Abstract

Tim Horton's is a leading coffee and fast-food restaurant chain in Canada. That is expanding into the international
market which exist in another 13 countries with 4846 branches. Tim Horton's has been successful in addressing
the demands of its consumers, appeals to a broad range of consumer tastes, with a menu that includes coffee, hot
and cold specialty drinks, lattes, cappuccinos and espresso shots, specialty teas and fruit smoothies, fresh baked
goods, grilled Panini and classic sandwiches, wraps, soups, prepared foods and other food products. Their prices
are a little expensive, but the quality of their items is excellent.

Nigeria, is chosen as our targeted marketplace for the chosen brand Tim Horton's Café & Bakery, PEST Analysis
will be the used tool to analyze the Macro environmental variables in Nigeria

1.Nigeria Overview
1.1 Political

The country is facing a state of political instability, increasing insecurity in the country and increasing tension due to the
spread of groups and extremist movements like Boko Haram group.

1.2 Economic
The central bank of Nigeria (CNB) governor noted that Nigerians spend an average 73% of their income on food and
beverage products. Nigeria ranked by The World Trade Organization as the largest food market in Africa. The food and
beverage industry is estimated to contribute 22.5% of the manufacturing industry revenues and 4.8 of its GDP which was
USD 448.1 billion
This chart explains Nigeria GDP for the past 10 years.

Source: Tradingeconomics.com. 2021. Nigeria GDP | 1960-2020 Data | 2021-2023 Forecast | Historical | Chart | News .

The GDP/Capita represent USD 2,400

This chart explains Nigeria GDP/ capita for the past 10 years

- Interest Rate 11.5% 2021.

Tradingeconomics.com. - Inflation
 NigeriaRate
GDP 17.38%
per capita | 1960-2020 Data | 2021-2023 Forecast | Historical | Chart .
- Unemployment Rate 33.3% - Employment Rate 66.70% - Youth Employment Rate is 53.40%
- Minimum wages Rate is 30,000 NGN/Month
- Corporate Tax Rate 30% - Personal Income Tax Rate 24% - Sales Tax Rate 7.50%
- Exchange Rate 1 USD= 411.458
- Food Inflation Rate 21.03% (food prices in Nigeria)
- Capital flow Nigeria recorded a capital and financial account deficit of 3371.72 USD Million 2020

Tradingeconomics.com. 2021. Nigeria. [online] Available at: <https://tradingeconomics.com/nigeria> [Accessed 1 September 2021].

According to Euromonitor, Nigerians would consume more than 1,000 tons of coffee in 2020, a 23% over last year.

This chart explains the declining of Nigerian’s production for coffee

<https://knoema.com/atlas/Nigeria/topics/Agriculture/Crops-Production-Quantity-tonnes/Coffee-production>

This chart explains the raising of Nigerian’s consumption for coffee

Kristiano Ang, C., 2021. Nigerians are developing a taste for coffee. [online] Quartz. Available at: <https://qz.com/africa/829903/nigerians-
are-developing-a-taste-for-coffee/>
1.3 Sociocultural
1.3.1 Population
Nigeria has an estimated population of 206 million people, making it the largest country in Africa and the 7th most populated
democracy in the world, accounting for 2.64 % of the world's total population. That is why Nigeria is known as Africa's
"giant." The market potential is enormous. Despite the country's insecurity, international direct investment has increased in
recent years. The country's population is large enough to attract investments.
 This chart explains Nigeria population growth the last 10 years

Source:

1.3.2 Age Structure

the percentage of individuals aged 1 to 14 years was about 43.2 %, the proportion of people aged 15 to 54 years was
approximately 49.8 %, and the proportion of people aged above 54 years was approximately 6.9.

Statista. 2021. Nigeria - Age structure 2020 | Statista. [online] Available at: <https://www.statista.com/statistics/382296/age-structure-in-nigeria/> [Accessed 1
September 2021].
1.3 Technological
Nigeria is undoubtedly headed in the right direction. It is already Africa's largest technological market in terms of Internet
users and mobile subscriptions, as well as having the continent's second-highest startup density. Lagos is quickly establishing
itself as a technology center, with more than a million people working in the sector.
1.4 legal

The Federal Competition and Consumer Protection Commission, state ministries of health, and relevant federal and state tax
regulatory authorities are all responsible for ensuring that applicable rules and regulations are followed. Although their tasks
may overlap, the regulators' shared purpose is to safeguard the general welfare and safety of customers.

. 2The challenges of conducting business in Nigeria

2.1 Access to capital & credit.

Lack of financial capital is the single most significant challenge when it comes to doing business in Nigeria. Even with the
conceptualization and implementation of financial programs meant to support businesses, the government has always been in
a struggling position to ensure that financial capital is easily made accessible to entrepreneurs. In most cases, entrepreneurs
have to turn to personal savings, business loans, families and friends, or government grants to get financial capital for
business.

