Chipotle Mexican Grill is a food store that operates in the United States of America, Canada, United Kingdom, Germany, and France. The business faces various managerial problems and challenges. Some of these difficulties include the inability to locate new areas where restaurants can be put up. The other problem emanates from competition from the other strong restaurants. The other challenge that the management faces is the difficulty in negotiating leases with acceptable terms with both the government and the local communities leasing their premises (Moran 13).
Chipotle Mexican Grill operated as a business where there was a significant level of interdependency and relations among the various departments. The business worked in an environment that was based on aggressive policies. Chipotle Mexican Grill targeted making of high levels of profits where the business was based on the concept of creating more businesses, through the expansion policy in the other countries such as the United States of America, Canada, United Kingdom, Germany, as well as France. The business operated under the supervision of the founders and the co-owners. The firm lacked competitiveness because of the inability to concentrate power and also regard the business as a central organization. The organization did not have a centered strategy that would lead it to the achievement of the set goals and objectives.
The management has a very blemished strategy, which doesn’t enable it to have a firm competitive strategy compared to other companies. Various issues are attached to the control and also the succession of the leadership positions. The succession hoards on the administration of the business. Succession from the founder Steve Ells to the other successions such as Montgomery F. Moran and John R. Hartung has been faced with the challenge of individualistic and high salary provisions which is a problem for the business (University of Oregon 7). The company faces a lot of over dependency on the founders and the financiers’ efforts for its success. The business faces a lot of rigidity and strictness towards the change in technological advancements. The company also faces the challenge of management and integrity in the strong ethics. The company also faces the challenge of power of charisma and verdict;
The business has also been able to embrace some changes in the operations that have seen to the success of business. The business has also been able to clinch the advanced procedures in the production processes. Some of the companies such as the Panera Bread Co. (PNRA), Starbucks Corp. (SBUX)Whole Foods Market, Inc., as well as the Jack in the Box, Inc., have seen able to embrace the technological advancements that have seen to the development of the businesses (University of Oregon 10).
Strategy Analysis
The business has been able to handle the several prospects of strategic analysis. The business has been able to embrace the strategic group mapping, which employs the use of some of the principal proponents such as the product or even the service miscellany. The strategy also uses the geographic coverage as well as the product quality and the Pricing policy.
The business also uses the five-factor model such as the compatibility of the business ideas, the management of the taxonomic classification of the firm. The company also uses the applicative part of the corporate strategy. The last part of the application is the universality of the enterprise.
PESTEL Analysis
The PESTEL analysis uses the major business terminologies such as the political factors, the economic factors, the socio-cultural factors, the environmental factors as well as technological factors. The Chipotle Mexican Grill business believes in the application of the PESTEL analysis, where all the factors based on the success of the firm.
The firm is usually affected by the political factors of the country in which it operates. The business is also meant to be affected by the economic situations in the country of operation. In places where the country cannot have a positive economic growth, the firm faces challenges in its operations.
The firm is also affected by the social-cultural factors and circumstances of the locality I which the business operates. A business in which the social-cultural factors contradict with the business ethics has a negative effect on the business itself.
The technological advancements usually act as a drive in the business. A business should always be in line with the technological advancements, both locally and internationally.
VRIN Analysis
The VRIN Analysis is a strategy that uses the competitive analysis of business to determine whether the company is viable for competing with the market. The business should also put into consideration the value of a project about its viability, using the cost-benefits analysis. The study also uses the scarcity of resources, making the production expensive and hence viability in the development. The approach also uses the inimitable make sure that there is no intimidation of the method. The last approach is the non-substitutable which makes substitution very hard to make.
The VRIN analysis uses the concept of rare economic variable that are used in the economic development. The resources used should bring value to the business. The resources should be rare so as to provide competition to the other firms that operate under the same line.
The Vision, Mission and Core Values
The vision, mission and core values of the business are to provide quality services and food to the community using the best pricing strategies. The company aims at maximizing its profits by opening various business branches. The company also aims at maximizing the employees’ welfare.
Generic Strategy
The generic business strategy uses various components such as cost leadership strategy, the differentiation strategy in the firm objective allocation; the focus cost analysis, as well as the focus differentiation strategy. The strategy also focuses on the better management as well as the enterprise advancements.
SWOT Analysis
The company concentrates on the strengths, the weaknesses, the opportunities as well as the threats that the industry faces. The firm maximizes the use of the SWOT Analysis where there is the analysis of all the factors that might lead to the benefit or even the downfall of the enterprise.
The business should be able to analyze its weaknesses, strengths, opportunities and threats in connection with the business it is operating in. The business should be able to base its functions on research that offers data and information on the business. The business should then be able to operate in a manner that it does no subject itself to threats and failures from the weaknesses.
Financial Analysis
The financial analysis is the financial guide that gives the procedures in which the company utilizes its money. The economic analysis focuses on the Financial Statement Analysis, Operational Analysis, Financial Analysis, Forecasting as well as the Investment Analysis.
Ratio Analysis
Ratio analysis is the comprehensive process by which the organizational financial statements are analyzed based on certain foundations such as the income statement, the balance sheet, the flow statement. The system should be based on certain principles such as logical inter-relationship, the ability to quote the material factor of business. The business should also be based on the fact that there should be the mental capability to offer information.
Recommendations
The recommendations are based on the firm such as the following: The business should be able to adopt policies that would place the business in a better position to compete with its opponents. The organization should be able to adopt certain policies and models such as the PESTEL analysis mechanism. PESTEL analysis helps the business to predict its outcome of activities based on the domestic and external factors such as the political phenomena, economic issues in the world and the individual country, the socio-cultural factors, the environmental factors as well as technological factors. The PESTEL analysis helps the business to focus as well as trying to determine its success and profits for the future (David 3).
The business should also be able to concentrate more on the quality of products and the production process, rather than just having a basic foundation on the amount of outputs produced.
Works Cited
Moran, Monty. and Ells, Steve “2014 Annual Report and Proxy Statement” Web 25 Mar. 2016. University of Oregon Investment Group, Chipotle Mexican Grill pdf April 20, 2012. Web. 25 Mar. 2016
David, Fred. Strategic Management, 4th Ed. New York, NY: Macmillan Publishing Company.
Jones, Bernie. ‘Neighborhood Planning: A Guide for Citizens and Planners. Chicago and Washington, DC: Planners Press, American Planning Association
