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Chipotle Transformation Process

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Chipotle Transformation Process
Exam 1 – Take Home
Brittany Bunch

06/11/14
MGT 124
Professor Vasquez

1). Explain the “Transformation Process” by using a retail format as an example. Explain the transformation process of your chosen retail format –
* The transformation/conversion process includes many value-added activities that come full-circle to equate to a business format. In this case, I will be discussing the retail format of Fresh & Easy throughout the transformation/conversion process. There are two types of markets: a pull- based (market is demanding your product) and a push-based (pushing your product out to the market). Fresh & Easy is a great example of a push-based market where they are “pushing” their products out to
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One way that Chipotle markets its organization is their campaign to serve food/meat that is natural; purchased from good sources that do not use hormones through their raising process.
*Finance/Accounting – This is the money portion of any business. This department would be responsible for accounting for the money going out and coming in. In Chipotle, obviously the sales generated money would be spent on leasing restaurant spaces, payroll, payments to food vendors, taxes, etc.
*Production/Operations – At Chipotle, the productions/operations would be directly related to the process of cooking the food, getting it out to the line, providing customer service and putting the food together for the customer, and checking them out.
*Research and Development-Research and development is the process of consistently conducting company research to see where weaknesses are so that new ideas can be developed to continually build on the brand. An example of this at Chipotle would be researching the latest trends that people are leaning towards within the gourmet burrito market. Staying on top of these trends will keep them consistently on
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The management information system reports on operations for every level of management in a company. At Chipotle, this would consist of the reports that are generated by store and upper management to gauge how the company is doing at store, region, and whole company level. With these reports, management can modify operations if necessary. Also, at a smaller level, an in store example of this would be the POS system that the cashier uses to check people out at the end of an order.
*Logistics, Supply-Chain (Value-Chain) – The supply chain is the sequence of activities and organizations involved in producing and delivering a good or service; also called a value-chain because with each step, value is being added on. Logistics is basically the routing/transportation as to how these goods get anywhere. For example, the first person in the sequence would be someone like a farmer, where the raw materials (fruits, vegetables, meat) come from. From this point, the products would be moved systematically/logistically through the supply chain to the end- Final

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