Business Plan Assessment: Part 1 – Strategic Improvements Using your analysis of the strategic plan from the Wk 2- Strategic Plan Research assignment, comp
Business Plan Assessment: Part 1 – Strategic Improvements Using your analysis of the strategic plan from the Wk 2- Strategic Plan Research assignment, complete the following:
Analyze in 350 to 525 words the:
Purpose of the strategic plan
Market development and how your ideas fit
Development of people
Product/service – How do you deliver? Is there a way to improve quality over time to differentiate?
Key performance indicators (KPIs) to measure performance over time
Recommend initiatives to support your objectives to improve the strategic plan.
Identify ways to adapt to the changing business environment. 1
STRATEGIC PLAN IN COMPANIES 2
Strategic Plan Research
Strategic Implementation and Implementation
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.
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?.