100%(3)3 out of 3 people found this document helpful
This preview shows page 1 - 3 out of 27 pages.
Running head: INDIVIDUAL CASE STUDY PART 2Executive SummaryThis case study provides an analysis and evaluation of Chipotle’s potential profitability, company performance, and financial stability. Additionally, this paper addresses Chipotle’s socioeconomic impact towards its target audience. Methods of analysis include a SWOT Analysis, BCG Matrix, competitive forces analysis, Competitive Profile Matrix (CPM), and comparison of ratios against market competition. We also explore alternative management strategies and a projection of Chipotle’s future financial performance for the next three years. Furthermore, this paper will provide a specific recommended strategy with long term objectives and a Net Present Value analysis of the proposed strategy with a new business model. Financial reports and balance sheets can be found in the appendices section. Existing data indicates that Chipotle has steadily increased its profit margin over the last three years. Moving forward, we explore three alternative strategies for Chipotle to maintain its steady increase in profitability. The recommended business strategy for Chipotle would be to consider changing suppliers in order to reduce costs on meat supply while keeping up with the rising consumer demand. Over the last three years, Chipotle’s operating costs have steadily increase, which includes food and packaging costs (See Appendix D). A partnership with a big name meat supplier (e.g. Sysco) would reduce operating costs while Chipotle can continue to maintain key partnerships with other small businesses.Existing Mission, Objectives, and StrategiesThe mission statement of Chipotle is “to provide food with integrity” (“Chipotle Mission and Vision”, 2019). Chipotle further reinforces their mission through its partnership with farmers and ranchers who focus not solely on maximizing profit for the company, but to provide
Running head: INDIVIDUAL CASE STUDY PART 2the best quality produce available (“Food With Integrity”, 2020). Additionally, the company’s implied vision statement is “to do more than just rolling burritos while working to cultivate a better world” (“Chipotle Mission and Vision Statement Analysis”, 2019). Chipotle embodies thisvision by providing mass customization capabilities through its modifiable selection of food items. Furthermore, Chipotle attempts to give back to the community which they serve by participating in fundraisers which support social and environmental developments across the globe (“Chipotle Mission and Vision”, 2019).Two years ago, Chipotle announced its strategy which is centered around company growth, fostering a supporting culture, and increasing sales. The article “Chipotle Announces Growth Strategies Focused On Winning Today And Cultivating A Better Future” (2018) providesinsight into the strategy. Objectives to measure performance within Chipotle’s business strategy include becoming more culturally relevant, digitizing restaurant services, provide great customer service, maintaining discipline and focus, and foster process innovation.