Chipotle

Central Issue

Chipotle is the company that has already managed to achieve success and define its target audience always waiting for tasty and high-quality fast food. In general, the company has an effective marketing campaign, a diverse menu, and reliable partners. However, the case mentions that Chipotle has many competitors, which prevent the company from obtaining leading positions in the selected market segment. In particular, there is a problem with the development in almost each part of the company, which influences partnership, spread of business on the international arena, corporate social responsibility, community engagement, and human resource management. The case points at the lack of efforts aimed at improving its sustainability, productivity, and effectiveness for the sake of its competitiveness. Regardless of the fact that the company has a reliable background of its evolution and generates billions of dollars annually, there is a need to revise the strategy towards competition in order to enhance stability and move up several positions on the market place. The case mentions a competitive way of development, which should become a motivating factor for Chipotle to increase its competitiveness. Otherwise, the company is most likely to lose in the game of competition and conquest of the market share. 

Recommended Course of Action

According to the description of the company in the case, it is possible to design three sectors of recommendations, which can boost the company’s performance and lead it towards perfection in its ambition. First, there is a need to extend opportunities for the distribution of new fast food restaurants on the international arena. It is a strategy that should enhance the company’s international cooperation and involvement in competition on the global level. Secondly, there is a necessity to pay attention to the current corporate social responsibility policy and review it in order to become respectable in the eyes of the community. It is also a part of the community engagement, which should become an individual peculiarity as long as Taco Bell or Moe’s Southwest Grill do not have such options. Further, there is a need to review the menu of the restaurants, which offer only fast food options. It also should become a breakthrough in the development of the company on the condition that fast food chains pretend to focus on a single line of meals. Chipotle, in its turn, can become a company introducing a new trend, mixing meals in a single restaurant.

Significant Factors

The case mentions many facts that have helped to formulate recommendations, which are most likely to lead the company to success. First, the case includes much information on Chipotle’s competitors. For example, Qdoba Mexican Grill is one of the most powerful rivals, which not only continually extends the territory of its activity but also uses the diversity of marketing strategies aimed at promoting each meal offered to the customer (Thompson, Gamble, Peteraf, and Strickland). Wise distribution and immediate action help the company to grow fast and conquer new territories. Freshness and food quality are two rules of the company that should motivate Chipotle to think about an improved version of standards. In addition, there is a lack of information about the role of the farming sector in the company’s performance, which means that it is necessary to make it a key to the establishment of a new developmental stage. In general, the case is a reflection of the company’s missing points in terms of international markets, corporate social responsibility improvement, and food. However, the company’s balance proves that there are enough financial resources that can be used to enhance competitiveness.

Justification

The recommended strategies will have a significant effect on the company’s performance as soon as it takes courage to apply each of them. The significance of the strategies is reflected in the following discussion revealing the essence and importance of each transformation. The facts presented in the case proved that the selected strategies are appropriate for further consideration and implementation. According to the order of strategies mentioned above, it is important to reflect each strategy with its elements. The first strategy covers the extension of the company’s performance on the global level. Particularly, the company can benefit from mergers and acquisitions, which will extend Chipotle’s business line and the market share. For example, it is possible to imagine the company’s opportunities together with its rapid distribution. In addition, there should be no difficulties with the financial support of the strategy. The company has enough financial resources and can make wise investments in its extension. It can positively influence both business growth and increase in the productivity level. Moreover, the spread of the business can contribute to the extension of its performance in the emerging economies. It is also a remarkable step in the development of a reliable business background intending to win the global market. Emerging economies take a vast segment of the global economy, which means that Chipotle can successfully attract attention of the target audience on different continents. For example, Chipotle can extend its performance in some European countries like Poland, Ukraine, or Turkey. Other neighboring countries are also welcome to the distribution of the company’s products. It is a beneficial step in Chipotle’s business activity, which can provide confidence in business growth and support of customers appreciating the movement towards improvements. Furthermore, the company will be capable of establishing new cooperation and partnership, which will improve an overall level of its competitiveness. As long as the selected market is tough and full of global corporations, it is necessary to consider an aspect that Chipotle will gain an opportunity to win loyalty of new suppliers offering unique resources at the most affordable price. Additionally, it can become a cost-saving technique at some point (Warsi and Nisa). It is one of the points of the company’s wise investments that can help the company to generate more profits than it used to in the previous stage of the development.

The second strategy proposed to improve competitiveness is a revision of the corporate social responsibility policy. Chipotle is the company that can become a respectable example for others to follow. The contemporary world worries about its sustainability and environmental health, which does not allow irresponsible companies to perform without a reduction of their negative influence on the surrounding world. This fact can become a secret weapon of the company’s improvement strategy aiming at hitting the new level of competitiveness. For instance, the company is capable of spending extra financial resources on the improvement of the nearby area of each restaurant. Green zones, playgrounds, clean area can become defining characteristic of the company. However, such activity can have a positive effect on the community willing to see Chipotle’s stores practically in every neighborhood. The business needs appreciation from people in order to win their loyalty and assure them of the beneficial aspects of the company’s performance (Kim, Kim, and Kim). Customers will be more willing to attend Chipotle if they see how much the company cares of environmental health and welfare of each person. This step will motivate customers to engage in the company’s activity and be a part of the movement intending to make the world healthier. Community engagement leads to another step, which a company should take in terms of corporate social responsibility improvement. Chipotle should be the one starting its cooperation with the farming sector. It is one of the most significant but also the most neglected sector of the contemporary business, which requires attention of the global community. There are hundreds of farming families who need support. Chipotle can contribute to the inclusion of the farming sector in cooperation and partnership, leading to the establishment of new reliable ties. Farmers can start to provide the company not only with high quality resources but also with a possibility to produce healthy food. Organic products can become a perfect opportunity for the company to assure the community that the company takes care of the quality of its meals and health of each customer. Moreover, the farming sector will decrease an unemployment rate and establish long-term relations with one of the most successful companies. Such cooperation has its advantages and leads to the discussion of the next strategy, which will most likely create a new stage in the company’s performance principles.

The last strategy of the recommendations has some connection to the previous one. Chipotle should take courage to diversify its menu. In fact, there is a need to introduce new meal plans, which will meet needs of the most demanding customer. As long as the current tendency of the world is moving towards healthy life, it is logical enough for Chipotle to become a company promoting it. For example, Chipotle can use a partnership with the farming sector and use organic food for the development of healthy options of fast food meals. It can become an effective method of attracting attention of the customers willing to try fast food meals, but who cannot afford it because of a healthy lifestyle. To be more precise, the company can introduce healthy options of sandwiches, burgers, and desserts, which will be fat and gluten free. Moreover, the company can also offer sugar-free drinks, which is another healthy option. The contemporary world suffers from obesity, and Chipotle can become a company that respects the world’s intention to rise healthy generations. The new menu will not change much, but it will have a significant addition to the company’s position on the market. It not only means that the company will increase its competitiveness and productivity but also implies that Chipotle will show that it is a caring company. It is hard to predict whether the company will have to change its products in the future, however, it is obvious that Chipotle needs to be a loyal company taking care of the community by providing it with healthy and fresh food. The competitiveness is most likely to increase its level by the time the company introduces new healthy meals in every store. Customers, in their turn, will also be able to enjoy services and products by making meal choices every time they come to the restaurant.

Generally, the proposed strategies are effective enough when it comes to the company’s improvement. Competition is tough, and Chipotle needs to take actions immediately in order to move up the ladder on the market and not to become equal to small business. Development and continuous improvement should become the new postulates of the company willing to be a primary leader in the selected market segment.