PART IWelcome to the Free Excel Student Template Version 16.1.11De.docx

PART IWelcome to the Free Excel Student Template Version
16.1.11Dear Student,By using this Template, you hereby agree
to the Copyright terms and conditions. This Template should
save you considerable time and allow for your presentation to
be more professional. Do not mistake this Template for doing
all of the work. Your assignment is to analyze and present
strategies for the next three years. You will still need to do the
research and enter key internal and external information into the
Template. The Template does not gather or prioritize
information. It does however assimilate information you enter
in a professional way and does many calculations for you once
that critical information is entered. Refer to the David & David
textbook for conceptual guidelines for developing all matrices
and analyses included in this Template. Best of luck with your
project. Instructions for Using the Template1Please read all
Template instructions below carefully before you start each new
section of this Template. Only type in the green boxes. Refer
to the David & David textbook for conceptual guidelines for
every matrix and analysis in this Template.2This Template is
organized into three primary parts: Part I, Part II, and the
respective data output pages for your respective matrices. All
data entered will be entered into Part I or Part II. Part I consists
of data entry in developing matrices, where Part II consists of
data entry for your financial information, including ratios,
financial statements, and projected financial statements. Blue
buttons are provided for navigating within and to Part I, yellow
buttons are for navigating within and to Part II, orange buttons
are for navigating to the respective matrices and pink buttons
are for navigating to your financial output tables. The
navigation buttons along the top of Part I and Part II may not be
visible for Apple users but all other features should work
without any problems.Strengths and Weaknesses1Enter into the
Template exactly 10 strengths and 10 weaknesses, no more and
no less. Your factors should be detailed and actionable rather

than vague. For example, the strength: "Sales up nicely" is too
vague and not actionable; "Sales were up 15% on women's
apparel in China during 2015" is stated far better. Always be
thinking in terms of divisions when writing strengths and
weaknesses. Note women's apparel could be a division for Nike.
All divisions do not need to be treated equally; allow more
coverage for divisions with more revenue and those most
pertinent to your strategic plan.2Weights reveal how important
a factor is to being successful in the industry. All weights are
"industry-based." A factor of 0.10 for example is 5 times more
important than a factor of 0.02 for being successful in the
industry. Do not be afraid to include factors with lower weights
though. To have a factor make your top 10 list (10 strengths for
example out of the 100s the firm likely has), justifies its
importance, yet it still may be relatively a lot less important to
the industry than others factors you include. Also, be mindful
with respect to what industry your firm operates. A moderate
priced casual hamburger restaurant may have more in common
with a moderate priced chicken restaurant than with McDonalds.
Automatically considering McDonalds, Burger King, and
Wendy's as the "industry" just because they all sell hamburgers
may not be appropriate. Here, casual moderated priced
restaurants may serve better as the "industry." After entering in
the weights, check to make sure the sum of your weights equals
1.0 for your internal factors. Also, arrange your strengths with
highly weighted factors listed first; arrange your Weaknesses
also with highly weighted factors listed first.3In contrast to
weights that are industry-based, ratings are company-based and
reveal how well your firm is performing. Use the coding scheme
given below for ratings in an IFE Matrix: If your strengths are
being cut off, simply drag your cursor between the two row
numbers on the left to widen the row.1 = "major weaknesses"2 =
"minor weaknesses"3 = "minor strength"4 = "major
strength"StrengthsWeightRating12345678910WeaknessesWeigh
tRating12345678910Total Weight (Must Equal
1.00)0.00Opportunities and Threats1Enter into this Template

exactly 10 opportunities and 10 threats, no more no less. Your
factors should be detailed and actionable rather than vague.
Keep in mind both opportunities and threats should be external
in nature. Ask yourself "Does the firm have control over this
factor?" If the answer is yes, then it cannot be an opportunity or
threat. For example, as a clothing retailer you may have an
opportunity to "start selling clothes in China." This is not an
opportunity for two reasons: 1) the firm has internal control
over doing business in China, and 2) the statement is a strategy.
The underlying opportunity may be "Women in China spent 20%
more on athletic apparel in 2015." Note how this opportunity is
specific, actionable, divisional, and external (we cannot control
the culture or demand for female athletic apparel). All divisions
do not need to be treated equally, allow more coverage for
divisions with more revenue and those most pertinent to your
strategic plan.2Weights reveal how important a factor is to
being successful in the industry. Read over the #2 tip under
strengths and weaknesses above since the same logic applies for
the external factors. After entering in the weights, check to
make sure your sum of weights equals 1.0 for all 20 external
factors. List factors according with highest weight items
first.3Ratings again are company-based and reflect how well the
firm is addressing the particular factor. Use the coding scheme
given below for ratings in an EFE Matrix. If your opportunities
are being cut off, simply drag your cursor between the two row
numbers on the left to widen the row.1 = "company's response
to the external factor is poor"2 = "company's response to the
external factor is average"3 = "company's response to the
external factor is above average"4 = "company's response to the
external factor is
superior"OpportunitiesWeightRating12345678910ThreatsWeigh
tRating12345678910Total Weight (Must Equal
1.00)0.00Competitive Profile Matrix (CPM)1To perform the
CPM, enter exactly 12 critical success factors, no more and no
less. You may use some of the ones listed below if you like but
try to use ones that are more pertinent to your company. For

example, if your case is Delta Airlines, perhaps include on time
arrival, extra fees, and frequent flyer points as factors, rather
than the canned factors below. In a CPM, factors do not need to
be overly specific, but they should be divisional in nature to the
extent possible. If Pepsi Co. is your firm, your factors should be
about the firm's soda business, Frito Lay business, bottling
business, etc. rather than just general "advertising." advertising
for what division (business) are you referring to? Frito Lay's
advertising, soda marketing, etc. All divisions do not need to be
treated equally; allow more coverage for divisions with more
revenue and those most pertinent to your strategic plan.2After
entering in 12 critical success factors, enter in a weight for each
factor; weights are industry-based. Be sure to check the bottom
of the "Enter Weight Below" column, to make sure your sum
weight is equal to 1.00. It is okay for some factors to receive a
low weight and a factor or two to receive a high weight of say
0.20. 3After entering in your weights, type the name of your
company and two other competitors in the corresponding
boxes.4After entering in the weights and identifying your
company and two rival firms, then enter in a Rating (company-
based) in the "Enter Rating Below" column for each
organization. DO NOT ASSIGN THE COMPANIES THE
SAME RATING; TAKE A STAND; MAKE A CHOICE. In a
CPM, use the coding scheme provided below for ratings.1 =
"major weaknesses"2 = "minor weaknesses"3 = "minor
strength"4 = "major strength"Enter 12 Factors Below
WeightYouCompetitor Competitor Enter Ratings
BelowAdvertisingMarket PenetrationCustomer ServiceStore
LocationsR&DEmployee DedicationFinancial ProfitCustomer
LoyaltyMarket ShareProduct QualityTop ManagementPrice
Competitiveness0.00Boston Consulting Group (BCG)
Matrix1This Template allows for up to 5 divisions. If your
company has more than 5 divisions, combine the divisions with
the least amount of revenue into division 5, and mention the
adjustment to the class during your presentation, or simply
focus on the 5 divisions your 3-year plan centers around; check

with your professor. <See your firm's Form 10K or Annual
Report to find divisional information, and those documents of
your rivals> It is excellent to develop a BCG/IE by geographic
region, and construct another one by product (if you have data).
2In each division, enter a name, followed by the dollar amount
in revenues for that division. Do not include M or B for millions
or billions, but do drop off zeros. For example, for
$100,000,000, you could enter 100,000 or 100 just be
consistent.3After completing Step 2 in developing a BCG, enter
in the dollar amount in revenues for the top rival firm for each
division. Note, the top rival may be you and in this situation
enter in your company's revenue for that division. Also, note the
top rival may be different for different divisions. For example,
if your firm is Avon, Avon's top rival in its lipstick division
may be Revlon, but for nail polish, the top rival in the industry
may be L'Oréal, and in makeup, Avon may be the market leader.
There is no need to label the top rival by name, but you could
mention in class as part of your presentation. Be sure to enter in
all numbers in the same $ format you used in Step 2 above. If
you do not have a perfect apples to apples comparison,
(possibly a rival firm combines lipstick and makeup, where your
firm separates the two) then estimate as best you can and make
note in your presentation. 4Finally, enter in the industry growth
rate (IGR) for each division. Generally, taking the top 2 or 3
rivals for each division (along with your firm), adding their
numbers together for the current year and the previous year and
using the equation (Current Year - Previous Year) / Previous
Year is sufficient to estimate guess of the industry growth rate.
This is because generally the top 3 players dominate an
industry. Note, using this process also weights larger firms
more, which is exactly what you desire. Do not use total
revenues; instead, use divisional revenues. Division industry
growth rates (IGR) must be between -0.20 and 0.20. If outside
these ranges, simply use -0.20 or 0.20 and mention during your
presentation.5Everything is calculated and positioned for you
(Other than Industry Growth Rate in Step 4) including the

