5 As CMG faces competition and a desire to grow they have adopted a number of

5 as cmg faces competition and a desire to grow they

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dining in, taking it to go or purchasing it through the drive-thru (Friedman & Roeder, 2012, p. 5). As CMG faces competition and a desire to grow, they have adopted a number of strategies that set them apart from others in the industry. The core philosophy of the company is, “Food With Integrity” and aims to examine where each ingredient comes from and to select only the best suppliers for not only the CMG brand, but the customers as well (Friedman & Roeder, 2012, p. 3). Their goal is to provide naturally raised meat, sustainably/organically produced vegetables and dairy products from cows with access to pastures (Friedman & Roeder, 2012, p. 3), which creates a more expensive product for CMG to market. This also can create a very narrow number of suppliers that CMG can chose from as this method of raising animals is not the cheapest or the most efficient and sometimes, not the best for animals (as antibiotics are needed to help build a healthy immune system and protect livestock from possible infection). CMG also seeks to set itself apart through the hiring of only the best for all positions within in the company (Friedman & Roeder, 2012, p. 3). Through attractive long-term career opportunities, numerous internal promotions and bonuses available for those who empower and develop other employees, CMG seeks to attract and retain employees that are committed to the company and the brand.
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CMG doesn’t stop there though; they also seek to set themselves apart in the industry by providing close relationships with their suppliers (Friedman & Roeder, 2012, p. 3). “Because high quality, responsibly produced ingredients that can be delivered at reasonable prices are vital to Chipotle’s philosophy, the development of close relationships with suppliers is an integral component of its strategy,” (Friedman & Roeder, 2012, p. 3). CMG carefully selects a supplier who is able to comply with their strict requirements and then builds a longstanding, mutually beneficial relationship with that company (Friedman & Roeder, 2012, p. 3). This tactic of working with the suppliers seems to be a common theme among chain restaurants however, and may not be as “unique” as CMG believes. Many large national chains negotiated directly with their suppliers to help ensure competitive prices (Hitt, Ireland & Hoskisson, 1999, p. 85). However, CMG’s motives for building a direct relationship with suppliers is different as it’s not all cost based as most companies are motivated by.
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