Board of Directors: Chipotle
A Board of Directors is a special type of crisis committee where delegates represent members of the board of directors for a specific company. Delegates must research and understand their characters in depth in order to pursue their own goals during debate. There will be routine crisis updates with new obstacles delegates must tackle to resolve their company’s faults, whether it is stock prices or bad marketing.
You take a bite out of your burrito bowl and wake up a few days later in a hospital bed. The cause? E-coli. The Board of Directors of Chipotle calls for an emergency meeting as cases of E-Coli start popping up around the United States, all of which are linked to the same culprit, Chipotle burrito bowls. News articles are appearing all over the internet, with titles like ‘Chipotle, more like E-Chipotle.’
Members of the board are scrambling to come up with solutions to solve the array of problems at hand. What is the cause of this spread? How should they make sure the spread stops? What new sanitation measures need to be implemented to make sure this never happens again? What to do about the plummet in sales? How do they gain their credibility back? How do they avoid lawsuits from victims? Chipotle’s Board of Directors will work together- and sometimes against one another- to save the company from bankruptcy.
Topic A: Company Finances
With the outbreak of E. coli linked to Chipotle's products, the company is facing not only a public relations disaster but also a financial crisis. As sales plummet and stock prices dive, the board must take immediate action to stabilize the company's finances. How can the board restore consumer confidence while protecting the company’s bottom line? Members will need to consider cutting costs, restructuring budgets, and deciding whether to prioritize short-term financial survival or long-term recovery strategies. Should Chipotle focus on aggressive marketing campaigns, or will investors demand more drastic measures to ensure the company’s future?
Additionally, the board must weigh the potential fallout from pending lawsuits and government investigations. How much capital can be allocated for legal defenses, and how should funds be managed to avoid bankruptcy while continuing to invest in crucial business operations? Delegates will navigate these complex financial challenges while keeping in mind the pressure from shareholders and the public to recover swiftly.
Topic B: Sanitation Standards
The health and safety of Chipotle’s customers are at the forefront of the company’s immediate crisis. Following the E. coli outbreak, Chipotle’s sanitation standards have come under intense scrutiny, with customers and regulatory bodies demanding swift and decisive action. How can the board implement new sanitation protocols to prevent future outbreaks, and what steps should be taken to ensure compliance across all locations? Delegates must evaluate the existing sanitation procedures, identify gaps, and propose solutions that will protect both customers and the company's reputation.
Should the company launch a comprehensive audit of its supply chain and food-handling practices, or would a complete overhaul of safety procedures be required? The board must also consider whether to invest in new technology, employee training programs, or external consultations to ensure food safety. The stakes are high—failure to address sanitation issues could lead to long-term damage to the brand and further regulatory action.
A LETTER FROM THE CHAIr
Coming Soon!
Detailed committee materials will be released in early Feburary 2025
