BUSI 690 - Individual Case Study Part 1_Chipotle.docx - 1...

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1 Running head: INDIVIDUAL CASE STUDY PART 2: CHIPOTLE Individual Case Study Part 2: Chipotle Stephanie Green Liberty University BUSI 690 April 25, 2020
2 INDIVIDUAL CASE STUDY PART 1: CHIPOTLE Executive Summary The purpose of this case study is to analyze Chipotle’s external and internal environment and make strategic recommendations. The current mission statement, objectives, and strategies will be analyzed. This analysis will provide a recommended new mission statement and strategic recommendations. This case study will also examine the external and internal environment of Chipotle through an analysis of its existing business model, SWOT Analysis, financial statements, and financial ratios. Based on that analysis, Chipotle is currently overvalued and risky as a business. Several strategies need to be implemented to maintain a competitive foothold in the fast-food industry during the current economic recession.
3 INDIVIDUAL CASE STUDY PART 1: CHIPOTLE Individual Case Study Part 1: Chipotle Chipotle Mexican Grill, which is commonly referred to as Chipotle, was founded in 1993 and distinguished itself in the fast food industry by focusing on customer service and quality food. Through its mission and vision statement, Chipotle has gained brand recognition and customer loyalty, which has allowed it to grow and expand both domestically and internationally through over 1,262 different branch locations[ CITATION Chi19 \l 1033 ]. This case study will examine the internal and external environment and provide strategic recommendations based on the mission statement, objectives, strategies, current business model, SWOT analysis, financial statements, and financial ratios. Existing Mission, Objectives, and Strategies Existing Mission Statement Chipotle’s current mission statement is “to provide ‘Food with Integrity.’” This short, high level mission statement focuses on Chipotle’s commitment to provide good natural food at reasonable prices with little to no quality or ethical issues on the origins of the food from customers[ CITATION Chi19 \l 1033 ]. Objectives & Strategies Chipotle operates on a differentiation strategy that is based on maintaining a hybrid business model between fast-food and dine-in options with healthy choices. Several different strategies support the differentiation strategy and are based on its objectives. Chipotle has three main objectives that align with its mission: to provide healthy food, to offer reasonable prices for its food, and to provide food with integrity[ CITATION Chi19 \l 1033 ]. Chipotle’s goal of providing healthy food to its customers in a fast-food industry has guided Chipotle’s strategy of only buying from reputable and ethical suppliers. The suppliers
4 Running head: INDIVIDUAL CASE STUDY PART 2: CHIPOTLE have to naturally raise the animals and grow other ingredients (e.g. beans and lettuce) organically and without any chemicals[ CITATION Chi19 \l 1033 ]. This strategy also supports the objective to provide food with integrity. The company strives to become one of the most trustworthy restaurants in the fast-food industry for the quality, freshness, and naturalness of its food. One

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