Chipotle

Veronica Simmons

Strategy & Policy

Homework #1

STEEP Analysis – Chipotle

1. Economic:

a. Inflation rates

b. Interest rates

c. Trade deficits or surplus

d. Budget deficit or surplus

e. Personal savings rate

f. Business savings rate

g. GDP

h. Cost of sourcing its high quality ingredients results in a higher cost for chipotle customers.

i. Food costs for the industry have increased across the boarder

j. Pg 79

2. Physical:

k. Energy consumption

l. Practices used to develop energy sources

m. Renewable energy efforts

n. Minimizing a firm’s environmental footprint

o. Availability of water as a resource

p. Producing environmentally friendly products

i. Find the best ingredients raised with respect for the animals, the environment, and the farmers

ii. Commitment to organic and sustainable ingredients

iii. Food with Integrity goals.

iv. High standards in quantities it requires supplier shortages, has not yet reached its goals for 100% naturally raised meat.

q. Reacting to natural or man-made disasters

3. Sociocultural:

r. Women in the workplace

s. Workforce diversity

v. Standard hierarchy

vi.

t. Attitudes about the quality of work life

vii. Initiatives to develop employees and maintain a strong workforce have also contributed to Chipotle’s success

u. Shifts in work and career preferences

v. Shifts in preferences regarding product and service characteristics

w. The company did not at first agree when PETA – people for the ethical treating of animals called for the use of poultry suppliers using CAK controlled atmosphere killing. – they ended up negotiating and paying the higher wages. Target for activists.

4. Global:

x. Important political events

y. Critical global markets...