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Tim Hortons Inc.

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Tim hortons inc. description.

In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete with Starbucks, McDonald's and Dunkin' Donuts, the world's largest and best known providers of fast food such as coffee, donuts and sandwiches. However, while the brand is almost synonymous with Canada, it is far less known beyond that country's borders. In mid-August, the company announced its potential acquisition by 3G Capital, the Brazilian parent of Burger King, but this still has to be approved by its shareholders and likely by Canadian and U.S. regulators. The potential merger might help the company move forward, but will it be enough to create a competitive advantage on a global scale?

Case Description Tim Hortons Inc.

Strategic managment tools used in case study analysis of tim hortons inc., step 1. problem identification in tim hortons inc. case study, step 2. external environment analysis - pestel / pest / step analysis of tim hortons inc. case study, step 3. industry specific / porter five forces analysis of tim hortons inc. case study, step 4. evaluating alternatives / swot analysis of tim hortons inc. case study, step 5. porter value chain analysis / vrio / vrin analysis tim hortons inc. case study, step 6. recommendations tim hortons inc. case study, step 7. basis of recommendations for tim hortons inc. case study, quality & on time delivery.

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Case Analysis of Tim Hortons Inc.

Tim Hortons Inc. is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Tim Hortons Inc. is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Tim Hortons Inc. case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Tim Hortons Inc. will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Tim Hortons Inc. case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Tim Hortons Inc., is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Tim Hortons Inc. case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Tim Hortons Inc. case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Tim Hortons Inc.

Step 1 – Problem Identification of Tim Hortons Inc. - Harvard Business School Case Study

The first step to solve HBR Tim Hortons Inc. case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Hortons Donuts is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Hortons Donuts, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tim Hortons Inc.. The external environment analysis of Tim Hortons Inc. will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Tim Hortons Inc. case study. PESTEL analysis of " Tim Hortons Inc." can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Tim Hortons Inc. macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Tim Hortons Inc.

To do comprehensive PESTEL analysis of case study – Tim Hortons Inc. , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Tim Hortons Inc.

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Tim Hortons Inc. ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Hortons Donuts is operating, firms are required to store customer data within the premises of the country. Hortons Donuts needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Tim Hortons Inc. has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Hortons Donuts in case study Tim Hortons Inc." should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Hortons Donuts in case study “ Tim Hortons Inc. ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Hortons Donuts in case study “ Tim Hortons Inc. ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Tim Hortons Inc. ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Hortons Donuts can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Tim Hortons Inc. case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Hortons Donuts needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Tim Hortons Inc.

Social factors that impact tim hortons inc., technological factors that impact tim hortons inc., environmental factors that impact tim hortons inc., legal factors that impact tim hortons inc., step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: tim hortons inc. case study solution.

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Tim Hortons Case Analysis

Tim Hortons Inc. is a multinational fast food restaurant known for its coffee and donuts. It is also Canada’s largest quick service restaurant chain; as of December 31, 2016, it had a total of 4,613 restaurants in nine countries.

The company was founded in 1964 in Hamilton, Ontario, by Canadian hockey player Tim Horton (1930–1974) and Jim Charade (1934–2009), after an initial venture in hamburger restaurants. In 1967, Horton partnered with investor Ron Joyce, who assumed control over operations after Horton died in 1974. Joyce expanded the chain into a multimillion-dollar franchise. Charade left the organization in 1966 and briefly returned in 1970 and 1993 through 1996.

On August 26, 2014, Burger King agreed to purchase Tim Hortons for US$11.4 billion; the chain became a subsidiary of the Oakville-based holding company Restaurant Brands International on December 15, 2014, which is majority-owned by Brazilian investment firm 3G Capital.

