...A Strategic Analysis for Tim Hortons Presently, Tim Hortons is regarded as the leading publicly traded restaurant chain in Canada. Not only is it Canada's leading quick-service restaurant brand but also the fourth largest publicly traded restaurant chain in North America based on market capitalization. They have the number one market share in breakfast and snacking day parts and a solid number two share in the lunch day part in Canada (1). However, Tim Hortons needs to pay more attention towards their growth and development into U.S. and other markets worldwide in order to become a true spearhead in their industry. Moreover, they can lessen the risks related with expansion by engaging in partnerships with other successful firms. Analysis/Rationale Although, as mentioned above, Tim Hortons is possibly the leading publicly traded restaurant chain in Canada, it enjoys its success due to its inhabitation of a much smaller market in comparison to markets in U.S., India, and China. To be the best of the lot, Tim Hortons cannot exclusively depend on a single market. In this day and age, there are solid opportunities for them to become the world’s best, through new emerging markets with high probability for huge profits. There are increasing trends of coffee drinkers in China and India, two countries with enormous fondness for Western style drinks and meals and Tim Horton's expansion in those countries will play to their advantage. That is the main reason why McDonalds, the equivalent...
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... 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...
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...MGMT3650 Term Paper Tim Hortons Expansion to the US Market: What went wrong? Table of Contents Introduction 3 Company Background 4 Expanding to the U.S. 6 U.S. Competitors and Market Share 9 Issues: Competitors & Market Share 9 Leadership Issues 10 Liability of Foreignness 10 Mode of Entry 13 Current Financial Results: 2008 – 2013 (5) Year Plan 15 Tim Hortons New Plan: 2014 – 2018 ‘U.S: A Must-Win Battle’ 16 Recommendations 16 Strategies going forward 16 VRIO Framework 17 References 18 Figure 1: Michael Porter’s five forces 15 Introduction In the present day, there are multiple franchises being established and growing in the community as well as globally Tim Hortons is one of those companies. Due to their chain’s focus on top quality, always fresh products, value, great service and community leadership, Tim Hortons has made a respectable reputation for itself, it is a company that works hard to deliver superior quality products and services for guests and communities through leadership, innovation and partnerships, not only in Canada, where it all started but as well as internationally. In 1984, Tim Hortons opened its first U.S. restaurant in Tonawanda, New York, a suburban community north of Buffalo, which is just 16 kilometers from the Canadian border. (Budak, 2010) Tonawanda is close enough to Canada which gives some recognition into the new U.S. market. Companies that expand internationally can face many problems. In the U.S., Tim Hortons has built...
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...DOUBLE-DOUBLE, PLEASE” THE ROLE OF TIM HORTON’S IN THE MAKING OF THE CANADIAN IDENTITY Jessica Barry and Yasmin Manji The seemingly simple question “What is a Canadian?” is often answered by blank expressions. The varied geography, regions and ethnicity of Canada, the second largest country in the world, leave its citizens searching for a unifying identity, grasping to things that could potentially help define them as “Canadian.” Canada prides itself on its multicultural society, which, however, raises a question: If what we have in common is diversity, do we really have anything in common? There are popular notions about Canadian characteristics, things recognised internally and externally as uniquely Canadian. The two traditionally considered the root of Canadian identity are the nation‟s love for hockey and its need to be distinct from America. The fast food restaurant Tim Hortons has adopted these identity markers and itself become part of the answer of what it means to be Canadian. This paper intends to explore how Tim Hortons incorporated the few accepted aspects of the Canadian identity in order to establish itself in the Canadian market. This business strategy was successful because, lacking a national identity, Canadians adopted Tim Hortons as an icon that all Canadians could relate to: rich, poor, educated, blue collar, spanning all regions, ethnicities and even political party lines. The Canadian embrace of Tim Hortons has led to the formation of...
