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Surname 1 Student’s Name: Tutor’s Name: Course: Date: Chipotle Mexican Grill
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Surname 2 Table of Contents Introduction ...................................................................................................................................... 5 Issue and Recommendation ............................................................................................................. 5 Issue 1 .......................................................................................................................................... 5 Issue 2 .......................................................................................................................................... 5 Issue 3 .......................................................................................................................................... 6 Recommendation ............................................................................................................................. 6 Appendix: Industry and Competitive Analysis ................................................................................ 6 External Analysis: Analysis of the Microenvironment, Industry & Competitors ............................ 6 PESTEL Analysis ............................................................................................................................ 6 Political Factors ............................................................................................................................ 6 Economic Factors ......................................................................................................................... 7 Social Factors ............................................................................................................................... 7 Technological Factors .................................................................................................................. 7 Environmental Factors ................................................................................................................. 8 Legal Factors ................................................................................................................................ 8 Dominant Economic Characteristics ............................................................................................... 8 Market Size and Growth Rate ...................................................................................................... 8 Scope of Competitive Rivalry ...................................................................................................... 9 Product Innovation ....................................................................................................................... 9 Economies of Scale ...................................................................................................................... 9 Learning/ Experience Curve Effects .......................................................................................... 10 Five Forces Analysis ...................................................................................................................... 10 Threat of New Entrants .............................................................................................................. 10 Competition from Substitutes .................................................................................................... 10
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Surname 3 Buyer Power ............................................................................................................................... 10 Supplier Power ........................................................................................................................... 11 Rivalry ........................................................................................................................................ 11 Drivers of Change in the Industry .................................................................................................. 11 Competitor Analysis ...................................................................................................................... 11 Competitor Identification and Strategy ...................................................................................... 12 Key Success Factors ................................................................................................................... 12 Weighted Competitor Strength Analysis .................................................................................... 12 Strategic Group Map .................................................................................................................. 13 Internal Analysis: Analysis of the Firm ......................................................................................... 13 Current Strategy ............................................................................................................................. 13 VRIN Analysis ............................................................................................................................... 14 Valuable ...................................................................................................................................... 14 Rare ............................................................................................................................................ 14 Inimitable ................................................................................................................................... 14 Non-Substitutable ....................................................................................................................... 14 Takeaway .................................................................................................................................... 14 SWOT Analysis ............................................................................................................................. 15 Strengths ..................................................................................................................................... 15 Weaknesses ................................................................................................................................ 15 Opportunities .............................................................................................................................. 15 Threats ........................................................................................................................................ 15 Financial Analysis .......................................................................................................................... 15 Net Profit Margin Ratio ............................................................................................................. 16 Return on Assets ......................................................................................................................... 16
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Surname 4 Earnings per Share (EPS) ........................................................................................................... 16 Works Cited ................................................................................................................................... 17
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Surname 5 Introduction Chipotle Mexican Grill, Inc. is a group of fast food restaurants situated in different countries. It has subsidies and franchises in the United States, Canada, Germany, France, and the United Kingdom among others. Chipotle specializes in serving a focused menu of tacos, salads, burritos, and burrito bowls. In 1993, the first Chipotle restaurant was opened in Denver. The company aims at providing “food with integrity,” which indicates its determination to use naturally developed ingredients to ensure it serves more naturally raised and healthier meat than its competitors. The company has experienced steady growth since its launch. For instance, in March 2014, its stock price reached an all-time of $611. Issue and Recommendation Issue 1 Chipotle Mexican Grill faces constrained supply of organically grown local produce and meats. In 2003 – 2004, the company launched a program to increase its use of organic dairy products, organically grown local produce, organic beans, and meat from animals raised according to the animal welfare standards and not fed with feeds containing growth hormones and antibiotics. However, the increased purchase of the organic products in supermarkets and local farmers’ market often limit the supply of the natural meats and organic products. The issue of sourcing for adequate supplies of Responsibly Raised meats and organic products has caused an increase in Chipotle’s expenditure on the food ingredients. Issue 2 Chipotle Mexican Grill also faces rivalry from other regional and national casual-dining, quick-service, and fast-casual restaurant chains. It also faces competition from the locally owned food service establishments and restaurants. Chipotle’s main competitor in the Mexican-style
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Surname 6 food category is Taco Bell. Conversely, in the fast-casual food segment, Chipotle faces
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  • Spring '16
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