Tim Hortons Case Study

Industry Restaurants
Founded May 17, 1964; 54 years ago Hamilton, Ontario, Canada
Founders
Headquarters Oakville, Ontario, Canada
Related Food and Drink Companies: , , , , , , , , , , , , , , , , ,

tim hortons case study strategic management

Tim Hortons Case Study Examples

 Case Title: Tim Hortons Short Cycle ProcessWho is The Decision Maker: Tim Hortons Inc. Executive branchWhat is the Issue: How to continue expansion of the Tim Hortons brandWhy the Issue has arisen: Tim Hortons corporate objectives are for further expansion and sustained growthWhen the Decision must be made: Over the course of the next yearHow: […]

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Tim Hortons PESTEL Analysis

tim hortons case study strategic management

Before we dive deep into the PESTEL analysis, let’s get the business overview of Tim Hortons. Tim Hortons is a popular Canadian multinational quick-service restaurant chain focused on coffee, baked goods, and various fast food items. 

Founded in 1964 in Hamilton, Ontario, by former ice hockey player Tim Horton and his partner Jim Charade, the brand has since expanded its footprint across Canada and internationally.

As of 2021, Tim Hortons operates over 4,800 restaurants in various countries, including the United States, the United Kingdom, Ireland, Mexico, the Philippines, and China. The brand is well known for its signature products, such as Timbits (bite-sized doughnut holes), coffee beverages, and breakfast sandwiches. The menu also features soups, sandwiches, wraps, and an assortment of pastries.

In 1995, Tim Hortons merged with Wendy’s, an American fast-food chain. However, the two companies separated in 2006, with Tim Hortons becoming a publicly traded company on the Toronto Stock Exchange and the New York Stock Exchange. In 2014, Restaurant Brands International (RBI), a Canadian multinational fast-food holding company, acquired Tim Hortons. RBI also owns other well-known brands such as Burger King and Popeyes.

Tim Hortons emphasizes convenience, speed, and affordability as a quick-service restaurant chain. They have adapted to customers’ changing needs by introducing new products, enhancing their drive-thru experience, and offering mobile ordering and loyalty programs.

Financial Performance :  Tim Hortons generated 2.63 billion U.S. dollars in revenue from sales and 1.19 billion from its franchises and properties during the 2022 financial year. 

Here is the PESTEL analysis of Tim Hortons

A PESTEL analysis is a strategic management framework used to examine the external macro-environmental factors that can impact an organization or industry. The acronym PESTEL stands for:

  • Political factors: Relate to government policies, regulations, political stability, and other political forces that may impact the business environment. 
  • Economic factors: Deal with economic conditions and trends affecting an organization’s operations, profitability, and growth. 
  • Sociocultural factors: Relate to social and cultural aspects that may influence consumer preferences, lifestyles, demographics, and market trends.
  • Technological factors: Deal with developing and applying new technologies, innovations, and trends that can impact an industry or organization. 
  • Environmental factors: Relate to ecological and environmental concerns that may affect an organization’s operations and decision-making.
  • Legal factors: Refer to the laws and regulations that govern businesses and industries. 

In this article, we will do a PESTEL Analysis of Tim Hortons.