2.2 Poor Electricity Supply

Poor supply of electricity and frequent power outages. As the use of alternative power generation is an additional expense of
conducting business in Nigeria.

2.3 Low quality of education

The quality of education at all levels remains very low, comparing to other countries. The impact of this shortcoming is that
the country cannot attract the highest qualified labor to work in its industry.

2.4. A poor state of Infrastructure

Unfortunately, bad roads and an inconsistent power supply are the two main infrastructural issues in Nigeria. These issues
reduce the productivity of every business in the country.

2.5 Institutions and political environment

The weak institutions and an unstable political environment, high levels of corruption, and poor law enforcement and
execution of contract terms, all of this is contributing to rising unemployment and poverty rates, a fall in industrial activity, a
poor utilization of industrial capacity, and a drop in the economy's worldwide ranking. This indicates to a high-risk business
environment.

2.6 Low Human Development Index

Nigeria is rated 152 on the UN Human Development Index (HDI). The HDI is a “worldwide comparative measure of life
expectancy, literacy, education, standard of living, and quality of life.” Which reflect that the government is not investing in
the people who will boost businesses' productive energy.

2.7 Insecurity:

In Nigeria, there is a high level of insecurity, especially in the North, where "Boko Haram" has become a big challenge to
business activities. As no investor will invest in an area where his money is not secure. Many businesses in the country's
north have gone into liquidation as a result of the "Boko Haram" Terrorism.

2.8 Government regulations.

The government plays a major role in the decision of how business gets done in Nigeria. No government or economic system
leaves all decisions about doing business to the market. 

3. The Opportunities of conducting business in Nigeria

3.1 Nigeria is the highest population in Africa and it ranks No. 7 in the whole world:

Nigeria current population is over 211 million, this huge market always ensures higher consumption which leading to
increasingly demand for goods and services.

So, the size of the population is enough to attract new investors into the market.

3.2 Youth population represents 50% from total population:

This is considered as a very good opportunity as the age bracket as discussed in the PESTEL analysis for the age ranges
between 15-50 represents 50% from the total population

3.3 Internet and E-commerce

Nigeria has over 140 million smartphone user and this is an indicator for rapidly spreading the brand awareness. Also, the
expanding of e-commerce culture through the pandemic of corona virus will reflect positively. businesses in Nigeria could
have a lot to gain from the growth of the internet and the increasing access to it.
 4.Tim Hortons CSR

Tim Hortons is committed to, "Making A True Difference for Individuals, Communities and the Planet, every day", By
adopting many initiatives supporting these three aspects:

 Support local community initiatives across Canada and the USA for children, sports, and raise funds for charities
causes.

 Empower coffee farmers in South America sustainably, where there coffee is produced, by improving the economic,
social and environmental aspects of the farmer's own business.

 Support various major sporting events and activities through national sponsorship programs for Soccer, Football,
Baseball, Basketball, Hockey, and Curling.

Tim Hortons does philanthropy, innovates, demonstrates transparency and ethics, cares about protecting the environment,
cares about employees and stakeholders, and helps developing countries, which are its main coffee suppliers.

Source: Corporate Social Responsibility (CSR) & Environment, Social, Governance (ESG) Metrics (csrhub.com)
Beyond its impressive profits, it is maintaining Canadian culture, both inside and outside the country of origin, So we will
adopt strategy localization to keep on the company's social responsibility approach, Promote continuous improvement that
incorporates three key parts: people and communities, food and beverage quality, and the planet. , through addressing
purchasing habits, customer behaviors, and overall cultural differences, In order to open doors in the local Nigerian
community and enhance its reputation over its competitors.

Generally, if customers share values and beliefs with a company, they are more likely to buy from it, so, customers pay
money in Tim Hortons stores for coffee, donuts, and making a better world.

5.Tim Hortons CSR in Nigeria

"Our commitment to people and communities" clause,

Nigerians are sports-loving people with a strong desire to win. Sport in Nigeria has evolved from a humble beginning as an
entertainment and recreational hobby to a major phenomenon whose influence can be seen in all aspects of the citizenry's
lives.

For Nigerians, sport is just as important as food, clothing, and shelter. As a result, sports have become more popular, as a
result of its widespread appeal among Nigerians, the sport has become a vital part of the country's culture. Sports have been
used by the Nigerian government to further its foreign policy and diplomatic objectives, as well as to promote national unity
and socio-cultural integration.

Nigerian children and youth confront a variety of issues. Nigerians account for over a third of all children and youth in Sub-
Saharan Africa, as the continent's most populated country.

