Question

What are the four major external threats facing Chipotle and the four major opportunities? Realizing the importance of quantification in stating key factors, how could your factors be quantified? Identify specific estimates (numbers) for your factors. Your response should be at least 200 words in length.

Answer 1

Four major external opportunities which are available for the Chipotle are as follows-

A. it can increase the revenue per restaurant because it is not still fairly priced and it has the room and the flexibility to increase without much cut in its demand.

B. It can venture into the international opportunities as well as it is presently catering to the domestic country only and it can expand into The Other markets through merger and acquisitions or through opening of branches.

C. It can also increase the prices of its products as these are highly health conscious customers who will pay anything for their products and who would not be minding price increases as they are quality based customers

D. it also has various other growth opportunities by taking over the supply chain network and venturing into the food delivery business

Major threats to Chiptole business are as follows-

A slowing sales growth is one of the major factor for this company as the growth has not been consistent and it has slipped from double digit to single digit

B. Tightening regulation in the labour market is also not helping the company

C. the company is not able to dominate the supply chain network and it is facing supply chain issues

D. it is getting attacked by large number of critics for its business structure and style.

These factors can be quantified through analysis of the past trends and other companies reporting standards and comparing with the industry standard.