PESTEL Analysis Framework: Explained with Examples

  • Regulatory environment : The political factors affecting Tim Hortons significantly involve food safety and quality regulations. Tim Hortons has to comply with local and national laws concerning food standards, health and safety, employment, and taxation in all the countries where it operates. Political changes can lead to changes in these laws, which can, in turn, affect Tim Hortons’ operations.
  • Trade Policies : Political decisions can affect trade policies, which can impact Tim Hortons. For instance, changes in tariffs, import and export restrictions can affect the cost and availability of ingredients that Tim Hortons sources from different parts of the world.
  • Political Stability : The political stability of the countries where Tim Hortons operates can significantly affect the company. If a country is politically unstable, it could negatively impact business operations. Conversely, political stability can provide a favorable environment for growth and expansion.
  • International Relations : As a multinational company, Tim Hortons is affected by the international relations between Canada and its operating countries. Any political tension or conflict could affect its ability to do business in those countries.
  • Public Health Policies : Government policies related to public health can also affect Tim Hortons. This has been particularly relevant in the COVID-19 pandemic, where government restrictions impacted the operations of many businesses in the food and drink sector.
  • Labor Laws : Changes in labor laws, such as minimum wage laws, worker safety regulations, and labor union rules, can impact the operating costs for Tim Hortons and its overall business strategy.
  • Economic Stability : The economy’s overall health in the countries where Tim Hortons operates can significantly impact its performance. In periods of economic growth, consumers typically have more disposable income and are more likely to spend on items like coffee and fast food. Conversely, in an economic downturn, consumer spending often decreases, which could affect Tim Hortons’ sales.
  • Exchange Rates : As a multinational company, Tim Hortons is affected by fluctuations in exchange rates. Changes in the value of the Canadian dollar against other currencies can impact the cost of importing goods and raw materials, as well as the profitability of overseas operations.
  • Inflation Rates : High inflation can increase the costs of raw materials, labor, and other operational costs, which can affect Tim Hortons’ profit margins. Conversely, low inflation or deflation can lower expenses and indicate a sluggish economy with reduced consumer spending.
  • Interest Rates : Changes in interest rates can affect Tim Hortons’ costs, mainly if the company relies on borrowed funds for its operations or expansion activities. Higher interest rates increase borrowing costs and can affect profitability.
  • Unemployment Levels : High unemployment levels can affect consumer purchasing power, leading to a reduction in sales. However, it can also lead to an increased pool of potential employees, affecting labor costs.
  • Consumer Confidence : The level of consumer confidence in the economy can significantly impact the food and beverage industry. When confidence is high, consumers are likelier to spend on non-essential items like dining out. When confidence is low, however, consumers tend to cut back on such spending.
  • Commodity Prices : The prices of commodities like coffee beans, dairy products, and other ingredients that Tim Hortons uses can significantly impact its operational costs and profitability. Various factors, including weather conditions, geopolitical events, and economic policies, can influence these prices.
  • Tim Hortons SWOT Analysis

Sociocultural

  • Changing Consumer Preferences : Consumer tastes and preferences can change over time due to various sociocultural factors. For example, there’s a growing trend towards healthier eating and drinking habits. Tim Hortons might need to adjust its menu to include more health-conscious options if this trend continues.
  • Cultural Significance : In Canada, Tim Hortons holds a significant cultural position. It’s seen as a national icon and a part of everyday life for many Canadians. This strong cultural association could be a strength for the company, but it poses challenges as it expands internationally, where this cultural significance might not exist.
  • Demographics : Changes in demographics can affect the demand for Tim Hortons’ products. For instance, younger generations may have different food and beverage preferences than older generations. Understanding these demographic shifts can help Tim Hortons tailor its product offerings.
  • Ethical and Social Responsibility : Consumers are increasingly concerned about ethical issues, including fair trade, animal welfare, and sustainability. They expect companies to take social responsibility seriously. Therefore, Tim Hortons’ policies on sourcing ingredients, waste management, and corporate social responsibility can impact its brand image and customer loyalty.
  • Workforce Diversity : With operations in various countries, Tim Hortons has to manage a diverse workforce. Understanding and respecting cultural differences and norms can enhance employee satisfaction and productivity.
  • Lifestyle Trends : Lifestyle changes can influence the demand for Tim Hortons’ products. For example, with the increasing pace of life, demand for quick service and convenience, such as drive-thru services and home delivery, has increased.
  • Social Media Influence : In today’s digital age, social media plays a significant role in shaping customer preferences and opinions. Negative or positive reviews on social platforms can significantly impact Tim Hortons’ reputation.

Technological

  • Digitalization : The rise of digital technology has transformed the way businesses operate. Like many other companies in the food and beverage industry, Tim Hortons has adapted to these changes by offering online ordering, mobile payment options, and a loyalty program app. The effectiveness and user-friendliness of these digital tools can significantly influence customer experience and loyalty.
  • Automation : Automation technology can enhance operational efficiency and reduce costs in the food and beverage industry. For instance, automated coffee machines can help ensure consistency in product quality. Implementing such technology requires significant investment but can lead to long-term benefits.
  • Data Analytics : Advanced data analytics can provide valuable insights into customer behavior and preferences, enabling Tim Hortons to tailor its offerings and marketing strategies more effectively. However, the use of data analytics also raises issues related to data security and privacy.
  • Sustainability Technologies : As sustainability becomes a more significant concern, technologies that help reduce energy use, waste, and environmental impact can be crucial. For example, using energy-efficient appliances or implementing recycling programs can help Tim Hortons enhance its sustainability efforts.
  • Supply Chain Technology : Technological advancements can also improve supply chain efficiency. For example, predictive analytics can help optimize inventory management, while GPS technology can enhance logistics and delivery.
  • Artificial Intelligence (AI) and Machine Learning : These technologies can be used in various ways, from improving customer service (for example, through AI-powered chatbots) to enhancing operational efficiency (such as through machine learning algorithms that optimize scheduling or resource allocation).

