...SOH, Pek-Hooi Tim Hortons strives to deliver superior quality products and services for its guests and communities through leadership, innovation and partnerships, with its vision to be the quality leader in everything they do. This following essay will first evaluate Tim Horton’s internal strengths and weaknesses and its external opportunities and threats by using the SWOT analysis, it will then examine its current strategy at functional level, business level, global, and corporate level. Tim Hortons is the largest fast food restaurant chain in Canada and the fourth-largest in North America based on market capitalization. It operates a chain of more than 4,250 coffee and donut shops across the country, in several US states and a few other outposts. It features a variety of coffees and cappuccino with a food menu that offers doughnuts, sandwiches and other food items. Tim Hortons not only competes with the typical coffee and baked goods chains, but also with all restaurants in the Quick Service category, with its major competitors being Starbucks and McDonalds. Firstly, we will conclude Tim Hortons’ situation from different angles using the SWOT analysis. The central purpose of a SWOT analysis is to identify the strategies to exploit external opportunities, counter threats, build on and protect company strengths, and eradicate weaknesses. (Hill & Jones, 2013) Strengths Tim Hortons dominates the Canadian coffee chain market with 76%...
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...brand Tim Hortons is a household name to Canadians across the country. Many may even argue that it is a symbol of Canada’s national identity joining the likes of hockey, and the beaver to earn this distinction. Originally, Tim Horton’s business consisted of the specialization in coffee and donuts. As the business expanded their popularity soared, and as the result, Tim Horton’s decided to appeal to a larger portion of the market segment as they introduced items such as soup, sandwiches, and the ever popular timbit. (Tim Hortons story, 2012) The design of Tim Horton’s is through franchising. This allows a party with the assets available to own a Tim Horton’s restaurant, and continue to implement the successful business model already set in place. The rise in popularity allowed the franchise to expand to over 3200 stores across Canada and even into the United States. (Tim Hortons Corporate Profile, 2012) It has also allowed the company to be publicly traded on the Toronto Stock Exchange and is managed by the Chief Executive Officer, Paul House. He oversees and manages the entire organization and is on top of the organizational structure. As of April 2012, the company’s stock is worth 53.35 on the TSX which gives is a market capitalization of 8.3 billion dollars. (Globe and Mail, 2012) In comparison, Research in Motion Limited, a smartphone-developing giant has a market capitalization of 6.6 billion dollars. (Globe and Mail, 2012) In 2010, Canadian Business Magazine gave Tim Horton’s...
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...King and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their guests. Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company. “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong franchisees, and partners. We have great respect for the Tim Hortons...
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...and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their guests. Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company. “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong franchisees, and partners. We have great respect for the Tim Hortons...
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...University of the Fraser Valley A Marketing Analysis on Tim Hortons Company Diana Beedassy 200105312 Business 120 Mr. Richard Simon April 2, 2012 Table of Contents Cover Page...............................................................................................................................................1 - 2 Table of Contents…………………………………………………………………………………………………………………………………….3 Introduction and History………………………………………………………………………………………………..………………....4 - 5 SWOT Analysis……………………………………………………………………………………………………………….………………….6 – 7 Business Articles………………………………………………………………………………………………………………………………………8 Target Market…………………………………………………………………………………………………………………………………9 – 10 Tim Horton’s merging with Wendy’s Inc………………………………………………………………………………………………..11 Tim Horton’s as a convenient product……………………………………………………………………………………..…………...12 Channel of Distributions …………………………………………………………………………………………………………..…………...13 Promotional Strategies……………………………………………………………………………………………………………….…….....14 Socially Responsible Behaviour……………………………………………………………………………………………………..15 – 20 Recommendations – Part A (SWOT) ……………………………………………………………………………………………..21 – 22 Recommendations – Part B …………………………………………………………………………………………………………. ..23 Recommendations – Part C……………………………………………………………………………………………………………24 – 25 Gross Annual Sales & Market Share………………………………………………………………………………………………26 – 27 Appendix 1 – Timeline……………………………………………………………………………………………………… …………………..28 Appendix...
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...2012) European Business Review http://www.europeanbusinessreview.com/ An Assessment of the Early Stages of a Sustainable Business Model in the Canadian Fast Food Industry David Hutchinson, Ph.D. Jang Singh, Ph.D. Kent Walker, Ph.D. Odette School of Business, University of Windsor Structured Abstract Purpose: The objective is to describe a Canadian corporation's implementation and application of a sustainable business operation and model. It is based upon a case study of an International Canadian coffee and donut chain: Tim Hortons. Design/methodology/approach: Data were collected through: (1) extensive publications of corporate documents, (2) observations of actual operations at retail sites, (3) social media sites. Findings: We find that Tim Hortons has clearly made progress toward greater sustainability. However, its program often lacks specificity, particularly in terms of greenhouse gas emissions. Within a visibly and highly polluting industry Tim Hortons sustainability program is a step in the right direction but there are areas...
