The Organization’s Response to ChangeOverviewFrom the same case that you have chosen for Deliverables 1 to 3, you will advise the CEO on how best to position the organization to be responsive to chang
CHIPOTLE MEXICAN GRILL 6 Chipotle Mexican Grill February 22, 2021 Chipotle Mexican Grill Importance of Innovation Chipotle Mexican Grill is a large restaurant in the United States dealing with fast foods. The company needs to invest in innovation to boost its long-term survival in the hospitality industry. Design helps the company build a better guest connection. The guests’ experience is made extraordinary by finding ways that will exceed customers’ expectations. A good example is creating large data warehouses containing the restaurant’s habits and preferences, making it easier for the company to work with its most frequent customers. Innovation provides new solutions for the old problems experienced in Chipotle Mexican Grill (Abwanzo, 2017). The answers can range from using the right technologies, social networks hot spots, digital signage, and Multimedia Entertainment Program Guide. The solutions increase the customers’ satisfaction with the restaurant’s services. Innovation encourages benchmarking and value within the hospitality industry. The benchmarking service is essential to the achievement of outstanding services in all restaurants. Compared with competitors, it increases the morale to provide better services each year after analyzing guests’ feedback about their services. Chipotle Mexican Grill can embrace diversity to foster innovation. Variety is the key to innovative ideas within a company. It means the company members should be mixed in terms of gender, age groups, and backgrounds. The personnel selection is the overall innovation strategy for the company. Evolution I expect the company to evolve in various ways in 5-10 years. The company should innovate ideas that will increase customers’ satisfaction and experience at large. Therefore, the company can instill digital tools within its premises like Wi-Fi to attract more customers and increase its sales. The company can also buy machines with fast and reliable software systems to enhance the quick delivery of services. It will ensure that once a customer places an order, he is responded to immediately hence creating the right image for the company. An excellent public image benefits the company by retaining its loyal customers who can refer friends and family, increasing its sales (Maari, 2018). Advantages of Chipotle Mexican Grill The company has several advantages against its competitors in the hospitality industry. It provides tasty food, including salad, tacos, burritos, and burrito bowls, making it widely famous. It has unique and classic cooking methods involving fresh ingredients, pots, pans, stoves, and grills, which other restaurants do not know. Unlike other industry companies, Chipotle Mexican Grill sellse3 foods at reasonable prices to ensure that the customers are satisfied. The food prices in their menu range from 1.40 to 8.00 USD, which is cheap and affordable (Abwanzo, 2017). The company deals with fresh food only. For this reason, it does not see the need for a microwave or freezer because the leftovers are disposed of and not recooked for sale. The company has refrigerators for storing fresh ingredients, herbs, rice, food spices, and many others. Also, each day the company makes its lime rice, guacamole, and meat from scratch. The company has embraced technology through the invention of an app to be used by customers to order foods of their choice. Therefore, an individual can order food a few minutes before coming to the restaurant, saving time that could be wasted waiting for the food preparation. Strategies to Exploit the Innovation Breakthroughs ANYThe strategies that the company could use to exploits innovation breakthroughs are paying attention to the unmet needs and frustrations. The COMPfrom the app used by customers to order goods online. The company could provide customers with an opportunity to share their experiences. It all starts with a customer perspective to help a company uncover problems and frustrations, then design the best solutions from the customer backward. However, some customers think linearly. Hence, the company should match the possibilities with what is needed by the customers. The company could spot and exploit the emerging trends that will obtain feedback from its customers. Innovative entrepreneurs should be flexible enough to welcome change rather than resist it due to its complexity. They look for change to turn discontinuity into an opportunity (Maari, 2018). However, some technological changes are so complex to understand and require special training, increasing its expenses. Recommendation I recommend the company to pay attention to the unmet needs and frustrations. It would enable the company to exploit ways to help it hold a good position in the industry. The customers can complain about their experience in a particular restaurant, and therefore, the company learns that the act is unethical. The company will obtain the information from several people despite their age groups, gender, race, or religion. It will encourage the company to embrace diversity in its employees and ensure no discrimination of customers. The lack of diversity is one of the critical weaknesses of Chipotle Mexican Grill. Spotting customers’ needs foster innovation to ensure their satisfaction (Griffin, 2020). The company can achieve customer satisfaction through the provision of solutions to their frustrations. References Abwanzo, B. (2017). Chipotle Company Assessment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3278492 Griffin, W. (2020). Perceptions of Hospitality Industry Professionals and Hospitality Faculty on Industry-Academia Collaborations. Journal of Hospitality & Tourism Education, 1-12. https://doi.org/10.1080/10963758.2020.1791137 Maari, K. (2018). Model of obtaining competitive advantages by the companies of the restaurant industry in the Russian market. Business Strategies, (7), 27-29. https://doi.org/10.17747/2311-7184-2018-7-27-29
