...San-Francisco, Steve Ells began to open the first Chipotle store in 1993 at a former Dolly Madison ice cream location near University of Denver campus. The first Chipotle was a wide success. After two years since the first Chipotle opened, Steve added the second and third Chipotle locations. In 1996, Chipotle Denver area restaurant opened. Following the extraordinary successes, Chipotle was able to invite more outside investors to expand the scale of production to give way for the Chipotle’s openings outside of Colorado: Minneapolis, MN, Columbus and OH. After Steve visited some individual local farms, he found out pigs were raised in air-opening area as opposed to the way majority of pigs were raised. So he decided to dg pork and chicken naturally. Chipotle went public on New York Exchange in 2006. After that, Chipotle still kept focusing on providing the most authentic and healthy ingredients within each burrito. His vision is to serve 100% naturally raised beef in the near future. Moreover, Steve promoted to eliminate the antibiotics in ranching. From the year Chipotle opened until now, it has always been emphasizing on pursuing high-quality ingredients and cooking techniques to provide best eating experience for customers and fulfilling corporate social responsibilities. Driven by its main vision “Food with Integrity” -which is to serve the food made with ingredients that serve the best for animals, environments and farmers, Chipotle is still following it and making progress year...
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...| Business Research Case | Chipotle Mexican Grill | | Sarah AliMinas DimasKiran DosaniNada JazehLauren PeriRen Stoecklin | 6/7/2011 | | Table of Contents Introduction ……………...……………………………………………...3 Launch to Now: A Detailed Timeline ……………...………………...…3 Leaders and Leadership …………………….…………...……….……..4 Planning: Company Strategy, Mission, and Vision …...……………..…5 Evidence of PLOC4E2 …………………………………………..…...…6 Strategic Human Resource Management Policies and Philosophies ...…8 Types of Innovation and Evidence of Entrepreneurship …………...….10 Team Management and Dynamics ………………………………...…..12 Operations Management ………………………………………...…….13 Communication and Information Tech Management …………………14 Globalization Presence and Effects ……………………………...……16 Corporate Social Responsibility and Consciousness ……………...…..17 Conclusion ……………………………………………………………19 Figures …………………………………………………………...……20 Introduction Since its inception, Chipotle Mexican Grill has set itself apart from the rest of the fast food industry. Not only does Chipotle prepare food right in front of the customer, but the food put into the product is filled with “integrity”. Chipotle has established “Food with Integrity’ which is their commitment to finding the very best ingredients, raised with respect for animals, the environment and the farmers (chipotle...
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...Case 10- Chipotle Mexican Grill in 2012: Can it Hit a Second Home Run? Small Quiz-Strategic Management Felix Hedyanto Rulie-1342980281 Summary: Chipotle Mexican Grill was established in Denver in 1993,by Steve Ells. Guided by conviction that food served fast did not to be low quality and that delicious food did not have to be expensive. Menu & Food Preparation-The menu at Chipotle Mexican Grill was unusually limited: burritos, burrito bowl, tacos, and salads, plus soft drinks, fruit drinks, and milk. Serving Orders Quickly-As Customer moved along the serving line, Customer selected exactly what they wanted and how they wanted it by speaking directly to the employees that prepared the food and were assembling the order behind the counter. The Commitment to” Food With Integrity”-Use organically grown local produce, organic beans, organic dairy products, and meats from the animal that were raised in accordance with animal welfare standards and were never given feeds containing antibiotics and growth hormones to speed weight gain. Supply Chain Management Practices-the company developed long term relationship with a number of reputable food industry suppliers that could provide high quality, fresh ingredients, and other products that meet Chipotle expectations. Chipotle utilized the services of 22 independently owned and operated regional distribution centers to purchase and deliver ingredients and other supplies to Chipotle restaurants. Chipotle personnel diligently monitored...
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...Abstract The company I chose from the list is the Chipotle Mexican Grill. I chose Chipotle because I admire the company’s code of conduct. In this paper, I will select key areas of Chipotle’s code of conduct that are of significant importance to the business. Next, I will explain the key steps that Chipotle should take to ensure that employees follow the code of conduct. Finally, I will suggest three ways in which Chipotle can engage in socially responsive activities in the community within which it operates. Keywords: code of conduct, business, community Describe key areas of the selected company's code of conduct that are of significant importance to the business, and explain why. Within every company, CEOs take on numerous responsibilities to ensure that their business or company is successful. According to Stever Robbins, “The CEO’s second duty is building culture” (Robbins, 1999). Since many companies embrace diversity, CEOs must ensure that all employees follow and understand the company’s code of conduct which in turn becomes part of the company’s culture. Ethics, values, integrity are usually presented within these codes of conduct. Each section of a company’s code of conduct policy addresses all rules and any issues that an employee may have. As the CEO of Chipotle Mexican Grill, I take pride in our company’s code of conduct. At Chipotle, our seniors and employees strive to be compliant with our code of conduct policy. There are key areas of Chipotle’s...
