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Chipotle Case Study

844 Words4 Pages

Henry Orji
1/30/18
AMS 3350.001
Dr. Winstead
Online Assignment
One of the key components of project management or maintaining a profitable business is the ability to define and manage potential risks and issues relative to how it can impact the reputation of a business or project. Although the terms risks, issues, and reputation are interrelated, risk and issues should not be used interchangeably but rather defined independently. Risks and issues are two separate things, one should look at it differently when any arises. A risk is an event that has not happened yet but might occur. Risks can be used to infer possibility and probability, and can greatly impact the progress or quality of a project. Risk management is used to present what …show more content…

As an illustration, Chipotle and other fast food franchises alike must work to identify risks, understanding its impacts as well as developing what can be done to mitigate each risk. For example, Chipotle must manage risks such as food safety policies and standards, product recall, spoilage, and contamination. The above-mentioned food safety risks developed into larger issues for Chipotle when social media outlets widely disclosed several food-borne illness outbreaks. The failure to track and identify the source of contaminated foods resulted in the company experiencing a decrease in sales and loss in customers all impacting their overall company values, sales, and …show more content…

Issue management is often time sensitive and requires action and reevaluation to prevent recurrence of the issue. Effective issue management requires problems to be discussed more frequently, if not daily, to either eliminate the problem or reduce its impacts, while risks can be reviewed periodically. Chipotle continues to be challenged with monitoring and tracking food safety and contamination risks due to the demands of the chain’s expansion of locations and variety of ingredients. This example demonstrations why it is essential to be thorough and aware of all the possible impacts of the risks revealed and reevaluating what was done already to mitigate it. Chipotle has been responsive in addressing their food safety issues by making attempts to implement better controls around ingredients, contracting and hiring more food safety testing companies, monitoring and developing more rigorous food preparation protocols within restaurants, and conducting more frequent audits for quality

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