Solution Pages: 4
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Questions Covered in the Solution:
Prepare an Individual Case Write-Up on the “Chipotle” case study from Strategic Management: Competitiveness and Globalization, Concepts and Cases Hitt et al. 2015.
Here are a few questions for you to consider in reading the case. Please note that your case brief is not intended to be answers to these questions, but an essay reflecting your thinking about issues in the case:
- How does Chipotle create value for its customers? Who are they and what do they want (KSFs)?
- What factors in the General Environment have affected the restaurant industry since Chipotle’s founding? What sort of impact have they had on competitors and Chipotle in particular?
- Analyze the industry 5-forces for fast casual restaurants. Do all companies in the industry face the same pressures? How do firms survive competition (KSFs)?
- How does organizational size impact performance in this industry? What would be the benefits for Chipotle to grow very large? What problems might ensue with substantial growth?
- Based on your response above, make recommendations about changes (structure, marketing strategy, sourcing strategy, personnel, etc.) would need to occur to support this growth?
Sample of Solution
The initiation of CMG was because of the fact that Steven (founder) wanted to provide people with bold flavors that had nuance and depth, not just hot and spicy. It took him a very little while to win the taste buds of its customers and soon he had to scale his business. The Company went public in 2006 and is traded as one of the most wanted at Wall Street, due to its unique and enriched tasty food. But lately, the company is in some hot waters and has to re-strategize itself to maintain its competitive position in the market while capitalizing its core competencies.
Restaurants account for 48% of the dollar amount spent on Food in US. There are various segments in the market, catering to customers of varying needs. The competition in the Mexican food sector is very intense. Various large restaurant chains are operating in the sector to get a share of the customer’s stomach.