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...& Tim Hortons Prof. W. D. Walls Javer Badruddin 10036348 Due: June 26th 2014 Introduction: The coffee and baked goods service industry has seen much competition and continues to be a promising industry in Canada. Two specifically known companies are Tim Hortons and Starbucks. Both coffee companies are popular and are able to keep up with Canadian and Global Trends. Tim Horton’s is well known across Canada and the franchise is slowly expanding into the US. The company holds a strong brand image as it is known as an iconic store amongst all Canadian consumers. As Tim Horton’s strategy is to target all Canadians, they successfully use marketing campaigns to cater to all demographics. Starbucks has established an exquisite brand and the company’s financial success is based upon how consumers value the brand reputation. The coffee company has created a unique brand identity and uses its diverse product differentiation strategies to lure consumers in. Both coffee companies grasp a product line which includes fresh brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Tazo tea, baked pastries, sandwiches and salads. As well, the coffee companies are able to accommodate seasonal products to adjust for the changing Demands. Starbucks is also slowly making way into the grocery industry as well. Both companies also have experienced both success and failure. This project will aim to analyze the similarities and differences between Tim Hortons...
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...leverage across the provided companies, tim hortons, macys, komatsu, ryanair, microsoft in decreasing order. Working capital is not a useful metrics for comparison since the companies represent different industries. Looking at current ratio, Microsoft, ryanair, komatsu, macys, tim hortons, in decreasing order. * Accounts receivable may be a reliable indicator since it’s orders/accounts, ect. Inventories may be slighter difficult to fair value. For ex. Microsoft’s inventory is constantly being updated/sector specific. Or Macy’s clothing can be difficult to pinpoint. PPE especially is a challenge. Microsoft has very specific equipment where it can be valued obsolete if a new component arrives ect. Demand can dictate volume/cycle usage of PPE. * Market to book ratio? B. Compare and contrast the extent to which the companies will likely meet their short-term obligations: Based on working capital and current ratio * Ryanair – Working capital looks to be improving over the past few years, however, looking at the current ratio, it’s been steady between 1.5-2. No concern here in meeting short term obligations * Microsoft – Big jump in working capital, +56% from last year AND current ratio is at an all time high of 2.60. Looks very healthy in meeting STO from this perspective. MSFT seems to be in good hands to outlast the financial crisis and even expand. Current ratio points to a very healthy expansion prospect. * Tim Hortons – Working capital is shy of...
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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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...Shaurya Dubey Tim Macbride BUS106 11/10/2011 Tim Hortons to Offer Espresso Dana Flavelle The Star It is impossible to stay in Canada over a week and not know about Tim Horton's. Timmies as it is sometimes called, is a Canadian coffee giant and arguably the most well recognized brand in Canada. Tim Horton's serves millions of Canadians everyday and their consumers have grown accustomed to their fast service and low prices. While Tim Horton's is perceived as the everyday coffee chain, it's seemingly stepping up with its announcement of selling espresso coffee. Usually sold by stores like Starbucks, espresso coffee is gaining popularity in Canada, and who better to sell it to Canadians than Tim Hortons. While Tim Hortons is already the leading coffee retailer in Canada, their introduction of espresso on their menus could do wonders for an already big company. By pricing their espresso much lower than that of it's main competitor, Starbucks, Tim Hortons has not only made their new product sound good to the consumer, but also to investors and partners. While many experienced General partners can invest in the project and risk liability, this could also open the way for limited partners who wouldn’t want to get involved with the workings of the business. Being a public corporation, Tim Hortons would be open for the general public to invest in it, and having a promising marketing plan could lead to more investors. By offering more coffee than it's main competitor for...
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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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...SYNOPSIS OF DEAR UNDERCOVER ECONOMIST INTRODUCTION The book offers witty, charming and at times caustic answers to our most pressing concerns all through the lens of economics. Does money buy happiness? Is the one really out there? Can cities be greener than farms? Can you really dress for success? When’s the best time to settle down? The book provides brilliant, hilarious, unexpected and wise answers to these and other questions. It lends an outrageous, compassionate and indispensable perspective on anything that may ail a book well worth the investment. The author delivers an informative book, accomplished through the fluid use of economic principle to dissect everyday problems, as seen from Tim Harford’s “Dear Economist” column in the Financial Times newspaper of London. He uses fictional type questions that effortlessly lend themselves to his dry English humor, and both the questions and the answers he provides are quite interesting. Harford commonly employs sophisticated economic principles alongside everyday rules, and makes us entertained by his instructive empirical evidence. SUMMARY In this book, one of the letters is from a man who can’t decide whether to propose to his girlfriend on the upcoming Valentine’s Day, or wait until next year. The Undercover Economist discusses and applies the principle of value creation to the situation. He advises that value creating moves should be applied sooner rather than later, because of the limitation of time. However,...