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...Overview – Tim Hortons Tim Hortons is a fast food restaurant franchise specializing in coffee and doughnuts. It is currently Canada’s largest fast food franchise with over 4000 stores across North America (http://o.canada.com). The franchise was founded in 1964 in Hamilton, Ontario, by Canadian hockey player Tim Horton. In 1967, Horton partnered with investor Ron Joyce, who assumed control over operations after Tim Horton died in 1974, and expanded the chain into a multi-million dollar franchise (timhortons.com). Tim Hortons franchises as grown rapidly as has overtaken McDonald's as Canada's largest food service operator. The company opened twice as many Canadian outlets as McDonald's and system-wide sales also surpassed those of McDonald's Canadian operations as of 2002. The chain accounted for 22.6% of all fast food industry revenues in Canada in 2005. Tim Hortons commands 76% of the Canadian market for baked goods, and holds 62% of the Canadian coffee market (Wikipedia 2005). Tim Hortons currently employs more than 100,000 staff members to run and support its franchise (nextsteps.org). It has been a stalwart towards supporting the environment and is among the leading fast food franchise that delves into reducing waste. However, due to stores being owned by franchisees who are non- corporate related, each store varies in how strictly it follows regulations. This paper will discuss certain aspects of Tim Hortons stores that can be improved. The economic, environment...
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...Introduction The company under investigation in this study is Tim Hortons, a coffee and fresh-baked goods quick-service restaurant, originating from Canada. As of January 2006, (Annual Report 2005, P.1) Tim Hortons operated 2,597, mostly franchised, stores in Canada and 288 in the US. Tim Hortons boasts a 76% market share in the Canadian coffee and fresh-baked goods sector (Shareholder’s Report 2005, P.6) and “based on sales dollars, Tim Hortons is now almost 25% larger than its closest QSR (quick-service restaurant) competitor in Canada.” (Ibid) Since 1995, Tim Hortons has been owned by the American company, Wendy’s International. (Palmar 2005, Harris 2005) Tim Hortons was named ‘Best Managed Brand’ and ‘Most Admired Corporate Culture’ by Canadian Business Magazine (Shareholder’s Report 2005, P.6) and Marketing Magazine named Tim Hortons its 2004 ‘Marketer of the Year’ “for its winning formula of product advertising, unpretentious advertising, smart partnerships and status as a national icon.” (Harris 2005) The approach Tim Hortons has adopted has been “relentlessly patriotic” (Parmar 2005) and their advertisements “try to reinforce what we do in the community, what our core products are and what our core values are.” (Cathy Whelan Molloy, VP of Brand Marketing & Merchandising in Harris 2005) Its marketing strategy focuses on “emphasising its community ties.” (Palmar 2005) Their long-term goals include: • Extend the Tim Hortons brand into new markets (Shareholder’s Report 2005, P...
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...Sept.14 : Chapter 1 Introduction to Strategic Management Monday, September 14, 2015 11:32 AM Why is strategy important? • Because it leads the organization in the right direction to achieve its goals and objectives.( performance) • It outlines the means by which a company intends to create unique value for customers a other important stakeholders • If forces managers to think holistically ad dynamically about what the company does and those activities consistently attract customers over competitors • Compared to a rudder and a ship. • It is the ability to see 5-‐ 10 years down the road • Its all the competitive moves that the company engages in order to win over customers • Senior management is responsible for strategy ○ Business policy : is a concern about strategy that preoccupy their minds Health care is the number 1 growth engine Conglomerates : are companies having portfolio of business in unrelated industries Three critical questions...
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...A) Type of business strategy: Tim Horton’s: Low-Cost Provider Strategy Broad Differentiation Strategy Starbucks: The Focused Differentiation Strategy Best-Cost Provider Strategy B) MVV Statements Tim Horton’s • Mission: “[Their] guiding mission is to deliver superior quality products and services for [their] guests and communities through leadership, innovation, and partnerships.” • Vision: ‘[Their] vision is to be the quality leader in everything [they] do.” • Values: “At Tim Horton’s we are making a true difference for individuals, communities and the planet, everyday” “Tim Horton’s is proud to support local community initiatives that make a difference.” For example, o Free swimming/skating; timbits minor sports; community clean ups; earn-a-bike program; smile cookie program; The Tim Horton Children’s Foundation. o Sponsorships; National Sponsorships; Environmental Stewardship; Aboriginal Relations; Animal Welfare; Tim Horton’s Coffee Partnership. Starbucks: • Mission: “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.” • Vision: Starbucks vision is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” • Values: “Starbucks Shared Planet is [their] commitment to doing business responsibly. Working to promote a better way of helping each other and the planet – by inspiring [their] customers and partners...
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...Table of Contents I. Executive Summary (Jannie Noels) II. Situation Analysis (Denise Merritt)(pgs__-___) A. List each part III. Problems Found in Situation Analysis (Charles Monu-Azinge) IV. Strategic Alternatives for Solving Problems(Charles Monu-Azinge) V. Selection of Strategic Alternative and Implementation (Charles Monu-Azinge) VI. Summary (Jannie Noels) Executive Summary Situation Analysis-Environment The business environment of Krispy Kreme deals with economic conditions, cultural and social values, and political and legal issues. The doughnut industry has generated five to six billion dollars in the years 2003-2004. The estimated sales at outlets specializing in doughnuts rose nine percent in 2002 to $3.6 billion. In 2002, worldwide sales were at $2.7 billion. According to these recorded results, the expected earnings per share in 2004 were expected to be between $1.16-$1.18. Due to lower than expected off premises sales, Chief Executive Officer, Scott Livengood said the company is lowering earnings guidance to .23 per share. During July and August of 2004, system wide sale increased 14.8%, company revenue went up 11.5%, and company store sales rose by 18.7%. Americans consume an estimated ten to twelve billion doughnuts annually. This social...
