?The Organization’s Response to Change on Chipotle The Organization’s Response to Change on Chipotle (I attached deliverables 1-3) Due Week 9 and worth 150

?The Organization’s Response to Change on Chipotle The Organization’s Response to Change on Chipotle (I attached deliverables 1-3) Due Week 9 and worth 150 points From the same case that you have chosen for Deliverables 1 to 3, you will advise the CEO on how best to position his organization to be responsive to change in order to take advantage of the strategies you have recommended. Write a six to eight (6-8) page paper in which you: Give your opinion as to whether your chosen company’s industry is maturing or declining, based on its evolution history. Justify your answer. Use Porter’s National Diamond to evaluate the relative main advantages and disadvantages of vertical integration versus outsourcing for the company. Support your response. Use the Boston Consulting Group’s growth-share matrix to evaluate the company’s strategic position as of 2013. Note: Refer to Figure 14.2 “The BCG Growth-share Matrix”, located on page 369, chapter 14 of the textbook. Suggest one (1) approach for the CEO to adopt in order to implement the strategies that you recommended in Project Deliverable 3. Include the main changes in decision-making style, main changes in planning structure, and measures of success in your recommendation. Provide a rationale for your response. Use at least three (3) quality references. Note: Wikipedia and other Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. Strategy Development: Chipotle Mexican Grill
Strategy Development: Chipotle Mexican Grill
By: Gabbriella Andrews-Santos
MGT599: Management Capstone
Professor Hassan Yemer
Strayer University
1/21/19
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Strategy Development: Chipotle Mexican Grill
A strategy is a way through which business institutions, or any firm formulates its
operations over a length of a period to better its services and achieve some long-term goals. The
growth of Chipotle Mexican Grill in corporation is based on a strategy formulated by the
pioneers of the company. Its plan is geared towards achieving specific long-term goals at the end
of the day which is ensuring customers get the best services. Many businesses come up with
strategies that will benefit the company itself as well as improve and attract more customers to
the industry. Formulating a business strategy requires critical thinking and involving all parties in
the business to ensure that the policy is fully adopted and applied in the company. This paper
will look at the analysis of the industry and the formulation of a strategy for the company.
The company took different strategies in ensuring that it is well competing in the market
like other firms. The policy adopted include discipline development and focused on enhancing
the economic model. This is where the company workers ensure that whatever they do portray
the image of the company and all the workers work towards achieving the same goal of the firm.
Another strategy is the adoption of modern technology in the restaurant for the enjoyment and
improvement of service delivery as per the needs of the customer. Using the internet allows the
restaurant to interact with people from different places and also hear their suggestions on
different taste and preferences and improve on them. Operating an excellent restaurant with
quality services is also another strategy which was used to boost customer services and improve
on the quality of food supplied to the public.
The use of locally made raw materials I preparing the foodstuffs makes individuals love
the meals from the restaurant. Using products that are culturally accepted gave the firm a better
chance of developing and winning more customers compared to their rivals. The company is a
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Strategy Development: Chipotle Mexican Grill
fast food industry with many competitors. The competitor in the industry includes Yum Brand’s
Taco Bell which posed a significant challenge to them. The Taco Bell adopted different
strategies in an attempt to outdo chipotle in the industry. Taco Bell came up with a new menu
named Cantina Bell, and it also came up with a new chain of casual dining restaurants. All the
strategies adopted by Taco Bell Company posted a lot of threats to Chipotle firm.
The strategies adopted were not successful since the Chipotle firm had already outlived
the Taco Bell. The policy adopted by Chipotle gives it a better market share compared to the
counterparts making it compete favorably in the industry. Despite Chipotle facing shortlisting
from the hedge fund green light capital, it was still announced the most powerful firm. Looking
at the industry, there are many upcoming firms which deliver the same services to the public and
the problem of shortage of supplies for raw materials is likely to happen. The firm might end up
losing customers due to shortfalls in supplies and increased prices of foodstuffs. The company’s
standing in the industry shows that it is in apposition to make progress in the future. Many
individuals admire the company due to the use of freshly prepared organic ingredients that gives
customers a variety to choose from. The company is financially stable, and the prospects of
advancing into different countries are possible enlarging its operations globally.
