This case study is about Calveta Dining Services that was built on Antonio Calveta’s passion for food and traditional family value.
Frank Calveta is the main character in Calveta Dining Services which he is eldest son of the Antonio Calvet. He is also as president and chief executive officer (CEO) of Calveta Dining Services. He needs to fulfill his father requirements to double the company’s revenue within five years. At the same time, Frank Calveta facing some problems of making decisions for the Great Southwest Dining Service (GSD) that could help him to achieve his father target but there are some obstacles to buy it. Another character that included is Jennifer Calveta which is Frank Calveta’s sister. Jennifer is chief operating officer in the Calveta Dining Services. Jennifer opinion will help Frank Calveta to think before making any decicions.
2.0 Main issue
Double the revenue within five years
The main issue that Frank Calveta facing is he needs to double the company’s revenue within five years. Since he was being CEO for two years, he still remaining 3 years to double up the company’s revenue.
To solve this problem, Calveta has explored the market opportunities in the hospital segment and also education sector but the result is discouraging. It is because in the hospital segment, the margins in the cleaning services industry were so slow while in educational sector, Calveta didn’t have infrastructure to support large university’s demand for multiple campus food service location.
Besides that, the management services among the employees was unsatisfied because during each new manager’s break in period, quality slipped and the service was less efficient than before. It makes the line employees feel stressed because the manager wasn’t always sure what they was doing.
Furthermore, Frank also has to decide either to buy GSD or not which could help him to achieve the revenue target but causing him to involve in a large debt.