Relative Market Share Position (RMSP). The BCG matrix in
this Template does not produce pie slices to show profits. You
may wish to discuss divisional profits in your
presentation.Enter in division names below (If less than 5, leave
the other spaces blank and no circles will appear)Your Firm's
Division RevenuesTop Firm in Industry Division
RevenuesDivision Market Growth Rate (Step 4)Relative Market
Share
PositionERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERR
OR:#DIV/0!ERROR:#DIV/0!Internal - External (IE)
Matrix1This Template allows for up to 5 divisions. If the
company has more than 5 divisions, combine the divisions with
the least amount of revenue into division 5, and mention the
adjustment to the class during your presentation, or simply
focus on the 5 divisions that your 3-year plan centers around;
check with your professor.2Company wide EFE and IFE scores
are automatically entered once you complete the EFE and IFE
Matrices.3Enter in estimated EFE and IFE Scores for your
respective divisions.4This Template's IE matrix does not
produce pie slices to show profits. Enter The Name Of Your
FirmEnter in division names below. If less than 5, leave the
other spaces blank and no circles will appear. Remember you
could use divisions by geographic region for the BCG and by
product/service type for the IE (or vice versa).Your Firm's
Division RevenuesEstimated IFE ScoreEstimated EFE
ScoreSPACE Matrix1Include five (and only five) factors to
assess each SPACE axis: Financial Position (FP), Stability
Position (SP), Competitive Position (CP), and Industry Position
(IP).2Enter the five factors you wish to use each for FP, SP, CP,
and IP and the corresponding rating each factor should receive.
You may use the factors provided here, but try to determine key
factors related to your company and industry in the same
manner you did with the CPM. The calculations are done
automatically and the rating scale is provided below.3Enter in
the estimated FP, SP, CP, and IP numbers for up to two
competitors. Or, instead of a competitor, you could show the

estimated SPACE values for your firm after your proposed
recommendations are implemented, ie a Before and After
analysis. Or you could do both, just cut and paste the SPACE
into PowerPoint then refill in the new data. It is important you
fill in all information or Excel will place a circle(s) at the
origin of the SPACE since the default will be (0,0) plot, which
is the origin. FP and IPPositive 1 (worst) to Positive 7 (best)CP
and SPNegative 1 (best) to Negative 7 (worst)Enter The Name
Of Your FirmRatingsFinancial Position (FP)Return on
Investment (ROI)LeverageLiquidity Working Capital Cash
FlowIndustry Position (IP)Growth PotentialFinancial
StabilityEase of Entry into MarketResource UtilizationProfit
PotentialRatingsCompetitive Position (CP)Market ShareProduct
QualityCustomer LoyaltyTechnological know-howControl over
Suppliers and DistributorsStability Position (SP)Rate of
InflationTechnological ChangesPrice Elasticity of
DemandCompetitive PressureBarriers to Entry into MarketYour
firm's X-axis0.0Your firm's Y-axis0.0Competitor 1Estimated
FPEstimated IPEstimated CPEstimated SP Competitor 1's X-
axis0Competitor 1's Y-axis0Competitor 2Estimated FPEstimated
IPEstimated CPEstimated SP Competitor 2's X-axis0Competitor
2's Y-axis0Perceptual Map1In this Template's Perceptual Map,
you may include for up to 10 product categories. 2Enter in the
X axis and Y axis dimensions. For example, if developing a map
for frozen foods your X axis could range from "low calorie" to
"high calorie," while the Y axis ranges from "low cost" to "high
cost."3Enter in the products you wish to compare (up to 10); in
the example, these products would be different brands of frozen
foods available for purchase. After entering in the products, rate
each factor on a scale of 1 to 9. In our example, extremely low
calorie would receive a score of 1 or 2, and likewise extremely
high calorie should receive a score of 8 or 9.4To enhance this
analysis, you could mentally draw a line (or two lines) of best
fit (through products) and identify areas along the line that do
not have (in this example) frozen food products near the line. In
this analysis, blank areas of the map are typically the most

advantageous for new product creation. Any products that fall
well above or below the line, may be over or under serving
customers and should be examined closely. Do not blindly
follow this rule of thumb however since, for example, a very
expensive product may be well off the projected best fit line and
yet serve its small customer base quite well. You may with this
Template wish to develop several perceptual maps changing
your X and Y dimensions. For example, if you are a large food
processor, you could examine frozen foods on dimensions other
than the ones used here, or you could examine dairy products or
any other related products. Simply cut and paste your existing
map into Power Point then enter your data for a new map.Enter
The Name of the Dimensions on the X-axisLeft Side of the X
Name (low calorie)Right Side of the X Name (high
calorie)Enter The Name of the Dimensions on the Y-axisBottom
Side of the Y Name (low cost)Top Side of the Y Name (high
cost)Enter in up to 10 productsX - axis RatingY - axis
RatingGrand Strategy Matrix1The Grand Strategy Matrix allows
for entry of your firm and up to 5 divisions2Rank the X axis
from 1 (Extremely Weak Competitive Position) to 9 (Extremely
Strong Competitive Position)3Rank the Y axis from 1
(Extremely Slow Market Growth) to 9 (Extremely Rapid Market
Growth)X-axis scoreY-axis scoreName of your FirmName of
Division 1Name of Division 2Name of Division 3Name of
Division 4Name of Division 5SWOT1Click on the SWOT
Hyperlink below and add your SO,WO,ST, and WT
Strategies.QSPM1.To perform a QSPM, enter two strategies in
the corresponding green boxes below. These two strategies
should be derived from your BCG, IE, SPACE, GRAND, and
SWOT. In your oral or written project, you will need to provide
a recommendations page(s) on your own with the expected cost
of each recommendation, ie after performing the QSPM. The
recommendations page is followed by an EPS/EBIT Analysis to
reveal where best to obtain the needed capital (debt vs equity).
You should have multiple recommendations, including perhaps
both strategies included in the QSPM, and other strategies for

the firm - but no firm can do everything that would benefit the
firm due to limited resources.2.In developing a QSPM, after
entering in your strategies, then rate each strategy based on the
strengths, weaknesses, opportunities, and threats (factors). Do
not give two strategies the same rating for a particular strength,
weakness, opportunity, or threat. (the exception is if you enter 0
to signify a factor "not impacting the choice between strategies"
then you MUST enter 0 for both strategies. For example, if
Strategy 1 deserves a rating of 4 on a given factor, but that
factor has little to do with Strategy 2, just assign a rating of 1 to
Strategy 2. (Note QSPM's will have 0's across about one half of
the rows). Across each row in performing QSPM analysis, use
the rating scale below for AS scores.0 = Not applicableStrategy
OneStrategy Two1 = Not attractive2 = Somewhat attractive3 =
Reasonably attractive4 = Highly attractiveAS RatingsAS
RatingsStrengths102030405060708090100AS RatingsAS
RatingsWeaknesses102030405060708090100AS RatingsAS
RatingsOpportunities102030405060708090100AS RatingsAS
RatingsThreats102030405060708090100You have completed
Part 1.
Click The Blue Buttons Below to Navigate Part 1 More
Efficiently
Strengths
/xl/drawings/drawing1.xml#'PART%20I'!B13
Perceptual Maps
Weaknesses
Opportunities
Threats

SWOT
CPM
IE Matrix
BCG Matrix
SPACE Matrix
GRAND
QSPM
View IFE Matrix/xl/drawings/drawing1.xml#'IFE%20'!A1

View IFE Matrix/xl/drawings/drawing1.xml#'IFE%20'!A1
HOME/xl/drawings/drawing1.xml#'PART%20I'!A2
View EFE Matrix/xl/drawings/drawing1.xml#'EFE%20'!A1
View EFE Matrix/xl/drawings/drawing1.xml#'EFE%20'!A1
View CPM Matrix/xl/drawings/drawing1.xml#CPM!C2
View CPM Matrix/xl/drawings/drawing1.xml#CPM!C2
BCG/xl/drawings/drawing1.xml#BCG!B5
BCG/xl/drawings/drawing1.xml#BCG!B5
IE
/xl/drawings/drawing1.xml#IE!B2
IE
/xl/drawings/drawing1.xml#IE!B2
SPACE
/xl/drawings/drawing1.xml#SPACE!B2
SPACE
/xl/drawings/drawing1.xml#SPACE!B2
Perceptual Map
/xl/drawings/drawing1.xml#'Perceptual%20Map'!B2
Perceptual Map
/xl/drawings/drawing1.xml#'Perceptual%20Map'!B2
SWOT
/xl/drawings/drawing1.xml#SWOT!A2
QSPM
/xl/drawings/drawing1.xml#QSPM!B2
GRAND
/xl/drawings/drawing1.xml#GRAND!B2
GRAND
/xl/drawings/drawing1.xml#GRAND!B2

QSPM
/xl/drawings/drawing1.xml#QSPM!B2
PART IIPreliminary Financial Data1Enter in your preliminary
financial data below for your company. This data is used to
construct financial statements, financial ratios, and much more.
Income Statement InformationEnter all as Dollar Amounts.
Make sure the oldest year is entered into Column 1 throughout
this Template. You may NOT Change this sequence as the
preset equations will not adjust.Read the Note to the left
CAREFULLY Reporting Date12/31/1812/31/19RevenueCost of
Goods SoldOperating expensesInterest ExpenseNote: If
receiving interest credit, enter as NEGATIVE numberNon-
recurring EventsNote: If NEGATIVE enter as negative number.
Generally this line is for "discontinued operations" and 90% of
the time you will enter 0TaxNote: If receiving a tax credit, enter
as NEGATIVE numberBalance Sheet InformationCurrent
Assets12/31/1812/31/19Cash and equivalentsAccounts
ReceivableInventoryOther Current AssetsLong Term
AssetsProperty, plant & equipmentGoodwillIntangiblesOther
Long-term AssetsCurrent LiabilitiesAccounts PayableOther
Current LiabilitiesLong Term LiabilitiesLong-term DebtOther
Long-term LiabilitiesEquity Common StockRetained
EarningsTreasury StockNote: Enter as negative numberPaid in
Capital & OtherCompany Valuation1Enter in the corresponding
data below for your firm, and for a rival firm if you desire. The
rival can be a firm you wish to acquire or simply just to
compare to your case company.Your Firm's NameStockholders'
Equity0Note: Determined after you complete the preliminary
section.Net Income0Note: Determined after you complete the
preliminary section.EPSERROR:#DIV/0!Note: Determined after
you complete the preliminary section and enter in # shares
outstanding below.# Shares OutstandingNote: Using Current #
shares outstanding is okay or # of shares outstanding (issued)
on the last day of the fiscal year.Stock PriceNote: Current Stock
price is fine, or the closing price on the last day of the fiscal

