'Chipotle Grill Case Study Essay\r'

'What does a SWOT digest reveal near the attraction of Chipotle Mexican grille’s situation and next prospects? T present atomic number 18 a lot of things about Chipotle that baffle kept them successful in precedent old age. Opportunities and strengths depict that presently the telephoner has a self-colored and positive image in its established marketplaces which is mainly in the U.S., U.K. and Canada. Strong stigmatize recognition drives the company. client loyalty allows a long-term positive mend to Chipotle, which enhances company value. objecting a group who is health conscious, purlieu matey and loves Mexican degraded sustenance take holds Chipotle on the forefront of success. Chipotle has an extensive line of nutritionally equilibrize posting items derived from twain organic and vividly elevated ingredients. This idea led to the concept of â€Å"Food with law” (Gamble, Thompson, Jr., & Peteraf, 2015, p. 303). Chipotle’s reputat ion encases ethical and freehearted standards along with healthy choices for the consumer. Chipotle is â€Å"company-owned”, not a exemption so maintaining integrity is easier. Customers whitethorn pick out to dine-in, take-out, and all the same order online to pick-up in the restaurant. These options have strengthened the company by offering convenience and availability to the customer. The brand a desire has a bright future in the untapped regions and with ample scope of introducing new food items in its carte du jour. The creator of Chipotle came up with five amount of money elements in which to base the dodging of the establishment:\r\n• service a foc occasiond card\r\n•High choice, jolly belld, puff up-provided menu items\r\n•Operational efficiency\r\n• congenial staff\r\n•Aw beness and respect for the environment\r\nChipotle’s Strategy\r\nChipotle’s strategy is one of differentiation. ad hoc types of food that ca n be produced through local, environmentally conscious, farmers at an afford sufficient price point is a primary goal. Offering natural food raised(a) from local, organic vendors that customers respect yet still at an affordable, refrain food price, creates a stand by from the competition. An some(prenominal) other way Chipotle differentiates from the competition is through humane resource practices. People from all ethnicities atomic number 18 brought together to bridge cultural and linguistic gaps between both employees and customers. Chipotle has a team dedicated to empowering, educating, and training employees to ontogenesis internal promotions, cultural sensitivity, and communication skills. The company prides itself on hiring from deep down and providing employees with opportunities to grow. The give away element of Chipotle’s strategy is â€Å"Food with integrity” (Gamble, Thompson, Jr., & Peteraf, 2015, p. 303). Sourcing supplies from natural, org anic, and sustainable, and environmentally friendly growers/producers is an essential strategy is maintaining market standing. Not some restaurant chains, if any, can say they are agreeable in this practice, which sticks Chipotle rise to a high place the rest. More and much(prenominal) people are making the choice to choose to eat healthier which makes Chipotle an excellent choice and places them in a strategic place in the strong food industry.\r\nWith more healthy choices than other debauched food establishments such as Taco Bell, consumers are more likely to choose Chipotle. Another key element to the strategic plan is operate efficiently in an aesthetically pleasing environment. Even though it is fast food, Chipotle doesn’t offer a fast food setting when eat in. With a groundbreaking theme of bamboo or stained concrete flooring, pendulum lighting, and exterior patios where available, Chipotle has reduced the cost of building and maintaining new establishmen ts entirely still managed to keep the aesthetically pleasing, not-so-fast food ambiance. How does Chipotle Mexican wirework’s competitive strength match against that of Taco Bell, Qdoba Mexican Grill, and Moe’s Southwest Grill?\r\nChipotle is not as visibly prominent here in the South as it is in other states compared to Qdoba Mexican Grill, but more so than Moe’s Southwestern Grill. In recent months, Chipotle expanded into the Memphis nation in the Poplar/I-240 area in a new shopping center near Target and Best Buy, surrounded by a phase of other restaurants and championshipes. Chipotle, Qdoba, and Moe’s all strive for market presence by positioning themselves in areas convenient to shopping centers, in strip malls, and near business centers. They are equal in the â€Å"Employment Practices” grade as all strive to force from within and offer strict training and development programs focus on expanded knowledge through credential processes . The differences that stand out, allowing Chipotle to excel strategically are in Customer Service, Menu Selection, and Quality. Chipotle prides itself on having a unquestionable concern for the patron by hiring individuals from all walks of vitality and ethnicities. Whatever language a customer speaks, or ethnic derriereground they are from, there is believably a Chipotle team member who can associate with them to walk them through the dining stupefy. Qdoba Mexican Grill and Moe’s Southwestern Grill have assay to connect through customer service and experience but are not making as strong of a head wave as is Chipotle.