What is a financial objective of the company

Running head: CHIPOTLE CASE STUDY 1
Chipotle Case Study
Name
Institutional Affiliation

CHIPOTLE CASE STUDY 2
CHIPOTLE CASE STUDY
 What is a financial objective of the company?
The main financial objective of Chipotle is to increase revenue and profit margins.
Increasing Chipotle’s revenue remained the basic and fundamental of its financial objective and
this explains its emphasis on highly differentiated fast-casual food concept. This is demonstrated
by revenue figures below:
Internal analysis- Chipotle in the thousands
Net Revenue 498214
Net Income 22938
Operating Costs 34567
Income from
Operations 22938
Beta 0.21
Current Ratio 1.850%
Debt to Equity Ratio 0.690%
 What is a strategic objective of the company?
Chipotle’s growth strategy focusses on the fast-casual restaurant concept that
distinguished itself from conventional fast-food restaurants. The Company has a distinct business
model as well as built itself since the year 1993-a positive brand perception. It bets on both local
and organic products hence targeting a segment market of client capable of paying for quality
products.

CHIPOTLE CASE STUDY 3
 What is the business strategy (considering how they are seeking to create a
competitive advantage) and a related functional strategy of the company?
Based on the CMG study case (2015), the present business strategy employed by
Chipotle is focusing on differentiation which is observed via its emphasis on product quality.
Chipotle has engaged in the provision of sustainable, organic, local sourcing ingredient as well as
has in its matter animal welfare which include hormone-free and free-range. This is specifically
evident via the Chipotle’s mission statement: Food with integrity and its vision statement: to
change the way people think about and eat fast food.
According to the above Porter’s Generic Competitive strategic matrix, it is clear that
Chipotle has chosen on differentiation focus as its main source of competitive edge. The
differentiation intervene further into the Chipotle’s restaurant design, affable employee or the
manner this Company is focusing on music as part of its program for marketing (Grant, 2015).
Furthermore, Chipotle differentiates itself via being healthy alternative amongst the fast-food
restaurants and having high-quality ingredients. Such are manifested in Chipotle’s brand image.

CHIPOTLE CASE STUDY 4
Differentiation means that CMG accepts a greater production cost for additional value added for
its clientele. Therefore, Chipotle practices are narrowed focus on customers within a niche
market. A close examination of strategic planning cycle for Chipotle below reveals that CMG
emphasized on business model adaptation (Kurian & Muzumdar, 2017).
Chipotle’s strategy continually evolved over the years as shown by the brand size
expansion. The business strategies preferences of Chipotle stressed exclusively on deepening and
expanding its sustainable initiatives by tightening suppliers’ requirements. Chipotle recently
emphasized on expanding CMG’s scope concept via the development of two spinoff chains in
the year 2011. The ShopHouse Southwest Asian Kitchen remains a straight expansion of CMG
brand which utilizes same processes and concept though with a dissimilar kind of cuisine.
Moreover, Chipotle began collaboration with two additional firms to open Pizzeria Locale as a
means of fighting standards war. Chipotle has further focused on the vision (to change the way