...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 an emerging...
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...Tim Hortons Inc. Business History Tim Hortons Inc. is mostly referred to as Tim Hortons Café and Bake Shop. It is the largest fast food service in Canada. It also has some restaurants in the USA and the Persian Gulf region. The Business has its headquarters in Hamilton, Ontario, Canada. The company was founded in 1964, by a hockey player by the name of Tim Horton and Jim Charade. It first operated in Hamilton. The company has undergone various changes in leadership since 1964. For example, Tim Horton partnered with Ron Joyce in 1967. He took over in 1974 when Horton died. Joyce expanded Tim Hortons such that by 2002, it had overtaken McDonalds as the largest fast food service in Canada. Initially, Tim Hortons only served two products; coffee and doughnuts. The company has however grown and now sells a variety of fast foods including muffins, cakes, pies, croissants, cookies, soups and chili. Some of the restaurants also serve sandwiches. The company merged with Wendy’s in 1995, expanding its business operations largely to the United States. (timhortons.com) According to the newswire, the company’s goals as of 2010 included increasing the same-store growth sales by at least 3% in Canada and 2% in the USA. The also had a goal of opening more stores, at least 130 in Canada. (newswire.ca). Their overall goal is to offer superior quality products and services for its customers and communities through leadership, innovation and partnership. The company is currently run by Paul D house...
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...Tim Hortons is a large company that focuses on top quality, always fresh products, value and great service. It has become the largest quick service restaurant chainin Canada specializing in always fresh coffee, baked goods and home style lunches (TimHortons: About Us). Originally Tim Hortons offered only coffee and donuts to itscustomers but has greatly expanded today to offer a full lunch menu as well along withmany more baked goods. The biggest attraction to Tim Hortons is still their always freshcoffee, it is also offered in a take-home tin so customers can enjoy the great taste of TimHortons’ coffee at home. Our team has explored the company’s information resources tolearn about what Tim Horton’s needs to do in order to successfully expand into theUnited States. This was achieved through a number of group meetings, emails anddiscussions about the different ways of expanding successfully into the foreign market. Areview of the company’s history and timeline lead us to a greater understanding of howthe company really works, and how committed they are to improving their image in theconsumers eye. We also conducted a SWOT analysis to determine the strengths andweaknesses of Tim Hortons and their major competitors: Dunkin’ Donuts and Starbucks.To deal with the challenges brought about by these competing firms Tim Horton’s willhave to make the necessary changes that will ultimately make them a strong competitor inthe United States. These changes include adding new items to the menu...
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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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...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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...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 Hortons was founded in 1964 by Miles Gilbert (Tim) Horton, a hockey player. He was born on January 12th, 1930, and died on February 21st, 1974 in a car crash. He was born in Cochrane, Ontario, but moved to Duparquet, Quebec, where he leaned how to play hockey, although he soon moved back to Ontario within a couple years. He started off playing for the Northern Ontario Junior Hockey Association's Copper Cliff Jr Redman, from 1946 - when he was fifteen - to 1947. He was then signed for Toronto Maple Leafs a year later, but he played for the Ontario Hockey Association/St Mike's Majors. He then switched to Pittsburgh Hornets in 1949, which was an American hockey league; both were Leafs' farm teams. Tim had joined the Toronto Maple Leafs in...
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...My local Tim Hortons has always been a big part of my life and my community. In high school, we had the choice to leave the building for lunch time. My choice was always Tim Hortons because of the friendly atmosphere and the wide range of healthy foods. It includes all lifestyles including vegetarianism. People always come back to Tim Hortons because it’s a place of gathering and socializing. It’s a great place to meet up with friends to catch up while having a good meal. With my village having a population of around 2,000, I never go to Tim Hortons without seeing a person I know. I also never go to the local arena without seeing someone holding a Tim Hortons coffee cup. When I go to my local Tim Hortons, I love seeing elders sitting and having...
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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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...TIM HORTONS MARKETING PLAN ASSIGNMENT 3 ATIF HAMEED ERP: 10568 MBA-1, Morning Business Definition: When Tim Hortons comes to mind, a dark brown colored bean coffee strikes us instantly. Tim Horton broadly caters hot beverages and fast food items for its valued customers. But still coffee and donuts are its bull eyes. It has built its place in consumers mind and heart through its premier products i.e. coffee and donuts. With the passage of time and changing trends globally, it has expended its business into baking, catering and fast dinning to enhance its presence strongly and increase market share. As a result, Tim Hortons has impressively implemented the idea of “different but unique experiences under one roof. While doing so, it has evolved its vision and mission statement without ignoring its loyal consumers which are the important stakeholders as it still strongly associates o itself to its premier products. Karachi: Pakistan is an emerging market for coffee players. It has most of the things to attract brands like Tim Hortons to Pakistan. Country with sixth most populous nation, middle class is expanding, youth rate in population is one of the highest in the world, people are embracing western lifestyle, and buying power is improving. Therefore, Pakistan is a good market to jump into and grow international presence. Karachi, being the biggest metropolitan of Pakistan, provides perfect platform to launch Tim Hortons in the country. It has already established the...
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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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...Tim Horton’s [Type the document subtitle] [Pick the date] PNC Bank pt24581 Target Market Adults Tim Horton’s primary target market is men and women aged twenty five to forty. According to scottrade.com, this group accounts for almost half of its total business (forty nine percent). Tim Horton’s attract this group through contemporary design and consistency in its advertising and décor, and the drive to keep their products current to avoid the “lost in time” negativity that can arise in small businesses. According to a personal interview with my relative John R. Moses, who is a senior manager at one of the shops in Canada, claims “our consumers tend to be urbanites with relatively high income, professional careers and a focus on modern social lifestyles. This target audience grows at a rate of three percent annually. Young Adults This category consists of individuals aged eighteen to twenty four, total forty percent of Tim Horton’s sales. (Scottrade.com) Tim Horton’s positions itself as a place for college students can relax, study, work in groups, and network. The company appeals to this consumer directly through free internet services, such as Wi-Fi, focusing on social networking and actively cultivating an “energizing” image. According to John R. Moses this group grows four point six percent each year. Kids and Teens Through Tim Horton’s friendly environment, they appeal to kids that come with their parents. They do not cater directly towards kids;...
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...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 the...
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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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