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...(Starbucks Company Profile, 2010). The products that Starbucks offers include coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Tazo teas, fresh food like pastries, sandwiches and salads, and other merchandise items such as coffee mugs, accessories and gifts (Starbucks Company Profile, 2010). The company is known for its rapid expansion, with the first overseas store opened in the 1990s and has opened a store almost every workday, and now has one third of its stores overseas. Starbucks employs over 128,000 people and their 2008 revenue was roughly $10 billion, and their net income $315 million (Wikipedia, 2010). In Canada Starbucks has a 7% of the coffee market share, putting it in the second place just after Tim Hortons which is at 62% (Fineman & Scanland, 2006). In the last few years Starbucks has been experiencing some difficulty and announced the closure of 900 stores in the US but intends to open 900 new stores overseas. Starbucks is also experiencing a drastic shift in the types of customers that frequent it and has made some recent choices that could affect its overall image for the better or for worse. Situation Analysis Strengths: * Starbucks has a very strong brand image * Very high market share in the US (70%+) * Known for its high quality coffee and varied products * Aggressive expansion * Company operated stores / no franchising * Quality work environment (Starbucks named one of the best places to work) *...
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...Chapter 2: Strategy and Human Resources Planning If nothing else, my students should learn that… • It is important for HRM to align its policies and processes with the business strategy in order to provide value to the organization (external fit), and that the policies and processes are mutually reinforcing (internal fit). HR planning follows the same pattern as organizational strategic planning, and hence the two processes are complementary. • In order to evaluate the effectiveness of strategy, it is imperative to take the ‘people side’ into consideration. Sole reliance on financial documents (e.g., financial statements, cash flow statements, income statements) largely ignores investment in human capital. Learning objectives • Identify the advantages of integrating human resources planning and strategic planning. • Understand how an organization’s competitive environment influences its strategic planning. • Understand why it is important for an organization to do an internal resource analysis. • Describe the basic tools used for human resources forecasting. • Explain the linkages between competitive strategies and human resources. • Understand what is required for a firm to successfully implement a strategy. • Recognize the methods for assessing and measuring the effectiveness of a firm’s strategy. Why is this chapter important? The purpose of this chapter is to highlight the nexus of strategy and HR planning...
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...Faculty of Business, Brock University | Starbucks Strategic Analysis | MGMT 4P90: Strategic Management | | Submitted by: | Amar Mohla | Akshat Kaushal | Tania RahmanVijay Bhullar | Presented to: Professor Peter Yannopoulos, PH.DMarch 28th, 2012 | | | ------------------------------------------------- Michael Porter’s 5 Forces Analysis Michael Porter uses the 5 forces model to analyze the industry environment. His ideas on competitive strategy are the most pervasive analytical tool used in strategic management (Henry, 2011). The five forces is used to capture the variation of competition, to determine whether a firm outside an industry should enter the industry, to see barriers to entry, to determine attractiveness of firm and to determine where the organization stands in relation to their industry. These five forces also help increase awareness of a trend towards suppliers and buyers bargaining power as well. Unlike SWOT analysis which is company specific explained in the next portion of this project, Porter’s five forces framework is industry focused. Furthermore, the five variables in the porter analysis are the industry suppliers, buyers, potential new entrants, substitute products and competition among existing firms. This section provides a thorough examination of the five forces affecting Starbucks’ coffee industry environment. Potential for new entrants The first force in Porter’s model analyzes potential new entrants which may impact...
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...August 27th, 2013 Case Analysis #1: Starbucks Corporation, April 2012 Starbucks is one of the world’s most recognized and loved brands. It is known in most parts of the world, leading it to become the largest supplier of coffee on the planet! Although it seems like Starbucks has always been on top of its game, that is certainly not the case. A brief history on the company provides some insight into its strengths and weaknesses over the company’s twenty-six year existence. Starbucks was started by Howard Schultz, a man who once visited a coffee shop and realized that the coffee he was drinking there was superior to any coffee he had experienced in the past. His subsequent visit to Milan inspired him to open his own coffee bar called Il Giornale, and by 1987, he decided to acquire the six Starbucks locations in the United States and merge them with the three locations of Il Giornale. Starbucks locations spread like wildfire over the next couple of decades, and the company raked in profits as a result. This expansion had a logic that involved a cluster system. This meant that a single metro area would have multiple Starbucks locations, and due to this, so residents could always have access to a convenient location, regardless of whether they were at work, home, or some other place. Starbucks, like most other global scaled companies, took a major downturn with the economic recession of 2008. It hit its peak stock price of forty dollars in October of 2006. The economic...
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