Conflict Resolution: A comparative view of crisis management at Chipotle Mexican Grill and Jack in the Box. TyRon Pope Concordia College Table of Contents Abstract…………………………………………………………………………………………………………………………………………………3 Chipotle Mexican Grill, Inc.……………………………………………………………………………………………4 Jack in the Box, Inc.………………………………………………………………………………………………………………5 Mission……………………………………………………………………………………………………………………………………………………5 Corporate Structure……………………………………………………………………………………………………………………6 Financials……………………………………………………………………………………………………………………………………………7 SWOT Analysis……………………………………………………………………………………………………………………………………9 Conflict & Crisis………………………………………………………………………………………………………………………10 Leadership & Communication Style………………………………………………………………………………12 …show more content…
Chipotle created a new niche of fast food restaurants reclassified as fast casual, bringing fresh food made with raw ingredients to the masses in a short amount of time. On an initial 85,000 dollars family investment, Chipotle has evolved into multi-billion dollar corporation. In 1998, McDonald’s made minority investment $ 360 Million dollars in the company and by 2001 they had grown to be the Chipotle’s largest investor. McDonald’s investment had allowed Chipotle to take advantage of its market and significantly expand. In 2006, Chipotle went public setting stock market records, gaining capital for growth, therefore paving the way for McDonald’s to divest and opt out with $1.5 billion dollars. Over the past 20 years, Chipotle’s market power has increased despite conventional barriers of entry. For instance, particular challenges that include barriers like regulatory rules and regulations (i.e. Licensing) can affect the operation of an organization. Chipotle is company owned and does not franchise. As per Chipotle, "keeping in good faith with their mission of Food with Integrity." (Chipotle, 2017) The company abides by the set guidelines of the government regulation of treatment of animals and the use of drugs in the food, which are essential input barriers on meat, dairy, and fresh produce products. The overall controls of these necessary …show more content…
From 2006 to 2016, the company opened up over 2,250 locations worldwide, with average sales increases of 6.2% to 19.8%. Presently, Chipotle employs over 64,570 workers and generates revenue of over $3.9 billion with an operating income of $710.8 million, a net income of $327 million, a total equity worth over $2.3 billion. (See Appendix D. Figure 4) Chipotle is a member of the New York Stock Exchange/CMG (Common Stock) with a current stock price of $338.39 per
As illustrated in the table above, the company has increased its restaurant-count by nearly 14% over the last three years. The management expects to open around 180-195 new restaurants this year. With that aim, Chipotle has already unveiled 44...
Taco Bells currently one of the top prominent Mexican fast food chains in the United States.
Simpson, S. (2015). Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and
Chipotle Mexican Grill idea of providing quality in a simple menu with high-quality ingredients, classic cooking techniques and a distinctive interior design has remained at the core of the commitment. Chipotle ability to serve a menu that focuses only on servicing burritos, burrito bowls, tacos and salads is a success. Customers can mix and match their options even though they are only limited to meats, beans, rice, salsa and topping. These ingredients are mostly organically grown from local farmers to provide top-quality nutrition and value. To keep up the quality of their food, Chipotle food preparation remains fundamental. It is mainly prepared from scratch and on site but some preparations are completed at nearby commissaries. This contributes to their fresh taste.
B. Credibility statement-"Chipotle Mexican Grill, Inc., is one of the leading fast-casual Mexican restaurants in the United States, with more than 1,200 company-owned outlets in 38 states ( International Directory of Company Histories)."
Such factors may include threat of new entrants, power of suppliers, power of buyers, product substitution, and the intensity of rivalry among competitors (Hitt, Ireland, & Hoskisson, 2013). Since Chipotle was opened in 1990, they have already become a well-established company within the industry. In order for Chipotle to continue having a competitive edge in the market, they must heavily compete with companies or restaurants such as Qdoba that offer a wider variety of menu options for lower prices. Chipotle directly works with suppliers, usually in local areas, to permit more competitive prices to buy their products. Since Chipotle focuses so greatly on product quality, the supplier’s power plays an enormous role in Chipotle’s ability to obtain their raw
As you know, Chipotle values our “food with integrity” promise and our customers respect that. However, the recent E Coli outbreak has caused Chipotle’s financial performance and reputation to suffer significantly and staying with our current business model is not our best option. Therefore, I recommend we rebrand and reposition Chipotle to ensure our long-term success.