Environmental

  • Sustainability : There’s a growing concern among consumers and regulators about sustainability. As a result, Tim Hortons might face increased pressure to demonstrate its commitment to sustainable practices. This could involve sourcing ingredients sustainably, reducing energy consumption, minimizing waste, or using eco-friendly packaging.
  • Climate Change : Climate change can impact agricultural practices globally and thereby influence the availability and cost of the raw materials Tim Hortons uses, such as coffee beans, wheat, and dairy products.
  • Regulations : Environmental regulations vary by country and can impact Tim Hortons’ operations. These regulations can relate to waste disposal, energy usage, and greenhouse gas emissions. Changes in these regulations can require significant adjustments in the company’s operations.
  • Natural Disasters : Natural disasters, which may become more frequent and severe due to climate change, can disrupt Tim Hortons’ supply chain or affect its ability to operate in certain locations.
  • Consumer Preferences : As consumers become more environmentally conscious, they may prefer businesses that demonstrate a commitment to protecting the environment. Tim Hortons’ ability to meet these changing consumer preferences can influence its brand image and customer loyalty.

  • Food and Safety Regulations : As a food service provider, Tim Hortons must comply with a wide array of food safety and hygiene regulations. These regulations cover everything from the sourcing and handling of ingredients to the preparation and serving of food.
  • Employment Laws : Tim Hortons must comply with various employment laws, including those related to minimum wage, overtime, health and safety, and non-discrimination. Changes in these laws can impact Tim Hortons’ labor costs and practices.
  • Tax Laws : Tax laws and regulations can impact Tim Hortons’ financial performance. The company must navigate a complex landscape of tax laws in all the countries where it operates.
  • Intellectual Property Laws : Tim Hortons must protect its brand, trademarks, and proprietary information. This requires navigating intellectual property laws in multiple jurisdictions.
  • Environmental Laws : As noted in the discussion of environmental factors, laws related to waste disposal, energy usage, and emissions can impact Tim Hortons’ operations.
  • Health and Labeling Regulations : Tim Hortons must adhere to regulations related to the disclosure of nutritional information, allergen warnings, and other information about its food and beverages.
  • Data Protection and Privacy Laws : With the digitalization of business operations, Tim Hortons must comply with data protection and privacy laws, especially considering its use of customer data for its loyalty program and mobile app.

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Tim hortons inc. case study analysis & solution, harvard business case studies solutions - assignment help.

Tim Hortons Inc. is a Harvard Business (HBR) Case Study on Strategy & Execution , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Strategy & Execution Case Study | Authors :: Karin Schnarr, W. Glenn Rowe

Case study description.

In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete with Starbucks, McDonald's and Dunkin' Donuts, the world's largest and best known providers of fast food such as coffee, donuts and sandwiches. However, while the brand is almost synonymous with Canada, it is far less known beyond that country's borders. In mid-August, the company announced its potential acquisition by 3G Capital, the Brazilian parent of Burger King, but this still has to be approved by its shareholders and likely by Canadian and U.S. regulators. The potential merger might help the company move forward, but will it be enough to create a competitive advantage on a global scale?

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the strategy & execution.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Strategy & Execution. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Tim Hortons Inc. HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

  • Marking out the protagonist and key players in the case study from the very start.
  • Drawing a motivation chart of the key players and their priorities from the case study description.
  • Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
  • Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Tim Hortons Inc. Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

  • Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
  • HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
  • Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Tim Hortons Inc.

