ACTION PLAN
RECOMENDATIONS
The first recommendation is that Chipotle needs to create a separate mission statement. This is critical to success because it explains who chipotle is, why Chipotle exists, what their core values are and how it will serve their stakeholders. By doing this Chipotle can achieve its vision and have their entire team on the same page. Collaboration with stakeholder to accomplish this recommendation should take between one and three months (Strategic Management, 2014).
The second recommendation is to continue with current strategies to maintain financial position until mission statement is created to guide strategic planning. Then resume strategic planning after three months, which is the deadline for the mission statement
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completion (Strategic Management, 2014). The third recommendation is to repurchase $100,000 shares of common stock authorized to fund growth by the end of the year. Growth is essential to survival of Chipotle, so a future revisiting of this recommendation may be needed after a thorough financial analysis (Strategic Management, 2014). IMPLEMENTATION Before implementation, there will need to be an appointed strategic plan manager to follow through with the recommendations stated above and to evaluate the company progress. The strategic planner with regularly set review meetings as frequently as weekly, bi-weekly or monthly depending on the specific team goals set. The strategic planner also needs to create a control system such as output control by implementing code of conduct and evaluation plans (Strategic Management, 2014). GOALS AND OBJECTIVES When stating goals for a company, they must be realistic and obtainable, growing and expanding sounds realistic and obtainable right?
No, there needs to be specifics to measure success, for instance the goal of Chipotle is to grow revenue by a minimum of 30% each year. This goal is realistic, obtainable and measurable. Other goals include generating sales of $5.2 billion by the end of the year, which given the financials is realistic, obtainable and measureable. Chipotle also wants to expand and open 30 new Chipotle’s by the end of the year, half in the U.S, and half in our neighboring country of Canada. The company wants to expand another brand of theirs, ShopHouse, and they want to have twenty new locations by the end of the year, again half in the U.S, and half in Canada (Strategic Management, …show more content…
2014). Chipotles goals cascade way beyond revenue and expansion, they want to increase their brand awareness, and strengthen their virtual connections with customers. Chipotle want to create customer loyalty by increasing brand awareness. They also want to increase number of customers downloading Chipotle app by 300 a month paired with increasing the number of customers connected through social media by 200 a month. In an age of technology, physical presence is only half the battle, incorporating a strong virtual presence can place your company leaps and bounds ahead (Strategic Management, 2014). EVALUATION PLAN .
The Balanced Scorecard is an effective tool to measure and monitor key financial and performance indicators that focus on financial, customer, internal business process, and learning and growth, as opposed to just focusing on financial progress, therefore making it a great tool for evaluating progress toward strategic short-term and long-term objectives (Strategic Management, 2014, p. 50-52). With the Balanced Scorecard management can lead proactively with regular monthly reviews, and corporate quarterly reviews (Strategic Management, 2014).
Chipotle would benefit from not only Triple Bottom Line accounting to measure their corporate social performance in regards to people, planet, and profit, but would also benefit immensely using the Balanced Scorecard for effective evaluation of progress toward KPIs. The Balanced Scorecard is an effective tool to measure and monitor key financial and performance indicators that focus on financial, customer, internal business process, and learning and growth, as opposed to just focusing on financial progress, therefore making it a great tool for evaluating progress toward strategic short-term and long-term objectives (Strategic Management, 2014, p. 50-52). With the Balanced Scorecard management can lead proactively with regular monthly reviews, and corporate quarterly
reviews.
This Company made their mission statement in 2012 and according to me this mission and vision statement is good but these need loads of changes as I have read in this course mission statement should be:-
A. Attention getter- Do you Know that Chipotle uses organic ingredients and naturally raised chicken, pork and beef?
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
Chipotle has grown to become a leader in the fast food arena. According to Our Company,
‘Though it is intricate to demonstrably prove in quantitative terms that the balanced scorecard can deliver efficiency improvements at the start of its implementation, it can be shown in quantitative terms that a well designed fully cascaded balanced scorecard system should address the needs of a health care system. ’ (Radnor and Lovell, 2003, p. 105)
In my opinion Chipotle is a strong market and they reinvent the fast food concept showing that has something fast in not meats have something bad for your body. Actually they become a really well-named company and besides the problems that they had with E-coli and suppliers. They are imply new methods for clean and keep the rest of their restaurant safe for them costumers. I cannot tell if in 50 years Chipotle still in business. But, I am pretty sure that for now own all new ideas will be base in their concept.
