Chipotle Outbreak: The Risks of Supply Chain Failures

Chipotle Case Study
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Chipotle Case Study
Investors evaluate different business opportunities before venturing into them; needless to say, every business venture calls for risk-taking. The food industry is a very delicate sector to invest in because once the brand image is tainted from food poisoning and contamination issues, it becomes tough to gain the initial consumer trust. This is mainly because the threat relates to direct damage to the body. Chipotle faced the same fate with the breakout of the diseases caused by contamination of their food. The incident at Chipotle affected several stakeholders on different degrees; with the incident having criminal intent, hence a civil action needs to be taken against the company.
The stakeholders affected by the Chipotle incident include the company itself, the suppliers, and the consumers. All the above were affected differently. The company consists of the workers and the shareholders who lost their salaries and dividends. After the incident, consumers avoided products from the company leading to a waste of the products, the primary revenue source. This was expected because workers could not get their salaries; hence, they failed to pay their bills while the shareholders lost their investments in the wasted food products. Other workers also got infected and suffered the diseases, spending lots of cash in treatment and even losing their lives to the diseases. The company also suffered severe damage to its reputation that has proved hard to repair, a reputation that shone because of the workers and other stakeholders.
The suppliers were affected because they could not supply anymore, and their stock ran bad. ...