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Calveta Dining Services

Marketing Management Case Studies 2013
by

Wolfgang Kostenzer

on 13 June 2013

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Transcript of Calveta Dining Services

Calveta Dining
Services

The Story
Problem
Solution
Calveta Dining Services
by Fink, Haselwanter, Semrajc
Kostenzer
founded in 1972
SLF (Senior Living Facilities) dining services

necessity of quality food & more personalized service

2007: Antonio Calveta (Founder) retired
Frank (son) Calveta took over the firm.


1000 SLFS in 2009 - Market: North East of the USA
Antonio's way
1. highest quality food & personalized service

2. to hew the budgets of the SLF clients and the company

3. constant innovation and development of new service features in the menu

4. develop every Calveta employee to his/her full potential

5. profitably grow, generating the funds needed to generate even greater growth in future years.
SWOT Analysis of Calveta Dining Services
Basic & integrated elements of a strategic service vision
Target market segments
SLFS on the East Coast

elderly people:
value quality food
special need regarding health (diet food)
personalized service

core elements Antonio's Way:

quality
service
charity
education
respect
growth
profitability

Positioning
Service Concept
employees are the most
important capital

relationship with the residents due to personalized service

serving high quality food

embrace a strategy and operational actions concerning the product

it is more than just serving food

every employee cares about the needs of the residents
Value - Cost Leverage
Cost effciency through cost control models:

Portion control
waste control
residues recycling
Low prices through long term contracts


monitoring costs & modifying prices according to current situation


Soft Skills of Antonio's way hard to imitate
Operating strategy
Keep high standard with ongoing innovation strategy

no debt policy

internal promotion & stuff training

employee satisfaction survey
Strategy System Integration
"at your service" preordering system

engaging employees - "keep them learning, keep them growing!"



Service Delivery System
customization & cost efficiency through catering program

distinguish from its competitors throug cost control models

employees live Antonio's way


The Problem statement
?
Critical Questions
"To grow or not to grow?"
Expansion via aquisition

Franchise

new markets & products
(hospitals, schools)

no growth




Possibilities
How to keep Antonio's way while growing?
Possible Solutions
Franchise
Aquisition of GSD
Great South-West Dining
serves SLF's on the West-Coast.
Bad reputation and serious falling-outs are the reason for the acquisition opportunity.

Business model with
unlimited growth by
selling franchise licenses.
Basic & integrated elements of a strategic service vision
Acquisition of GSD
Target market segments
SLFS on the East Coast

& West Coast

elderly people:
value quality food
special need regarding health (diet food)
personalized service

core elements Antonio's Way:

quality
(regional suppliers, considering local habitats)
service
(Staff training, job rotation, team building, workshops, living the values)
charity
(involve the community)
education & growth & profitability
(integrate employees into innovation processes)
respect
(respectful environment through defining rules
Positioning
Service Concept
employees are the most
important capital.

relationship with the residents due to personalized service

serving high quality food based on desires

embrace a strategy and operational actions concerning the product
respect Antonio's way

it is more than just serving food

every employee cares about the needs of the residents
Value - Cost Leverage
Cost effciency through cost control models:

Portion control
waste control
residues recycling
Low prices through long term contracts


monitoring costs & modifying prices according to current situation


Soft Skills of Antonio's way hard to imitate
Operating strategy
Keep high standard with ongoing innovation strategy

no debt policy

internal promotion & stuff training

employee satisfaction survey
Strategy System Integration
"at your service" reordering system

engaging employees - "keep them learning, keep them growing!"