The Organization’s Response to ChangeOverviewFrom the same case that you have chosen for Deliverables 1 to 3, you will advise the CEO on how best to position the organization to be responsive to chang
Running Header: INNOVATION AND COMPETITIVE ANALYSIS Innovation and competitive analysis February 7, 2021 Introduction Marketing innovation is essential for the survival of any particular company in a dynamic, fast competitive market. The main factor to a rapid rivalry between the business firms in different industries is the adoption in production, manufacturing, and manufacture and sales of products and services of a state-of-the-art technological system. Reguia (2014) marketing breakthrough relates to the application of a modern marketing approach that requires radical improvements in product design, packaging, positioning, promotion, and product pricing. In contrast to rivals within the same sector, the comparative edge applies to a far superior result (Jurksiene & Pundziene, 2016). The relation between marketing innovation and competitive edge is that an organization must undertake marketing innovation to have a competitive advantage over its business rivals (Anwar, 2018). The Apple Business was an example of a creative firm in 2018 being ranked number one. The fact that it was the first corporation in the world to reach a market valuation of 1 trillion US Dollars was behind Apple Company was ranked No. 1 in the world. Therefore, the thesis of this study is the critical examination of the beneficial effect of marketing disruption on the strategic advantage of the business. The objective of the study This research aims first and foremost to assess the value of marketing creativity by the company to contribute significantly to the company’s strategic competitive advantage (Anwar, 2018). The numerous marketing technologies and their consequent strategic advantages for the business would thus be addressed. Discussion Innovations of different forms occur and are rendered in commercial terms that are very important for a business to expand and prosper (Amarakoon, Weerawardena, & Verreynne, 2018). For example, we have product creativity representing the art of developing and ultimately selling a new commodity or service or an updated concept from existing commodities and services. For instance, Foxconn has extended its marketing strategy to product creativity among many other technology-based gadgets in manufacturing iPhones and iPods (Reguia, 2014). Process invention that refers to modern or modified methods of distribution or processing of products is another advancement. This factor concerns the positive improvements in product distribution software, equipment, or techniques (Jurksiene & Pundziene, 2016). Google Corporate is a prime example of a business that has had a good process innovation. The company strives to develop its activities continually. We also have manufacturing advances relating to designing and introducing newly revamped and strengthened products and services on the market (Weerawardena & Mavondo, 2011). With a more in-depth view of marketing. Development creativity involves taking a current commodity or good into a new one with better market values. The incorporation of GPS in both private and commercial vehicles to improve their protection are examples of product advancement. The Garmin Corporation is a major multinational maker of GPS for cars and is an example of a leading foreign business that has embraced manufacturing innovation (Weerawardena & Mavondo, 2011). In addition, service advancement is based on certain technology types or systemic processes, which apply to the product or service—the innovation in non-technological fields in the field of operation (Reguia, 2014). There is also no relationship between the viability of service invention and the innovation of absolute technology alone. The Amazon Corporation is one example of world leadership in service innovation since Amazon’s web services were born out of the technology needs of Amazon’s e-commerce and had thus become a USD 13 billion company. There are some types of ties between creativity and strategic advantage in marketing. For example, innovative marketing is very important for a company’s sustainability as it enables businesses to join markets, thereby gaining a more significant consumer market share (Amarakoon, Weerawardena, & Verreynne, 2018). Marketing creativity is equally important as it can lead to creating original ideas, which gives the business a competitive edge in turn. For instance, a company through which it has access to natural resources the access by rivals is limited. Besides, creativity in marketing encourages a business to leverage its potential by selling the products and services it wants on the market. The main forum for recording a product’s pattern, configuration, and shape is a creative concept registration. In the selling of electrical goods, Apple is a geographically positioned business. Innovative marketing requires large patenting ideas that are essential in the competition in products and services. The feature of innovative product and service pricing would allow a business to acquire a broader consumer portfolio. For instance, by overtaking its rivals, Apple has been able to stand out in the market. Conclusion Finally, it should be remembered that an organization with a set of strategic advantages is well known for different types of marketing creativity. Service invention, for example, was addressed among other forms of inventions. This research