Question
Describe how you expect to exit or not exit this proposal. For equipment type project the equipment will wear out and there will be no
Describe how you expect to exit or not exit this proposal. For equipment type project the equipment will wear out and there will be no deposition value, for building type projects (like drive-throughs and menu enhancements) there not be a disposition value but a continuing value. For this value I would recommend taking the eight-year estimate of cash flow from operations and multiplying by 5 and using this as a continuing value and label it as such. Use the below proposal to answer this question.
Proposal
Our second project proposal is offering a put it together yourself kit that will be sold at the grocery stores and supermarkets. Chipotle has a great reputation for high-quality and healthy options on the menu. Offering its product for the customers that would like to have a Chipotle meal in their refrigerators and put it together themselves at their convenience will provide for additional exposure for Chipotle and opportunity to capture additional market share. Customized kit will consist of main ingredients for several of Chipotle products, such as bowls, burritos, salads, and tacos. It can vary the meat selection and the type of rice as the base ingredients. Chipotle can also offer its condiments and spices as a separate product, in addition to having those in the kit. Individual or family size meal kits could provide for a variety of options for the customers. The inclusion of this item will be a move consistent with Chipotles values and strategy. This project will provide benefits to several stakeholders. The company itself has the opportunity to wreak benefits from the project by increasing its sales by introducing the new product and expanding into the retail market. This move has the potential to attract new clientele and cater to customers with a growing interest in healthy food options on the go and at home. The product will include already existing ingredients and has a potential to provide financial benefits sooner with a shorter product development stage. Another stakeholder that this project will affect is the customer. Regular customers and loyalty program members could be excited about the introduction of this new option to make your meal at home or use its ingredients and condiments in other homemade meals. This new addition will also open the door for a new customer, attracted by the trend of healthy food options and the idea of making a meal with family. Customers that shy away from fast-food restaurants will have an opportunity to buy the meal they have not tried before at the grocery store. An additional stakeholder that would benefit from this project would be the supplier of Chipotle. Growing and supplying additional quantities of produce will expand their business and strengthen the relationship with the brand.
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