Diversity in Leadership-Chipotle

Diversity in Leadership-Chipotle

Factors Contributing to the Loss of Confidence in Chipotle Brand

One factor contributing to the loss of customer confidence in Chipotle’s brand is the failure of audits and inspections. Successful business managers understand that customers are their most critical asset. As a result, they put measures in place designed to retain every customer. However, the consistent ailment by customers who had visited Chipotle’s chain of restaurants indicates a failure to undertake sufficient safety audits.

Another factor that led to the failure of Chipotle’s brand is poor customer service. Appropriate customer service is critical to the success of any brand. Chipotle failed to address the poisoning publicly and E. coli infections linked to different restaurants belonging to the Chipotle brand. Instead, the restaurant kept silent amid public uproar.

Also, Chipotle’s brand displayed a total lack of quality control. Whenever there were reports of food poisoning or infection incidents, the Chipotle brand volunteered to close multiple stores. That shows a complete lack of quality control. Besides, some ingredients were used across various Chipotle restaurants, making it hard for the company to pinpoint the exact restaurant causing infections.

Do the current actions present a strategy that would improve consumer trust? Why or why not?

The responses by Chipotle’s chain of restaurants following the poisoning accusations will not restore customer trust. One of the blunders committed by the brand while responding to poisoning accusations was closing down a few restaurants. Whereas expressing empathy and seriousness about the issue is essential, closing down stores amounts to admitting that there could be a problem (Li & Wei, 2016). Instead of closing down, the management would have taken some time to conduct urgent internal investigations and establish if they were responsible for the infections. Some stores voluntarily closed and took six months before reopening, thus casting doubts on Chipotle’s credibility.

Chipotle’s Competitive Position Against Competitors

Like any other company, Chipotle has several competitors. One of these competitors is Taco Bell. When the internal environments of Taco Bell and Chipotle are compared, it is evident that Chipotle is more advantaged in some but disadvantaged in others. Firstly, Chipotle operates many restaurants. The brand has over 2000 restaurants worldwide, mainly in the US and Canada. The positive side of operating multiple restaurants is that gains in another region will compensate for the failure of a brand in one area. Secondly, Chipotle’s brand focuses on sustainability. The company sources its meat products from a reliable supply chain with well-nourished animals. That means there is no use of non-organic antibiotics or hormones that could potentially cause infections. Chipotle’s grill provides its customers with organic, high-quality, fresh foods sold at reasonable prices, giving it a competitive advantage.

Recommendations to Gain Customer Trust

To gain customer trust, Chipotle’s brand should embrace transparency and honesty. Transparency requires organizations to abandon deceitful marketing messages (Bachnik & Nowacki, 2018). Besides, organizations should not make promises they cannot deliver. Customers will likely stay loyal if they gain confidence in the business’s transparency.

Chipotle should also enhance its accessibility to customers. The company should receive customer calls to improve customer access and stop keeping them on hold for too long. Also, customer support should offer them patient and thoughtful support to show they matter (Li & Wei, 2016). These actions will go a long way to allay fears, especially in crises.

Business Strategy Recommendation

The best business strategy for Chipotle’s brand is to improve customer service. Enhancing customer services is particularly important if the organization has previously experienced problems delivering quality products. The company can focus on customer service and turn it into a point of strength to bolster the brand’s reputation.

References

Bachnik, K., & Nowacki, R. (2018). How to Build Consumer Trust: Socially Responsible or Controversial Advertising. Sustainability, 10(7), 2173. https://doi.org/10.3390/su10072173

Li, M., & Wei, H. (2016). How to Save Brand after Crises? A Literature Review on Brand Crisis Management. American Journal of Industrial and Business Management, 06(02), 89–96. https://doi.org/10.4236/ajibm.2016.62008

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Read “Case 12: Chipotle Mexican Grill’s Strategy in 2018: Will the New CEO Be Able to Rebuild Customer Trust and Revive Sales Growth?”

Write a 350- to 700-word response that addresses the following questions:

What factors contributed to the loss of confidence in the Chipotle brand?
Do the current actions present a strategy that would improve consumer trust? Why or why not?
Consider Chipotle’s competitors. How does Chipotle’s internal environment compare to the internal environment of one of its competitors? Based on this analysis, what is the probability that the strategic moves implemented by Chipotle would lead to a sustainable competitive advantage? Explain.
What additional recommendations would you make for Chipotle to gain consumer trust and reclaim a leadership role in the fast-food industry? Justify your response.
Based on the information presented in this case study, what business strategy would you suggest to help Chipotle achieve a competitive advantage?