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

  • Zero down on the central problem and two to five related problems in the case study.
  • Do the SWOT analysis of the Tim Hortons Inc. . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
  • SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Tim Hortons Inc.
  • SWOT analysis will also provide a priority list of problem to be solved.
  • You can also do a weighted SWOT analysis of Tim Hortons Inc. HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Tim Hortons Inc.

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Tim Hortons Inc.

Another way of understanding the external environment of the firm in Tim Hortons Inc. is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Tim Hortons Inc. Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

  • Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
  • Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
  • Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

  • Detailed understanding of the case,
  • Clarity of HBR case study fundamentals,
  • Analyzed case details based on those fundamentals and
  • Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Tim Hortons Inc. case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Tim Hortons Inc. case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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Home — Essay Samples — Business — Business Success — Case Study of Tim Hortons: Success Factors and Struggle to Stay Relevant to a New Generation

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Case Study of Tim Hortons: Success Factors and Struggle to Stay Relevant to a New Generation

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tim hortons case study strategic management

tim hortons case study strategic management

Tim Hortons Harvard Case Study Solution & Online Case Analysis

  • Harvard Case Studies

Tim Hortons Problem Statement

The problem statement refer to the concise description of the issues that needs to be addressed. It identifies the issues or gap between the current and desired type of the organization, and thus requires to be stated in order for the management to look for change. The main idea of the problem statement is to answer the 5 w’s that include the answering who, what, where and why, to allow the organization resolve the problem, by stating it in clearly in 2 to 3 lines.

In recent period, the problems statement  are widely used by the firms to allow the management execute the improvement process or identify the loopholes that are effecting the overall performance or profitability of the company. Moreover, the problem statement allow the management to trim down the symptoms of the problem an organization is facing and look on to the real problem that is causing the damage to any specific aspect of the company.

tim hortons case study strategic management

Basically, developing a problem statement is an extensive process and requires the proper brain storming of the teams in order to identify the underlying loopholes or inefficiencies within the organization. Also, it offers the specific insights to the management in understanding and looking at the factors that have been hidden from the management sight, effecting the performance slowly and gradually.

Apart from this, while developing the problem statement, it is important for the     Problem statement to be clear and concise. Such is due to the fact, that it allows the management, stakeholder to quickly understand the finding and also look on the main problem, rather getting entangled in the symptoms of the problem. The conciseness of the problem statement is the key, as it allows the reader to quickly understand the issue.

Moreover, clarity of the Tim Hortons problem statement is important to maintain, in order to avoid the misunderstanding between the shareholders and stakeholders. The clear problem statement is developed by stating the factors and the operations getting effected and its overall impact on the organization specific the areas, such as Profitability, sales or brand equity. Also, the purpose of the problem statement is to describe the external environment and its effect on the overall organization in short and long-term. Moreover it also delineates the impact of such changing factors on the users, and other stakeholders.

Many times, under the case analysis, the purpose of the problem statement is to improvise the current state of the organization through pursuing innovation or other changes. hence ins uh cases, the direct problem is no the ultimate organization factors but the process implementation that is needed to e in lace, in order to bring change , avoiding the upcoming risk and hence sustaining the competitive edge in the market (Spradlin, 2012).

Furthermore, the establishment of the problem statement, allows the organization and the management teams to work in a specified direction. Such is important in order to allow the organization move in a specified direction, reducing the chances of deviating From the actual path. Also, it offers the benchmark to match the desired condition of the organization, hence putting the efforts of the team in the right direction.

Yet, it is important to note that, the good problem statement does not delineates the solution or the symptoms of the problem, but it clearly states the gap that lies within the organization. Moreover, it is also determined, that a clear problem statement is half of the solution, hence it is important To state the problem correctly.

In addition, the problem statement is a group process, and hence requires a detail understanding of the issues the organization may be facing, by all members in the team. This will allow the team to develop a better solution plan addressing all the factors and considering all the risk associated with it.

