Analysis Of Chipotle

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When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and …show more content…

Under corporate governance, the Board of Directors has majority power. After shareholders elect the Board, said Board selects the CEO who is responsible for managing the business. The key problem with Chipotle’s central and formal governance is that their strategy does not encourage innovation or employee moral. Instead, the Board of Directors decides what they feel Chipotle’s franchisees should implement, and tells managers to relay their decisions to in-store employees. Therefore, corporate representatives strive to improve in-store quality through strict supervision of each franchisee. They make decisions regarding all processes from the preparation of the product, customer service, and marketing strategies, which are enforced at each location. This system is slow and decreases efficiency. Since store employees are kept out of the immediate circle, it is difficult for them to have confidence in Chipotle’s operations, resulting in low employee empowerment. Two solutions to consider include bridging gaps between hierarchical levels and making the company more decentralized. Chipotle can implement a few liaisons (brokers and structural holes) to make sure that all professional networks within corporate and store levels are communicating effectively and working as a

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