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...Running head: CASE STUDY 10 Chipotle Mexican Grill Case Analysis Kevin McDougall 6/14/2016 Professor Sarah Williams-Stokes Chipotle Mexican Grill Case Analysis Chipotle was founded by co-CEO and Chairman Steve Ells in 1993 with his first restaurant opening up in Denver. McDonald’s acquired an initial ownership stake in the company in 1998 and then controlling interest in early 2000. In 2005 McDonald’s decided to take the company public and as a result the entire company was disposed of by McDonald’s in October of 2006. Steve remained at the helm through it all and convinced other top executives that the company needed to continue on their foundational strategy of improving throughput of their daily operations. In 2007 Chipotle had total revenues of $1,085,782 and by 2013 the amount had increased to almost three times that ($3,214,591). Part of the success of Chipotle was that they had a very simple menu. The concept of not having complicated menus only recently changed when the company started testing a vegetarian menu item called Sofritas in only 7 restaurants in the San Francisco Bay area. Despite some temptations, breakfast has remained off the menu for now, but Steve has been toying with the idea. As part of their strategy, Chipotle promoted that their food was prepared fresh and made to order. The kitchen was visible to the serving line and setup in a way that customers could actually see their orders being made fresh...
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...to create empowered cultures in our restaurants, so that when marketing encourages people to come into the restaurant, when a friend says, hey, you ought to try Chipotle, and when new customers show up at Chipotle, that they have an extraordinary experience. And if that happens, they are more likely to come back." -- Moran http://www.fool.com/investing/general/2014/08/31/5-things-chipotle-mexican-grills-management-wants.aspx organizational structure, CHIPOTLE ORGANIZATIONAL STRUCTURE AND CULTURE- DONIKA Starting the chain in 1993 in his hometown of Denver Colorado, Steve Ellis remains at the top of Chipotle’s organizational structure as Co-CEO and chairman of the company. Opening 13 separate restaurants in Colorado before partnering with McDonald’s in 2006, Ellis had no idea his taqueria inspired restaurant would be as successful and widespread as it is today. A large part of Chipotle’s success has come from the company’s culture. Best stated by Seeking Alpha, a leading investment company, Chipotle: prides itself on its natural wholesome ingredients, responsible farming, community stewardship, and a stimulating work place. This culture is passed on to customers, who are more likely to go out of their way to stop at Chipotle instead of a competitor because of the values they share with the company (Chipotle Mexican Grill: Why Corporate Culture Matters). Currently responsible for over 1,500 restaurants spread globally in the U.S., Canada, United Kingdoms, and France...
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...Financial Analysis: Chipotle Mexican Grill, Inc When reviewing a company’s financials and trends within, it is important to seek the industry average therefore you have something to compare them to. Every industry’s averages are much different and can be interpreted from many angles. For example: Chipotle Mexican Grill caries a trailing price to earnings ratio of 42x which is much higher than its competitors such as McDonalds, who carries a 17x p/e, or Yum Brands, who carries a 24x p/e ratio. From this data you can infer that chipotle is overpriced compared to competition, which also means the market likes the stock. Then you must stand back and look at the data from an even different angle and notice that P/E ratios as a whole don’t matter as much during a time of such a bull market, they are just an indicator that the company will be a more risky investment when the market eventually pulls back. It is also important to understand that even though companies may be competitors they really may not be all that similar. Yum’s Foods has 39,000 stores in 125 countries with broad exposure in china and India where middle income is higher and help them maintain growth as a rather mature company. Whereas Chipotle is mostly domesticated here in America where the spending gap is growing and the market is very saturated, which may cause concern for where the growth company will find its growth. That is where these companies differ; Chipotle is in a relatively new market called, “the...