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...Strategic Business Analysis - Tim Hortons 1 EXECUTIVE SUMMARY 3 2 TIM HORTONS MISSION AND VISION STATEMENTS 3 2.1 Mission Statement 3 2.2 Vision 3 3 HISTORY 3 3.1 Tim Hortons Brand 4 4 PAST STRATEGY 4 4.1 Merger with Wendy’s International lnc. 4 5 CURRENT STRATEGY 5 5.1 Brand Recognition 5 5.2 Unique Business Model 5 5.3 Market Expansion into the U.S. 6 5.4 Co-Branding – Cold Stone Creamery 7 5.5 Community Involvement (Children’s Foundation) 7 5.6 Coffee Partnership - Working within the Industry Value Chain 8 5.7 Measures Of Performance 9 6 FUTURE STRATEGY 9 6.1 Five Key Points for 2010-2013 Strategic Plans 9 6.2 U.S. Market expansion 10 6.3 Market Leader in Canada 10 6.4 International Strategy 11 7 CONCLUSION 11 8 APPENDIX 12 9 REFERENCES 12 1 Executive Summary A strategic business analysis of Tim Hortons’ restaurant chain was conducted and action plan is recommended. We are the Vice President of Marketing and Chief Financial Officer and presenting this report to the shareholders of Tim Hortons. This report includes a review of Tim Hortons’ past strategies by focusing on its origins from the beginning to the establishment of their valuable “Brand” reputation in Canada. We will perform an analysis of the past, present, and future strategies of the business. 2 Tim Hortons Mission and Vision Statements 2.1 Mission Statement: Our guiding mission is to deliver superior quality products...
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...Ginger Lee Dingus Professor M. Lee October 21, 2015 English 101 Digital Sarcasm In the article “Google is making you more forgetful. Here’s why that’s a good thing” by Caitlin Dewey there are several different prominent discussions regarding the new ways that humans are recalling and seeking the data that they need. Dewey outlines the points that many authors have and she adds some humor and evidence (Dewey). She says that this is a modern way to manage this basic need and that, as a coping technique, the strategy presently used has been around since the beginning of time. The article was published online in The Washington Post on October 8, 2015. Dewey’s account provides awareness of the digitally inclined and how that is shaping the direction of memorizing and recollection. The author of this article attempts to do this with humor, sarcasm and evidence. Here she is successful, and it falls near the mark of expressing her analysis due to her wry sense of humor. She fails, however, to convey the same theme when she quotes statistics that seem more copied than readable in the flow of her work. The author uses Ethos, Logos and Pathos to convey these messages. Dewey begins by using Pathos as she uses the word “ominous” in her opening sentence. The word ominous in an opening sentence evokes fear and stands as an attention-getter in an emotional appeal. She is attempting to persuade the reader by using this form of Pathos, a word that should evoke strong emotion. She...
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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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...Tim Horton’s Marketing Plan: Tim Horton’s is a fast/casual restaurant situated all over Canada. It’s marketing strategy is based on price and affordability. Known for its food service it has 3000 stores all over Canada. Compared to is other competitors such as Krispy Kreme and Starbucks, Tim Horton’s provides substantially lower prices with a certain level of quality that ensures that customers are repeat customers. Over the years Tim Horton’s has had a strong presence domestically having many stand-alone stores as well as mini locations found in convenience stores, gas stations and malls. In accordance with its physical presence Tim Horton’s has a strong advertising campaign which focuses on commercials being shown on Canadian television. Sponsorship of charity and Canadian organizations also ensures that Tim Horton’s gains exposure through other channels. The vast variety of products Tim Horton’s sells allows for product differentiation and a more satisfying choice selection for consumers. Tim Horton’s provides products for consumers that look for fast affordable options that also taste good, filling a sort of niche that occurs. The product that we are introducing is Tim Horton’s brand pre-made salads. Tim Horton’s sales exchanges usually have duration of 90 seconds so this product fits in. These pre-made salads will come with various fixings and flavours such as cheese crumbles, spicy chicken, bacon pits, salted croutons, and other additives. Following the health conscious...
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