Analysis of Chipotle Mexican Grill: Internal and External Environment

Introduction
The report brings out a discussion on chipotle Mexican grill. The report deals with the
analysis through internal and external environment. Initially, the report describes the current
position of the organisation in the market and its extensions. Further, it discusses business
strategies of the organisation in the form of vision, mission, and the objectives. The main
purpose of the report is to analyse the whole environment of the organisation from its culture,
power, macro-environmental, corporate governance, its sustainability report, competitor’s
analysis, and finally the resources of the company by analysing each of its department.
Current situation
Chipotle Mexican Grill is amongst the most famous fast food restaurants in UK, Canada,
France, Germany, and US. CMG was incorporated in 1993. Chipotle Mexican Grill offers a
diversified menu consisting of salads, soft flour salad, bottled drinks, kids menu, and burrito
bowls. While looking at the financial statements, it reflects the current situations of the
company-
Year Share price Percent change (%)
2015 659.13 -29.9%
2016 428.56 -21.37%
2017 377.79 -23.39%
2018 431.58 49.39%
2019 513.24 18.86%
(Source: Chipotle Mexican Grill, 2019).

The business strategies covers mission, vision, values and the objectives of the company that
orbits nearby food integrity and shifting of the consumer behaviour as their eating habits keep
changing. The mission of the company is to change the system of how people like and eat fast
food. The company aims to provide jobs. The company uses high-quality ingredients so that
it can make its food good in taste and greater access at such as reasonable prices
(Tutorialpoint, 2019).
The company aims to build a vision by bringing some considerable change in the future of
fast food and service philosophy related to culinary traditions of Asia, Naples, and Italy. The
organisation aims to promote the efforts of the local farmers in a sustainable manner.
(Coddington, 2016)
Corporate Governance
Sustainability is an part of organisation`s job at chipotle and the company have a clear
sustainability governance structures which can be revised on regular basis as every company
wants to grow. In 2016, the company focused on bettering the internal structure to achieve
long-term growth (Chipotle Mexican Grill, 2019).
In regards to ensure that, local farmers are not being affected negatively, the supply chain
team demands affidavits from the suppliers in order to confirm to their compliance with their
standards. The company maintains a team of auditors to put a check on the suppliers and also

the animal welfare (Chipotle, 2016). The ethical code of conduct requires engaging in an
ethical business. The employees must comply with the necessary standards. Sustainability
reports of the company ensures that the company has been executing its CSR activities
properly that benefit the society (Petersonoct, 2015).
Board of directors
The company has a considerable number of people in the board of directors that have paced
up the growth of chipotle Mexican grill. Each member played an significant role n the
success of the organisation. The director of the company is MR. Baldocchi who is an self-
employed person since 2000 and is a strategic advisor for huge variety of privately-held
companies as he has the specialisation in various unit restaurant companies (Chipotle, 2016).
The extensive involvement on the part of third director in the restaurant companies in the last
17 years, he has developed a depth knowledge regarding the finance of restaurant companies.
Another director is the private investor and an active partner of the investment team in an
capital management (Chipotle, 2016). Mr Namvar held positions in the Blackstone group and
he has a considerable experience with the concern of investments in regards to restaurant
industry. Another director is Mr Musk who is an entrepreneur who has incorporated many
non-profit organisation that includes a kitchen, Zip corporation, paypal inc, tesla Motors, and
ever dream corporation (Chipotle, 2016).
Top management
At the top level management, first comes the board of directors named Albert baldocchi, Ali
Namvar, Kimbal musk, Matthew Paul, Neil W. Flanzraich (as a lead director). Apart from
this the company also has CEOs and CFOs to plan for the near future so that they can expand
and overcome the uncertainties in the near future. Mr. Brian Niccol is appointed as a CEO in

2018 after Taco bell in power. Apart from this, another executive chairman is Steve Ells who
is also a CEO (Toebe, 2018).
(Source: Chipotlefoodwithintegrity, 2016)
External environment
Natural environment
Physical resources- until 2017, the store has opened nearly 2400 restaurant in the retail
ownership. The company is headquartered in US and is extended to Canada, Germany,
France, and UK. As the company do not operate in franchise system and have self-owned
outlets. Company`s staff is nearly 64570 in 2017 as the restaurant offers a quick services in
order to match the sophisticated fine dining (Robertson, 2018).
Wildlife- the company receives its meat and dairy products from seven suppliers who keep
processing their animals in North Carolina, Georgia, Ohio, Arkansas, Virginia, Minnesota,
and Pennsylvania. The chicken that the company uses is the boneless chicken. The company
is working with the suppliers in order to move them to use the non-GMO food, as the supply
of non-GMO corn is very limited. The company gets its beef from US, Australia, Canada,
and New Zealand. The process of transporting beefs from the farm houses to the restaurant
that is to be designed in a cost effective way to take responsibility of the environment and