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...When you think of Chipotle, you might just say oh it is just another fast food restaurant that offers Mexican food. Well that is not the case, there is so much more to this widely competitive company. Chipotle was founded in 1993 by Steve Ells who is a trained chef. Steve originally opened the first Chipotle restaurant with the intention of building a place where you could eat delicious food of the finest ingredients cheaply. In 2006 they became publicly traded and have steadily grown from his original in Denver, CO to 1600 worldwide. Much of the success is attributed to the expanding customer base of Chipotle. The success of Chipotle stems from upper management’s ability to expand the operations while maintaining the current experience and quality of food. Since the creation of this chain of restaurants profits have steadily increased from 12% to 24% annually. Chipotle as a company is now looking into new ventures such as the Southeast Asian inspired spinoff, Shop House. The company’s vision statement is “to change the way people think about and eat fast food” and its mission statement is to provide “Food with Integrity” (Chipotle, 2014). The vision statement has been successful in driving to its front door where it’s not unusual to see a line leading to the assembly kitchen within an hour of closing. The mission statement is short but the company constantly works to ensure the quality of the food is consistent and fresh and stocks from reliable vendors...
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...Chipotle is a Mexican Grill restaurant that has franchised into an expanding company, as the company continues to grow it is critical to have the right management in place to make certain that the focus stays on track with company initiatives. When employees are hired they are put through a training program to make certain that they carry on the image the company looks to present to their customers. Many employees stay with the company throughout the years and continue to grow and expand as the company does, advancing upwards along with their tenure. These employees have been trained, developed, and cultured into the Chipotle family. As the company continues to grow and expand is it best for the company to fill management positions from existing Chipotle employees that have grown with the company or to hire from external candidates that can bring fresh ideas and visions to the company? If they hire from within the company could be limiting creative ideas for they may have created a culture of “this is how it is done”! If they hire from outside of the company they may be bringing in new and creative ideas but risking the possibility of hiring someone that does not understand existing family culture and try to implement ideas that result with unfavorable outcomes. Chipotle prides itself on the fact that many of their employees that started out at the lowest level of production have managed to work their ways into management positions. The company website indicates that...
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...CMG (Chipotle Mexican Grill Inc.) mission statement is “Food with Integrity”. “Food with Integrity” means not only high quality food with great taste, nutrition and value, but also careful ingredient sourcing with respect for the animals, the environment and the farmers. Later this mission statement was expanded to more environmentally friendly building materials and energy systems for CMG restaurants. Currently, the first objective for the firm is to sustain financial performance and competitiveness in light of future cuts in consumer spending and heightened competition, which threatens to take frequent customers away from Chipotle. At the same time, CMG annual report showed slowdown of the same-store sales, which in its turn put downward pressure on Chipotle stock price. Another threat is expected increase in food costs, and hence CMG plan to rise its menu price to make up for this. While trying to reach all other objectives the company aims to stay dedicated to sustainable and environmentally consciousness way of doing business. Chipotle’s target market is similar of its competitor “Cantina Bell” which consist of mostly males older than 24 years and less-value conscious than “Taco Bell” customers. Furthermore, GMC customers are environmentally consciousness, but valuing Chipotle convenience of getting their orders fast without experiencing “fast food” service. The nucleus of control is founder and current CEO Steven Ells and his co-CEO Montgomery F. Moran. In terms...
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...Chipotle Analysis Abstract Chipotle Mexican Grill was founded by Chef Steve Ells in 1993, and today has restaurant in the United States, Canada, United Kingdom, Germany, and France. Initially Steve intended to open a fine dining restaurant after he graduated from the Culinary Institute of America, he did not have the start-up capital to do so. To build enough capital to fulfill his dream, Steve opened Chipotle Mexican Grill only to build enough cash to support his larger and more expensive plan for the fine dining restaurant. It wasn’t long before the restaurant experienced success and caught the attention of food service industry juggernaut McDonald’s Corporation. According to a May 2015 issue of Forbes magazine, Chipotle is valued well over twenty billion dollars (Parrish, 2007). Derived from the ancient Aztec Nahuati, the name Chipotle means smoked and dried chili pepper. The practice of cooking and serving naturally grown meat to their customers using organic ingredients supports the company motto of ‘Food with Integrity’. Chipotle Analysis Do you think CMG is a successful company? Defend your stance with research application. Chipotle Mexican Grill is most definitely a successful company. This is supported by the fact that it has grown from just one branch in Denver, Colorado into well over one thousand four hundred branches as of today in the United States. The company has opened sixteen branches just only in a span of five years. The company is capitalizing...
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........18 MISSION, DIRECTION AND OBJECTIVES....................20 Financial Objectives Marketing Objectives Social Objectives MARKETING STRATEGY..............................................21 MARKETING PROGRAMS............................................23 FINANCIAL PLANS.......................................................26 IMPLEMENTATION AND CONTROL..............................26 1. REFERENCE LIST..........................................................27 2. APPENDIX [A.1] Sales forecast [A.2] Budget marketing plan [A.3]Implementation plan 1. EXECUTIVE SUMMARY This report has commissioned to development a Marketing Plan for Chipotle Mexican Grill Inc.(CMG) and recommend strategies for the introduction of its products in China to achieve the objectives. The research draws attention to the fact that Asia fast food and Fast Casual Food grew by 13% and 8% respectively in the world. CMG belongs to Fast Casual Food sector....
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...Tre Allen Chipotle Mexican Grill in 2012—Can It Hit a Second Home Run? 1. Yes. Chipotle's core competencies are: High products with the best raw materials. Healthier ingredients compared to other fast food establishments. Serve's alcohol. 2. The SWOT analysis of Chipotle, reveal that the business is very attractive. They have a positive brand image, with customer loyalty, offer online order and delivery, and all restaurants are company owned. The competition is very plentiful and intense, but Chipotle only trails Taco Bell. 3.The primary and secondary components of the value chain are: Primary: The quality raw materials add a lot of value to the final product, and better vegetables than competitors. Secondary: Assembly line process, the use of billboard, and radio ads to market. 4. The chief components of Chipotle's strategy are to increase total revenues, and higher acceptance rate in European countries. 5. Rivalry among competing firms, bargaining power of suppliers, and bargaining power of consumers, are competitive strategies discussed in chapter 5. 6. Moe's has unique name's for its food, such as; Homewrecker, and the Fat Sam. Moe's play music from dead musicians, and really focus on customer service. 7.The analysis of data of Chipotle's finances reveal that the company has seen a growth in profit each year for the last few years. Operating, and sales...
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...Chipotle Mexican Grill in 2012: Can It Hit a Second Home Run? To: Dr. Dulek From: Yunhan Weng Subject: Chipotle Case Study I. Executive Summary…………………………………………… Page 3 II. Recommendations………………………………………..……. Page 4 III. Porter’s Five Force Analysis…………………………………… Page 6 IV. SWOT Analysis…………………………...…………………… Page 8 V. The Five Generic Competitive Strategies……….……………... Page 12 VI. P.E.S.T Analyses………………………………………….…… Page 13 VII. Key Success Factors…………………………………………… Page 15 VIII. Driving Forces…………………………………………………. Page 16 I. Executive Summary: Chipotle is a young fast food company. In early 2012, Chipotle made its first home run. As a result, Chipotle is planning to start a new project called the “ShopHouse”. The CEO of Chipotle said, “I have always believed that the Chipotle model could work well with a variety of different cuisines”. Actually, ShopHouse predicated on much the same strategic principles as Chipotle Mexican Grill. However, it offered a different menu. Chipotle was established by Steve Ells in 1993, and the first Chipotle restaurant was built in Denver Colorado. The time Steve Ells opened his first restaurant, he believed that food served fast did not have to be low quality and that delicious food did not have to be expanse. Based on this concept, Chipotle Mexican Grill appeared to the world. In early 2000, McDonald acquired an initial ownership of Chipotle. What unexpected is that McDonald’s top management decided...
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...Appendices………………………………………………………….. | p.03p.04 p.07p.08p.10p.11p.12p.16p.18p.21p.22 | Executive Summary The Chipotle Mexican Grill restaurant chain has been exceptionally successful since its inception in the early 90s. The growth of this “fast-casual” dining phenomenon in its early years demanded the attention of many fast food industry giants all over the United States. One in particular, McDonald’s, even spent significant time holding ownership of a controlling interest of shares in the company, and lent their distribution and growth strategies to Chipotle. This injection of wisdom certainly attributed to their current level of accomplishment as a company because it afforded exponential acceleration in both domestic and international expansion of the brand. Given the overwhelming success of Chipotle to date, the company has decided to launch an additional fast-casual format restaurant designed around a Southeast Asian cuisine theme and named “The ShopHouse Kitchen”. The ShopHouse leverages the same basic, yet proven, principles of the Chipotle Mexican Grill in many aspects of its operations, e.g., its interactive serving-line style of customer ordering, their restaurant layouts and similarity in the designs, and their fresh, healthy cooking ingredients. Recently launching stores in the Washington D.C. area, they are hoping to score another “home run” as they did with the Chipotle sensation. The question is, will they be able to use the...
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