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Tim Hortons Inc. Case Study

Sahil Bhutani

Capilano University

NABU 470/69

Juanita Lohmeyer
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Executive Summary

This analysis of Tim Hortons Inc. includes an overview of the key issues in

the case, situational assessment findings, identifying and analysis of strategic

options, recommendation, implementation, and evaluation criteria. The case study

realizes that the company faces challenges such as stiff competition and expanding

into the international market. The strategic options available for the company

include market diversification, menu innovation and digital transformation. The

company should explore strategic options to overcome the challenges. This should

be implemented using structured approach and collaboration. Some of the ways of

evaluating the success of the implementation include comparing revenues before

and after implementation, and measurement of growth.

Key Issues in Tim Hortons Inc. Case Study

Tim Hortons, a successful fast-food chain, faces competition from global

giants like McDonald's and Starbucks, requiring differentiation and innovation.

Expanding into international markets through franchisee models presents

challenges, but maintaining product quality and customer loyalty is crucial (Abdul

et al., 2022). Providing specialty drinks and lunch options is necessary to cater to

evolving market conditions. A multi-faceted approach including market research,

innovation, operational excellence, and strategic partnerships is needed. Tim

Hortons' strong brand name and loyal customers make it a potential candidate to

address these challenges and remain relevant in the fast food chain.
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Situational Assessment Findings for Tim Hortons Inc.

Tim Hortons Inc's situational assessment indicates a strong presence in

Canada with a global reach. However, global fast food giants like McDonald's,

Starbucks, and Dunkin' are gaining ground in the Canadian market. To maintain its

position as a world leader, Tim Hortons must continue dealing with competition and

adapting to Canadian preferences. The company must also be vigilant about where

to place its stores and consider buying other big chains in other countries (Gray et

al., 2013).

International expansion is a challenge for Tim Hortons. The taste and food

customs of different markets vary, with Canadians being choosier and pickier with

their food, while Canadians are more likely to visit Timmy's stores. Turkish people,

for example, drink coffee constantly and enjoy bagels, while Turkish people eat late

at night and stay out until seven o'clock in the morning. The brand differentiation

strategy has been clever and comedic, but there are allegations of allegiances to Tim

Hortons Inc.

Identification & Analysis of Strategic Options for Tim Hortons Inc.

Tim Hortons is exploring four strategic options to address its challenges and

leverage its core strengths. The company should diversify its market. According to

Esnard (2022), market diversification offers growth potential but presents high

entry barriers and cultural and regulatory challenges. Menu innovation attracts a

wider customer base but may alienate loyal ones. Digital transformation enhances

customer experience but requires significant upfront investment and cybersecurity

risks. Sustainability initiatives attract eco-conscious consumers, but they may

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require costly implementation as well as revamping of the supply chain. A well-

balanced approach that considers these choices will lead to long-term growth and

profitability as well as ensuring Tim Hortons' long-term success and a positive

image of the brand.

Recommendations for Tim Hortons Inc.

Tim Hortons Inc. should look at strategic alternatives to meet the challenges

and make the most of potential opportunities within the fast food sector. They

include expanding internationally, menu innovation and technological

transformations, environmental, and sustainable packaging. Market research is vital

for understanding local tastes and competition and menu modifications should be

based on cultural considerations. A focus on healthier choices that are plant-based,

as well as seasonal meals is recommended. Digital transformation, for example, an

app that is user-friendly and mobile friendly, as well as personal loyalty programs

that are personalized, is also suggested. Sustainable initiatives such as eco-friendly

packaging and ethical sources are also suggested.

