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associated costs; additionally, there is competition from government-subsidized industries (Arnold, M., 2014).Strategy RecommendationAs it stands, Chipotle has strong business model and implemented strategy. Due to its strong position, the company has grown exponentially within its market. While Chipotle’s current strategy isn’t perfect, it also isn’t complicated; due to the fact that the company’s current strategy clearly works, the stability strategy is recommended. When a stability strategy is implemented, an organization maintains its current strategy; additionally, the company is focused on monitoring its development in an effort to ensure that its strategy continue to benefit the business. While Chipotle has weakness and threats, as pointed out in the SWOT analysis, the company also has a great overall market position; additionally, theorganization has a steady increase in revenues, as well as continued overall growth.While there are disadvantages to the stability strategy, to include poor communication between departments, Chipotle does face that type of impact. Since the organization does not operate as a franchise, it has established a strong top down strategy; for this reason, poor communication will not be a factor due to its corporation structure. With this strategy, Chipotle
Individual Case Study 2: Chipotle Mexican Grill 12would continue to increase its profits and margins. Additionally, the stability strategy would be worth implementing because Chipotle would be in a position to maintain its current strategy without needing to establish a new overall strategy.New Business ModelWhile Chipotle’s current model is strong, there is always room for improvement. A proposed business model would take the company’s best elements from the current model and expound upon them; this, in turn, would make for a stronger overall business model. Due to the fact that Chipotle is still a growing company, the organization is continuing to expand into new markets. With the aforementioned expansion, there should be an increase in the organization’s accessibility to consumers. Currently, Chipotle uses the same strategy for each of its stores when entering a new market. This can be seen as a weakness. Due to the fact that not all markets are the same, a proposed business model would be centered on offering a variety of store opening strategies as it relates to several different markets. Additionally, the new model would focus on the organization’s accessibility to the consumer. It is worth noting that the aforementioned would occur in physical stores; this would be done by implanting “drive-thru’s”, or by developing a more enhanced system for ordering ahead.
Individual Case Study 2: Chipotle Mexican Grill 13AppendixIFE MatrixStrengthsWeightRatingWeighted Score1.Strong distribution network0.2440.962.Strong brand portfolio 0.0910.093.Highly skilled workforce 0.1730.514.Strong performance in new markets0.1020.2Weaknesses 1.High days inventory compared to competitors0.1120.222.R&D is low in its industry0.0310.033.Limited expansion