Strategic planning of Chipotle Mexican Grill

Strategic Planning

Strategic planning is the operation of an organization that defines its process or direction and makes decisions about allocating resources inside the company to pursue its plan of action (Supriyanto, 2015). Strategic planning for any firm ensures that the company has a long market lifetime and can compete in the market with competitors delivering the same product or service. Furthermore, the goal of strategic planning is to ensure that a corporation can safely withstand both internal and external influences that may endanger its operations (Supriyanto, 2015). This article investigates Chipotle Mexican Grill, which has surprised the fast-food industry with its rapid growth. This paper looks into Chipotle Mexican grill that has shocked the fast-food businesses on its rise despite potholes along the way. Additionally, the article discusses strategies set by the Chipotle Mexican Grill; also, assess the competitors of Chipotle and finally an analysis of the chain of the market.

Examine the Company's Fit with Strategy

Examine how strategy fits the chosen company and its situation, support your response

The business currently has shown reports that the company has raised its sales by 18% as compared to last year. Additionally, in the reports from the firm, its revenue has increased by approximately by 28%. Chipotle has been facing scandals that adversely affected the operations of the business over the years. The firm reportedly was faced with the norovirus scandal that sickened about 300 people across several states and 22 allegedly hospitalized due to an outbreak that hit the chain in the year 2015. Secondly, the chain's top marketing officer got involved in a drug trafficking case that further embarrassed the reputation of the business in the market. The business' strategy in the market seemingly has helped the firm maintain its name in the market as at the pace sales are reportedly growing, the plans in place have helped the chain withstand the forces against the business in the market (Grill, 2016).

Summarize Main Strategies

Summarize main strategies that the company took leading to the recent development

The glory of the chain had gone down as the scandals had hit the business' market and the firm seemingly is beleaguered. There was a need to strategize plans to revive the glory of the chain across the states that Chipotle operates. The first strategy in place was to ensure an excellent clients' experience in the chain. Every customer wants to have the best experience for every service or product they pay for in exchange. Thus, Chipotle had to raise the standards of operations and outlook to attract more customers. Evidently, the strategy is working, and more clients seem to be flowing into the chain every day (Thanos, & Clark, 2017).

Secondly, the chain had to focus on innovation. Innovating new methods and ways to provide the best products and services into the market championing innovation aims at attracting new customers and the previous customers back into the chain. The innovations include improving on techniques of marketing that will make more clients drawn. Additionally, the chain focused on getting rid of unnecessary complexities in its operations. The removal of a redundant complexity that has been in the firm over the years enables the efficiency of service to customers and ensures minimal errors in its operations (Thanos, & Clark, 2017).

Chief Competitors and Their Strategies

Determine the company's chief competitors, three strategies used by competitors and whether the strategies are successful. Support the response.

Chipotle is a fast food business that operates across several states. The company aims to provide quick meals of Mexican style to its clients. The main competitors of the Chipotle grill are Rubio's coastal grill, Taco Bell, and Panera Bread, Panera Bread being the top competitor despite the fact that Panera is merely cuisine niche of Chipotle. One of the strategies used by the competitors is the establishment of chains across several states to ensure they reach a broad market in the fast food industry. Secondly, the competitors use a strategy of starting a new ad campaign to beat the other competitors in the market. For instance, Panera Bread president in the year 2016 bluntly posted on social media that the world is currently past the Chipotle era. The aim of the strategy is winning over the competitors by drawing a negative impression on customers towards the clients. Also, Chipotle competitors are using an approach that they look into the mistakes and challenges that faced Chipotle years ago and try their best not to repeat the same errors thus making them likely to succeed in the market (Thanos, & Clark, 2017). The strategies above used by the competitors of Chipotle are a success since they are aimed to give them a glory over the other competitor in the market.

Industry Analysis

The fast-food industry is growing at a high pace, thus the demand for fast food rising than before. Many people these days seem to like quick services and ready products; therefore, the fast-food industry is growing. Chipotle Mexican grill currently is regaining the pace in the market to compete fairly with other businesses despite the downfalls experienced before by the firm. The chain's glory is seemingly going to where it was previously and maybe be the top in the industry as before. The reason for its success is the capability to strategize its resources across the states. In that, the firm has chains with enough employees and the uniqueness of the company to provide foods with natural ingredients which are turning shape in the modern world, thus making Chipotle gain glory again (Watson, 2009).

Performance Goals

Propose at least three performance goals for the company in the next one year and five years

Performance goals for a company aim at helping employees work on the right path towards achieving the set targets by a business. For the next one year, the firm should ensure that Chipotle regains its glory. Secondly, the business should have secured the market and be on top of the other companies of the same niche. Lastly, the company should ensure there is top management and lower employees' effective communication to enable effective interaction during sharing of ideas. For the next five years, the business should ensure high food security is no longer a story in the business' market. Secondly, the firm should ensure innovations are a priority to ensure that the competitors do not reach the standard of Chipotle. Additionally, the company should establish more chain branches across more states and increase the numbers of subsidiaries in countries where the demand is higher to ensure the market is secured.

Conclusion

In sum, for the success of any business in the market, strategic planning is significant. Strategic planning gives directions on how to handle both internal and external forces that eye a business and enable a company to have plans underway to solve future challenges that are likely to face the business.

References

Grill, C. M. (2016). New Chipotle Food Safety Procedures Largely in Place; Company Will Share Learnings from 2015 Outbreaks at All-Team Meeting. Press release, January, 19.

Supriyanto, A. (2015). Knowledge Management Implementation, Strategic Human Resource Practices and Organizational Performance Mediated by Strategic Planning. Business And Management Research, 4(1). http://dx.doi.org/10.5430/bmr.v4n1p90

Thanos, L. M., & Clark, S. D. (2017). A Qualitative Exploration of Culturally-Pluralistic Segmentation among Millennials. International Journal of Marketing Studies, 9(4), 1.

Watson, V. (2009). ‘The planned city sweeps the poor away…’: Urban planning and 21st-century urbanization. Progress In Planning, 72(3), 151-193. http://dx.doi.org/10.1016/j.progress.2009.06.002