Case analysis: Calveta Dining Services, Inc.: A Recipe for Growth?
This is an interesting case which depicts how the existing culture of an organization can
impede its growth endeavors. This case is a decision dilemma about how Calveta Dining
Services can have a sustainable growth strategy which would be complimentary to its
business model and help double its revenues.
Calveta Dining Services is a focused differentiator in the dining service industry. The
profit pool of the target market is attractive mainly because 75% of the market is still
untapped. Moreover, with the aging population of the Baby Boomer segment, the elderly
population is going to increase by 7.2% in the next 21 years. This offers good growth
opportunities. Such growth opportunities would definitely attract new entrants but
Calveta’s resources and capabilities can well insulate the company from this threat. The
increasing competition would definitely increase the bargaining power of the customers.
However, Calveta with its high quality, fresh food and customized services can always
demand a premium for its value added services. With the increase in its scale of services
(by venturing into a new business which is complimentary to its current business model) in
the industry would further increase its buying power from suppliers (economy of scales).
The brand equity that Calveta has created would help it further expand its customer base.
Calveta offers the value proposition of ‘passion for food’ and ‘traditional family values’
both to its customers and its employees. The culture of the organization fosters
organizational learning, tightly integrate various departments and promotes ‘systems
