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As an , one can find the chipotle Mexican grill which is involved in casual foods in over 1,000 locations throughout the United States. The chain was begun by one Steve Ells in the year 1993 in Colorado with the sole intention of excellent quality fast foods. Running of the chain is by a board of four directors overseen by the founder who is the director. In the year 1998, McDonalds started investing into the company that enabled chipotle to grow quickly. In the year 2006, McDonalds decided to leave the venture, leaving chipotle to make an initial public offering which was highly received by investors. Chipotle had its share price doubling the second day the listing as a public company was taking place. The companys growth can be accredited to the use of quality financial as well as budgetary controls systems which have contributed to its expansion without experiencing any major financial crisis. Maintenance of the companys standards in the different restaurants is one major factor that the company. They fight to uphold and achieves this through the various product maintenance quality measures as well as having efficient employee welfare strategies to enhance the upholding of the companys mission and policies (Brizek, 2008).
The company maintenance of quality products enhances the way they encourage innovations in relation to its products. As a result, it has seen them sell beer as well as margaritas depending on their location as well as the client's demand. The companys emphasis is on the initial core business since it has so far proven advantageous in the past. It is due the fact that they want to guarantee the fact that their mission is upheld without any side destructions that could lead to deviations from the core business (Brizek, 2008).
Despite the success, chipotle is faced with major key strategic issues which it has to contend. As a result of its fast success coupled with a desire to maintain the growth trajectory, the company faces problems in raising money financing new operations. The fact that the Company does not franchise and that all of its operations are the company financed contributes to the finances problem. The other challenge the owners are facing is the difficulty in maintaining the company standards due to the numerous branches they are have opened. Competition for other chain restaurants is the other challenge they are also facing and have to realize innovations is paramount so as to able to attract new customer as well as maintain their clients (Markels, 2008).
The companys executives had come up with ways to make the company remain ahead of the competition as well as maintain their profits as high as when they started despite the competition. By encouraging innovations, which is implemented by the employing new chefs with lots of experiences so as they can bring in new menus to be rolled out in its outlets once through with the testing. It is considered a gamble to bring in the changes in a restaurant that has had the same menus for a long time, but the management feels it is a worthy risk. To enable the company to attract more families, they have come up with children menus that the kids can play with in all its branches, thus having an assertion to bring more clients in the outlets. Their continued opening of new branches all over the US despite some other companies failing in the same endeavor is credited to the companys efficient management as well as good entrepreneurship strategies (Brizek, 2008).
The strict budgetary and financial controls that have been applied by the company has allowed the smooth running of the extensive business without any major financial troubles. The utilization of the initial capital pumped by McDonald into the company has been efficient which saw them open 500 outlets from the initial 18. It further shows how the management is effective in that they did not use the money to settle their greed first. Steve Ells, the chairman and founder of the company is a graduate of culinary institute of America. With his education, he had already acquired knowledge that is relevant to the food production business requires. With the relevant educations, as well as a professional background, Steve knew what he was doing in the restaurant set up (Brizek, 2008).
Core aspects of leadership
For any business entity to succeed in its endeavor, the leadership has to be efficient in its functions. The main aspects that make one a leader in the enterprise includes the fact that the leader has to show a great sense of commitment on the enterprise in the interest. Commitment on the side of a leader shows great passionate commitment in bringing the future desires into existence. It involves creating opportunities for others to contribute to the bigger vision by convincing them that it is possible to achieve through passion (Gurr, 2006).
Courage is an aspect that any leader has to possess. It involves acting on the commitment that the leadership has towards the future. By analyzing the foreseeable risks against the gain to be attained the leader directs the team by being the first one the ground in the implementation of the future. Being responsible in the face of possible risk assessed by the leader define courage (Gurr, 2006).
Strategic thinking is the other aspect that a leader has to possess. It enables him/ her to look at the broad picture in terms of what he/she is to attain and define the path as well as the actions that will make it possible to attain the target (Gurr, 2006).
A leader has to be inspirational to be proficient to encourage the rest of the group to come on board in light of the set objectives. The inspiration enables the team to keep going even during the hard times since their leader is at the front taking responsibility and the heat from the challenges.
Leadership is about being open to opinions and views from the team. The leadership allows for continued learning by being responsive to feedback. Their companies are always rating better because the employee know that the company knows their contributions and will appreciate, therefore, are open to presenting innovations to their leadership (Gurr, 2006).
Hindrances to innovation and change
Some of the most defined hindrances to innovation and change is satisfaction that companies perceive that with where they so long as they are making profits they dont see the need to change. They allow laziness in the employees side but letting the copy each others work. Blockbuster movie rental chain enjoyed its profits until innovations in sending of video via mail and phone companies started offering video on demand. It led to its retail outlets becoming outdated and thus running losses to survive (Harrington, 2013).
Some companies have notion that they dont can invoke change and innovation among themselves. They have a fixed and rigid mindset that the workforce are comfortable with just what the company has done to be successful thus far and didnt see the need to stretch it. Motorola fell into this trap by mostly enjoying the profits in the car stereo manufacture and failed to look at the Smartphones that could handle emails messaging and other data. As a result, they lost their market share to rivals like Samsung, Apple and LG (Innovate and Always Keep It Real 2010).
Some companies also block innovative ideas because they dont want to risk losing their precious resources thus fail to sponsor any ideas. The lack of support from the fellow employees as well as the managers shuts down so many innovative ideas. Kodak is an example that has led it to bankruptcy as its failure to move to the digital era fast enough saw its profit margins eaten by the stiff competition.
The failure in past innovation and change ideas at times creates general fear among the employees who normally fear the backlash should their ideas fail as they did to the last people who tried (Harrington, 2013).