The three performance goals for the next company should include:
1. working on the company’s brand
2. creating incentive programs for the employees to boost their morale in the firm,
3. improving on the financial status of the company which is vital in ensuring that all
activities of the company run smoothly.
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Strategy Development: Chipotle Mexican Grill
These are the goals that the firm needs to set and achieve them in the next year for better
competition in the industry. The goals that the firm can set to accomplish in the next five years
may include expanding the operations of the firm to other parts of the world to increase market
share. It can be done by establishing the firm in different countries. Another goal that can be
achieved is trying as much as possible to reduce the operational cost in the business. It can be
obtained by advancing technology in the firm and cutting down the debts in the industry. Lastly,
the company can work on increasing business advertisements on the internet as this may create
customer loyalty and the sales are likely to increase.
The food industry is one of the best business ideas that individuals can venture into both
locally and internationally. The chipotle firm is making a lot of progress and the owners enjoy
high profits. Developing a better strategy for the firm is vital to the success of the business, and
all firms need to come up with a well-structured plan for their business to thrive well and
compete favorably in the market.
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Strategy Development: Chipotle Mexican Grill
References
Gilliard, D. J., Hoffman, D. L., & Baalbaki, S. (2017). Is Chipotle Mexican Grill
Successfully Recovering from Its Food-Related Incidents?. Journal of Marketing Development
and Competitiveness, 11(4), 34-48.
Sinclair, J., & Carr, B. (2018). Making a market for Mexican food in Australia. Journal of
Historical Research in Marketing, 10(2), 175-190.
Walker, R., & Merkley, G. (2017). Chipotle Mexican Grill: Food with Integrity?. Kellogg
School of Management.
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Chipotle Mexican Grill, Inc
Innovation and Competitive Analysis from Case 10: Chipotle Mexican Grill, Inc.
Strayer University, Gabbriella Andrews-Santos
Professor Hassan Yemer, MGT599
2/1/2019
Chipotle Mexican Grill, Inc
Chipotle Mexican Grill is a fast-casual chain restaurant specializing in Mexican cuisine.
It was founded in 1993 by Steve Ells, who was inspired by local taquerias which used fresh
ingredients to make high-quality food at low prices. His vision to combine fine-dining quality
dishes with the service and reliability of a fast food restaurant saw him start his first Chipotle
Mexican Grill in Denver, which has since grown exponentially becoming one of the leading
chain restaurants in the USA.
The food industry is competitive and over the years, Chipotle Mexican Grill has seen its
fair share of competition. The Porter’s five forces of competition framework analyze the
competition of business thus aids a business in anticipating competition and coming up with
strategies for the future. It also informs a business of its position in the industry it serves in. The
framework focuses on five forces that determine competition which in turn affect the
profitability of a business.
There is a threat when new businesses enter the same market space as they take up a
percentage of the market share of the existing businesses (Tang, 2014). In recent years, new
restaurants have come up with food and service models that are similar to that of Chipotle. As
food trends move towards conscious eating, the number of people who prefer to eat food
prepared from organic ingredients is on a steady rise. Chipotle’s model of using organic
ingredients from sustainable sources has become a benchmark for emerging restaurants. Even
though these new emerging restaurants take up a small market share, using a model similar to
blunts Chipotle’s competitive edge in the restaurant industry.
The threat of substitutes is one of the five forces of competition. A substitute uses a
different technology to solve the same need as a business. New and more innovative technology
and models emerge every day in the food industry. Online fast food restaurants provide the
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Chipotle Mexican Grill, Inc
convenience and reliability of fast food restaurants with the added advantage of food delivery.
For Chipotle to remain competitive it needs to come up with new innovations and models of
customer service as an incentive for customers to remain loyal.
Bargaining power of consumers refers to the ability in which consumers have the power
to affect business. These include things like prices and quality. It also regards the loyalty of a
consumer to a brand. Creating brand loyalty gives business stability when new businesses
emerge and during inflation of prices.
Bargaining power of suppliers assesses the effect of the supplier on a business’ operation
and its profitability. An ideal situation involves a business having substitute suppliers to reduce
the suppliers’ control over the business. Chipotle’s main overhead is the fresh ingredients as they
are organic and are acquired from sustainable sources. One aspect of sustainability is acquiring
ingredients locally. Sourcing fresh ingredients that meet Chipotle’s standards will prove
challenging in the future with the rate of its growth. An issue arises as there are no set standards
for what organic food is, and Chipotle uses its own resources to ensure the credibility of their
suppliers.
