Recommendation Case

Recommendation

In order to succeed in business one must take risk. The risk that must be taken has to be balanced and analyzed. There are advantages and disadvantages every stage of the way. If Frank continued on using the existing business model relatively there would not any risk involved, expenses would be steady and company will continue operating without making any changes. However calveta would struggle to meet his father's directives.

if Calveta was to expand into hospital segment cost of doing business will go up, must offer additional food selection and hire additional staff members, or potentially lose the reputation while growing.

Additionally if Calveta consider acquiring GSD, at present then , calveta will abundant geographical presence to the west. "In 2008 GSD had produced revenues of $1.5 billion; over the past three years, revenue growth was 20% shy of Calveta's level". (HBS) However GSD is having major issues on controlling the expenses and employee turnover was ultimately higher than the industry average, henceforth using Calveta's core values and strategies GSD can turn into a profitable acquisition. Calveta will gain a market share in the industry, even though Calveta will carry more financial responsibilities and possibly quality of the service may reduce. It will be on track to double the revenue.