\r\nThere is truly a unique dining experience to talk about at Chipotle that draws patrons back for more. The menu selection at Chipotle consists of the highest quality natural and organic selections from local growers and farmers. Fresh sweet corn, organically grown cilantro, organic chili and pablano peppers, grass-fed beef, and free-range sensational istic are just a sampling of the examples of quality raw ingredients used by Chipotle Mexican Grill. through and through high measurements of sustainability in sourcing of these raw ingredients to construction of distributively restaurant, Chipotle has easily earned a 10 in this category regardless of the price point associated with the final exam product. The quality of the food served at Chipotle is always above par. The cooking methods allow flavorful, robust, creations to be made in a short amount of time without damage the integrity of the raw materials. Through consistent true statement and quality measures, aesthetically pleasing plating is likewise displayed with each order, down to the containers in which to-go orders are placed.\r\nWhat does an analysis of the data in case Exhibit 1 reveal about Chipotle’s financial and operating performance? Financial201220112010\r\nAsset Turnover1.6371.5921.637\r\nInventory Turnover179.4188.6189.7\r\nLiquidity\r\n readily Rati o1.8162.6021.873\r\nCurrent Ratio2.9253.1833.301\r\nInvestments/Shareholders\r\nEarnings Per Share8.846.885.76\r\n earnability\r\nGross Profit Margin27.1%26.0%26.7%\r\nOperating Profit Margin16.7%15.4%15.7%\r\nNet Profit Margin10.2%9.5%9.7%\r\n replication on Capital22.3%20.6%22.1%\r\nThe inventory turnover ratio shows that they are able to turn over their inventory in truth quickly. The asset turnover ratio shows that they are able to convert their assets into sales. Their liquidity ratios are good because above 1 is good and above 2 is make up better. Their Earnings Per Share show that the company is trending to lead-on positivity and their shareholders should see an increase in value. The profitability margins have been able to grow over the sometime(prenominal) years. The financial well being of Chipotle is stable and improving. Unless something forceful occurs, anticipating the rise in revenue and value years from now, a positive future will be in store for Chipotle.\r\nKe y Strategic Issues\r\nChipotle has some strengths that make it an attractive company but they also have some weaknesses. In recent years, competitors have started offering healthier menu options at cast down price points. Taco Bell’s cantina menu is much like the Chipotle brand in which it offers more of a lighter southwestern flare than traditional Mexican dishes. The menu pricing at Chipotle is higher but is due much in vox by the use of organic and natural selections, some of which are difficult to obtain in pass months. With difficult growing seasons across the United States, Chipotle may have to choose to change their menu in winter months. With limited menu items and ingredients that have price volatility it may not be a smooth establishment in new states and countries. Competitors are the largest threat to Chipotle. As previously stated, other fast food restaurants are adding lighter fare to their menu at a lower price that Chipotle. With the continue high costs of natural and organic menu options, menu prices may have to change to keep margins stable. Another impact to the bottom line could be rising healthcare costs that may require a shift in employment for galore(postnominal) restaurants. Chipotle has multiple opportunities to expand into other states as well as internationally. With locations in the District of Columbia, Canada, the United Kingdom, and France, Chipotle managers should be well versed in the workings of foreign business management.\r\nWith expansion into other countries and the continued use of locally grown and raised staples, Chipotle would stand to make substantial profits in countries like china and India. Adding ingredients indigenous to each local area would promote the brand customers have grown to admire. As restaurants like Taco Bell and On the Border remove their products in grocery stores, Chipotle could follow suite and add profit to their bottom line. Restaurants like Swanky’s Taco Shop have alcohol and beer on the menu, now so does Chipotle in some states. keep this growth in other states would be a plus for growth as well.\r\n'