As a result, Tim Hortons for Good could start its activity in Nigeria by launching the "Timbits Sports" initiative, funding
modern athletic facilities development such as Gymnasiums, Sports Halls, and other facilities for football, table tennis,
basketball, volleyball, and handball. In the line with the desire of the Federal Government of Nigeria, which represents their
dedication to the Nigeria culture.

"Our commitment to food and beverage quality" clause,

Nigeria is an extremely diverse country, with well over 1000 different ethnic groups residing within its territory. The 4
largest of these groups are the Hausa, the Fulani, the Igbo and the Yoruba, the major Religions are Christianity, and Islam,
most of them speaking English.

As a result, Tim Hortons' menu must be tailored to this community's needs, such as serving halal food, having all printed
materials in English language, and adhering to the Nigerian dining etiquette.

"Our commitment to the planet" clause,

Tim Hortons recognizes that the environmental footprint spans beyond the land that Tim's restaurants sit on. Dedicating to
make thoughtful choices in packaging materials and design, to protect natural resources and reduce waste, and to support a
healthier planet for the future.

In Nigeria, they must form new collaborations with local businesses to manage food waste sustainability in order to achieve
long-term environmental benefits and, positive improvements.
 6.1 External Factor Evaluation (EFE) of Tim Hortons in Nigeria:

weight Rate Score Comments

Opportunities
Huge Number of Population 20% 3 0.6 Nigeria known as the most populated country; it is over 210
million. this is great opportunity for market expansion and
high Consumption.

High Youth population rate 20% 5 1 Nigeria has a large youth population with almost 50% from
the total population
Internet and Technology 10% 3 0.3 Nigeria has more than 85 million internet mobile users
force
Threats
Insecurity 20% 5 1 Propagation of terrorism in the north of Nigeria
Poor Electricity Supply 15% 3 0.45 Lack of electricity in Nigeria and the need for electric
generator
Competitive Force 15% 3 0.45 Presence of another old competitors in the market before our
brand like krispy kreme
Total 100% 3.8

6.2 External Factor Evaluation (EFE) Analysis

Opportunities

Huge Number Of populations

Nigeria market potential is very huge as it has the highest population in Africa and ranked no.7 of the whole world which
represent 2.71% of the world’s total population, its current population is over 211 million, the population increasing rate is
2.9%. Nigeria has 5 cities each one with population more than one million. But Lagos population is around 17.5 million,
Lagos could be the best place in Nigeria for making new business-like Tim Hortons as its population is the largest and it is
the business capital of Nigeria.
The high population always ensure continuous increase in the rate of consumption.

High youth population rate

Nigeria has a large youthful population, with an average age of 18.6 years
Youth age structure: 15-64 years which represent 53.77% from the total population, as the culture of fast food and caffeine
beverage is the current generation trend and daily routine to a lot of people, this will reflect on the success of our brand
because of the high consumption.
Internet and Technology Force

In Nigeria, there are about 85 million mobile internet users, the internet access reaching 46.6 % in 2020. It ranks first among
African nations in terms of mobile traffic share. This will reflect positively by spreading brand awareness rapidly among
people, and increasing the online sales for Tim Hortons Products
This chart explains the number of internet users in millions till 2025

Statista. 2021. Nigeria: number of internet users 2025 | Statista. [online] Available at: <https://www.statista.com/statistics/183849/internet-users-
nigeria/> [Accessed 1 September 2021].
Threats analysis

Threats

Insecurity

Nigeria has been rated as the world's third most affected country by terrorism. According to the Global Terrorist Index (GTI)
report for the year 2020, 2,043 people died from "terrorist violence actions" in 2018, but only 1,245 died in 2019. According
to the latest data, the number of deaths related to Boko Haram increased by 25% from 2018 to 2019., which negatively
affected its image for conducting any business.
This chart explains the percentage of terrorist in Nigeria.

2021. [online] Available at: <https://www.legit.ng/1387427-global-terrorism-index-2020-killings-reduce-nigeria-remains-3rd-terrorised-country.html>

[Accessed 2 September 2021].
Poor electricity supply
Access to consistent energy and a power supply is a key problem for Nigerian businesses. An average Nigerian home may
only enjoy 6 hours of continuous power supply out of the 24 hours that exist in a given day. This is why the use of generators
as an alternative power source is so prevalent in Nigeria, although need additional costs which are higher than the norm.

Competitive force
7. CPM for Tim Horton

Tim Hortons
Key Success Factors weight Rate Score

Total

Krispy Kreme
Key Success Factors weight Rate Score

Total

Tim Hortons CPM

Key Success Factors weight Rate Score

Total