Had Kodak invested into the digital photography innovations in time, they would have maintained their market dominance to date. Also by supporting its staff and funding their innovations their market share to date would be vast had (Anthony, 2006).
Motorola, on the other hand, became comfortable and didnt see the need for more innovation. Instead, the company should have invested resources in the modern mobile industry and try always to come up with the next big phone. Thus, they may have maintained the market grip they had (Anthony, 2006).
Blockbuster should also have invested in market research as well as proactive workforce that should have the capability to preempt the future. In this way, they could have been ahead of the video game industry by maintaining a firm grip of their industry in light of the new technology had (Anthony, 2006).
Principles and practices in implementing change
In the effort of implementing change in an organization, the top management in the organization needs to ensure that they have a visionary team. A visionary team guarantees change in that every new product or innovation project launched and they ensure that the plan in place to see it succeed. They have clear goals and objectives that are going to evaluate the success Gurr, 2006).
Ensuring that every change or innovation idea has the right team leader and not just choosing in terms of seniority in the organization is critical in guaranteeing change. New change and innovation leaders need charisma in addition to an exceptional set of skills and by choosing a leader in terms of seniority there is the risk of throwing the idea into jeopardy (Gurr, 2006).
The management needs to ensure that once an innovation is in place, and there are no distractions subjected to the employee that could derail the overall objective. By ensuring all the necessary staff for a change especially team leaders are on the ground overseeing the project, project success is guaranteed unlike changing the mid implementation.
Having a motivated environment that has a well-established reward and compensation system for employee with major contributions to the innovations and success of an organization is critical. It is meant to guarantee innovations and changes among the employees that guarantee the current and future organizational success (Atkinson, 2005).
Business entities and organizations should equip the business with a staff that is ready to successfully support the business ideas and process the executives, and team leaders propose. It is critical because having staff support ensures that the proposed changed is effected to the letter as well as new ideas and modifications are clearly put forward to enhance the success (Atkinson, 2005).
Acquiring means and ways of having a superior change team for the organization is an essential skill that the entity should establish. It is reinforced by defining the charter that is to establish a narrow task in terms of scope when compared to the entire organizational strategy statement. Through it, the change team creates a change plan that is effectively to identify the change process, vision and mission in the organization (Atkinson, 2005).
Bibliography
Markels, A. (2008). Chipotle's Secret Salsa. U.S. News & World Report, 144(2), 41-44.
This article by Markel explores the fast growth chipotle has had since it opened its first branch. The rise in the fast casual Mexican grill chain seen as a monumental subject amid failure by numerous other restaurants that desired to have branches all over the US. The company as now is generating revenues in tunes of 1$ in annual sales. When interviewed on the subject, the chipotle Mexican grill founder, Steve puts the reply in one sentence by saying that it all trickles down to efficient management.
GELLES, D. (2014, May 16). Investors Reject Chipotle Chiefs Pay Plan. New York Times. p. B7.
The article by David further compounds the effectiveness in the management of the company whereby the investors rejects the proposed compensation to be paid to the founder and his deputy. It is to ensure that using the profits it generates for the growth of the company by opening up more branches instead of using the funding to gratify a few individuals.
Gottfried, M. (2014, April 17). Chipotle Feeds Investor Appetite for Growth. Wall Street Journal - Eastern Edition. p. C1.
The article is written to explain the reason as to why chipotles share prices are very high when compared to the competitors prices. The reasoning as put forward after reviewing the earnings report indicate that although the prices are high, the desire for more expansion justifies the price as they can be able to open up more outlets.
PERSAUD, F. (2011, December 29). Additional migrant CEOs should be like Chipotle's Moran New York Amsterdam News. p. 16.
The article serves to stress on the growth that chipotle has enjoyed and accredit it to the company employing a majority of immigrant workers. Chipotles employing of Monty Moran ha seen them revolutionaries the fast food business in U.S.A.
Brizek, M. G., & Dosser, E. (2008).Mexican Grill Enters the Fast Growing, Fast-Casual Mexican Food Segment. Journal of Foodservice Business Research, 11(1), 108-121
The writer of this article follows a case study that is focusing at the rise of the American fast foods joints. The case of chipotle catches the eye of whoever wants to look at the fast food business. Chipotles growth has taken the US fast food industry by shock, and their projected growth places it at unbeatable feet when compared to the other companies.
Kurson, K. (2014). Chipotle: OMG. Esquire, 162(2), 84.
This article by Ken addresses the expansion mission that chipotle has been having. The article revolved around the start of the first chipotle joint in 1993 to the success the company has enjoyed since then. The assertion that the company has grown on is the concept in building a small brand involving smart site selection as well as having quality staff, but mainly a culture of providing food with integrity.
References
Anthony, S. D., Eyring, M., & Gibson, L. (2006, May). Mapping Your Innovation
Atkinson, P. (2005). Managing Resistance to Change. Mangement Services , 49 (1), 14-19.
Brizek, M. G., & Dosser, E. (2008). Case Study: Another Burrito Place? Qdoba Mexican Grill Enters the Fast Growing, Fast-Casual Mexican Food Segment. (Cover story). Journal Of Foodservice Business Research, 11(1), 108-121. doi:10.1080/15378020801926866
Gurr, D., Drysdale, L., & Mulford, B. (2006). Models of successful principal leadership. School Leadership & Management, 26(4), 371-395. doi:10.1080/13632430600886921
Harrington, J., & Voehl, F. (2013). Innovation Management: Part 2 A Breakthrough Approach to Organizational Excellence: Profiles of Successful Innovators. International Journal of Innovation Science, 5(1), 69-80.
Innovate And Always Keep It Real. (2010). BRW, 32(15), 17.
Markels, A. (2008). Chipotle's Secret Salsa. U.S. News & World Report, 144(2), 41-44.
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