STRATEGIC MANAGEMENT

Strategic Management



Introduction2

Discussion3

Chipotle's Core Competencies3

SWOT analysis3

Primary and Secondary Components4

Chief Components of Chipotle's Strategy5

Generic Competitive Strategies5

Main Differences6

Comparative Financial Analysis7

Competitive Strength8

Recommendations9

Conclusion9

References11

Strategic Management

Introduction

Chipotle Mexican Grill (CMG) has a chain of restaurants located in the developed countries like USA, UK, Canada and France. CMG mainly focused in offering burritos and tacos. Its name originates from chipotle, based on the Mexican Spanish name refer to a smoked and dry jalapeno chilli pepper. CMG is famous for serving its large burritos, production line manufacturing, and usage of organic elements. It has a mission to serve Foodstuff with Honesty, which underscores its attempts in employing natural resources, and offers more organically prepared food as compared with other cafes. The company always commit to offer 'food with integrity' which is prepared from high quality natural ingredients that are generally delivered by leading suppliers of the food market. The restaurant offers snack food, ready meals and beverages with simple menu strategy. Their service is praiseworthy as they serve food promptly and cater customer's needs in an effective manner (Baylis,2012).

Chipotle is known for casual dinning experience, established by Steve Ells in 1993. It had sixteen cafes in Colorado when McDonalds turned out to be a main shareholder in 1998. By the time McDonalds completely separated itself from CMG, the restaurant had developed to around 500 locations more. This case study related to Chipotle and its new initiative. The company has shown grand performance with its Grills in 2012. Moving into the same course, this young fast food chain is concentrating on its new plan 'ShopHouse'. The new project is expected to follow the same strategy but it had diverse set of food options. Main dilemma is to address in this paper whether CMG can make the same standing and footing with its latest initiative, the ShopHouse, by applying the same strategic moves or not. Currently, CMG face stiff competition from three competitors which are Taco Bell, Moe's and Qdoba (www.chipotle.com). This paper will analyse the case study and offer recommendations for its new strategic move.

Discussion

Chipotle's Core Competencies

The main strengths and tactical advantages of a business form its core competencies. These competencies are the blend of shared knowledge and technological capabilities that let a company to be competitive in the market. Chipotle does have core competencies and it takes account of:

High-quality food products made from best organic ingredients.

Natural elements used in the preparation of food that differentiate Chipotle from other restaurants.

It serves drinks like alcohol to its customers.

SWOT Analysis

SWOT Analysis is an easy but offer a practical framework to analyse company's strong points and weak points, in addition to the novel options and threats it experience. Here is the SWOT analysis of CMG:

Strengths:

CMG has a standing amongst customers for being an ethical, benevolent, and strong choice. It first ever TV commercial sums this up faultlessly. Apart from offering organic foodstuff, sourcing foodstuff domestically decreases it distribution costs. Societies wait for Chipotle beginning its functions in their neighbourhood, not just for the great flavour, but also for the ...