Service Delivery System
customization & cost efficiency through catering program

distinguish from its competitors throug cost control models

employees live Antonio's way


Creation of Corporate identity, marketing activities, concentration on core values
Adopting cost control model through
work shops/meeting...
Recruitment process in charge of the HR department, seeing depts as a chance to grow

Revenues will cover repayment, family has to be visible at least once a year

controlling system enhanced through shared headquarters


long term contracts with regional suppliers
Enhance community involvement
Establishing Calveta as an attractive employer, client & SLF provider
Creating entrance barriers
(through Antonio's way)
Keeping Antonio´s way through

self-recruitment from employees
Shared training programs
Community involvement (charity, employer attractiveness)
Ensure Quality

Local suppliers
Adopting knowledge form Calveta
Focusing on the core Values at all levels
Profitability

Goal of doubling revenues within 5 years will be reached
Synergy effects due to one shared head office
Repayment of the loan financed through cash flows
Leveraging knowledge of GSD
Employees

More potential for innovation and improvement through their suggestions
Various options to promote employees

Advantages
Disadvantages
Risk to fail
Employees of GSD are not able to adopt Antonio´s Way
High investment, debts
Growth is limited
High control effort
Possible loss of reputation in case of failed implementation

Franchise System regarding Calveta Dining Services
4 pillars of franchise:
relationship-building with franchisees
to ensure high quality partnership to franchisees Calveta should concentrate on constant improvement of the franchise concept offered to the franchisees by:guaranteeing better purchase-prices for the goods

•optimizing management and sales skills with workshops and trainings

•organizing national and international advertising campaign

directing the business’s overall strategy (Antonio’s way)

•developing and constantly improving the franchise business’s concept so as to ensure the credibility, quality and notoriety of the brand on the mark






Basic & integrated elements of a strategic service vision
Calveta Dining Services Franchise
Target market segments
B2B: potential franchisees, which want to open new businesses in the SLF sector

B2C:
elderly people
value quality food
special need regarding health (diet food)
personalized service



Positioning
Service Concept
Value - Cost Leverage
Cost effciency through cost control models:

Portion control
waste control
residues recycling
Low prices through long term contracts


monitoring costs & modifying prices according to current situation


Soft Skills of Antonio's way hard to imitate
Operating strategy
Strategy System Integration
"at your service" reordering system

engaging employees - "keep them learning, keep them growing!"



Service Delivery System
customization & cost efficiency through catering program

distinguish from its competitors through cost control models

employees live Antonio's way


Adopting cost control model through
work shops/meeting...
workshops & guides for franchisees to keep Antonio's way
Equipment & design layout of SLFs restaurants must be similar in every branch

Uniforms, cleaning, appearance & menus (regional differentiation?)
spreading over whole USA, maybe in future in new countires (Mexico, Canada)
Keeping the exsiting corporate design & identity, Antonio's way
& THE BRAND CALVETA
PART OF THE franchise contract
Antonio's way is provided by workshops & trainings.
Knowledge Transfer

emphasis on personalized service
good relationship with residents

adapting processes (operational actions, design, distribution) must be the same in all branches according to Antonio's way.

Include regional products in standardized recipes

Franchisor (Calveta) buys regional products
(by long term contracts)




Cost structure: to attract new franchisees the licence costs will be moderatly in the beginning

Monthly franchise fee: depending on the net sales

employee recruitment: franchisees have to take on employees who meet the predetermined criteria of Calveta.

Calveta Headquarter is in charge of marketing

Franchisees have to pay marketing fees

location analysis by Headquarter & territory protection

Control by mystery shoppers & quarterly meetings, reportings

standardized processes & cost efficiency
Knowledge Transfer
rapid dissemination of the system - market development
stronger market presence with low investment
income from fees
entry fees for franchisees
ongoing fees
use of existing enterprises with good location
use market knowledge of the local partners
shopping benefits and cost degression
secure sales
expansion with less capital and less risk
facilitated financing
motivated franchisees
Risk-sharing


Advantages
Disadvantages
Recruiting suitable franchisees
difficult management
longer lead time until the start of the system
Waiving a portion of the proceeds
Risk of being viewed by the labor courts, social security institutions etc.
contributions and income taxes retroactively
Misconduct by the franchisee falls back to the franchisor
Elaborate controls necessary

Our recommendation for Calveta Dining Services
Unlimited growth
Aquisition of GSD
Franchise maybe in future!
Keeping Antonio's way
Strategy

goal to double revenues within the next 5 years (Antonios precondition)


keeping Antonio's way while growing
Aquisition of GSD
Franchise Calveta Dining Services
Thank you for your attention!
Full transcript