Subject Areas/Case Usage

Strategic Management, Competitive Advantage, Supply Chain Management Courses

This case was written for use in Strategic Management classes at the undergraduate and MBA levels. The focus of the case aligns well with discussions of competitive advantage, firm performance and business-level strategy. The case also has application in discussions regarding implementation of strategy. Instructors that choose to emphasize sustainability strategies could assign this case to explore tradeoffs between profitability, sustainability and growth. Additionally, the case could be used in supply chain management courses.

Brief Synopsis

In January, 2015, Chipotle stopped serving pork at a third of its 1,800 restaurants due to its discovery that a pork supplier was not meeting Chipotle’s “Food with Integrity” standards. This case examines the trade-offs Chipotle faced in maintaining its focus on sustainable ingredients as the chain grew rapidly. Demand for healthier ingredients by others in the industry and scalability problems in sustainable agricultural production suggested that supply shortages and higher prices were likely threats to Chipotle’s continued rapid growth. Could Chipotle maintain its commitment to “Food with Integrity” when the supply of sustainable foods failed to meet demand
or should the company just buy available ingredients regardless of farming methods?

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