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APA
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Management
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Case Study
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English (U.S.)
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Topic:

What are the primary and secondary components of chipotle’s value chain?

Case Study Instructions:

Here are the guiding questions for the Chipotle Mexican Grill . case assignment. Remember to read these questions before you begin reading the case and use Appendix I in the back of the syllabus to format your case analysis.
Chipotle Mexican Grill guiding questions:
1. What is your assessment of the ways in which Chipotle has responded to the food poisoning incidents in some of its restaurants?
2. Does Chipotle Mexican Grill have any core competencies and, if so, what are they?
3. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects as of early 2016? Are the company’s future prospects greatly diminished as compared to what they were before the food poisoning incidents?
4. What are the primary and secondary components of Chipotle’s value chain?
5. What chief difference(s) do you see between Chipotle’s competitive strategy approach and the competitive strategy approach being employed at Moe’s Southwest Grill?
6. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Chipotle Mexican Grill is employing?
7. What does an analysis of the data in case Exhibit 1 reveal about Chipotle’s financial and operating performance?
8. Which rival—Chipotle Mexican Grill or Moe’s Southwest Grill or Qdoba Mexican Grill—seems to have the strongest set of resource strengths and competitive capabilities and is most likely to achieve the best financial performance in the years going forward? Your assessment should most definitely take into account the extent to which Chipotle’s food poisoning problems have cut into its competitive capabilities and performance prospects.
9. Does Chipotle have a good enough strategy and adequate resource strengths and competitive capabilities to overcome its food poisoning incidents and compete effectively against Taco Bell in the next 2-5 years?

Please use the book to find the case. Page C-66- C-94 Crafting and Executing Strategy: The Quest for Competitive Advantage’ concepts and Cases 21e.....THE BOOK MUST BE USED
The supporting evidence for the recommendations must come from the case itself, from the chapters in the text book, from industry reports and data, and/or from business news.
APPENDIX 1:
Case Study Report’s Format
The format for all case study reports is detailed below.
In the elaboration of each of these sections, the student should include concepts from the chapter covered in the course.
Introduction Brief history of the company
Information about the industry - including Five Forces, PESTEL, Benchmarking, Strategic Group Map, driving forces of industry change, etc.
Company mission (stated or implied) Company objectives and goals (stated and implied) Company strategies [should link to company objectives or goals] Complete SWOT analysis (include support) Analysis of financial data for two to three years (Include analysis of the income statement, balance sheet using appropriate financial ratios.
Financials for some companies can be found in the company’s annual reports or from sources like Yahoo Finance, etc. )
Main Body of the Paper Statement of Problems and Purpose of analysis (Specify the salient problem, and explain why selected.)
Identification of strategic alternatives available (a minimum of three mutually exclusive alternatives: explain logic and feasibility, and give advantages, disadvantages at the corporate, and SBU level).
Recommended strategic alternative Implementation plan (activity plan) recommended for the company (including challenges and issues).
Evaluation and control plan [optional] Conclusion Short Summary Reference section Support materials for the Company. (Research documentation)

Case Study Sample Content Preview:

Case Study
Student’s Name
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Course
Date
CASE STUDY
Executive Summary
Chipotle Mexican Grill is known as Chipotle. It is an American chain of fast foods for casual restaurants in France, the United States, Canada, United Kingdom, and Germany (Skripak, 2016). The main objective of Chipotle is providing food with integrity. The mission statement of the company reads as “food with integrity is our commitment to finding the bests ingredients with respect for farmers, the environment and animals” (Mattel, & Culinary Institute of America, 2016). The performance of Chipotle Mexican Grill is related to the strengths and weaknesses in the SWOT analysis (Thompson, 2013). The menu of the restaurant focuses on tacos, salads, burritos bowls, and burritos. The restaurant is committed to serving original and fresh ingredients. With this Chipotle has been able to attract customers because it has a strong reputation for service quality.
When it comes to political environment factors like tariffs on the Mexican imports and political stability should be considered before investing in Chipotle restaurant. In the case of social factors, the changing habits of consumers and health-conscious consumers affect the operations of the business. There are digital security issues that affect the restaurant. The emergence of the management system is an environmental factor affecting the operations of Chipotle (Skripak, 2016). The growth of the restaurant is proportional to the growth of the United States. Lastly, changes in the regulations affect how the business operates.
In 2016, the company opened approximately 2010 restaurants in different countries. Although the company has opened these restaurants, it has not penetrated in the international market because the company is not exploited fully in Europe and Canada. The company can choose to expand their stores all over the world. For instance, they can contribute to the Asian food market. The company also gives its customers the right to select favorable ingredients in each dish by communication directly to the staff. However, the limited menu of the restaurant is its major weakness of Chipotle compared to other restaurants around.
In 2012 the Gross Profit margin of Chipotle was 27.1%, 26.6% in 2013and 27.2% in 2014 (Thompson, 2013). The trend of the company is good because it is evident that it is trending upwards. Further, the net profit margin of Chipotle from 2012, 2013, and 2014 were 10.2%, 10.2%, and 10.8% respectively. Additionally, between 2013 and 2014 the net income of the company increased with a rate of 6%. However, with the incident of food contamination, the net profit margin will reduce slightly (Thompson, 2013). In 2016, the CEO of the company announced the performance of the company. There was a significant decrease in revenue for the first three months. The revenue decreased from $1.09billion to 834 million. Compared to the net profit of the company in 2015, there was a net loss of $26 million in 2016 (Thompson, 2013). Generally, the company did not only lose its reputation but it also suffered financial losses. The company also lost the trust of its customers as well.
Statement of the Problem
2015 was one of the best years of Ch...
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