12 Sep Using your approved strategic plan from the Wk 2 – Strategic Plan Research assignment, complete the
Using your approved strategic plan from the Wk 2 – Strategic Plan Research assignment, complete the following:
Create a 5- to 7- slide Microsoft® PowerPoint® presentation, with speaker notes and visuals on each slide, that will sell your identified improvements to the strategic plan, based on your Wk 4 analysis.
Include the following:
- Summarize the threats and challenges you have identified within the current strategic plan.
- Determine how to execute the strategic initiatives in order to address the threats and challenges.
- Explain proposed process improvements.
- Assess whether additional resources are needed.
- Describe how resources should be used in the application of the strategic plan.
- Utilize KPIs to justify the financial investment and to measure the success of the proposed improvements to the strategic plan.
- Justify your recommendations based on anticipated Return on Investment (ROI).
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STRATEGIC PLAN IN COMPANIES 2
Strategic Plan Research
Strategic Implementation and Implementation
Strategic Plan
Strategic plans refer to organizational game plans aimed at attracting consumers, achieving a competitive advantage, and increasing profitability. A company's strategic plan succeeds due to its ability to compete differently with its competitors by operating uniquely and innovatively compared to other ventures within the same industry. Organizational strategic plans evolve with time because, during operations, managers can decide to improve on the strategy, or a company might face unanticipated developments and market conditions that can force managers to change their strategies (Plowman, 2019). Therefore, a strategic plan must be consistent, have a durable competitive advantage and have an outstanding performance. I will use Chipotle Mexican Grill to analyze the strategic plan within the restaurant or fast-food industry.
Chipotle Mexican Grill is a restaurant that was founded in 1993 with the idea of serving quality food to its customers. The company has been using high-quality ingredients, receipts, and cooking methods in making their food. The restaurant and Chipotle stores are uniquely designed with distinctive materials, giving the restaurant an architectural style that is more natural and less modern. Twenty years into the company's operation, Chipotle had opened over 2000 stores across several states in the US. However, from 2008 through to 2018, the company has faced ethical blows in its operations, especially after the FDA and other medical organizations established the increasing rates of food poisoning in its operations (Thompson, 2019). This led to the closure of all Chipotle stores in 2016, giving the company a few months to rethink its strategic plan. With the negative publicity the company had received, its reputation in the food market became a concern. The company also lost consumer trust, loyalty, and confidence, making it necessary to develop a new strategic plan that will restore its previous relationship with the consumers.
When Niccol took over the company amidst all these issues, he focused on strategically doing all he could to win back consumer loyalty, trust, and confidence. The company is focused on maintaining the current consumers and attracting potential ones. This is achievable through the company's competitive advantage strategy, which focuses on differentiation which targets a narrow market. Chipotle is targeting a narrower market by giving its consumers variations in product choices, which is a unique way of operation compared to its competitors, such as Moe's.
Chipotle’s external and internal environments play a vital role in its strategic planning, which is evident in its SWOT analysis. As it focuses on regaining and restoring consumer trust and confidence, the company management ensures that it works hard on outdoing its competitors because they are the biggest threat to its operations. Therefore, Niccol's management has resolved on using a differentiation strategy to gain a competitive advantage. Today, consumer preferences have changed, and many people are health conscious, unlike before (Thompson, 2019). Therefore, differentiation and focusing on natural ingredients in foods will be essential. Furthermore, Chipotle's corporate social responsibility and environmental sustainability are exercised in its choice of natural ingredients and sustainable process of food production. The company is also focused on producing and selling health-conscious foods to ensure the safety of consumers across the states.
References
Plowman, S. (2019). A Strategic Audit of Chipotle Mexican Grill, Inc.
Thompson, A. A. (2019). Chipotle Mexican Grill’s Strategy in 2018: Will the New CEO Be Able to Rebuild Customer Trust and Revive Sales Growth?.
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Strategic Improvement3
Business Plan Assessment: Strategic Improvement
Strategic Planning & Implementation
9/6/2021
Strategic Improvement
The purpose of the strategic plan in week two assignments was to show how Mexican Chipotle plans to work towards its damaged reputation and earn consumer trust and confidence. As highlighted in the assignment, Chipotle has faced ethical blows in its operation, which led to its closure. However, after resuming its functionality, the company had lost its positive public image, affecting consumer trust and confidence. Therefore, developing a great and workable strategic plan is vital and paramount for Chipotle because it will restore its public image and improve its competitive advantage and attract more customers. Thus, Chipotle's strategic plan aims to attract customers, increase the company's competitive advantage, and increase the general productivity of the company.
The key objectives of Chipotle’s strategic plan are to maintain its existing customers and do the best it can to attract more customers. Such objectives can only be achieved if the company strategically plans and approaches market development aspects. For instance, after Niccol took over, he employed differentiation as a market development initiative in the company (Thompson, 2019). This is a strategy that targets a narrow market, hence improving the company’s overall competitive advantage. Chipotle intends to give its customers variations of products to choose from with a target for a narrow market. This will increase the competitive advantage within the company and strengthen its overall operations in the business market.
The strategic plan reveals that Chipotle is focused on improving its processes to ensure the safety of both the people and the environment. The company intends to strategically differentiate its products, with a focus on the production of food with only natural ingredients. Initially, Chipotle used to process products from both natural and synthetic materials. However, after the ethical blow where many customers suffered from food poisoning, the company has learned its lesson and resolved to focus on the safety and health of the consumers (Thompson, 2019). Niccol has ensured that Chipotle sources its rice, beans, and cilantro from organic suppliers. This implies that Chipotle is focusing on having the best food quality instead of saving money on ingredients. This will eventually turn the company into a healthy living entity, which will change the narrative regarding the reputation of the company into what consumers love.
Chipotle has a performance culture based on employee development and promotion of employees from within the company. Employees are given a path of ascension and opportunities to advance their employment levels and job positions. More so, the company provides the workers with a balanced work-life and financial incentives to the employees.
The company has also resolved on trying things on a small scale before transitioning to a larger scale. More so, unlike the previous CEO, Ells, Niccol intends to give its consumers what they ask for. For instance, most of its consumers have asked for nachos and Quesadillas in their menu; therefore, Niccol has asked his team to experiment with this on the menu and in the recipes. The company has also worked on its product and service delivery by hiding consumers' calls regarding the need to have a loyalty program. Niccol and his team tested the loyalty program in more than 150 locations, which ensured that by 2019, Chipotle had digital pickup points to allow people to pop up and picking their orders without queuing for long.
The key performance indicators at Chipotle include product mix performance value, which are the frequently ordered items on the menu; the rate of client retention; the rate of customers in house per hour; and the online order values and reward anniversaries. These KPIs will help the company to have robust marketing effort segmentation.
I would recommend that Chipotle’s management should carry out employee training and awareness to ensure that they work alongside the strategic plan. More so, the company should have a digital medium to diversify its customer base through reviews. The only means to adapt to the changing environment is by training the relevant stakeholders as well as recruiting talents that resonates with the company’s vision.
In conclusion, Chipotle is working hard to restore its reputation, consumer trust and confidence after its 2008-2018 fallouts. Having a great strategic plan is essential to achieving these objectives. Therefore, Niccol, Chipotle's CEO, is strategically doing all he can to ensure that the consumers are safe by using organic ingredients and giving them what they love instead of saving money.
References
Thompson, A. A. (2019). Chipotle Mexican Grill’s Strategy in 2018: Will the New CEO Be Able to Rebuild Customer Trust and Revive Sales Growth?
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