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BUSI 690 – Policy and Strategy Chipotle - (Group 2) Liberty University Individual Case Study - Part 1 April 17, 2020 Chipotle Executive SummaryRunning Head: Individual Case Study - Part 1 2 C... hipotle Mexican Grill (CMG) is a fast-casual restaurant chain that serves Mexican influenced food in a made-to-order format. The food is made in an open kitchen and the customer selects the ingredients that complete their chosen meal items. The ingredients are healthy, sustainably sourced items that support the company’s “Food with Integrity” mission. The original location was opened in 1993, and by 2012, CMG had developed into one of the most successful, rapidly growing fast casual restaurant chains. The stock price, after peaking then, in April of 2012, had come under pressure and had declined more than 25%. The company was faced with challenging economic conditions, rising competition and expected higher food costs which would presumably threaten the growth projections for the company. Management needed to create a plan of action to deal with these challenges in order to prevent further decline of the share price. Chipotle Mexican Grill is a well-recognized business that has roots in the United States, Canada, and the United Kingdom. They are a fast-casual food business that focuses on fresh ingredients and high-quality service. They are one of the quickest growing companies in the United States and have overcome a series of public relation nightmares and continued to maintain their brand recognition and brand loyalty. I will be taking a look at the existing mission of the restaurant along with its objectives and strategies and develops a possible new mission statement. It then discusses the strengths, weaknesses, opportunities, and threats to the company. Additionally, it takes a look at Chipotle’s main competitors. From there it takes a look at recent financial statements to discuss recent performance. The paper closes with some pro-forma financial statements and alternative strategies that could be undertaken, along with their analysis.Running Head: Individual Case Study - Part 1 3 Existing mission, objectives, and strategies Existing Mission. Chipotle’s mission in the simplest form is “food with integrity.” They are committed to sourcing their ingredients from the very best and preparing each dish by hand. They argue that they understand the connection between how food is raised and prepared, and how it tastes. Every single thing that they do is to work toward cultivating a better world and raising the bar for their business and those who compete within the same space. Their goal is to prepare food without having to add colors, flavors or preservatives and they source their ingredients from farms rather than factories (Daszkowski,2018). Even though Chipotle is a company that has been under fire in recent years, their resilience and tenacity has allowed them to remain a competitive force in the fast food industry. The company is comparable to other quick delivery and fast food in the industry. But like Qdoba and unlike Burger King and McDonalds focuses on Mexican style food such as taco’s and burritos. The company currently runs on the basic mission statement of “providing food with integrity.” The mission however is much more in depth as you will see as we discuss its objectives and strategies. The company objective is simple in word but harder in practice. Objective. The objective of Chipotle is to source the best ingredients they can find and prepare them by hand. In the kitchen this means that everything is prepared fresh and cooked daily. On the farm this means finding growers that raise their livestock and vegetables in healthy and sustainable fashion. Together this plays into the strategy of changing the face of fast food, starting conversations, and directly supporting efforts to shift the future of farming and food.Running Head: Individual Case Study - Part 1 4 Their objectives for their partners are to curate long-term partnerships and to respect the soil that their ingredients come from. The animals that they use in their meats are pasture raised and have no added hormones or antibiotics that would be harmful in their food. (About Us, Chipotle, 2019). Strategies. In the last year, Chipotle has announced plans to provide growth turnaround and to outline its path to create a strong and clear strategy. They hope to focus on five focus areas to drive sales and to improve its growth. Chipotle plan is to become a more culturally relevant and engaging brand in order to grow and improve love and loyalty from their consumers. Additionally, they digitized and modernized their restaurant experience to be more convenient and enjoyable for their customer’s experience and they are building a great supporting culture surrounding Chipotle as they innovate and execute across digital, access, menu, and the restaurant experience (Jaaskelainen, 2018). Chipotle hope to continue to grow the business by leveraging its strengths of great tasting, classically cooked food from real ingredients. As part of their plan to foster growth, they are modernizing “its organizational structure by consolidating its work force in two office locations and adding experienced talent in key areas such as marketing, CRM, menu innovation, digital, data analytics and human resources their Press release (Chipotle Release, 2018). New Mission. Potential Mission statements are wr [Show More]

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