Aramark Analysis

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Evaluation of the Strategic Position of:

ARAMARK CORPORATION

Matriculation Numbers:

1216049 - 1216050 - 1216079 - 1216123 - 1216127

Robert Gordon University – Business Hotel Management School

BA Hotel and Hospitality Management

BS 3190 Strategic Planning and Change Management in the Hotel & Hospitality Industry

Module Coordinator: Mrs. Elda Eicher

Submission: 30 November 2012

Word Count: 7215

ARAMARK Corporation

INTRODUCTION
1. General Information

ARAMARK, an outstanding leader in professional services, provides award-winning food services and facilities management to universities, school districts, health care institution, stadiums and arenas. It provides uniform and career apparel to health care institutions and other businesses such as manufacturing units, restaurants, hotels and construction companies around the world. (Aramark 2012)

Being a multi-national corporation, ARAMARK, headquartered in Philadelphia, has approximately 250,000 employees whose customers are in 21 countries such as China, Belgium, United Kingdom, Korea, Mexico, India, United Arab Emirates etc. Meanwhile, in order to gain visibility in the international market, Aramark also participated in providing premium food service for the Beijing Olympics in 2008 (Tschang 2008).

As a sustainability and customer-oriented organization, ARAMARK thrives to responsibly address issues that matter to its customers, employees and communities by focusing on employee advocacy, health and safety, environmental management and social participation.

2. Highlights of ARAMARK’s History
• In 1936, Davre Davidson started his small business from the trunk of a Dodge truck. His vision was to put vending machines in factories and offices; to Davidson himself, his business was more of a service rather than “vending”. • William Fishman – another like-minded businessman who ran a vending machine company, met Davidson during World War II. Davidson was responsible for Douglas Aircraft’s Southern California plant while Fishman took care of the Chicago plant. • In 1959, both of their operations were combined into one operation named Automatic Retailers of America (ARA). ARA was infused with new capital and expansion occurred in the following year. The annual revenues exceeded $37 million. • ARA became a diversified service provider after combining with the country’s largest manual food service business-Slater System Inc. • In 1968, ARA entered the leisure services market and was selected as the food provider to the Summer Olympic Games in Mexico City. On account of that, the company officially changed its name to ARA Services. • During 1976 to 1980, the company entered the work uniform rental business, career apparel industry and childcare arena. • In order to prevent any hostile takeover bids, in 1984, a group of executives decided to coordinate a management buyout that allowed managers to maintain control of their own destinies. • In the late 1980s and early 1990s, companies emphasized on “partnering” and consequently ARAMARK was formed in 1994. With the rise of the “Unlimited Partnership” phenomena, ARAMARK would do whatever it could to satisfy clients and help them succeed in their core businesses. • In 2001, ARAMARK obtained ServiceMaster Management Services which successfully drove the company toward further strategic moves by increasing the main competencies in food service and uniform and career apparel. • At the end of 2001, ARAMARK as a private company, returned to the stock exchange and continued expanding into international markets at the same time. • Today, partnerships remain the main philosophy of ARAMARK business model which endeavors to create and maintain the value of clients and constantly seeks new ways to invest in its employees. (Aramark 2012)...
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