Implementation

Tim Hortons Inc. should take a methodical strategy to implement its

suggested strategies. This means establishing an global expansion staff, executing

pilot projects, and continually reviewing reviews. Collaboration with experts in the

field is essential for the creation of new menu items while making sure that the

focus is in the research and development. The quality control process is ensured
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through thorough testing. The partnerships with tech companies are crucial for the

development of apps and strategies for engaging customers (Tak & Gupta, 2021). A

mobile app that is user-friendly will provide reliable services, personalized

promotions and easy payment. Rewards and loyalty programs should be introduced

to promote acceptance of the app and keep customers loyalty. Sustainability

practices should be incorporated in the chain of supply from the raw materials to

packaging and motivating actions. Partnerships with green suppliers as well as

specific customer engagement are crucial. Overall, a structured approach and clear

criteria for evaluating are essential for Tim Hortons' success.

Evaluation Criteria

Tim Hortons Inc. is adopting strategies to increase its share of the

international market increasing sales and customer satisfaction, as well as reduce

their carbon footprint. Tim Hortons is currently comparing sales and revenue

information prior to and after the implementation of the strategies, while taking into

consideration the factors that influence growth rates in the market and the causes

for these. The company is also evaluating the growth of users of digital apps and

loyalty program participants, focusing on satisfaction of customers and loyalty

program participation. Furthermore, the company is trying to decrease its carbon

footprint by implementing effective and eco-friendly processes and positive

feedback from analysis of social media sentiment and reviews from customers. With

these strategies in place, Tim Hortons Inc. will be able to evaluate the impact of
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growth in markets growth, sales growth, satisfaction of customers, and digital

adoption, which ultimately leads to a rise in profits and competitive.

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References

Abdul Ghani, M. F., Hizam-Hanafiah, M., Mat Isa, R., & Abd Hamid, H. (2022). A

Preliminary Study: Exploring Franchising Growth Factors of Franchisor and

Franchisee. Journal of Open Innovation: Technology, Market, and Complexity , 8(3),

138.

Esnard, T. R. (2022). Diversifying Entrepreneurial Pathways: Insights and Policy

Implications. In Entrepreneurial Women in the Caribbean: Critical Insights and

Policy Implications (pp. 215-231). Cham: Springer International Publishing.

Gray, J. V., Skowronski, K., Esenduran, G., & Johnny Rungtusanatham, M. (2013). The

reshoring phenomenon: what supply chain academics ought to know and should

do. Journal of Supply Chain Management, 49(2), 27-33.

Tak, P., & Gupta, M. (2021). Examining travel mobile app attributes and its impact on

consumer engagement: An application of SOR framework. Journal of Internet

Commerce, 20(3), 293-318.

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Appendix 1- SWOT Analysis of Tim Hortons Inc.

Strengths Weaknesses
Brand recognition is strong.

Wide global presence. Coffee industry competition.

Variety of menu items. A limited menu with no new

innovations.
Make time for breakfast and coffee.
Quality consistency issues.

The dependence on the North American

market.

Opportunities Threats
The fierce competition comes from
Starbucks Dunkin' and Starbucks.
Expanding international markets. Dunkin'.

Healthier menu options. Changing consumer preferences.

Mobile ordering and digitalization. Economic recessions.

Collaborations and partnerships. Changes to the regulatory framework.

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Appendix 2- Analysis of Strategic Options

Strategic Option Pros Cons

Market Reduce dependence upon It requires significant
Diversification North America. investments and market
Taps into new customers research.
Possible cultural issues.
Digital Enhances customer Initial investment in
Transformation convenience. technology.
Data-driven insights. Cybersecurity risk.
Sustainability Costs associated with
Initiatives Draws eco-conscious sustainable sourcing.
customers. Possible operational
Positive image of the brand. modifications.
Menu Innovation Costs associated with
Benefits attract new R&D
customers. Potential for opposition
Meets evolving preferences. by loyal patrons.

Appendix 3- Implementation Plan

Objective: To effectively implement the strategic plan which includes relationship

management strategy for competitive bidding purchase of equipment, operation

preparation in the preparation of proposals and risk management, as well as

decisions points, constant monitoring and communication, as well as flexibility and

reports.
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Action Objective Description

Relationship Management
Action Improve To ensure solid supply Regular sessions, feedback
relationships chains and productive mechanism and mutual support will
with partnerships. be arranged to promote trust and
franchisees and collaboration.
suppliers.

