Question

1)Analyze specific influences of social, technological, economic, political,  ecological, and international factors on your case business. Then forecast whether or not these influences will become stronger or weaker in the next five years.

2)Choose the industry where your case (chipotle) company operates, then apply Porter's Five Force Model evaluating industry environment, competition, and profitability of this industry, and identify industry position of your case company in this industry.

Answer 1

PESTEL analysis provides great detail about operating challenges Chipotle Mexican Grill, Inc. will face in prevalent macro environment other than competitive forces. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Chipotle Mexican Grill, Inc. if it is situated in unstable political environment.

Spanish oil giant Repsol had to face a similar instance. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. But the business was later expropriated by the Left Wing government. So the decade long profits didn’t materialize in the end.

Political Factors that Impact Chipotle Mexican Grill, Inc.

Political factors play a significant role in determining the factors that can impact Chipotle Mexican Grill, Inc.'s long term profitability in a certain country or market. Chipotle Mexican Grill, Inc. is operating in Restaurants in more than dozen countries and expose itself to different types of political environment and political system risks. The achieve success in such a dynamic Restaurants industry across various countries is to diversify the systematic risks of political environment. Chipotle Mexican Grill, Inc. can closely analyze the following factors before entering or investing in a certain market-

Political stability and importance of Restaurants sector in the country's economy.
Risk of military invasion
Level of corruption - especially levels of regulation in Services sector.
Bureaucracy and interference in Restaurants industry by government.
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs related to Services
Favored trading partners
Anti-trust laws related to Restaurants
Pricing regulations – Are there any pricing regulatory mechanism for Services
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Work week regulations in Restaurants
Mandatory employee benefits
Industrial safety regulations in the Services sector.
Product labeling and other requirements in Restaurants

Economic Factors that Impact Chipotle Mexican Grill, Inc.

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy. While micro environment factors such as competition norms impact the competitive advantage of the firm. Chipotle Mexican Grill, Inc. can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as Restaurants industry growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization. Economic factors that Chipotle Mexican Grill, Inc. should consider while conducting PESTEL analysis are -

Type of economic system in countries of operation – what type of economic system there is and how stable it is.
Government intervention in the free market and related Services
Exchange rates & stability of host country currency.
Efficiency of financial markets – Does Chipotle Mexican Grill, Inc. needs to raise capital in local market?
Infrastructure quality in Restaurants industry
Comparative advantages of host country and Services sector in the particular country.
Skill level of workforce in Restaurants industry.
Education level in the economy
Labor costs and productivity in the economy
Business cycle stage (e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
Interest rates

Social Factors that Impact Chipotle Mexican Grill, Inc.

Society’s culture and way of doing things impact the culture of an organization in an environment. Shared beliefs and attitudes of the population play a great role in how marketers at Chipotle Mexican Grill, Inc. will understand the customers of a given market and how they design the marketing message for Restaurants industry consumers.

As per Chegg guidelines I answered part 1