Chipotle is one of the fastest growing restaurants which is served in the United States, Canada, England, Germany and France. This restaurant is more popular for burritos and tacos. The name chipotle is derived from the Mexican Spanish name which means smoked and dried jalepeno chili pepper. It is also considered as one of the first chains of fast casual dining establishments. The mission statement of chipotle is “Food with Intergrity” which means that they put effort in using organic ingredients and serves more naturally raised meat in comparison to other restaurant chain. Chipotle was founded by Steve Ells in 1993. Ellis attended the culinary institute of America in Hyde park, new or where he finds out the popularity of the taquerias and use that concept to open the first chipotle in Denver, Colorado in which he targeted to sell 107 burritos a day. They sold around 1000 burritos a day after a month of its establishment. Then he opened various numbers of locations in Colorado but they come up with an opening outside of Colorado which is in Kansas City in 1998.
Chipotle first opened its doors in Denver, Colorado in 1993, setting out to create a new experience for the fast food diner. They put together a simple equation of fast, fresh and high-quality ingredients and looked to change how people viewed fast food forever. Their simplistic approach has expanded across the years and although they still strive for the same fast, fresh and high- quality concept their views have expanded to include sustainability as one of their main pillars.
Chipotle Mexican Grill has an overarching goal to redefine the fast food industry by serving fast, fresh, sustainable high quality food. The founder and CEO, Steve Ells, stated that Chipotle is built on, “doing a few things very well”. The core value of Chipotle is sustainability. Focusing on providing an affordable and quick option for food that is respectable to the animals, farmers and environment. Chipotle believes that their competitive priorities help set them above their competitors.
Chipotle Mexican Grill has an overarching goal to redefine the fast food industry by serving fast, fresh, sustainable high quality food. Steve Ells stated that Chipotle is built on, “doing a few things very well” with the core value of Chipotle being sustainability. Focusing on providing an affordable and quick option for food that is respectable to the animals, the farmers and the environment. Chipotle believes that their competitive priorities help set them above their competitors.
Chipotle Mexican Grill is one of the fastest growing restaurant businesses in the United States. Chipotle was founded by Steve Ells (current CEO) in Denver Colorado, in 1993 (Forbes, 2016). Chipotle Mexican Grill headquarters are located at 1401 Wynkoop Street, Denver, Colorado 80202 (Yahoo Finance, 2016). The business is focused on serving the fast casual fresh Mexican food restaurant market.
(Schonberger, 2001) Richard Schonberger, president of Schonberger and Associates, a performance management consulting firm, argues that “the category of business results shouldn’t be in the criteria at all” (Schonberger, 2001).
A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate to Scents & Things vision, mission, values, and SWOTT analysis.
Founded in 1993, the first mexican grill restaurant was established by line cook Steve Ells in Denver, Colorado, where the headquarter remains to this day. Ells envisioned Chipotle to be a “fast food restaurant” that strived to serve food at a fast pace while maintaining the high quality of ingredients used. Upon the startup of Chipotle, its initial vision was “to change the way people think about and eat fast food”. However, the company has sinced revised their mission statement to, “ensuring that better food is accessible to everyone” due to the success of fast food companies now recognizing the importance of sourcing healthy ingredients the brand can be proud
The balanced scorecard was introduced by Robert Kaplan, a professor at Harvard University, and David Norton in 1990. The concept was later adopted for a study on new methods to measure performance involving multiple organizations. The balanced scorecard enables organizations to measure performance by providing balance to the financial perspective. Organizations used to measure performance by measuring only the financial measurements and this did not reflect the true performance of the organization. The BSC methodology includes information about the operational measures which gives the management a clearer picture that makes it easier for organizations to plan for short and long term goals.