year.Goodwill & Intangibles0Note: Determined after you
complete the preliminary section.Rival Firm's
NameStockholders' EquityNet IncomeEPS# Shares
OutstandingStock PriceGoodwill & IntangiblesEPS/EBIT
Analysis1Enter in the corresponding data below for your
firm.2If you notice little to no change in EPS with stock vs debt
financing, the total amount of your recommendations is likely
too low. Unless of course, you are recommending defensive
strategies where you are not acquiring substantial new
capital.RecessionNormalBoomEBITEPS/EBIT DataAmounted
NeededNote: This number is the total cost of your
recommendations.Interest RateNote: Enter as a decimal.Tax
RateNote: Enter as a decimal.Shares Outstanding0Note: Enter in
under Company Valuation on this page.# New Shares
OutstandingERROR:#DIV/0!Note: Calculated
automaticallyStock Price$0.00Note: Enter in under Company
Valuation on this page.Combination Financing DataPercent
Equity Used to FinanceNote: Enter as a decimal.Percent Debt
Used to Finance Note: Enter as a decimal.Total Equity and
Debt0.00Note: Must equal 1.0. Check the two line items
above.Projected Financial Statements1Start with the income
statement and work your way from top to bottom. Take extreme
care to read and understand all notes provided by each line
item. See Chapter 8 in the David & David textbook for
examples and guidelines in developing projected financial
statements.2After completing the income statement, begin the
balance sheet starting with the "dividends to pay" line near the
bottom; finish the equity section of the balance sheet first, then
work your way up the statement to the liabilities section, then
onto the assets, using the top row (Cash) as the plug figure. A
detailed note beside the cash line item explains further.3Take
care to read all notes to the right of the line items. Consult
Chapter 8 of the David & David textbook for excellent
explanations and tips for constructing projected
statements.Enter in Dividends Paid for most recent yearNote:
Enter the total dollar amount in the same manner you did with

your financial statements. For example, if you entered numbers
in thousands (dropped off 000) or millions (dropped off
000,000) enter this number the same wayPercentages in the
Projected Income Statement will be multiplied by the most
recent year. For example, if you enter in 10% for projected
revenues in projected year 2, the Template will use the equation
(1.10 x projected year 1 revenues) = projected year 2 revenues.
For line items in the projected income statement requesting
dollar amounts, please read the note below for the balance
sheet. The calculations work the same way as described
there.Projected Years (earliest to latest)Income
StatementHistorical Numbers (see
notes)12/31/1712/31/1812/31/19Historical Percent Notes Below.
Enter your data in the EXACT same format as the Notes
describe.RevenuesERROR:#DIV/0!Historical Note: Difference
the two most recent years of data. Enter percent increases you
expect based on your recommendations. Do not blindly use the
historical number provided. Enter as percent.Cost of Goods
SoldERROR:#DIV/0!Historical Note: Percent of Sales in the
most recent year. Use a similar percent across all three
projected years unless you believe COGS to sales percent will
change drastically. Enter as percent.Operating
ExpensesERROR:#DIV/0!Historical Note: Percent of Sales in
the most recent year. Use a similar percent across all three
projected years unless you believe Operating Expenses to sales
percent will change drastically. Enter as percent.Interest
Expense$0Historical Note: Dollar amount of interest paid in the
most recent year. Enter in the NEW NET dollar amounts of
interest you will forecasted for each year. If your most recent
interest payment was $500 and you plan on a $20 net increase in
interest for projected year 1, simply enter in $20 for year one. If
financing through debt, the number is more likely to increase
more than if financing through equity. Enter as dollar amount.
If you anticipate less interest expense than the year before,
enter as a negative number.TaxERROR:#DIV/0!Historical Note:
Tax Rate in most recent year. You can likely use the same tax

rate throughout unless you expect a large increase/decrease in
revenues and subsequently EBT. Enter as percent.Non-
Recurring Events0Historical Note: Dollar amount of Non-
Recurring Events. Safe to forecast this number as $0 in ever
year. Enter as dollar amount.Scroll Down for Balance
SheetWork from the bottom of the Projected Balance Sheet to
the top Projected Years (earliest to latest)Balance Sheet
(Start at the bottom)Historical Dollar Amount PaidThe
projected Balance Sheet is designed for you to enter in the NET
ADDITIONAL DOLLAR VALUES (except for Cash and
Equivalents). The Template will add these values to the existing
numbers. For Example, if you are adding $1,000 in inventory in
projected year 1, (but you estimate your firm used $800 of its
existing inventory from the prior year) just enter in $200
($1,000-$800) in the corresponding box and the Template will
use the equation ($200 + most recent historical year Inventory
number) = projected year 1 inventory.Read the message to the
right, then start at the bottom with
dividends.Assets12/31/1712/31/1812/31/19Cash and
Equivalents$0$0$0$0Historical Note: If your cash number
appears too high or low, consult Chapter 8 of the textbook for
more information. Also, compare your projected ratios to
historical ratios. You may need to make adjustments to your
recommendations and/or your projected statements. It is rare
for any firm to have acceptal projected statements after the first
attempt. Accounts Receivable$0 Historical Note: The values are
for the most recent year reported. Enter in the net new (not
cumulative) dollar amounts for each item for each forecasted
year (Except for the Cash and Equivalents line). If you are
purchasing $200 of Property, Plant & Equipment in Projected
Year 1, and keeping existing PP&E the same, simply enter $200
into the first projected year. If you plan to also reduce existing
PP&E by $300, then you would enter in a negative $100 into
Projected Year 1. Take care with each line time, it is not how
fast you get the numbers entered. Reread the hints in red writing
a few lines above.Inventory$0Other Current Assets$0Property

Plant & Equipment$0Goodwill$0Intangibles$0Other Long-Term
Assets$0Liabilities12/31/1712/31/1812/31/19Accounts
Payable0Historical Note: The values are for the most recent
year reported. Enter in the net new (not cumulative) dollar
amounts for each item for each forecasted year. For example, if
you do not plan to take on any additional long term debt in
Projected Year 1, but do plan to pay off $1,000 in debt in
Projected Year 1, enter in ($1,000) in Projected Year 1 long
term debt column. Other Current Liabilities0Long-Term
Debt0Other Long-Term
Liabilities0Equity12/31/1712/31/1812/31/19Common
Stock0Historical Note: The values are for the most recent year
reported. Enter in the new (additional, not cumulative) Dollar
amounts for each Item for each forecasted year. If you change
Treasury Stock, you may need to make an adjustment to Paid in
Capital. Enter Treasury Stock as a negative number. Read over
Chapter 8 of the David and David textbook.Treasury Stock0Paid
in Capital & Other0Retained Earnings0000Historical Note: The
Retained Earnings value is for the most recent year reported.
The new additional (not cumulative) Retained Earnings are
calculated automatically.Total Dividends to PaySTART
HEREStart HERE. Enter the total dollar amount you wish to pay
in dividends each forecasted year. If none, enter 0. This line is
not cumulative, it does not add the value to any existing value
for dividends. For example, if the firm paid $1,000 in dividends
and you wish to stop dividend payments, enter $0 in projected
year 1 box. If you wish to increase dividends by 10% enter
$1,100 into projected year 1 box. Check on your own to see
historically what the firm was paying.
Preliminary Financial Data
/xl/drawings/drawing2.xml#'PART%20II'!B2
Income Statement
/xl/drawings/drawing2.xml#'Financial%20Statements'!B5
Balance Sheet

Company Valuation
/xl/drawings/drawing2.xml#'Company%20Valuation'!B3
Rival Firm Valuation
/xl/drawings/drawing2.xml#'Company%20Valuation'!B14
Company Valuation
EPS/EBIT Analysis
Projected Financial Statements
HOME
/xl/drawings/drawing2.xml#'PART%20II'!A2
Balance Sheet
EPS/EBIT Analysis
/xl/drawings/drawing2.xml#EPS_EBIT!C4
IFE IFE Matrix1 If data is missing here, recheck "Part I"
2Check to make sure your text is not cut off in the matrix.
Double click (or drag) between the Cell Numbers.3To transfer
into Word or Power Point, highlight the matrix, then paste
special as "picture"StrengthsWeightRatingWeighted
Score100.0000.00200.0000.00300.0000.00400.0000.00500.0000
.00600.0000.00700.0000.00800.0000.00900.0000.001000.0000.
00WeaknessesWeightRatingWeighted
Score100.0000.00200.0000.00300.0000.00400.0000.00500.0000