Chipotle Mexican Grill originated in Denver, Colorado in 1993. In 1998, McDonald’s became the majority shareholder; however, in 2006, McDonald’s divested its controlling interest. Chipotle became a public company listed on the New York Stock Exchange in 2006. It currently has 1,083 locations across the United States and Canada. In May 2010, Chipotle expanded into Europe, opening their first restaurant in the United Kingdom. (Form 10-K Chipotle Mexican Grill, Inc., 2011)
"Consumer trends are changing, which we believe is a great result of people becoming more discerning about where their food comes from, how it was raised, and how their meal was prepared. The continued loyalty we see from our customers, as well as third party research, and the growing number of concepts imitating Chipotle, all point to the relevance of our vision and the impact we are having on food culture. We are delighted to see that this vision, a very lofty goal, is becoming a
Operations: Chipotle has set standards from when the food is bought, to when it's produced and to when it's sold. This quality control is performed by their Quality Assurance group, which foresees all of these positions.
Chipotle is my favorite place to eat. As I am sure it is for other people. Chipotle is a fast food Mexican grill. They are most known for how big they make your burritos. Now it is fast food but it isn’t actually fast, they’re like a restaurant but without the wait. They serve all naturally raised meat and organic beans. So there food is pretty healthy and worth eating. The employees are always nice and it just a great place to eat over all. Chipotle is a great choice for a quick fast food stop because it gives great service, atmosphere, food and value. My experience there is always a good one.
As of 2016 there were 2,250 Chipotle restaurants worldwide. (Number of Chipotle Mexican Grill locations worldwide 2007-2016, 2017) Another interesting fact about Chipotle, is that in 1998 McDonald’s started investing in shares of Chipotle and by 2001 they had become the majority shareholder. In total McDonald’s invested over $360 million into Chipotle. (Myers, 2014) Although they have since split ways, the investment McDonald’s made into Chipotle helped to boost the growing power of the new to market concept burrito
cleanest meat that has been on the market, because the owners of the chains do not want their loyal customer to become sick, therefore soiling their nice reputation, such as what happened with Chipotle in the past year. The government follows less strict standards than many restaurants as the government stands on the side of the meat-packing industry, which is one of the biggest industries in the world. Their relationship is one of symbiosis: a mutually beneficial relationship between different people or groups.
Abstract This paper explores the business strategies Chipotle is using for operations. Analyzing financial and operations data to discuss areas of concern as well as areas where Chipotle Mexican Grill is doing well. Discussions will include the importance of Chipotle’s menu preparation strategy and menu integrity. The marketing strategies
Under corporate governance, the Board of Directors has majority power. After shareholders elect the Board, said Board selects the CEO who is responsible for managing the business. The key problem with Chipotle’s central and formal governance is that their strategy does not encourage innovation or employee moral. Instead, the Board of Directors decides what they feel Chipotle’s franchisees should implement, and tells managers to relay their decisions to in-store employees. Therefore, corporate representatives strive to improve in-store quality through strict supervision of each franchisee. They make decisions regarding all processes from the preparation of the product, customer service, and marketing strategies, which are enforced at each location. This system is slow and decreases efficiency. Since store employees are kept out of the immediate circle, it is difficult for them to have confidence in Chipotle’s operations, resulting in low employee empowerment. Two solutions to consider include bridging gaps between hierarchical levels and making the company more decentralized. Chipotle can implement a few liaisons (brokers and structural holes) to make sure that all professional networks within corporate and store levels are communicating effectively and working as a