has also analyzed and established the connection between the different technologies and the strategic gains of a business enterprise. The creative branding, architecture, and promotion of the organization are also necessary to reach untapped markets worldwide. References Amarakoon, U., Weerawardena, J., & Verreynne, M. L. (2018). Learning capabilities, human resource management innovation, and competitive advantage. The International Journal of Human Resource Management, 29(10), 1736-1766. Anwar, M. (2018). Business model innovation and SMEs performance—does competitive advantage mediate? International Journal of Innovation Management, 22(07), 1850057. Jurksiene, L., & Pundziene, A. (2016). The relationship between dynamic capabilities and firm competitive advantage. European Business Review. Reguia, C. (2014). Product innovation and competitive advantage. European Scientific Journal, 1(1), 140-157. Weerawardena, J., & Mavondo, F. T. (2011). Capabilities, innovation, and competitive advantage. Industrial Marketing Management, 40(8), 1220–1223. https://doi.org/10.1016/j.indmarman.2011.10.012
The Organization’s Response to ChangeOverviewFrom the same case that you have chosen for Deliverables 1 to 3, you will advise the CEO on how best to position the organization to be responsive to chang
Running head: strategy developmnet 0 Strategy Development Introduction In business, the most influential and critical factor is strategy. It can potentially make or break the company. The future of any organization directly depends upon the strategies it has. The current paper will describe the strategy and its appropriateness to Chipotle Mexican Grill. The study will summarize the strategies the management of the company took to the company’s recent development. The paper will also analyze the strategies adopted by competitors to rule the market. Further, the study will analyze the restaurant industry to help the CEO develop competitive strategies. Lastly, the study will propose one-year and five-year goals for the company to increase sales and ensure growth and success. Definition of Strategy and its appropriateness to Selected Company The strategy is something that is known as planning used for achieving some targets or goals. Essentially, such goals or targets are concrete, and their achievement can improve the business (Kohne, 2019). The definition of strategy best fits the selected company: Chipotle Mexican Grill, as the company incorporated strategy to achieve some long-term goals and successfully achieved those goals. The company started its business operation as a traditional food manufacturing company. In 1993, the company’s initiation aimed to serve people with food delivery without fast food experience. According to Grant (2016), as time passes, they developed strategies such as the availability of high-quality ingredients, innovative cooking style, and unique interior design to grow in the market. They put the strategy into practice, and today, they are known as a renowned fast-food chain due to quick-service restaurants. Their strategy to provide adequate dining facilities to the customers as a quick-service restaurant is becoming more popular in the U.S. Chipotle Mexican Grill’s strategy to equip their fast food with healthy, quality, and tasty ingredients proved to be true since they showed respect in their actions while dealing with farmers, using animals, and protecting the environment. Their strategy to provide food with integrity is a unique idea that made its famous brand. The company started the strategy of “Food with Integrity” in 2003. The idea was unique, giving them a competitive edge in the market since consumers with health concerns warmly welcomed their idea and shifted to the brand. The company adopted the strategy to ensure its customers that healthy food was no more a dream and could easily access healthy, quality, and tasty food at the doorstep of Chipotle. Though McDonald’s and Yum! The brand is dominating the fast-food market, and Chipotle Mexican Grill is a small company compared to the two giants. Yet, the latter has been performing very well, taking 12.24% growth in its overall revenue. The company effectively achieved 6.93% of the market share in the third quarter of 2020, dominating the market successfully ((CSIMarket, 2020). Summary of Strategies Chipotle Mexican Grills’ Management took Chipotle’s strategy includes quality food, fresh component, swift delivery, and low price; however, the most dominating strategy that helped the company grasp considerable market share is the novelty in the adequate dining facility and fast food delivery. The company’s management took the initiative of “Food with Integrity” in early 2000 to attract customers concerned about a healthy diet. The company engaged the farmers to take fresh ingredients as a unique idea and difficult to adopt by competitors immediately. The management initiative helped the company increase its market share by expanding business operations throughout the U.S. (Nanjapla, 2016). The expansion of any business keenly depends upon the strategies taken by its management. Apart from other components, capital is one of the most critical components that strengthen the expansion decision. Steve Ells, the found and CEO of Chipotle Mexican Grill, did not restrict the menu of the company to Mexican foods only but expanded it to many other worlds’ famous food. That is the reason the company opened its Asian Kitchen in 2011. Since America is a place where millions of South Asian population lives, the strategy attracted that population, leading to drastically increasing its sales. Competitors’ Strategy Analysis Competition in a market is apparent; some markets have low competition while others have stiff competition. In a market where stiff competition prevails, new entrants always face