Sunday, April 24, 2016

Chapter 14: Merger and Acquisition Strategies

Merger and acquisition strategies is an extremely important part of sustaining a competitive advantage over the competition. At this time, Chipotle has remained steadfast in their solo efforts and have not merged with any corporations to further their advancement in the marketplace. At one point the Mexican food chain was joined with the largest fast food franchise in the world, McDonalds. However, in 2005 the two decided to part ways as the margin of growth was not fast enough for the fast food giant. McDonalds which is known for highly processed and inexpensive fast food felt that the mantra of "Food with Integrity" was an unnecessary expense that was hindering margins. Ultimately, the two have gone their separate ways leaving McDonalds disappointed at the big fish that got away.

Over the last few years, ShopHouse and Pizza Locale have emerged in the marketplace taking a lead from Chipotle's business model. There are limited locations of these stores across the United States. Also, the restaurant chains are ultimately owned by the same ownership group already which does not make it a true merger or acquisition. \

Chipotle: The One That Got Away From McDonalds

The Ridiculous Reason McDonalds Sold Chipotle and Missed Out on Millions of Dollars

What Ended the Short-Lived Marriage of McDonalds and Chipotle

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