.00600.0000.00700.0000.00800.0000.00900.0000.001000.0000.
00Total IFE Score0.000.00
Return to Part I/xl/drawings/drawing3.xml#'PART%20I'!B26
EFE EFE Matrix1 If data is missing here, recheck "Part I"
special as "picture"OpportunitiesWeightRatingWeighted
Score100.0000200.0000300.0000400.0000500.0000600.0000700
.0000800.0000900.00001000.0000ThreatsWeightRatingWeighte
d
Score100.0000.00200.0000.00300.0000.00400.0000.00500.0000
.00600.0000.00700.0000.00800.0000.00900.0000.001000.0000.
00Total EFE Score0.000.00
CPMCPM Matrix1If data is missing here, recheck the "Part I"
page.2Check to make sure your text is not cut off in the matrix.
special as "picture"YouCompetitor Competitor Critical Success
Factors WeightRating ScoreRating Score Rating Score
Advertising0.0000.0000.0000.00Market
Penetration0.0000.0000.0000.00Customer
Service0.0000.0000.0000.00Store
Locations0.0000.0000.0000.00R&D0.0000.0000.0000.00Employ
ee Dedication0.0000.0000.0000.00Financial
Profit0.0000.0000.0000.00Customer
Loyalty0.0000.0000.0000.00Market
Share0.0000.0000.0000.00Product
Quality0.0000.0000.0000.00Top
Management0.0000.0000.0000.00Price
Competitiveness0.0000.0000.0000.00Totals0.000.000.000.00
Return to Part I/xl/drawings/drawing5.xml#'PART%20I'!D99
BCGBCG1If data is missing here, recheck the "Part I" page and
read step 3.2Highlight the entire matrix (not just the inside

box), and then paste as paste special picture.3If you do not see
your circle, either you did not enter in the information or you
entered a number for the "Top Firm in the Industry Revenues"
smaller than your firm. This number can only be larger or the
same (if your firm's division is the largest revenue generator in
the industry). It is also possible your bubble is behind another
bubble if the information was close to the same, this is unlikely
however.Please Scroll down for the BCG Matrix
Relative Market Share PositionHigh 1.0Low 0.0Industry Sales
Growth RateHigh 0.20Low -0.20
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
Question Marks
0 0 0 0 0 0
Stars
0 0 0 0 0 0
Cash Cows
0 0 0 0 0 0
Dogs
s
0 0 0 0 0 0 0 0 0 0 0 0
Return to Part I/xl/drawings/drawing6.xml#'PART%20I'!D1320
0 0 0 0 0
0 0 0 0 0
IEIE1If data is missing here, recheck the "Part I" page and read
step 3.2Highlight the entire matrix (not just the inside box), and

then paste as paste special picture.3If you do not see your
circle, either you did not enter in the corresponding EFE or IFE
information. It is also possible your bubble is behind another
bubble if the EFE and IFE information was close to the
same.THE IFE TOTAL WEIGHTED SCORESStrongWeak
4.01.0High4.0THE EFE WEIGHTED SCORESLow1.0
0 0 1 0 0 1 0 0 1 0 0 1
0 1
SPACESPACE1If data is missing here, recheck the "Part I"
page and read step 3.2Highlight the entire matrix (not just the
inside box), and then paste as paste special picture. Be sure to
also include the table below the chart also in your
presentation.3If you do not see your bubble either you did not
enter in the information or, it is also possible your bubble is
behind another bubble if the X and Y information were close to
the same.Internal Analysis: External Analysis:Financial
Position (FP)Stability Position (SP)Return on Investment
(ROI)0Rate of Inflation0Leverage0Technological
Changes0Liquidity 0Price Elasticity of Demand0Working
Capital 0Competitive Pressure0Cash Flow0Barriers to Entry
into Market0Financial Position (FP) Average 0Stability Position
(SP) Average0.0Internal Analysis: External
Analysis:Competitive Position (CP)Industry Position (IP)Market
Share0Growth Potential0Product Quality0Financial
Stability0Customer Loyalty0Ease of Entry into
Market0Technological know-how0Resource Utilization0Control
over Suppliers and Distributors0Profit Potential0Competitive
Position (CP) Average0.0Industry Position (IP) Average0.0
0 1 Competitor 1 0 0 1 Competitor 2
0 0 1 0 0 1 Competitor 1 0 0 1
Competitor 2
0 0 1

FP
0 0 1 Competitor 1 0 0 1 Competitor 2
0 0 1
SP
0 0 1
CP
0 0 1
IP
IPIP
0 0 1
Defensive
0 0 1
Conservative
0 0 1
Aggressive
0 0 1
Competitive

0 0 1
Perceptual MapPerceptual Maps1If data is missing here, recheck
the "Part I" page and read Step 3.2Highlight the entire matrix
(not just the inside box), and then paste as paste special
picture.3If you do not see your circle, either you did not enter
in the corresponding information or it is also possible your
bubble is behind another bubble if the axis information was
close to the same.Top Side of the Y Name (high cost)Left Side
of the X Name (low calorie)Right Side of the X Name (high
calorie)Bottom Side of the Y Name (low cost)
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1
GRANDGRAND1 If data is missing here, recheck the "Part I"
page and read Step 3.2Highlight the entire matrix (not just the
inside box), and then paste as paste special picture.3If you do
not see your circle, either you did not enter in the corresponding
information or it is also possible your bubble is behind another
bubble if the axis information was close to the same.
Return to Part
I/xl/drawings/drawing13.xml#'PART%20I'!B299Name of your
Firm 1 Name of Division 1 1 Name of Division 2 1
Name of Division 3 1 Name of Division 4 1 Name
of Division 5 1 Name of your Firm 1 Name of Division
1 1 Name of Division 2 1 Name of Division 3 1
Name of Division 4 1 Name of Division 5 1 Name
of your Firm 1 Name of Division 1 1 Name of Division
Name of Division 5 1 Name of your Firm 1 Name
of Division 1 1 Name of Division 2 1 Name of Division
Quadrant II
Name of your Firm 1 Name of Division 1 1 Name of
Division 2 1 Name of Division 3 1 Name of Division
4 1 Name of Division 5 1

Quadrant I
Quadrant III
I
Quadrant IV
Rapid Market Growth
Slow Market Growth
Strong Competitive Position
Weak Competitive Position
SWOTSWOTSO Strategies1234ST Strategies1234WO
Strategies1234WT Strategies1234

QSPMQSPM1If data is missing here, recheck the "Part I" page.
Double click (or drag) between the Cell
Numbers.00StrengthsWeightASTASAS TAS
100.0000.0000.00200.0000.0000.00300.0000.0000.00400.0000.
0000.00500.0000.0000.00600.0000.0000.00700.0000.0000.0080
0.0000.0000.00900.0000.0000.001000.0000.0000.0000Weaknes
sesWeightASTASAS TAS
100.0000.0000.00200.0000.0000.00300.0000.0000.00400.0000.
0000.00500.0000.0000.00600.0000.0000.00700.0000.0000.0080
0.0000.0000.00900.0000.0000.001000.0000.0000.0000Opportun
itiesWeightASTASAS TAS
100.0000.0000.00200.0000.0000.00300.0000.0000.00400.0000.
0000.00500.0000.0000.00600.0000.0000.00700.0000.0000.0080
0.0000.0000.00900.0000.0000.001000.0000.0000.0000ThreatsW
eightASTASAS TAS
100.0000.0000.00200.0000.0000.00300.0000.0000.00400.0000.
0000.00500.0000.0000.00600.0000.0000.00700.0000.0000.0080
0.0000.0000.00900.0000.0000.001000.0000.0000.00STAS0.000.
00
Financial Statements1Complete Part II to Construct the
Financial Statements. Income
Statement12/31/1812/31/19Percent
ChangeRevenues$0$0ERROR:#DIV/0!ERROR:#DIV/0!Cost of
Goods Sold00ERROR:#DIV/0!ERROR:#DIV/0!Gross
Profit00ERROR:#DIV/0!ERROR:#DIV/0!Operating
Expenses00ERROR:#DIV/0!ERROR:#DIV/0!EBIT00ERROR:#
DIV/0!ERROR:#DIV/0!Interest
Expense00ERROR:#DIV/0!ERROR:#DIV/0!EBT00ERROR:#DI
V/0!ERROR:#DIV/0!Tax00ERROR:#DIV/0!ERROR:#DIV/0!No
n-Recurring Events00ERROR:#DIV/0!ERROR:#DIV/0!Net
Income00ERROR:#DIV/0!ERROR:#DIV/0!Balance
Sheet12/31/1812/31/19Percent ChangeAssetsCash and
Equivalents$0$0ERROR:#DIV/0!ERROR:#DIV/0!Accounts
Receivable00ERROR:#DIV/0!ERROR:#DIV/0!Inventory00ERR

OR:#DIV/0!ERROR:#DIV/0!Other Current
Assets00ERROR:#DIV/0!ERROR:#DIV/0!Total Current
Assets00ERROR:#DIV/0!ERROR:#DIV/0!Property Plant &
Equipment00ERROR:#DIV/0!ERROR:#DIV/0!Goodwill00ERR
OR:#DIV/0!ERROR:#DIV/0!Intangibles00ERROR:#DIV/0!ERR
OR:#DIV/0!Other Long-Term
Assets00ERROR:#DIV/0!ERROR:#DIV/0!Total
Assets00ERROR:#DIV/0!ERROR:#DIV/0!LiabilitiesAccounts
Payable00ERROR:#DIV/0!ERROR:#DIV/0!Other Current
Liabilities00ERROR:#DIV/0!ERROR:#DIV/0!Total Current
Liabilities00ERROR:#DIV/0!ERROR:#DIV/0!Long-Term
Debt00ERROR:#DIV/0!ERROR:#DIV/0!Other Long-Term
Liabilities00ERROR:#DIV/0!ERROR:#DIV/0!Total
Liabilities00ERROR:#DIV/0!ERROR:#DIV/0!EquityCommon
Stock00ERROR:#DIV/0!ERROR:#DIV/0!Retained
Earnings00ERROR:#DIV/0!ERROR:#DIV/0!Treasury
Stock00ERROR:#DIV/0!ERROR:#DIV/0!Paid in Capital &
Other00ERROR:#DIV/0!ERROR:#DIV/0!Total
Equity00ERROR:#DIV/0!ERROR:#DIV/0!Total Liabilities and
Equity00ERROR:#DIV/0!ERROR:#DIV/0!
Return to Part II/xl/drawings/drawing16.xml#'PART%20II'!B2
Company Valuation1Complete Part II to Construct the Company
Valuation Your Firm's NameStockholders' Equity - (Goodwill +
Intangibles)$0Net Income x 5$0(Share Price/EPS) x Net
IncomeERROR:#DIV/0!Number of Shares Outstanding x Share
Price$0Method AverageERROR:#DIV/0!Rival Firm's
NameStockholders' Equity - (Goodwill + Intangibles)$0Net
Income x 5$0(Share Price/EPS) x Net
IncomeERROR:#DIV/0!Number of Shares Outstanding x Share
Price$0Method AverageERROR:#DIV/0!
Return to Part II
EPS_EBIT1Complete Part II to Construct the EPS/EBIT Charts
Common Stock FinancingDebt
FinancingRecessionNormalBoomRecessionNormalBoomEBIT$0
$0$0$0$0$0Interest

000000EBT000000Taxes000000EAT000000#
SharesERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!000EP
SERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DI
V/0!ERROR:#DIV/0!ERROR:#DIV/0!
Stock0%Debt0%RecessionNormalBoomEBIT$0$0$0Interest
000EBT000Taxes000EAT000#
SharesERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!EPSER
ROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!
Common Stock Financing0 0 0 0 0 0 Debt
Financing 0 0 0 0 0 0
Return to Part
II/xl/drawings/drawing18.xml#'PART%20II'!B107Common
Stock Financing 0 0 0 0 0 0 Debt
Financing 0 0 0 0 0 0
Projected Statements1Complete Part II to Construct the
Projected Financial Statements.Projected Income
Statement12/31/1712/31/1812/31/19Revenues$0$0$0Cost of
Goods Sold000Gross Profit000Operating
Expenses000EBIT000Interest Expense000EBT000Tax000Non-
Recurring Events000Net Income000Projected Balance
Sheet12/31/1712/31/1812/31/19AssetsCash and
Equivalents$0$0$0Accounts Receivable000Inventory000Other
Current Assets000Total Current Assets000Property Plant &
Equipment000Goodwill000Intangibles000Other Long-Term
Assets000Total Assets000LiabilitiesAccounts Payable000Other
Current Liabilities000Total Current Liabilities000Long-Term
Debt000Other Long-Term Liabilities000Total
Liabilities000EquityCommon Stock000Retained
Earnings000Treasury Stock000Paid in Capital & Other000Total
Equity000Total Liabilities and Equity000
Return to Part II
Ratios1Complete Part II to Construct the Ratios Historical
RatiosProjected
Ratios12/31/1812/31/1912/31/1712/31/1812/31/19Current
RatioERROR:#DIV/0!ERROR:#DIV/0!Current

RatioERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Quick
RatioERROR:#DIV/0!ERROR:#DIV/0!Quick
RatioERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Total
Debt-to-Total-Assets
RatioERROR:#DIV/0!ERROR:#DIV/0!Debt-to-Total-Assets
RatioERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Total
Debt-to-Equity RatioERROR:#DIV/0!ERROR:#DIV/0!Debt-to-
Equity
RatioERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Times-
Interest-Earned RatioERROR:#DIV/0!ERROR:#DIV/0!Times-
Interest-Earned
RatioERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Inventor
y TurnoverERROR:#DIV/0!ERROR:#DIV/0!Inventory
TurnoverERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Fixe
d Assets TurnoverERROR:#DIV/0!ERROR:#DIV/0!Fixed
Assets
TurnoverERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Tota
l Assets TurnoverERROR:#DIV/0!ERROR:#DIV/0!Total Assets
TurnoverERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Acc
ounts Receivable
TurnoverERROR:#DIV/0!ERROR:#DIV/0!Accounts Receivable
TurnoverERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Ave
rage Collection PeriodERROR:#DIV/0!ERROR:#DIV/0!Average
Collection
PeriodERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Gross
Profit Margin %ERROR:#DIV/0!ERROR:#DIV/0!Gross Profit
Margin
%ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Operating
Profit Margin %ERROR:#DIV/0!ERROR:#DIV/0!Operating
Profit Margin
%ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ROA
%ERROR:#DIV/0!ERROR:#DIV/0!ROA
%ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ROE
%ERROR:#DIV/0!ERROR:#DIV/0!ROE
%ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!
Return to Part II

/xl/drawings/drawing20.xml#'PART%20II'!A1
BUSI 690
Individual Case Study Part 2 Instructions
Complete the case study of Chipotle
A formal, in-depth case study analysis requires you to utilize
the entire strategic management process. Assume your group is
a consulting team asked by the Chipotle to analyze its
external/internal environment and make strategic
recommendations. You must include exhibits to support your
analysis and recommendations.
The case study must include these components:
Case study deliverables (text must follow this order with current
APA level headings for each component):
Note: Items 2, 3, 4, 5, 8, and 9 are Part 1 of the Individual Case
Study, reuse them in this section to complete the case study.
1. Executive Summary
2. Existing mission, objectives, and strategies – From Part 1
3. A new mission statement (include the number of the
component in parenthesis before addressing that component) –
From Part 1
Great mission statements address these 9 components:
· Customers: Who are the firm’s customers?
· Products or services: What are the firm’s major products or
services?
· Markets: Geographically, where does the firm compete?
· Technology: Is the firm technologically current?
· Concern for survival, growth, and profitability: Is the firm
committed to growth and financial soundness?
· Philosophy: What are the basic beliefs, values, aspirations,
and ethical priorities of the firm?
· Self-concept: What is the firm’s distinctive competence or
major competitive advantage?
· Concern for public image: Is the firm responsive to social,
community, and environmental concerns?
· Concern for employees: Are employees a valuable asset of the

firm?
4. Analysis of the firm’s existing business model - From Part 1
5. SWOT Analysis - From Part 1 (comes from researching the
firm, industry, and competitors) It is important to know the
difference between causes and effects in the SWOT analysis.
Causes are important, not effects. Once the SWOT Analysis is
created, each group needs to construct the SWOT Bivariate
Strategy Matrix.
Deliverables for this section include:
a. SWOT Analysis
b. Internal Factor Evaluation (IFE) Matrix
c. External Factor Evaluation (EFE) Matrix
d. SWOT Bivariate Strategy Matrix
6. BCG Matrix (follow the Strategy Club’s template, not the
textbook’s format)
7. Competitive forces, Competitive Profile Matrix (CPM), and
competitor’s ratios
Deliverables for this section include:
a. Competitive forces analysis
b. CPM and analysis
c. Competitor’s ratios and analyis
8. Historical Financial Statements - From Part 1 (Income
Statement (I/S), Balance Sheet (B/S) and Statement of Cash
Flows) from the 3 most current years for the firm
The financial statements must include changes (deltas) between
years.
9. Ratios from the most current and available 3 years with
deltas and analysis - From Part 1
10. Alternative strategies (giving advantages and alternatives
for each)
11. Pro-Forma Financial Statements (I/S, B/S and Statement of
Cash Flows) with deltas out 3 years and analysis
Each year must have 2 columns: 1 with your strategy and 1
without your strategy.

a. Include Pro-Forma ratios for the first year out with deltas
contrasting from the most current year’s ratios.
12. Net Present Value analysis of proposed strategy’s new cash
flow and EPS/EBIT analysis
NOTE: To construct the first cash flow (cf1) at the very
minimum, the new revenue from your strategy(s) must be
discounted back to the present value by calculating EBIT and
that figure will be your cfn for each year. cf0 (initial cost of
your strategy), cf1 (discounted cash flow first year), r
(opportunity cost of capital, the rate of the next best alternative
use of cash/debt/equity resources).
a.
13. Specific recommended strategy and long term objectives
Explain why you chose the strategy, and discuss how much the
strategy will cost to implement and how much new revenue your
strategy will create. Include your action timetable agenda for
accomplishing your strategy.
14. Proposed new business model
Page 2 of 2
Running Head: CHIPOTLE MEXICAN GRILL CASE STUDY1
CHIPOTLE MEXICAN GRILL CASE STUDY 21
Chipotle Mexican Grill Inc. Case Study

Chipotle Mexican Grill Inc. Case Study
Since its inception in Denver, Colorado, in 1993, Chipotle
Mexican Grill Inc. (CMG) has been a success story in the
restaurant industry. The success can be witnessed through the
growth of the business, whereby it managed to operate in more
than 2000 locations by 2016. Steve Ells, a well-renowned chef,
is the mastermind of the tremendously successful Chipotle
restaurant. In launching the business, Ells’ objective was to
offer a simple menu through the preparation of great food by
utilizing diverse cooking techniques (Hoffmann, 2014). The
company has clung to the original idea of offering the
customers the promise to provide "Food with Integrity."
The business model for CMG is based on components such as
committed employees, no franchises, fast and personalized food,
high-quality fresh ingredients, as well as an uncomplicated
menu. This paper examines the CMG, whereby it will shed more
light on how they have been successful. This includes a
description of the current mission, objectives, and strategies.
The new mission statement for the CMG will be examined based
on the diverse components of a great mission statement. More
importantly, the paper includes an analysis of the company’s
business model and SWOT analysis. Additionally, financial
statements and ratios for the business over the past three years
will also be reviewed and analyzed.
Mission, Objectives, and Strategies
The existing mission statement for CMG is to provide “Food
with Integrity”. The mission statement is precise in terms of its
prominent level of focus as well as a singularity in terms of how
the business delivers its promise to the consumers. The
company shows a tremendous level of commitment in terms of
providing foods that leave the consumers feeling honored and
appreciated. The vision statement of the business is “to do more
than just rolling burritos while working to cultivate a better

world” (Hoffmann, 2014). Although this is not an official vision
statement for the business, the underlying business practices
undertaken by the company replicates the statement. It
remarkably represents all that CMG undertakes and prioritizes.
CMG is committed towards utilizing the best ingredients,
providing exceptional services and distinctive products, as well
as putting more emphasis on responsibility and quality. One of
the most vital strategies of the business is to get the ingredients
right, which fulfills the objective of ensuring that the food
items are perfect for all its customers (Hoffmann, 2014). To this
end, CMG is very keen on ensuring that all the ingredients are
obtained from the farmers, which gives the business a 100
percent guarantee of ingredients that are natural and fresh.
Additionally, the company has strategized on onboarding
experts in the restaurant industry, which includes chefs and
restaurant attendants. Due to experience and expertise, these
individuals have been able to ensure that CMG does not
disappoint the customers in terms of food quality and service
delivery.
New Mission Statement
The new mission statement for CMG would be segmented into
four sub-statements:
· To provide our (1) world class customers with (2) superior
quality food with integrity as our commitment to finding the (3)
very best ingredients by respecting (4) the animals, the
environment, and the farmers.
· To be the (5) employer of choice for the best talent in the
restaurant industry, which enhances (6) individual and
organizational growth.
· To integrate the (7) best technologies in our operations with
high consciousness to human and environmental health.
· To be the (8) leading and most trusted restaurant business in
(9) the United States and beyond.
Analysis of CMG’s Business Model
The core business model for CMG is primarily based on

creating high-quality fast food experience across its locations.
The business has been keen on combining fine dining with fast
and high-quality service delivery to its consumers, which
creates higher customer value by providing efficient service,
clean dining environment, as well as high-quality food, through
living up to the promise of the mission statement (Stevens &
Lunsford, 2014). CMG has been remarkably successful in
identifying and securing a worldwide loyal customer base.
The distinctive products and exceptional services have been at
the core of the company’s business model. The company has
established a unique brand that gives the business a competitive
edge in the fast-food market. The preparation methods
integrated into the making the food products emphasize the
value put by the business on the consumer’s health and
wellness. CMG acknowledges that ingredients are influential in
the overall health of the customers, which explains the
company’s commitment towards only utilizing the natural,
fresh, and real ingredients (Walker & Merkley, 2017).
Despite offering high-quality products and services, the prices
attached to individual food products are reasonable and highly
competitive. Considering the guaranteed naturalness and
freshness manifested in the restaurant’s food products,
competitive prices have been central to the increased customer
base attributable to the massive satisfaction of the consumers.
In particular, the company’s business model has embraced
customer-oriented and strategic pricing as a way of ensuring
that its food indeed portrays integrity (Stevens & Lunsford,
2014). CMG has always ensured that its customers consume the
food that can be trusted because it utilizes natural ingredients in
preparing the food.
To this end, all customers for the business are presented with
the opportunity of having their options and preferences taken
into consideration. CMG gives its customers the liberty of
making their order while specifying the specific customizations
that are consistent with their needs (Stevens & Lunsford, 2014).
This attribute of the business model has been critical in

ensuring that customers are not limited to what they can get
(Walker & Merkley, 2017). More importantly, CMG has never
compromised the options and preferences of any of its
customers.
SWOT Analysis
The primary objective of undertaking a SWOT (Strengths,
Weaknesses, Opportunities, and Threats) analysis is to establish
the strategies that may be utilized by an organization towards
building on and protecting the strengths and eradicating the
weaknesses while exploiting external opportunities and
countering threats (Professional Services Close-Up, 2017).
1. Strengths – These help to protect the existing market’s
market share and penetrate new markets.
· Strong distribution network – the business has established a
reliable and robust distribution network with the capacity to
reach most of the potential markets.
· Strong cash flows – offer resources for purposes of expanding
into new ventures.
· Higher returns – effective in executing new projects that earn
good returns on capital expenditure through the establishment
of the new streams of revenue (Walker & Merkley, 2017).
· Strong dealer community – CMG has a reliable dealer and
distributor culture, which ensures that these partners help in
promoting the business’ products. They also help to train sales
representatives towards explaining to the consumers on the
ways of extracting maximum benefits from consuming CMG’s
food items.
· Strong brand portfolio – benefitted the business in the
expansion endeavors of new products.
· Activity automation – led to product quality consistency and
enhanced scaling up/down based on market demand.
· Highly-skilled employees – trains and develops workers,
which has led to advanced skills and desire to achieve more.
· Excellent performance – performed superbly in new markets,
which has enhanced new revenue streams and diversity, making
the business more risk-averse.

2. Weaknesses – Represent areas of improvement for CMG. The
analysis of the business weaknesses will tremendously help
CMG in building on its strategic positioning and competitive
advantage.
· Limited investment in research and development – despite
significant investment in research and development, CMG is not
at par with the fastest-growing competitors in the restaurant
businesses. The business’ investment in R&D is above the
industry average, but it lags what leading players are doing
concerning innovation (Ragas & Roberts, 2009).
· Low accessibility beyond core business – CMG has been
facing challenges in venturing to diverse product segments. The
existing culture has been the major stumbling block to the need
for diversity.
· High inventory – requires higher capita, which may
compromise CMG’s growth in the long-term.
· Inefficient financial planning – the present CMG’s liquid asset
ratio and quick ratio indicate that the business may need to
utilize the cash in a more efficient manner (Ragas & Roberts,
2009).
· Poor integration with a new work culture – inefficient in
merging with firms that have distinct work cultures.
· Poor product marketing – despite reaping a remarkable
success, CMG has not clearly defined its unique selling
proposition and positioning. This may potentially give
competitors an opportunity of attacking the business from the
weakness (Ragas & Roberts, 2009).
· Higher employee attrition – CMG’s workforce attrition is
higher relative to that of competitors. The company spends more
on training and development of the workers.
3. Opportunities
· New customers – the potential attraction of customers from its
online platform. CMG may leverage more the online channel to
know the customer better and effectively meet their needs based
on data analytics using online information.
· Differentiated pricing strategy – leverage the online platform

in maintaining loyal customers and attracting new ones through
offering exceptional services and pitching value-oriented
propositions (Abwanzo, 2017).
· Increased customer expenditure and economic growth – the
global economy has experienced significant growth after a
recession. CMG may need to take advantage of the economic
uptick and leverage the increased customer spending towards
obtaining new consumers and increased the market share.
· Low inflation rate – leads to increased market stability while
lowering the cost of credit to the consumers (Stevens &
Lunsford, 2014).
· Low transportation cost – lower shipping costs give the CMG
an opportunity of either increasing profitability or lowering
product prices towards increasing its market share.
· New tax policies – influence business activities and favors the
business in terms of increasing profitability (Stevens &
Lunsford, 2014).
· Environmental policies – create a level playing ground across
industry players. CMG may leverage innovative technologies in
gaining market share through its unique products.
4. Threats
· Modern technologies – when created by market disruptors or
competitors, innovative technologies may seriously threaten the
future of the industry in the medium- and long-term.
· Lack of innovative products – no innovative products that
have been developed by besides, what is offered by competitors.
Also, there is an irregular supply of new products, which has
been associated with low and high sales swings.
· Stronger local distributors – a growing number of reliable
distributors threatens the CMG’s profitability because
competitors pay the distributors higher margins (Walker &
Merkley, 2017).
· Lack of skilled workers – some markets are lacking skilled
workers, which threatens a steady profitability growth of CMG
in such markets.
· Intense competition – many players in the industry, have

witnessed increased stability in profits in the recent past,
exerting pressure on the overall sales and profitability of CMG.
· Global risks – because it operates in different countries, CMG
is exposed to the risk of currency and exchange rate
fluctuations, mainly owing to the volatility experienced in the
political climate of some nations around the globe (Abwanzo,
2017).
· Change in customer behavior – most consumers have moved to
online channels when making purchases. This attribute
dramatically threatens the present physical infrastructure that
CMG has invested in its hundreds of stores.
Historical Financial Statements
Income Statement
a. Chipotle Mexican Grill, Inc. Consolidated Income Statement
2019 ($) 2018 ($) 2017
($)
Revenue 5,586,369 4,864,985
4,476,412
Restaurant operating costs
Food, beverage, and packaging 1,847,916
1,600,760 1,535,428
Labor 1,472,060 1,326,079
1,205,992
Occupancy 363,072 347,123
327,132
Other operating costs 760,831 680,031
651,644
General administration expenses 451,552
375,460 296,388
Depreciation and amortization 212,778 201,979
163,348
Pre-opening costs 11,108 8,546
12,341
Impairment, closure costs, and asset disposals 23,094
66,639 13,345
Total operating expenses

5,142,4114,606,6174,205,618
Income from operations 443,958 258,368
270,794
Interest and other income, Net 14,327 10,068
4,949
Income before income taxes 458,285
268,436 275,743
Provision for income taxes
(108,127)(91,883)(99,490)
Net income
350,158176,553176,253
Earnings per share
Basic 12.62 6.35
6.19
Diluted 12.38 6.31
6.17
Weighted average common shares outstanding
Basic 27,740 27,823 28,491
Diluted 28,295 27,962
28,561
b. Income Statement Horizontal Analysis
2017 ($)
2018 ($)
2019 ($)
Revenue
100.0%
8.0%
19.9%

Food, beverage, and packaging
100.0%
4.1%
16.9%
Labor
100.0%
9.1%
18.1%
Occupancy
100.0%
5.8%
9.9%
Other operating costs
100.0%
4.2%
14.4%
General administration expenses
100.0%
21.1%
34.4%
Depreciation and amortization
100.0%
19.1%
23.2%
Pre-opening costs
100.0%
-44.4%
-11.1%

Impairment, closure costs, and asset disposals
100.0%
-73.1%
65.3%
100.0%
8.7%
18.2%
Income from operations
100.0%
-4.8%
39.0%
Interest and other income, Net
100.0%
50.8%
65.5%
Income before income taxes
100.0%
-2.7%
39.8%
100.0%
-8.3%
8.0%
Net income
100.0%
0.2%
49.7%
Earnings per share

Basic
100.0%
2.5%
51.0%
Diluted
100.0%
2.2%
50.2%
Basic
100.0%
-2.4%
-2.7%
Diluted
100.0%
-2.1%
-0.9%
c. Income Statement Vertical Analysis
2017 ($)
2018 ($)
2019 ($)
Revenue

100.0%
100.0%
100.0%
Food, beverage, and packaging
34.3%
32.9%
33.1%
Labor
26.9%
27.3%
26.4%
Occupancy
7.3%
7.1%
6.5%
Other operating costs
14.6%
14.0%
13.6%
General administration expenses
6.6%
7.7%
8.1%
3.6%
4.2%
3.8%
Pre-opening costs
0.3%
0.2%
0.2%

0.5%
0.3%
1.2%
94.0%
94.7%
92.1%
Income from operations
6.0%
5.3%
7.9%
Interest and other income, Net
0.1%
0.2%
0.3%
Income before income taxes
6.2%
5.5%
8.2%
-2.2%
-1.9%
-1.9%
Net income
3.9%
3.6%
6.3%
Earnings per share
Basic
0.0%
0.0%
0.0%
Diluted

0.0%
0.0%
0.0%
Basic
0.6%
0.6%
0.5%
Diluted
0.6%
0.6%
0.5%
Balance Sheet
a. Chipotle Mexican Grill, Inc. Consolidated Balance Sheet
2019 ($)2018 ($)2017 ($)
ASSETS
Current assets:
Cash and cash equivalents 480,626 249,953
184,569
Accounts receivable, net 80,545 62,312
40,453
Inventory 26,096 21,555
9,860
Prepaid expenses and other current assets 57,076
54,129 50,918
Income tax receivable 27,705
- 9,353
Investments 400,156 426,845
324,382
Total current assets 1,072,204
814,794 629,535

Leasehold improvements, property, equipment, net 1,458,690
1,379,254 1,338,366
Restricted cash 27,855 30,199
29,601
Operating lease assets 2,505,466
- -
Other assets 18,450 19,332
26,251
Goodwill 21,939 21,939
21,939
Total assets
5,104,6042,265,5182,045,692
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable 115,816
113,071 82,028
Accrued payroll and benefits 126,600
113,467 82,541
Accrued liabilities 155,843
147,849 95,679
Unearned revenue 95,195 70,474
63,645
Current operating lease liabilities 173,139
- -
Income tax payable - 5,129
-
Total current liabilities 666,593 449,990
323,893
Deferred rent -
330,985 316,498
Long-term operating lease liabilities 2,678,374
-
Deferred income tax liabilities 37,814 11,566
814
Other liabilities 38,797 31,638
40,042

Total liabilities 3,421,578
824,179 681,247
Shareholders’ equity:
Common stock 363 360 359
Additional paid-in capital 1,465,697
1,374,154 1,305,090
Treasury stock (2,699,119)
(2,500,556) (2,334,409)
Accumulated other comprehensive loss (5,363) (6,236)
(3,659)
Retained earnings 2,921,448
2,573,617 2,397,064
Total shareholders’ equity 1,683,026
1,441,339 1,364,445
Total liabilities and shareholders’ equity
5,104,6042,265,5182,045,692
b. Balance Sheet Horizontal Analysis
2017 ($)
2018 ($)
2019 ($)
ASSETS
Current assets:
Cash and cash equivalents
100.0%
35.4%
160.4%
Accounts receivable, net
100.0%

54.0%
99.1%
Inventory
100.0%
118.6%
164.7%
Prepaid expenses and other current assets
100.0%
6.3%
12.1%
Income tax receivable
100.0%
-100.0%
196.2%
Investments
100.0%
31.6%
23.4%
Total current assets
100.0%
29.4%
70.3%
Leasehold improvements, property, equipment, net
100.0%
3.1%
9.0%
Restricted cash
100.0%
2.0%
-5.9%
Operating lease assets
0.0%
Other assets
100.0%

-26.4%
-29.7%
Goodwill
100.0%
0.0%
0.0%
Total assets
100.0%
10.7%
149.5%
Accounts payable
100.0%
37.8%
41.2%
Accrued payroll and benefits
100.0%
37.5%
53.4%
Accrued liabilities
100.0%
54.5%
62.9%
Unearned revenue
100.0%
10.7%
49.6%
Current operating lease liabilities

Income tax payable
100.0%
-100.0%
-100.0%
Total current liabilities
100.0%
38.9%
105.8%
Deferred rent
100.0%
4.6%
Long-term operating lease liabilities
Deferred income tax liabilities
100.0%
1320.9%
4545.5%
Other liabilities
100.0%
-21.0%
-3.1%
Total liabilities
100.0%
21.0%
402.3%
Common stock
100.0%

0.3%
1.1%
Additional paid-in capital
100.0%
5.3%
12.3%
Treasury stock
100.0%
7.1%
15.6%
Accumulated other comprehensive loss
100.0%
70.4%
46.6%
Retained earnings
100.0%
7.4%
21.9%
Total shareholders’ equity
100.0%
5.6%
23.3%
100.0%
10.7%
149.5%
c. Vertical Analysis Balance Sheet
2017 ($)
2018 ($)
2019 ($)
ASSETS

Current assets:
Cash and cash equivalents
9.0%
11.0%
9.4%
Accounts receivable, net
2.0%
2.8%
1.6%
Inventory
0.5%
1.0%
0.5%
2.5%
2.4%
1.1%
Income tax receivable
0.5%
0.0%
0.5%
Investments
15.9%
18.8%
7.8%
Total current assets
30.8%
36.0%
21.0%
Leasehold improvements, property, equipment, net

65.4%
60.9%
28.6%
Restricted cash
1.4%
1.3%
0.5%
Operating lease assets
49.1%
Other assets
1.3%
0.9%
0.4%
Goodwill
1.1%
1.0%
0.4%
Total assets
100.0%
100.0%
100.0%
Accounts payable
4.0%
5.0%
2.3%
Accrued payroll and benefits

4.0%
5.0%
2.5%
Accrued liabilities
4.7%
6.5%
3.1%
Unearned revenue
3.1%
3.1%
1.9%
Current operating lease liabilities
0.0%
0.0%
3.4%
Income tax payable
0.3%
0.0%
0.0%
Total current liabilities
15.8%
19.9%
13.1%
Deferred rent
15.5%
14.6%
Long-term operating lease liabilities
0.0%
0.0%
52.5%
Deferred income tax liabilities
0.0%
0.5%
0.7%
Other liabilities

2.0%
1.4%
0.8%
Total liabilities
33.3%
36.4%
67.0%
Common stock
0.0%
0.0%
0.0%
Additional paid-in capital
63.8%
60.7%
28.7%
Treasury stock
-114.1%
-110.4%
-52.9%
Accumulated other comprehensive loss
-0.2%
-0.3%
-0.1%
Retained earnings
117.2%
113.6%
57.2%
Total shareholders’ equity
66.7%
63.6%
33.0%

100.0%
100.0%
100.0%
Statement of Cash Flows
a. Chipotle Mexican Grill, Inc. Consolidated Statements of Cash
Flows
2019 ($) 2018 ($) 2017 ($)
Operating activities
Net income 350,158 176,553
176,253
Adjustments to reconcile net income to net cash
Depreciation and amortization 212,778
201,979 163,348
Amortization of operating lease assets 163,952
— —
Deferred income tax (benefit) provision 29,962
10,585 (18,026)
Impairment, closure costs, and asset disposals 15,402
61,987 13,345
Bad debt allowance 33 125
214
Stock-based compensation expense 91,396 69,164
65,255
Other (10,592) (2,918) (218)
Changes in operating assets and liabilities
Accounts receivable (2,630) (8,298)
(140)
Inventory (4,530) (1,722)
(5,250)
Prepaid expenses and other current assets (23,066) (3,811)
(6,710)
Other assets 2,818 (2,005)
(1,476)
Accounts payable (973)
32,080 10,908

Accrued payroll benefits 11,759 29,568
6,188
Accrued liabilities 36,543 14,831
28,179
Unearned revenue 30,400 6,829
4,207
Income tax payable/receivable (32,083) 14,439
(4,173)
Deferred rent — 21,297
29,996
Operating lease liabilities (151,557)
— —
Other long-term liabilities 1,862
869 6,316
Net cash provided by operating activities
721,632621,552468,216
Investing activities
Purchase of leasehold improvements, property (333,912)
(287,390) (216,777)
Purchase of investments (448,754)
(485,188) (199,801)
Maturities of investments 476,723 385,000
330,000
Proceeds from sale of equipment 13,969 —
—
Net cash used in investing activities
(291,974)(387,578)(86,578)
Financing activities
Acquisition of treasury stock (190,617)
(160,937) (285,218)
Tax withholding on stock-based compensation (10,420)
(5,411) (702)
Stock plan transactions and other activities (698)
(187) 26
Net cash used in financing activities (201,735)
(166,535) (285,894)

Effect of exchange rate changes 406 (1,457)
2,056
Net change in cash, cash equivalents 228,329
65,982 97,800
Opening cash, cash equivalents, and restricted cash 280,152
214,170 116,370
Closing cash, cash equivalents, and restricted cash
508,481280,152214,170
Supplemental disclosures of cash flow information
Income taxes paid 109,571 67,053
119,787
Accrued purchases of leasehold improvements 36,886 30,870
31,806
Acquisition of treasury stock —
2,474 2,274
b. Cash Flow Statement Horizontal Analysis
2017 ($)
2018 ($)
2019 ($)
Net income
100.0%
0.2%
98.7%
100.0%
23.6%

