The Rules of Innovation and Chipotle

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The Rules of Innovation and Chipotle

ORG 530: Business Ethics and Sustainability

Colorado State University-Global Campus

Dr. Robert Vega

April 19, 2014

The Rules of Innovation and Chipotle

It’s common to see a restaurant open one year and the next year they are closing their doors. In the restaurant business, a place will either sink or swim. So, what factors lead to profit and growth and what factors can be contributed to a failed or stagnant restaurant? Staying above the curve and always looking to improving a product or offering something new, is an important aspect to keeping a company in the green. Generally speaking a company needs to be innovative, which is exactly what Chipotle has done.

Rules of Innovation

According to CSU-Global, “innovation not only provides an opportunity for businesses to grow, it also offers the opportunity to influence the direction of an industry, “ (CSU-Global, 2014). Not only does innovation help in these aspects, it also can help create a better process that positively impacts the customer experience and a company’s profits.

In 1993, Steve Ells opened his first Chipotle restaurant near the University of Denver campus in Denver, Colorado. His main goal when opening the restaurant’s doors was to provide healthy, fresh food. Normally, offering food that meets these qualities results in a high bill and a long wait time. This was the opposite of what Ells desired for his restaurant, he aimed to provide quality food without the long wait and high price. Instead of using processed and frozen food, Ells chose to make everything fresh. (Schlanger & Bhasin, 2012).

Ells used the first rule of the seven innovation rules set in the book, Make Innovation Work by Davila, T., Epstein, M., and Shelton, R. The first rule of innovation is to exemplify strong leadership and provide clear expectations of how a company…...

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