Competitive rivalry is the measure of the intensity of competition in an industry. It
focuses on the number of companies in a given industry and what those companies are doing
(Tang, 2014). Chipotle Mexican Grill faces competition from fast food giants McDonald’s,
Subway and Burger King. It also faces direct competition from fast food restaurants specializing
in Mexican cuisine. Yum Brand’s Taco Bell is leading in its category of Mexican fast food
restaurants with Del Taco and Qdoba Mexican Grill coming in third and fourth. Chipotle
Mexican Grill commands 17% of the market share which is only second to Taco Bells 58%
market share.
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Chipotle Mexican Grill, Inc
Chipotle Mexican Grill has been at the forefront of fast food restaurant innovative trends.
It has been considered a benchmark in food preparation and service, changing how people
perceive and consume fast food. Chipotle Mexican Grill was the pioneer of fast-casual dining
offering affordable food that was not only of good quality but also made from organic
ingredients sourced from sustainable sources. This was far from the greasy, suspect food that fast
food restaurants of the mid-90s were known for.
Steve Ells married the idea of fine dining and fast food that went beyond the food and
customer service. The interiors of their restaurants feature a minimal industrial design with
emphasis placed on space utility. The three core principles in which Chipotle is based on form a
model of the fast-casual dining. Using sustainably grown ingredients, cooking the food using
traditional methods in front of the customer and offering interactive customer service are the core
principles. This model can be applied to different cuisines
Food delivery has been one of the rising trends. More consumers prefer to have fast food
delivered to them in the easiest and most convenient ways. With the majority of those consuming
fast food being millennials, the fast-food restaurant is coming up with innovative ways to appeal
to them using social media. Domino’s customers can now make a default “pizza profile” on their
online site and can order by tweeting a pizza emoji to them anytime they want to order. They
have gone a step further and created a Facebook bot so one can order by sending one word or an
emoji to the bot. The bot also updates customers on offers and vouchers by Domino. Through
social media, Domino’s has been able to reach to more clients as a majority of their clients are
aged between 18-24 years. Fast food delivery is no longer a trend but a necessity for fast food
restaurants. Emerging trends like Foji, which lets customers place their orders using emojis will
continue to emerge to improve food delivery services.
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Chipotle Mexican Grill, Inc
Chipotle Mexican Grill is a fast expanding company with hundreds of branches opening
annually in different countries. It is still among the best fast food restaurants in food innovations
and service delivery. Offering healthier fast food options to a population that is growing more
and more conscious about what they are eating. The use of sustainable and organic produce and
cruelty-free meat puts them in the current space where people are concerned with the integrity of
food. Although their prices are higher compared to those of giant fast food restaurants, they are
satisfying a need in an ever-growing niche. Chipotle’s clientele comes from both all economic
classes as the food is affordable to the general population and is good enough for the upper
classes to consume.
One of Chipotle’s principles, ‘A few things, done a thousand ways” has helped the
company increase their speed of service while still letting the customer tailor-make their own
orders. However, having three food items on a menu, burritos, tacos, and salads, runs the
company the risk of becoming repetitive and less exciting. Expanding to different cuisines with
the same model will keep the restaurant exciting and offer customers more variety. Management
of staff at Chipotle’s with the prospect of the staff to be promoted ensures loyalty and efficiency
from the workers. This improves customer service and staff interactions with the clients. The
innovations at the in-house service of Chipotle is to be rivaled, however, there is lacking in
online and virtual innovations. More fast food restaurants are focusing more on food delivery
and online services as that are where the future of the food industry is headed (Machlin, 2011).
All in all, Chipotle’s founding principles put them ahead of the curve and made the
restaurant ahead of its time. Most of its successes can be attributed to innovation and integrity. It
continues to spearhead change and help people perceive and eat fast food differently.
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Chipotle Mexican Grill, Inc
References
Machlin, S. (2011). American Foods by the Decades.
Tang, D. (2014). Introduction to Strategy Development and Strategy Execution.
Wylie, K. (2003). Marketing Analysis Chipotle Mexican Restaurant and Applebee’s Restaurant.
