In 2016, how attractive/ troublesome is CMG’s situation? Did CMG have any core c
ID: 425762 • Letter: I
Question
In 2016, how attractive/ troublesome is CMG’s situation? Did CMG have any core competencies and if yes, what were they? Did it lose them in 2016 and if yes why?
How well or poorly did company respond to the episodes and why? How far are its future prospects diminished compared to their situation before the multiple episodes of health hazards in 2016 [and 2017 too]? Will it recover its customer loyalty and business success in future?
CASE 14 Chipotle Mexican Grill in 2016 Can the Company Recover from Its E. Coli Disaster and Grow Customer Traffic Again? connect Arthur A. Thompson The Uniuversity of Alabama eaded into August 2015, Chipotle (pronounced all remaining food products, and sent home the chi-POAT-lay) Mexican Grill's future lookedaffected employees. Employees who tested posi- rosy. Sales and profits in the first six months ive for norovirus remained off duty until they were cleared to return to work. County health officials also inspected the facility on two occa year ever, given the opening of over 200 new res sions and rendered passing grades, despite find ing several minor violations. The restaurant containing health-conscious and freshly preparedreopened the following day, and no further food of 2015 were at record-setting levels, and expecta- tions were that 2015 would be the company's best taurants, ongoing enthusiasm for its menu offerings ingredients, and growing customer traffic at Chipo- tle's existing restaurant locations. But over the next five months, a series of events occurred that caught customers and Chipotle top executives by surprise poisoning incidents occurred. . In October, 55 people became ill from food poi soning after eating at 11 Chipotle locations in the Portland, Oregon, and Seattle, Washington, areas. Medical authorities attributed the illnesses to a strain of E. coli bacteria typically associ sickened 64 people who had eaten at a Chipotleated with contaminated food. Most ill people had eaten many of the same food items, but subse ess to contaminated tomatoesquent testing of the ingredients at the 11 Chipote restaurants did not reveal any E. coli contamina . In August, 80 customers and 18 employees at a on. (When a restaurant serves foods with several ingredients that are mixed or cooked together and reported gastrointestinal symptoms of nausea,then used in multiple menu items, it is difficult for medical studies to pinpoint the specific ingre- dient or ingredients that might be contaminated.) rus." Norovirus is a highly contagious bug spread A review of Chipotle's distribution records by state and federal regulatory officials was unable contact with contaminated surfaces; the virusto identify a single food item or ingredient that could explain the outbreak. Nonetheless, out of an abundance of caution, Chipotle management .In August, a salmonella outbreak in Minnesota Mexican Grill. The state's Department of Health served at the restaurant. Chipotle Mexican Grill in Southern California vomiting, and diarrhea that medical authorities and county health officials attributed to "norovi- contaminated food, improper hygiene, and causes inflammation of the stomach or intes- ines, leading to stomach pain, nausea, diarrhea, and vomiting ing, the restaurant voluntarily closed, threw out Copyright O2016 by Arthur A. Thompson. All rights reserved. . After the reported food poison-Explanation / Answer
1. In 2016, how attractive/ troublesome is CMG’s situation? Did CMG have any core competencies and if yes, what were they? Did it lose them in 2016 and if yes why?
One of the major core competencies that Chipotle has had is it is a restaurant that has a high-quality ingredient and fast food service. Chipotle takes much pride in delivering fresh food to their customers. Chipotle uses a vast variety of organic and natural ingredients that adheres by their slogan “Food with Integrity”. Another factor that Chipotle prides itself upon is they get their ingredients from farms that do not use growth hormones, it is a freshness of natural organic ingredients that cannot be found in many restaurants. Chipotle is known for its aesthetically pleasing interior, and its great customer services. In February 2016, Chipotle shut all its restaurants for a period of four hours to conduct food safety training for all store employees. In mid-March, Chipotle reported that January 2016 sales fell by an average of 36.4%. The company was only expecting to lose $1 per share not $3.95. In order to draw its customers back, Chipotle said they will be conducting mass-mail outs of coupons, offering special deals. Chipotle decided to change around its food safety procedures such as eliminating pathogen testing on some of its ingredients. Consequences were then faces as later in April 2016, revenues of $834.5 million were 23.4% lower than the $1.09 billion reported in the first quarter. Chipotle ended up with a net loss of $26.4 million versus a net profit of $122.6 million in its prior year.
2. How well or poorly did company respond to the episodes and why? How far are its future prospects diminished compared to their situation before the multiple episodes of health hazards in 2016 [and 2017 too]? Will it recover its customer loyalty and business success in future?
I believe Chipotles approach to its various episodes was rather professional. Chipotle decided to make sure it abided by its goals of developing an industry-leading food safety program utilizing the assistance and recommendations of highly respected experts. At this point Chipotle had just begun its process to improving its companies perceptions and encouraging an overall stronger foundation for their company. It was a step in the right direction as Chipotle had initiated things such as internal training programs, offering paid sick leave to employees to reduce incentives for employees to work while sick, implementing stricter standards for food preparations, as well as straightening efforts to ensure that the company remained in full compliance. Chipotle will indeed recover its successes in the future, especially currently living in the year 2017 we see how big Chipotle has expanded and how popular it has still remained. They have offered new essential techniques that have made many of their restaurants thrive and increase their overall net profits. They have implemented such things as catering and serving order quickly out to their customers. Chipotle has still thrived on being an organic “Food With Integrity” cooperation which is what attracted many people at first and still continues to attract the audience. They continue to offer a more healthier fast food pace source for its customers and are doing so while still abiding to their vow to be a fast food restaurant that adheres by its organic all natural ingredients.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.