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Chipotle Case Essay

1728 words - 7 pages

Chipotle
1. vision/mission and objectives?
The mission and vision of chipotle is to change the fast food industry by providing High quality products with the best raw materials, healthy and friendly environment ingredients, and they also serve alcohol.

2. Corporate//Business strategy:
Chipotle brings on outside investors and McDonald's enters the picture, purely as an investment partner. From then on, Chipotle starts to extend its market to outside of Colorado. In the period from 2001 to 2006, Chipotle expands from under 100 locations to 466, expanding into more than 30 states. And in 2008, McDonald's says goodbye to Chipotle, spinning off the company in an IPO on the NYSE (CMG). ...view middle of the document...

com, 2011). This is relatively inexpensive for starting up a new business, making it rather easy for individuals to acquire the funds to start their own restaurant. Another important subject worth noting is the fact that it is the experience that sets fast casual restaurants apart from its competition, not solely the food. Thus, if someone can revolutionize the experience, it would be extremely easy to enter into the fast casual segment. This is perhaps the biggest reason fast casual restaurants must take note of any potential competition that could threaten their business

— Threats of Substitute Products: Even though the restaurant and bar industry is saturated, there are not many competitors that offer organic ingredients within the industry. To take advantage of the recent surge of consumers who demand healthier, organic food, Chipotle has decided to enter into the fast-casual Asian restaurant market with a new chain named ShopHouse Southeast Asian Kitchen, hereafter referred to as ShopHouse. Staying true to its position as a focused differentiator, Chipotle will operate ShopHouse under the same philosophy that has made it so successful, offering sustainable gourmet ingredients at reasonable prices.
—supplier bargaining power: The Chipotle’s top executives had realized the link between the food quality and high-quality fresh ingredients, however, Chipotle did not purchase ingredients directly from manufacturers. Instead of that, the company had developed long-term relationships with a series of reliable food industry suppliers who can satisfy Chipotle’s standard. Because of the limited numbers of approved suppliers, Chipotle had tried best to raise the number of approved suppliers for ingredients subject to volatile prices and short supplies.
With the services of 22 independently owned and operated regional distribution centers, Chipotle can purchase and deliver ingredients to almost restaurants. Therefore, Chipotle management planned to add more regional distribution centers to offer the best service.
In addition, to better anticipate potential impacts on ingredient prices, Chipotle personnel diligently monitored industry news, trade issues and other world

4. Company situation analysis (SWOT)

Strength:- Quality of product.- Social responsibilities exceeding.- Domestic growth.- Customer service.- Ability to order online.-Customer loyalty (marketing via word of mouth).-New age, modern, convenient casual dining.
Serving a focused menu that includes dishes which they cook best.- Using high-quality raw ingredients and classic cooking methods to create great tasting, reasonably priced dishes.- Serving orders quickly by various ordering methods.- Customized dishes.- Creating an operationally efficient restaurant with an aesthetically pleasing and distinctive interior setting.- Friendly people who take care of each customer.- Health awareness and environment respect by using organic products and naturally raised meats.- The limited...

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