Competitive Bidding Strategy

Develop a Secure and affordable Establish an open bidding system that
competitive devices and related assesses vendors based on price,
bidding services. quality, and the time of delivery.
process.

Equipment Acquisition and Investment

Purchase high- Increase productivity Make investments in the latest
quality and and quality of products. equipment, while taking into account
modern budgetary constraints and the ROI.
equipment.

Operational Preparedness
Train staff To ensure that the A variety of training programs will
members and transition is smooth and be held to educate employees about
learn to adapt minimize the amount of new equipment and procedures.
to new downtime.
equipment.

Proposal Preparation
Create detailed Develop a plan for each Record specific actions, timelines,
implementation resource allotment, and anticipated
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plans. part of the plan. results for each part of your plan.

Risk Management
Identify and Reduce interruptions A risk assessment will be conducted
reduce the risk and financial losses. and contingency plans will be put
of potential implemented to deal with unexpected
dangers. problems.

Decision Points and Timeline

Define key To ensure timely Determine the most critical points for
decision progress and aptitude. assessing the strategy's effectiveness
milestones. and adjusting it if necessary.
Continuous Monitoring and Evaluation
Implement To track the progress Continuously evaluate the effect of
performance made and pinpoint areas your strategy on the operations,
metrics. of improvement. customer satisfaction as well as
financial results.

Communication Strategy
Create both To ensure the The company will provide regular
external and transparency of updates and transparent
internal stakeholders and align communication will be maintained
communication them with each other. between franchisees, employees,
avenues. suppliers, customers, and franchisees.

Flexibility and Adaptation

Prepare to Respond to changes in Keep the capacity to adjust strategies
make marketplace conditions and tactics according to new trends
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adjustments as well as feedback. and information.

when
necessary.
Reporting and Documentation
Keep Record the progress and The reports will be comprehensive
meticulous results to ensure produced at every stage, highlighting
documents. accountability. the accomplishments and areas that
require attention.

Appendix 4- Evaluation Criteria

Area of Action Objective Performance Metrics

Relationship Strengthen Franchisee and supplier

Management: Supplier partnerships. franchisee satisfaction surveys
and franchisee Frequency of communication,
relations. the number of collaboration
initiatives.

Competitive Bidding Cost-effective The savings realized through

Strategy: The area of equipment bidding competitively and
action is the acquisition. evaluations of vendor
procurement process. performance.

Equipment Acquisition Increase the Measurement of equipment

and Investment: The efficiency of Uptime.
Area for Action: operations.
Modernizing
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Equipment.

Operational To ensure a Smooth Employee proficiency levels,

Preparedness: The transition from old reduction in downtime during
Area of Action: equipment to new implementation.
Employee Training ones.
and adapting.

Proposal Preparation: Develop specific plan Accomplishment of documents,

Area of Action of implementation. aligned with timeframes and
Documentation and allocation of resources.
strategic planning.

Risk Management: The Minimize disruptions. Efficacy of strategies to mitigate

Area of Action: risk, and reaction time to
Identifying and unexpected problems.
reducing the risk.
Decision Points and The goal is to ensure Conformity to timelines and
Timeline: The Area of that there is decision points and the ability to
Action: Timely advancement and make adjustments based on data.
decision-making. flexibility.

Continuous Monitoring Monitor improvement Continuously up-to date

and Evaluation: and progress. performance indicators,
Affective Area: identifying areas to optimize.
Continuous evaluation
of performance.
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Communication Change to the Number of strategies

Strategy: Aspects of changing conditions. modifications, and the
action: Receptivity to effectiveness of efforts to adapt.
the effects of change.

Flexibility and To ensure that there is Accuracy and completeness of

Adaptation: Aspects of accountability and the reports, and actions made
Action Recording the learning. based on the findings.
progress.