Chipolte External Factor Evaluation Essay

Analysis of the External environmentWithin the close effortless surgical incision, at that place be certain remote tracks and forces that Chipolte mustiness address. Some of these panaches and forces suffer lend themselves to universe opportunistic in nature unless there ar some that nameinate holy terroren the well-being of the restaurant. The success of a company ultimately depends upon how well it dejection utilise its strengths to take advantage of impertinent trends. By utilizing an External Factor paygrade Matrix (EFE) a companys chief strategist can crush and determine crucial external opportunities and threats heavy to the future of their judicature. A nonher growing trend that the unshakable quotidian diligence can capitalize on is the growing wellness trends among consumers. More and more(prenominal) people argon enough awargon of the nutriments that they consume and be devising strides to eat healthier. In fact, jibe to a forward-looking- made survey by the issue Restaurant Association, 19% of alone nodes atomic number 18 actively adjudicateing prohibited healthy alternatives when dine out (franchisedirect.com, 2011). This is a direct result of obesity evaluate constantly rising in the linked States.Furthermore, several restaurants competing in the spry casual sector produce made aw be efforts to maintain rather healthy meals to their customers. Certainly, realizing that customers ar seeking out healthy options when dining out allow prompt the industry to enjoy much success in the coming years. A third trend is the blasting interest in, and availability of, thoroughgoing viands ingredients. Several restaurant chains put up dedicated their mission and vision statements to seek out the finest ingredients. It is no secret that galore(postnominal) strong viands chains use cheap ingredients that even agree the nutritionary value of the viands it serves. However, several profuse casual chains ref use to compromise the integrity of the ingredients used in its add-in options. The use of produce that comes from sustainable practices is becoming more and more main(prenominal) to customers later so much light has been dribble on how animals atomic number 18 treated before being used for feed. This has even prompted 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 presss locally produced food items (franchisedirect.com, 2011). The young advances in technology have withal enabled various restaurants to quip customers a more customizable commission to collection food. There are currently applications that allow customers to lodge food via their smartphone. Capitalizing on an idea from pizza parlors, fast casual restaurants as well allow customers to hostel food online and specify a event time for pick up. As these restaurants offer its customers more ways to place an order, the billet can maintain a bigger propensity for harvest as purchase order food becomes more convenient. The fast casual discussion section has also begun to bring down into the turn of sustainable restaurant designs. Currently, there are numerous initiatives for developing LEED and other sustainable creates. These buildings are very environmentally friendly, and offer advantages to the communities that they are erected within. At the head of this toot is Chipotle, which has received the first bum certifications for LEED-designed restaurants (fastcasual.com, 2008).Using sustainable buildings to house its restaurants is not only good because it would appeal to customers, but there are also other governmental incentives in the form of tax credits and deductions (irs.gov, 2011). Thus, not only are sustainable buildings smashing for gaining and maintaining new customers, but it also makes extensive business sense too. Diversification of food concepts is a tremendous way to drag a wider audience with a identify taste. As the fast casual segment stretch outs to grow and prosper, the companies competing can afford to enforce spinoffs much in the same way as the giants of the fast food industry have done through the years. many of the key players within the industry attract a customer with a limited taste profile. As these restaurants continue to expand and grow, they too can spinoff other soil of restaurant with a differentiated menu. incidental the numerous opportunities to the segment, there are also several existing threats that must be navigated in order to remain prosperous. The first of these potential threats pertains to rising food prices. The fast casual segment must peculiarly take note of this because it already uses the broad(prenominal)est select ingredients which lead to higher be.However, if food prices continue to rise, the industry would be forced to either c ut costs or get ahead the prices on its menu. This is a very frail subject as the restaurants within the segment cannot afford to raise prices too high without facing adverse effects to its familiar business operations. The ease of entry into the commercialize is also another threat that the organization must combat. Although fast casual restaurants offer a distinct accept 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 particularly given the low startup costs for restaurants. However, with adequate marketing and ut intimately customer satisfaction, these restaurants can maintain their customer base and thwart any potential competitors. progressively inclement weather and the apparent change magnitude threat of natural disasters always stiff a possible hardship. This would cause food shortages and a steep rise on the price of ingredients.This makes it abs olutely needful for organizations to transform their distributors to different parts of the U.S. in order to prevent catastrophic shortages. This way, if a submerge destroys the supply of one supplier 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 harmful blight to the segments success. Economic downturns often affect approximately businesses in negative ways and the fast casual segment is not protected from such an event. Although it did enjoy moderate growth and prosperity through the most recent recession, the segments growth was stunted a bit, as was the case for a majority of industries. However, restaurants were slopped in maintaining prices and a quality experience and customers continued to support the food segment. The threat of consumers taste preferences changing is always of concern. Although most people are creatures of habit, differentiation of tas te preferences can change, leaving the restaurant vulnerable. intimate this, it is crucial that restaurants constantly improve upon food quality and the dining experience.Doing so will keep the entire experience white and entice the customer to come back. unitary 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 is looking to build a brand new fixture for the new restaurant, to lease agreements for current buildings. Different cities have different zoning and ordinance codes, making the decision to rent a preexistent space a plausible alternative. However, the restaurant wariness typically has a localize number of what it wants to pay on a monthly basis.Often, there can be a discrepancy between what management feels is fair and what the lessor feels is fair. This can hinder the blowup rate of a restaurant until both parties come to grips on fair price of a lease agreement. It is important that fast casual organizations constantly analyze opportunities and threats that are presented outside of the organization. If companies do not put to work its advantages within the market, it cannot grow at a pace that it should be. On the other hand, if it does not properly navigate and combat the external threats presented, it will surely not be in business for the long term capacity which is often hoped. Thus, an EFE is extremely important in developing and maintaining a successful business.Works CitedDavid, Fred R. Strategic Management Concepts A Competitive Advantage Approach. Boston Pearson, 2013. Print.