Effective Case Analysis for Chipotle Mexican Grill

Running head: EFFECTIVE CASE ANALYSIS
Effective case analysis
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EFFECTIVE CASE ANALYSIS
Table of Contents
1. General environmental analysis:..................................................................................................3
a) Technological trends....................................................................................................................3
b) Demographic trends....................................................................................................................3
c) Economic trend............................................................................................................................3
d) Political trend..............................................................................................................................3
e) Socio cultural...............................................................................................................................3
f) Global trend..................................................................................................................................3
g) Physical environmental...............................................................................................................3
2. Industry analysis..........................................................................................................................3
3. Competitor analysis.....................................................................................................................3
4. Internal analysis...........................................................................................................................3
5. SWOT analysis............................................................................................................................3
6. Strategy formulation....................................................................................................................3
7. Strategic action plan....................................................................................................................3

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EFFECTIVE CASE ANALYSIS
1. General environmental analysis:
a) Technological trends
Chipotle being a service driven and food based company deals with face to face
interactions with customers. Business model of restaurant has improved by incorporating
technology and due to more and more customers becoming tech savvy, further improvement has
been done by adding the option of mobile payment and speeding up their online ordering process
(Barrows et al., 2016).
b) Demographic trends
Business of restaurant is drawn by opening in outlet having geographical draw and
population density. The majority target market of Chipotle is focused on younger individual aged
between 18 to 24 years of age (Gilliard et al., 2017). Initially, they based their restaurant in areas
where Mexican food was prevalent such as Colorado and Denver.
c) Economic trend
Cost of labour and real estate costs impacts operation of restaurant and input cost stability is
ensured by engagement of company with their supply chain. Price of various products such as
beef, grains and other dairy items fluctuated due to weather conditions and change in conditions
of supply and demand of three largest exporters of United States (Kim et al., 2015).
d) Political trend
The operation of Chipotle Mexican Grill is significantly impacted by political
environment and they are tethered to the guidelines and rules such as licences, permits,
insurance, environmental regulations in different countries of their operations.

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EFFECTIVE CASE ANALYSIS
e) Socio cultural
It is indicated by sentiment of consumers in country that most of them have the
inclination of reducing their expense on eating or they would want it to maintain at best level.
Hence, CMC is likely to be impacted in its margin due to rising cost of foods and unwillingness
of consumers to purchase them at higher price (Cohen & Muñoz, 2017).
f) Global trend
The business of Chipotle can be affected by some global factors as they have expanded
into other countries that United States. Chipotle operations should take into considerations
exporting and importing factors as it has wide impact on their input costs (Morris, 2015).
g) Physical environmental
Products of Chipotle are being improved and they are raised naturally and being
produced organically. For their ingredients such as beef, pork and chicken, innovation that
restaurant has been engaged in is raising them, naturally.
2. Industry analysis
Industry analysis of Chipotle can be explained with the application of porters five force
model: