1. 1. Singapore Katerina Karpova Thomas Volpe Nicole Sireci Jessica Bascone Rich Guido
2. 2. Description of Organization History Created in 1993 CEO Steve Ellis Established in Colorado Early Growth 16 Locations within 5 years 1,600 Locations within 20 years $350 Million in investments by 1998 Current Situation 17 Franchise Locations Forecasted 11-12% Growth Rate Current revenue- 4.1$ Billion
3. 3. Strategic Goals and Objectives Receiving approval from the Singaporean government Finding a strong partner in Singapore Maintaining a unique all-American image Promoting the brand online as a fast-casual, exotic venue Improving Chipotle revenues by 15%
4. 4. Company Analysis Product Line: Fresh, organic, customizable food Emphasis on locally grown Burritos, tacos, salads, bloody marys Current Operations: Food with integrity at a cheap price Fast-casual pioneer Managerial know-how from McDonalds Few foreign locations (Canada, UK)
5. 5. Legal and Political Very stable political system Current President: Tony Tan Keng Yam (2011- Present) Serves for 6 years, elected by the people The president and parliament make up the legislature Second to the prime minister Current Prime Minister: Lee Hsien Loong (2004- Present) Political Party: Peoples Action Party (PAP)
6. 6. Legal and Political Cont Reinforces a strong power distance Masquerades as a democratic republic PM Lee Hsien Loong took over after his father Policies: Regional economic integration Signing free trade agreements Eradicate overprotective nanny-state image Enhance freedom of expression Growing discontent among segments of the electorate
7. 7. Cultural Analysis (Cultural Elements) Geert Hofstedes Dimensions: Power Distance: Very High Individualism: Very Low Masculinity: Middle Ground Uncertainty Avoidance: Very Low Long-Term Orientation: Very High
8. 8. Norms & Ethical Considerations Corporate Norms: Be punctual Dress modestly Avoid being excessively emotional, raising your voice, or showing anger in public Do not eat with your left hand Understand different food customs In public: No smoking Recreational drug use Chewing gum Jay Walking Littering Avoid discussing religion or politics Only ethical issue: insider trading
9. 9. Commercial Analysis Market Analysis: American food is trendy Several American chains have major success McDonalds, KFC, Tony Romas Promotions are key Despicable Me, Hello Kitty Superior distribution sets business apart, not concept To succeed: Maintain American image Attain local partner Take advantage of distribution expertise Offer a promotion
10. 10. Industry Analysis Singapores economy is slowing down Food service remains stable in growth High competition Strong food culture Chained food service expected to see an upswing Outlet expansion provides opportunity Growing access to social media access
11. 11. Competitive Analysis Singapores population continues to go up Fast food isnt growing as quickly as fast casual Average consumer has more disposable income ($) Food industry is extremely competitive Yet, there is more opportunity (outlet expansion) Chained outlets overpower individual sites Chipotle stands out from the rest Not in direct competition with other fast-food outlets
12. 12. Financial and Economic Number one country for ease of doing business Economic development fund offers financial assistance Helps new entrepreneurs Both sectors have seen consistent growth since 1990 Lack of government interference Consumers willing to try new things Increased disposable income One of the five dragons Western-oriented Moving towards regional economic integration Forward-looking economic policies
13. 13. Entry Mode: Foreign Direct Investment Locations serve as wholly owned subsidiaries Avoiding store locations becoming franchises Creating joint ventures with countries in the region Teaming up with suppliers who are familiar with the area
14. 14. Strategic Pattern Current Strategic Plans Natural Products High Quality Food Sources Interactive Quiz Questioning Consumer Targeting Tactics Incentivize Suppliers Referral Discounts Discount Cards
15. 15. Organizational Structure
16. 16. Organizational Structure Management Team consisting of 4 top-level executives Steve Ells (Co-CEO), Montgomery Moran(Co-CEO), John Hartung (CFO), Mark Crumpacker (Cheif R+D Officer) Board of Directors, Steve Ells is the Chairman and CEO Montgomery Moran serves as a Co-CEO Seven other Executive Directors Goal of the Board of Directors and Management Team for Chipotle work to ensure that Chipotle is operating both efficiently and effectively and satisfying shareholders Create the Executive Position of Head of Investor Relations Experience with Singaporean customs, traditions and language Knowledge of corporate business practices Past experiences working internationally with corporate entities
17. 17. Timeline Guiding Principles Board Approval Well Planned Slow & Prepared Content Overview: January 1st, 2016 - October 1st, 2016 Political, Licensing & Foreign Endorsement Alliances, Partnerships and Networking
18. 18. Timeline Contd.
19. 19. Financing Financial Instruments: Cash & Short Term Investments Debt Issuance Liquidity Insurance Plan Cost Allocations & Budgeting: Small Store Locations Stable 10 yr Singapore Govt. Note (2.48%) Low Credit Utilization
20. 20. Human Resources System Challenges: Consumer Norms & Expectations Working Conditions & Regulations Balancing Foreign & Domestic Employees Strategic Implementations: Hiring in advanced Singaporean talent Diversifying workforce at all layers of management Multinational Training: Ethics, Values & Morals
21. 21. Marketing Approach TV Advertisements 33% of all commercials are for food 38% healthy commercial Mobile Messaging Marketing 150/100 citizens Brand Recognition Press releases, blogs, social media, commercials Social Media Highest ranked social media users in the world Facebook, Twitter, Public Forums
22. 22. Evaluation Process Routine Analysis of Employee & Company Performance Benchmarking Metrics Quantitative (Revenue, Sales) Qualitative (Satisfaction Rates) Control and Evaluation Systems Management Objectives Semi-annual Reviews Consistent performance appraisals Sucess Factors Consistent Growth (Sales, Market Share) Motivated Workforce Up to date management feedback
23. 23. Conclusion Thriving new business with social media & market share potential Inexpensive materials assure high quality product and incentivized workstaff Consistent GDP Indicators promotes national security and minimizes risk Will serve as an excellent market for new growth opportunities into Southeast Asia Collectivist mentality enforces positive group dynamics as well as a big- picture outlook