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Organisational Behavior

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Submitted By chesca2315
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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 at a lower price (i.e. this is largely due their ability to sign low price contracts with their suppliers and the implementation of their “cost-control” model). Secondly, Calveta’s customised service and continuous innovation satisfies its clients by providing a unique offering to each facility. Lastly, the human resource culture (i.e. largely due to “Antonio’s Way”) motivates employees

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