difficulties while the key players also keep changing their business strategies to remain competitive. The main competitors of Chipotle Mexican Grill include Moe’s Southwest Grill Restaurant and Qdoba Mexican Eats. Moe’s Southwest Grill Restaurant compete for the market by adopting a fun and friendly environment for its customers. Amazingly, they use Movie and TV stars in their menu items that make them unique. Moe’s market strategy is different since it believes in investing in local stores to attract more customers. The company spent more than two million dollars on a community outreach program reaching more customers countrywide. Moe’s Southwest Grill Restaurant’s friendly atmosphere attracts more and more customers because people do not come out of their homes for a meal only but also for hanging out and fun (Kulikowski, 2013). Qdoba Mexican Eats’ specialty is Mexican foods; the company has expanded its business outlets and franchises to more than 700 locations. Most of the business analysts believe that Qdoba is the main competitor of Chipotle. The company did not initiate a franchise facility for individuals before 2019. The company’s ownership transferred to Apollo Restaurant in 2018, selling all the rights of the company to the big giant in fast food. The company has been using mobile phones as a marketing tool since the SMS initiative was designed to grasp more customers’ attention (Kats, 2020). Industry Analysis for CEO of Chipotle to Develop Strategy and SWOT Analysis of Chipotle Before the year 2019, the restaurant industry has been growing. The novel Covid-19 has drastically changed the whole world, decreasing the overall sales and growth of industries. The restaurant industry has suffered a lot just because of the pandemic since it restricts people to gather. By the end of 2017, the hotel and restaurant industry’s contribution to the country’s Gross Domestic Product (GDP) was 4%, which was a considerable percentage. During the year 2019, the total amount of revenue generated by Chipotle Mexican Grill was $1.21 billion, which was a considerable amount earned by a company against its competitors (Lucas, 2019). The SWOT analysis of Chipotle reveals the following facts and figures; Strengths Weaknesses Strong Leadership Limited Supply chain Attractive Internal Environment Limited Franchising Facility Sufficient Cash flow Lack of Diversity Empowered Workforce Limited Menu Social Media Presence Restricted to the U.S and Canada Networking with Farmers The higher cost of Ingredients Entrepreneurial Culture   Training and Development   Opportunities Threats Growth in International Market Strong Competition Attractive for Health-conscious People The outsourcing strategy is Limited. The inflation rate is low. Increase in food prices Availability of food items Prevailing Pandemic Performance Goals for One Year and Five Years Since the culture of the organization is entrepreneurial, it should be shifted to customers. The next one-year goal for Chipotle is related to building a customer-oriented culture. An organization’s success depends on customer satisfaction since one satisfied customer can potentially refer to five more customers to the company. Like Qdoba Mexican Eats, the company should focus on social media and another digital marketing initiative for the next year. The use of digital tools will increase the sale yet the customer’s satisfaction. People are more interested in gathering instead of eating so the provision of free Internet facility within the premises will contribute to the customer’s satisfaction. The fast-paced world has changed the eating habit of people and made them busier. They want to get a Pizza in a minute after placing the order so that the active responding process will benefit the company. The company has a limited supply chain that is restricting the company from expanding more. The goal for the next five years should be starting business operations at different locations. The opportunity of the franchise to individuals will be a great addition. Chipotle Mexican Grill should not be restricted to the U.S and Canada only, but it should start its operation in South Asian countries where people are more involved in eating tasty foods. Conclusion A strategy is an essential tool for a company to ensure growth and success. Organizations perform well if they have concrete strategies not only on paper but in practice. Chipotle Mexican Grill is dominating the market since it has some concrete business strategies. The company can expand its business operations if it focuses on the recommendations mentioned above. The fast-food industry is undoubtedly a growing market that has potential opportunities for existing companies and new entrants. The only thing is a strategy, whether related to business, marketing, finance, HRM, or society. All the strategies can help the business grow and compete. References CSIMarket. (2020). Chipotle Mexican Grill Inc. Retrieved January 21, 2021, from https://csimarket.com/stocks/compet_glance.php?code=CMG#:~:text=Total%20Segment%20Market%20Share%20Q3,share%2C%20to%20approximate%206.93%20%25. Kats, R. (2020). Qdoba Mexican Grill advances mobile marketing initiatives with SMS. Retrieved January 22, 2021, from https://www.marketingdive.com/ex/mobilemarketer/cms/news/messaging/6655.html Kohne, A. (2019). Business development customer-oriented business development for successful companies. Wiesbaden: Springer Vieweg. Lucas, A. (2019, April 24). Chipotle earnings top estimates as digital sales double boost same-store sales outlook. Retrieved January 23, 2021, from https://www.cnbc.com/2019/04/24/chipotle-q1-2019-earnings.html Nanjapla, R. (2016, January 15). A Look at Qdoba Mexican Eats’ Business Model. Retrieved January 24, 2021, from https://marketrealist.com/2016/01/look-qdoba-mexican-grills-business-model