30.3%
Amortization of operating lease assets
Deferred income tax (benefit) provision
100.0%
-158.7%
-266.2%
100.0%
364.5%
15.4%
Bad debt allowance
100.0%
-41.6%
-84.6%
Stock-based compensation expense
100.0%
6.0%
40.1%
Other
100.0%
1238.5%
4758.7%
Accounts receivable
100.0%
5827.1%
1778.6%
Inventory
100.0%
-67.2%

-13.7%
100.0%
-43.2%
243.8%
Other assets
100.0%
35.8%
-290.9%
Accounts payable
100.0%
194.1%
-108.9%
Accrued payroll benefits
100.0%
377.8%
90.0%
Accrued liabilities
100.0%
-47.4%
29.7%
Unearned revenue
100.0%
62.3%
622.6%
Income tax payable/receivable
100.0%
-446.0%
668.8%
Deferred rent
100.0%
-29.0%
Operating lease liabilities

Other long-term liabilities
100.0%
-86.2%
-70.5%
100.0%
32.7%
54.1%
Purchase of leasehold improvements, property
100.0%
32.6%
54.0%
Purchase of investments
100.0%
142.8%
124.6%
Maturities of investments
100.0%
16.7%
44.5%
Proceeds from sale of equipment
100.0%
347.7%
237.2%

Acquisition of treasury stock
100.0%
-43.6%
-33.2%
Tax withholding on stock-based compensation
100.0%
670.8%
1384.3%
Stock plan transactions and other activities
100.0%
-819.2%
-2784.6%
Net cash used in financing activities
100.0%
-41.7%
-29.4%
Effect of exchange rate changes
100.0%
-170.9%
-80.3%
Net change in cash, cash equivalents
100.0%
-32.5%
133.5%
Opening cash, cash equivalents, and restricted cash
100.0%
84.0%
140.7%
100.0%
30.8%
137.4%

Income taxes paid
100.0%
-44.0%
-8.5%
Accrued purchases of leasehold improvements
100.0%
-2.9%
16.0%
100.0%
8.8%
c. Vertical Analysis - Cash Flow Statements
2017 ($)
2018 ($)
2019 ($)
Net income
29.6%
34.3%
37.3%
27.4%
39.3%
22.7%
Amortization of operating lease assets

17.5%
Deferred income tax (benefit) provision
-3.0%
2.1%
3.2%
2.2%
12.1%
1.6%
Bad debt allowance
0.0%
0.0%
0.0%
Stock-based compensation expense
11.0%
13.5%
9.7%
Other
0.0%
-0.6%
-1.1%
Accounts receivable
0.0%
-1.6%
-0.3%
Inventory
-0.9%
-0.3%
-0.5%

-1.1%
-0.7%
-2.5%
Other assets
-0.2%
-0.4%
0.3%
Accounts payable
1.8%
6.2%
-0.1%
Accrued payroll benefits
1.0%
5.8%
1.3%
Accrued liabilities
4.7%
2.9%
3.9%
Unearned revenue
0.7%
1.3%
3.2%
Income tax payable/receivable
-0.7%
2.8%
-3.4%
Deferred rent
5.0%
4.1%
Operating lease liabilities
-16.2%
Other long-term liabilities

1.1%
0.2%
0.2%
78.6%
120.9%
76.9%
Purchase of leasehold improvements, property
-36.4%
-55.9%
-35.6%
Purchase of investments
-33.5%
-94.4%
-47.8%
Maturities of investments
55.4%
74.9%
50.8%
Proceeds from sale of equipment
1.5%
-14.5%
-75.4%
-31.1%

-47.9%
-31.3%
-20.3%
Tax withholding on stock-based compensation
-0.1%
-1.1%
-1.1%
Stock plan transactions and other activities
0.0%
0.0%
-0.1%
Net cash used in financing activities
-48.0%
-32.4%
-21.5%
Effect of exchange rate changes
0.3%
-0.3%
0.0%
Net change in cash, cash equivalents
16.4%
12.8%
24.3%
Opening cash, cash equivalents, and restricted cash
19.5%
41.7%
29.9%
35.9%
54.5%
54.2%
Income taxes paid

20.1%
13.0%
11.7%
Accrued purchases of leasehold improvements
5.3%
6.0%
3.9%
0.4%
0.5%
Net cash generated during the year
100.0%
100.0%
100.0%
Chipotle Mexican Grill Inc. Financial Ratios
Annual Data
December 31, 2019
December 31, 2018
December 31, 2017
Current ratio
1.6085
1.8107
1.9437
Long-term debt/ capital
0.6141
-
-
Debt/Equity ratio
1.6943
-
-
Gross margin
20.4514

18.7255
16.8934
Operating margin
7.9472
5.3108
6.0494
Net profit margin
6.2681
3.6291
3.9374
Asset turnover
1.0944
2.1474
2.1882
Return on assets (ROA)
6.8597
7.7931
8.6158
Return on investment (ROI)
8.0286
12.2492
12.9176
From the above table summarizing the financial ratios for
CMG, the current ratio has declined from 1.9437 in 2017 to
1.6085. This decline can be attributed to the increase in short
term liabilities that have more than doubled in 2019 from 2017.
The implication is that the business may be straining in terms of
meeting its short-term obligations. Another crucial ratio
presented in the table is the gross margin, which is steadily
increasing from 2017. The higher level of gross margin
registered by CMG indicates that the company is making
increased profits after settling the cost of goods sold. The
implication is that the firm is efficient in utilizing labor and raw
materials in the process of producing various food products.
Similarly, the increase in the net profit margin recorded by
CMG implies that the company is efficient in the conversion of

sales into a profit. However, the decline in asset turnover from
2017 suggests that CMG may not be efficient in utilizing its
assets in the generation of sales. The same aspect can be
witnessed in decline in the ROA ratio. Notably, there is a
decline in ROI ratio, which may imply that CMG is not prudent
when making decisions regarding funding future projects.
Conclusion
From the paper, CMG has been performing exceptionally
well in the restaurant industry. The famous mission statement of
the company: Food with Integrity, has been instrumental in
attracting customers to the restaurant. However, the restaurant
has portrayed a tremendous level of dedication towards
delivering its promise to the customers. CMG has been
consistent in offering its customers fresh and natural ingredients
that are highly conscious of the health of the customers.
The SWOT analysis has indicated that the business can
effectively leverage its strengths and opportunities in offsetting
the weaknesses and threats it faces. The financial statements
have suggested that the company is vast in terms of assets and
profitability, which can be utilized for further expansion and
diversification. The financial ratios have indicated that CMG
has improved in the last three years, although they are still more
opportunities for further growth.

References
Abwanzo, B. (2017). Chipotle Company Assessment. Available
at SSRN 3278492.
Chipotle posts financial results for its third quarter ended
september 30. (2017). Professional Services Close-Up.
Hoffmann, A. (2014). Chipotle Mexican Grill, Inc.: Conscious
Capitalism by Serving 'Food with Integrity'. Strategic
Management and Business Policy.
Ragas, M. W., & Roberts, M. S. (2009). Communicating
corporate social responsibility and brand sincerity: A case study
of Chipotle Mexican Grill's ‘Food with
Integrity’program. International Journal of Strategic
Communication, 3(4), 264-280.
Stevens, N. L., & Lunsford, R. (2014). Beyond the burrito:
Chipotle Mexican Grill's brand extension. Journal of Business
Cases and Applications, 12, 1.
Walker, R., & Merkley, G. (2017). Chipotle Mexican grill: Food
with integrity?. Kellogg School of Management.
APPENDICES
Appendix 1 Matrix: Internal Factor Evaluation (IFE) Matrix
Key internal factor

Weight
Rating
Weighted Score
Strengths
Strong distribution network
8
3
0.24
Higher returns
11
4
0.44
Excellent performance
8
3
0.24
Strong dealer community
4
1
0.04
Strong brand portfolio
12
4
0.48
Highly-skilled employees
4
3
0.12
Strong cash flows
7
3
0.21
Activity automations
6
1
0.06

Weaknesses
Limited investment in R&D
5
2
0.10
Low accessibility beyond core business
8
3
0.24
High inventory
4
2
0.08
Inefficient financial planning
4
2
0.08
Poor integration with a new work culture
7
4
0.28
Poor product marketing
6
2
0.12
Higher employee attrition
6
4
0.24
Total
100
2.97

Appendix 2: External Factor Evaluation (EFE) Matrix
Key external factor
Weight
Rating
Weighted Score
Opportunities
New customers
11
4
0.44
Differentiated pricing strategy
8
3
0.24
Increased customer expenditure and economic growth
6
3
0.18
Low inflation rate
9
2
0.18
Low transportation cost
7
1
0.07
New tax policies
8

1
0.08
Environmental policies
9
2
0.18
Threats
New technologies
6
2
0.12
Lack of innovative products
7
3
0.21
Stronger local distributors
8
3
0.24
Lack of skilled workers
5
2
0.10
Intense competition
9
4
0.36
Global risks
3
3
0.09
Change in customer behavior
4
4
0.16
Total

100
2.65
Appendix 3: SWOT Bivariate Strategy Matrix
SO Strategies
· Increase profitability (S2, S1, O1, 03, 05)
· Enhance brand image (S5, S7, O2)
WO Strategies
· Increase business returns (W5, O2)
· Increase market share (W6, 03)
ST Strategies
· Innovative technologies (S8, T1)
WT Strategies
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PART IWelcome to the Free Excel Student Template Version 16.1.11De.docx

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PART IWelcome to the Free Excel Student Template Version 16.1.11De.docx