Chipolte Mexican Grill

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Chipotle Mexican Grill

Presented to
Dr. Robert McNeal
Department of Business Administration
College of Business Administration
Alabama State University

In Partial Fulfillment of the Requirements for the Course
MGT 462.01 Business Policies
5:30 M W (Spring 2009)

Submitted by:
Helena Bryant
Gianni Gilbert
Chad Jenkins
Juanterra Looney
Adana Wilson

Due: April 1, 2009
Transmittal Letter
April 1, 2009
To:Dr. Bob McNeal
From:Helena Bryant
Gianni Gilbert
Chad Jenkins
Juanterra Looney
Adana Wilson
Subject:The Chipotle Mexican Grill Analysis

We, the students of the Management 462.01- Business Policies, are submitting our company analysis performed on Chipotle Mexican Grill. The company analysis contains information on Chipotle’s current and corporate information, stakeholder analysis, external analysis, internal analysis, and SWOT analysis. In addition, the company’s level of strategies, portfolio analysis, strategy implementation, and strategy recommendation will also be discussed. Group 5 has evaluated and contrasted Chipotle Mexican Grill with the industry and their top two competitors, Panera Bread and P. F. Chang’s China Bistro. We have conducted research for the final results of the company analysis.

Enclosed: Chipotle Mexican Grill Analysis
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Table of Contents
Executive Summary……...……………………………………………………………………1 Introduction………………………………………………………………………….……....…1 Purpose……………………………………………………………………………….….1 History of Chipotle Mexican Grill…………………………………………………....…2 Current Summary…………………………………………………………………….....3 Stakeholders and the Corporate Mission…………………………………………………4 Stakeholder Impact Analysis…………………………………………………….….…4 Mission Statement…………………………………………………………………....…5 Values and Goals…………………………………………………………………….…6 Corporate Governance…………………………………………………………………6 Ethical Climate……………………………………………………………………..……8 Corporate Social Responsibility…………………………………………………….…9 External Analysis …………………………………………………………………………..…9 Description of the Industry ………………………………………………………….…9 History of the Industry…………………………………………………………………10 Economic Characteristics of the Industry………………………………………...…11 Porter’s Five Forces Model………………………………………………………...…12 Lifecycle Analysis…………………………………………………………….……..…18 Key Factors for Competitive Success ……………………………………….…...…19 Description of Key Competitors………………………………………………………20 Company Positioning………………………………………………………………….21 Strategic Group Map…………………………………………………………………..22 Attractive industry for investment…………………………………………………….22 Prospects for Above-Average Profitability…………………………………………..23 Summary of Opportunities and Threats……………………………………………..23 Internal Analysis……………………………………………………………………………...24 Competitive Advantage ……………………………………………………….……...24 Generic Building Blocks……………………………………………………………….25 Value Chain Analysis………………………………………………………………….28 Distinctive Competencies…………………………………………………….……….31 Durability of Competitive Advantage………………………………………………...32 Competitive Strength Assessment…………………………………………………..33 Financial Performance………………………………………………………………...34 Summary of Strengths and Weaknesses…………………………………………...37 SWOT Analysis……………………………………………………………………………….38 Strategies to Pursue…………………………………………………………………..38 Strategic Issues…………………………………………………………….………….39 Strategies………………………………………………………………………………….…..39 Functional-level Strategies………………………………………………………..…39 Business-level Strategies………………………………………………………….….43 Strategies for Fragmented Industry ………………………………………………....44 Strategies for the Life Cycle Stage…………………………………………………..44 Global-Level Strategies……………………………………………………………….45 Corporate-Level Strategies…………………………………………………………...46 How well is the Present Strategy Working………………………………………….46 Portfolio...
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