Business Ethics In Business Analysis : Chipotle Mexican Grill

While making observations during field work, Ben and Maureen actually saw an employee take previously thrown away dog food out of a dumpster and place it in Henry’s vehicle. I knew from this incident, that Smackey Dog Foods, Inc had a major weakness in their internal controls with inventory and possibly an outright problem with theft. My team was present at the physical inventory count to help ensure the accuracy of the count and we performed various analytical procedures on the inventory such as comparing the gross margin percentage, the inventory turnover, and unit costs of inventory with those of the previous years. We also ensured that all expired/obsolete inventories was disposed of and not counted as we were aware of an issue that Smackey was having with the handling of returned inventory.

Due to the fact that Chipotle is worried about providing customers with the best possible ingredients and in the same time, concerned of taking care about environment, animals as well as farmers, which in this case, are the main suppliers, we can encapsulate Chipotle in a Sociocultural segment.

Two more people have filed federal lawsuits against Chipotle after they said they were infected with E. coli in an outbreak linked to the popular Mexican chain in the Pacific Northwest. The Seattle attorney representing Jessica Ellis of Mount Vernon, Washington, and Chris Collins of Lake Oswego, Oregon, is asking the federal court in Portland to hold Chipotle liable for their illness. There are at least 41 people on the list of cases spanning two states 28 in western Washington and 13 in Oregon’s Portland area. The latest case was confirmed in Oregon.

Chipotle, on the other hand, “seems to have created a sustainable branding strategy that leverages its good food, humorous ads, distinctive interior design, and in-store world music” (Wikinvest.com, 2010). The company is positioned to capitalize on their organic and farm raised food, and high quality ingredients. “According to the organic Trade Association (OTA), organic food sales are growing at a 20% clip annually in the US, although such food only accounts for 3% of all food and beverage sales” (Wikinvest.com, 2010). Chipotle is also positioned to tap multiple markets: baby boomers who can afford to dine out, Hispanics, two income families who do not have time to cook, and the socially conscious consumer.

The food industry is always going to have some sort of problem. Not a restaurant known to mankind, has never had no problems at all. People over shot the entire ordeal with and around the Chipotle in Simi Valley. However, I am sympathetic for the ones whom may have gotten sick from the meats or whatever may have caused it.

“ ‘Fifteen years ago, almost all cases I had were E.coli linked to hamburger, and now I have maybe two or three.’ “ There is progress but Americans still need to work together to eliminate it

Customers were extremely angry and sales dropped dramatically, by almost 15 percent. Although the executives weren't sued, they caused consumers to distrust their sources of food and the government that regulates it. The leaders were held accountable for their reputation was ruined. The employees working in these factories weren't even considered being sued for the public know to go after "the big guy" or the major corporation. Although the employee doing the packaging, he or she is being protected by the doctrine of Respondeat Superior. This states that the entry level employ isn't responsible for their actions and are simply doing what their told. I disagree with the doctrine in this case for they employee re-packaging the meet know they are sending out potentially poisonous meat to the public. They are morally obligated to report what the company is trying to do and seek other employment. The economy is so low in some of these countries that employees feel as though they are trapped and have no choice. However, supplying the public with expired meat is unexceptable. Respondeat superior is ideal in most cases, but in this case is would be a travesty. There's an exception to every

this company is destroying many local businesses, they sell so much more than a local store and still refuse to give more to the hard-working

Along with closing forty-three stores there company stock has tanked forty percent. E coli is not the only ethical

In 2001 Chipotle adopted the slogan “food with integrity” to describe its approach to sourcing and preparing ingredients (Merkel and Russell, 2017). Chipotle states: Ensuring that all of our fresh ingredients are as safe as possible is a serious effort. Not only do we need to work closely with our suppliers to ensure that the ingredients we buy are safe, but we also need to make sure that once those ingredients reach our restaurants, they are handled and prepared in the safest way possible. Chipotle’s CFO said: “We like the local program, we think it’s important, but with what’s just happened we have to make sure food safety is absolutely our highest priority. If it’s testing and safety versus taking a step backward on local, we would do that

Chipotle is facing numerous challenges due to the fact that E. coli outbreak which requires the corporation from the key stakeholders to keep it under control and apply the new food safety protocols which can aid to bring the regular customers back. Although the main cause remains a mystery, Chipotle’s E. coli outbreak has been authoritatively declared officially over by the experts. However, since the poisoning outbreak, the impact of the reduced number of customers affects the profit which the company used to enjoy before such eventuality (Scholes 27).

The first factor is Globalization: the world wide goal of using naturally raised standards, Chipotle had the main core value of customers and animals well being and stopped using hormones and antibiotics hormones on animals and started raising them on a free range on farmland: naturally raised animals. Secondly, Consumers: where Chipotle provided them with high quality, tasty and affordable. The third factor is competition: which varies with region, market, and restaurant. Chipotle face stiff completion from Panera Bread, chick-fill-A, Noodle and other companies. The completion is in the form of taste, quality, and speed of service, prices value, brand recognition, location, customer services and competitor condition. The other factor is marketing: the company focuses on word of mouth and strategic marketing promotions although it used radio and billboards Medias without television which was not genuine. Lately, the company has embarked on the sending messages on Twitter and Facebook, which is the modern marketing methods and also helps to reach a large population compared to the historical media. The company has the hope of finding a content delivery platform that would inspire consumers to become curious about where their food comes from, so as for customers to the idea of chipotle have the food with integrity.

Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).

Political – Taco Bell must comply with national legislative requirements such as minimum wage standards, hygiene

All in all, the case has shown that although McDonald’s needed to adopt to certain industry changes in