Germany: GRIN Verlag.
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Exploiting Innovation
Gabbriella Andrews-Santos
Strayer University, MGT599
2/18/2019
Exploiting Innovation
Importance of innovation for the long-term survival
The term innovation is used by different people to mean different things, especially when
discussing future perspectives and developments of organizations. However, the term is hard to
define comprehensively According to Galanakis, (2016) innovation refers to the new ideas that
result in increased efficiency and effectiveness of processes, products, technology, and services
once implemented. Changes help the organizations to identify solutions for unaddressed advanced
or existing organizational and market needs. Innovation can also refer to the breakthroughs that
offer a different way of living, consuming or thinking. However, change is only helpful after it is
implemented. Otherwise, it remains an idea for the long term.
In the case of Chipotle Mexican Grill, the food industry is facing economic and technical
changes in spite of food processing, manufacture, and society. These changes have significantly
affected Mexican chipotle grill and the entire food chain. Consequently, Chipotle Mexican
restaurant has to pay attention to its processes and product to meet the needs of the consumers.
Innovation is not just an opportunity for chipotle to survive in the long term but also a
precondition to ensure the quality of products for the clients. For a long time, the food industry
has been considered one of the sectors with least research intensity. Consequently, when
innovations are made in the industry, they meet implementation obstacles. To ensure that
Chipotle Company survives in the long term, it should ensure that all critical changes ate
implemented and all barriers are removed.
Strategy to foster innovation
To encourage innovation within Chipotle organization, the leaders should set the example
form the front. The CEO and leaders of Chipotle grill should show the other employee the
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Exploiting Innovation
importance of innovation. Studies show that leaders have to show passion, positivity, and
optimism in their outlook towards change to influence other employees (Khalili, 2016). Leaders
that show bold thinking capacities have a primary role in fostering innovation in chipotle Grill.
The company should also create a culture of innovation through inspiration and
encouragement. Employees should be encouraged to think outside the box, and this is not easy if
they are being micromanaged. Chipotle Mexican Grill should aim at making the employees feel
independent enough to own their ideas and pursue their passions. The organization should foster
an open environment where people can create new products. Another strategy for the company
to encourage innovation is to include a reward system where the creative employees get
recognized. Recognition is one of the most powerful tools of change and innovation. Sometimes
it is necessary for the employer to reward the effort and not the results otherwise they will fear to
make mistakes. Chipotle Company should reward the innovators and also expect failure and
tolerate mistakes. Sometimes, ideas fail in the initial stages.
In the next five and ten years, the food industry will have evolved a lot because of
innovation and technology. Firstly, the accountability within the industry will depend on
technology whereby companies will be unable to get away with misleading information about
their food products. More people have acquired knowledge about the safety and harmful effects
of various products, and as such, they are aware of the standards that the industry should meet.
Consequently, the industry has to offer products that meet the demands and in the next five to ten
years, accountability will be part of the daily food processing.
If used well, technology and innovation will help the industry to curb wastage of food
According to researches conducted in America; consumers throw away at least 40 percent of the
food products they purchase. Technology and innovation will help to mitigate the wastage of
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Exploiting Innovation
food (Vittuari et al., 2016). Companies reject a lot of the products they buy or sell to the
consumers. The rejection costs are passed on to the consumer to reduce the losses. With
innovation and technology, companies will identify ways to use their rejects productively and cut
the price.
The top advantages that chipotle has over its competitors are product taste the speed of
service and the locations of the business. Chipotle offers fact services to its clients compared to
its competitors, and the products have a remarkable taste that consumers look forward to every
time. Also unlike many of its competitors that have ventured into menus full of junk food,
Chipotle Mexican Grill offers a better variety of products for consumers. Chipotle has also
identified strategic locations across the nation where the consumers can get the products with
ease. Many people prefer companies that are located so that they can get their products as fast as
possible.
The company may exploit its innovation breakthroughs identifying ways to reduce waste,
therefore, lower the price of their products and also come up with new products for the
consumers. The strategy of identifying ways of reducing wastage has the advantage of
decreasing the amount of the products, therefore, attracting more clients; however, the company
might have to incur costs to research on ways of reducing the waste. The innovation of new
products is also advantageous for the company because it will attract new clients, but it will cost
the company some resources to identify the perfect products.
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