International Proposal: Chipotle in Singapore

1. Singapore
Katerina Karpova
Thomas Volpe
Nicole Sireci
Jessica Bascone
Rich Guido

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
• $350 Million in
investments by 1998
• Current Situation
• 17 Franchise Locations
• Forecasted 11-125 Growth Rate
• Current revenue- 4.1$ Billion

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. Company Analysis
• Product Line:
• Fresh, organic, customizable food
• Emphasis on locally grown
• Burritos, tacos, salads, bloody
mary’s
• Current Operations:
• Food with integrity at a cheap
price
• Fast-casual pioneer
• Managerial know-how from
McDonald’s
• Few foreign locations (Canada,
UK)

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: People’s Action Party (PAP)

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. Cultural Analysis
(Cultural Elements)
Geert Hofstede’s Dimensions:
● Power Distance:
○ Very High
● Individualism:
○ Very Low
● Masculinity:
○ Middle Ground
● Uncertainty Avoidance:
○ Very Low
● Long-Term Orientation:
○ Very High

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. Commercial Analysis
Market Analysis:
● American food is trendy
● Several American chains have major success
○ McDonald’s, KFC, Tony Roma’s
● 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. Industry Analysis
● Singapore’s 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. Competitive Analysis
● Singapore’s population continues to go up
● Fast food isn’t 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. 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. 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. Strategic Pattern
• Current Strategic Plans
• Natural Products
• High Quality Food
Sources
• Interactive Quiz
Questioning
• Consumer Targeting Tactics
• Incentivize Suppliers
• Referral Discounts
• “Discount Cards”

15. Organizational Structure

16. Organizational Structure
● Management Team consisting of 4 top-level employees.
○ 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. 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. Timeline Contd.

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. 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. 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. • 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. 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