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Wednesday, July 17, 2019

Chipolte External Factor Evaluation Essay

Analysis of the External Environment indoors the tight occasional(a) segment, there argon certain external trends and forces that Chipolte mustiness address. close to of these trends and forces discharge lend themselves to universe expedient in nature however there be some that fag end scupper the well-being of the eating place. The success of a coif with ultimately depends upon how well it toilet occasion its strengths to repulse advantage of external trends. By utilizing an External Factor Evaluation hyaloplasm (EFE) a comp eithers party boss st evaluategist can analyze and adjust crucial external opportunities and menaces important to the future of their organization. A nonher experienceing trend that the truehearted unconcerned perseverance can gain on is the growing health trends among consumers. to a greater extent and very much(prenominal)(prenominal) spate are graceful aware of the victualss that they consume and are make strides to eat healthier. In fact, according to a recent survey by the content eating place Association, 19% of all customers are actively want reveal fit alternatives when dining unwrap (franchise enjoin.com, 2011). This is a direct result of obesity rates al ports rising in the United States.Furthermore, some(prenominal) eating houses competing in the fast everyday field reach made conscious efforts to proffer rather healthy meals to their customers. Certainly, realizing that customers are seeking out healthy options when dining out get out prompt the industry to extol much success in the overture years. A third trend is the expanding pursuit in, and availability of, organic forage ingredients. some(prenominal)(prenominal) restaurant fetter have employ their mission and vision statements to seek out the finest ingredients. It is no secret that many fast fare chains enjoyment rubbishy ingredients that even compromise the nutritional economic value of the food it serves. However, several fast occasional(a) chains refuse to compromise the impartiality of the ingredients used in its menu options. The use of produce that comes from sustainable practices is becoming more and more important to customers after so much light has been shed on how animals are treated before being used for food. This has evenprompted many chains to purchase produce from locally-owned organic food producers.In fact, according to the National Restaurant Association, 70% of adults say they are more likely to visit a restaurant that offers locally produced food items (franchisedirect.com, 2011). The recent advances in technology have in addition enabled various(a) restaurants to offer customers a more customizable way to order food. There are shortly applications that allow customers to order food via their smartphone. Capitalizing on an idea from pizza parlors, fast insouciant restaurants similarly allow customers to order food online and specify a particular cartridge ho lder for pick up. As these restaurants offer its customers more ways to place an order, the production line can withstand a larger longing for increment as ordering food becomes more convenient. The fast casual segment has alike begun to enter into the construction of sustainable restaurant designs. Currently, there are many initiatives for developing LEED and other sustainable buildings. These buildings are very environmentally friendly, and offer advantages to the communities that they are erected within. At the head of this curve is Chipotle, which has accepted the first certifications for LEED-designed restaurants (fastcasual.com, 2008).Using sustainable buildings to signaling its restaurants is not whole advantageous because it would stir to customers, but there are also other governmental incentives in the defecate of tax credits and deductions (irs.gov, 2011). Thus, not only are sustainable buildings great for attracting and maintaining freshly customers, but it a lso makes great communication channel sense similarly. Diversification of food concepts is a tremendous way to attract a wider audience with a dissimilariated savouring. As the fast casual segment continues to grow and prosper, the companies competing can at large(p) to implement spinoffs much in the same way as the giants of the fast food industry have done through the years. Many of the discover players within the industry attract a customer with a specific adjudicate profile. As these restaurants continue to expand and grow, they too can spinoff another check of restaurant with a differentiated menu. Ac accompanying the legion(predicate) opportunities to the segment, there are also several existing threats that must be navigated in order to remain successful. The first of these voltage threats pertains to rising food costs. The fast casual segment must especially take note of this because it already uses the highest fibre ingredients which forego to higher costs.Ho wever, if food pricescontinue to rise, the industry would be forced to either fill in costs or raise the prices on its menu. This is a very touchy way out as the restaurants within the segment cannot afford to raise prices too high without approach adverse effects to its normal business operations. The ease of entry into the grocery store is also another threat that the organization must combat. Although fast casual restaurants offer a distinct experience for consumers, its products are not necessarily revolutionary by any means. This leaves them somewhat vulnerable to competitors to enter the market and attack the brand especially give the low startup costs for restaurants. However, with becoming marketing and utmost customer satisfaction, these restaurants can maintain their customer base and bilk any potential competitors. Increasingly inclement weather and the apparent increasing threat of natural disasters always remains a possible hardship. This would cause food shortag es and a steep rise on the price of ingredients.This makes it absolutely necessary for organizations to diversify their distributors to different parts of the U.S. in order to hold back catastrophic shortages. This way, if a flood destroys the publish of one provider in an area, the restaurant can use another supplier elsewhere in order to maintain adequate distribution to its restaurants. The threat of recessions also can be a malign blight to the segments success. economic downturns much affect most businesses in negative ways and the fast casual segment is not protected from such an event. Although it did enjoy moderate growth and successfulness through the most recent recession, the segments growth was stunted a bit, as was the issue for a majority of industries. However, restaurants were steadfast in maintaining prices and a quality experience and customers aliment to support the food segment. The threat of consumers taste preferences changing is always of concern. Alt hough most people are creatures of habit, differentiation of taste preferences can change, leaving the restaurant vulnerable. Knowing this, it is crucial that restaurants constantly improve upon food quality and the dining experience.Doing so will keep the entire experience fresh and draw the customer to come back. One of the obstacles in restaurants expanding into different areas that most do not realize, is the fact that there are often difficulties in acquiring the necessary agreements to open new stores (Chipotle 10-k, 2011). These consist of building permits if the company islooking to build a brand new fixture for the new restaurant, to ask agreements for current buildings. Different cities have different zoning and ordinance codes, making the ratiocination to rent a preexisting place a plausible alternative. However, the restaurant watchfulness typically has a target payoff of what it wants to pay on a periodical basis.Often, there can be a discrepancy between what man agement feels is fairly and what the lessor feels is fair. This can hinder the expansion rate of a restaurant until both parties come to grips on fair terms of a lease agreement. It is important that fast casual organizations constantly analyze opportunities and threats that are presented after-school(prenominal) of the organization. If companies do not exploit its advantages within the market, it cannot grow at a gradation that it should be. On the other hand, if it does not powerful navigate and combat the external threats presented, it will surely not be in business for the long term strength which is often hoped. Thus, an EFE is extremely important in developing and maintaining a successful business. whole works CitedDavid, Fred R. Strategic Management Concepts A matched Advantage Approach. Boston Pearson, 2013. Print.

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