the goal. Franks sister, Jennifer also serves as the COO and was also once considered by many
to be Antonios successor.
Analysis of GSD deal specifically cultural concerns:
1. The size of the company would almost double (75% of the current revenue from $2 Billion to $3.5
Billion). With this size company, the current organizational structure would be untenable (assuming
GSD has a similar structure).
2. Company culture has already deteriorated: Calveta has grown so big that their training program does
not instill the basic goals (Antonios Way) in the new trainees effectively. To highlight this, over the
years, Calvetas President and CEO met with every new employee. By 2009, with 1,000
management trainees joining the company in just 12 months, this was no longer possible.
3. Frank already had a growing concern regarding the diversity of skills of area and account managers.
Recent college and business school graduates who entered the business lacked the industry
experience of counterparts who had worked their way up through the ranks.
4. Jennifer also acknowledged it was becoming harder to find operations managers who fully embraced
Antonios Way.
5. GSD does not have great reputation and has had issues with labor and management turnover.
6. Career growth opportunities alienate customers.
7. Within Calveta there seems to be a power struggle between Frank and His sister Jennifer.
Recommendations:
1. Combine SG&A and eliminate redundant positions. This would include combining supply chain,
customer service, accounting and IT. All SG&A savings would be diverted to cultural training in
Calvetas 5 basic goals (see step 4).
2. Hand over day-to-day operations of Calveta to Jennifer and have Frank take care of the GSD
operations. Integrate and significantly reduce current combined organizational structure by
addressing GSDs high management turnover with an influx of Calveta middle and senior leadership.
3. Use GSD as a growth platform for internal Calveta promotions. This will be a good way to spread
Calveta culture into GSDs operational environment. Bring over qualified staff from Calveta into GSD
operations as temporary (short term) assignments to help spread the Calveta culture from within.
Selected GSD staff is likewise sent and trained in a Calveta operation, with the plan being that they
eventually return to GSD.
4. Create the concept of Calveta University to help train and integrate GSD employees and help
prevent the erosion to Calvetas culture. This would include a robust program centered around
continuous improvement training such as a curriculum of: new hire (3 days), 90-day orientation (1
day), and annual retreats (1 day). This can also be used to train new hires for both GSD and
Calveta as well as future growth. Instill the need for a Division President or above to meet the
trainees as a way to replace the CEO greeting of new employees, which is no longer feasible to
maintain.