Chipotle strategy analysis

Case Analysis 'B' - Chipotle: Mexican Grill, Inc.: Food With Integrity The entrepreneurial success of Steve Ells is well known in the restaurant industry. Going against conventional wisdom, Ells revolutionized the fast casual segment when he established Chipotle Mexican Grill (CMG) in 1996. The company’s achievements through its Food with Integrity philosophy are numerous. But as CMG enters the fourth quarter of 2012, it faces multiple and significant challenges. After a brief introduction to Chipotle Mexican Grill on October 18, 2012, this case profiles the U.S. restaurant industry, including the cost factors and key competitors which affect CMG’s business. Background on the company and its operations is provided, with an emphasis on its supply chain, sustainable business practices, and unorthodox approach to marketing. Financial data is then presented, which leads into a discussion of the critical issues confronting the restaurant chain. Recently the darling of Wall Street, it appears that the honeymoon may be over for CMG. The need to overcome mounting challenges with respect to disparate stakeholder interests is a major theme in this case. For this case, you are to answer the questions noted below to consider the environmental elements that impact Chipotle’s performance and to determine if the company’s unique strategy will lose its value as developments in the marketplace unfold. 1. 2. 3. 4. Review the industry and competitive conditions in CMG’s environment. Identify the market opportunities and external threats which have the greatest relevance to the company’s capital market and product market stakeholders (Stakeholder Interests). Evaluate Chipotle’s organizational resources and recent financial performance (Financial Analysis). What does a SWOT analysis reveal about positioning CMG in the current business environment? Define the components of Chipotle’s business strategy. How should the analysis influence the strategic direction of the firm? In light of economic and competitive forces, do you think CMG’s sustainability practices add value or diminish potential for the company? Outline the specific challenges (Competition, Pricing Decisions, Stakeholder Expectations) presented in the case and identified during the assessment above. Based on the results of your analysis, is CMG prepared to address its greatest concerns? What recommendations can you make to strengthen the company’s ability to confront these challenges? ...