Perhaps, stating the Tim Hortons problem statement is not just writing the fact, it’s more about the factors that are effecting or may affect the organization in long term, therefore, while developing the problem statement, the factors such as human resource skills innovation, technology, change resistance are considered, that have a direct effect on the organization or is hidden cause of the problem. It is important to note, that the problem statement can cover tangible or intangible issue but it needs to have a clear relationship with the organization end goal.

In addition, while stating the problem statement, the aim of the management is to see the mission and vision of the company and then analyze the current state of the organization, such also allow the right identification of the problem and the lead to the development of concrete problem statement.

All in all, the problem statement gives a direction to the organization in understanding the right solution path and also development of the solution sets in order to overcome the current issues that are deteriorating the organizational performance or productivity. Perhaps, while writ the problem statement, it is important to consider the small factors that are often overlooked such as the intangible factors that effects the productivity of the organization in the long-term.

Tim Hortons SWOT analysis

The acronym Tim Hortons SWOT stands for strength, weakness, threats and opportunities. It is a useful tool that is widely used for strategic planning and management in many organizations. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. It is simple yet powerful tool that help the organization in identifying its existing resources, capabilities, deficiencies, the existing opportunities and threats prevailing in the market.

It is a strategic planning framework that is commonly used to evaluate the organization, a plan, business or any other project. It helps in determine the organizational and environmental factors that could affect the decision to be made. It is carried out to analyze the position of an organization in in the market compare to its competitors and the major factors that are affecting the competitiveness before crafting any business strategy.

SWOT analysis mainly have two dimensions internal and external dimensions. Internal dimension includes all the factors that could affect the organization which is the strength and the weakness while the external factor includes the environmental factors that is the opportunities and the threats.

Components of Tim Hortons SWOT analysis

SWOT analysis is a process that include four areas that are further divided into two dimensions i.e. internal and external factors. In SWOT analysis the strong and weak aspect of an organization is determined by evaluating the elements within the environment while the opportunities and threats of an organization are determined by examining the element outside the environment. In this way SWOT allows the comparison of organization’s resources and capabilities with the competitive environment in which it is operating.

Structure of Tim Hortons SWOT analysis

In order to carry out the analysis it is important to understand each element of SWOT i.e. strength, weakness, opportunities and threats.

Tim Hortons Strength

Strength is a characteristic that adds value to something by making it more special, unique and advantageous when compared. In this element of SWOT the abilities and the key properties of organization are discussed that gives an organization an advantage over other organizations by making it more competitive. It defines the characteristics and situations of an organization which makes it more effective and efficient when compare with its competitors.

It defines the areas in which the organization hold a command or is good at doing it and that provides the organization and important capability. It can be a skill, a resource, image, market leadership, relation with buyer or supplier or any other advantage relative to its competitors that fulfill the needs of the market by providing the organization with a comparative advantage.

Tim Hortons Weakness

Tim Hortons Weakness refer to the situation in which the existing capabilities and the resources the company holds are weaker or not sufficient compared to others organizations in the market. In other words it means the aspects in which the organization is less efficient and needs to improve in order to align with the market trends. As these aspects negatively affect the overall performance of the organization by making it weaker compared to its competitors.

These are the factors that an organization lacks and does poorly in comparison to the organizations operating in the same market at the same level. It is a deficiency or limitation of resources, capabilities, skills that majorly affect the organizations effective performance. Management capabilities, Facilities, financial resources, marketing skills and the weak brand image can be the sources of weakness.

Tim Hortons Opportunities

Tim Hortons Opportunity is an advantage and the driving force for an organization. It is the convenient time or situation that is present in the environment and will help the organization in achieving its goals. It is a factor that contribute positively towards the growth of the organization. It is a condition existing in the external environment that allow the organization to take an advantage of the organizational strengths, and help in overcoming the weaknesses and to neutralize the threats present in the environment.

Tim Hortons Threats

Threats are the factors that prevent the organization from the actualization of an activity. It is an unfavorable situation that exist in the environment making it difficult for the organization to achieve its defined goals. It is a situation that arises as a result of the changes that took place in the immediate or distant environment, preventing the organization from maintaining its existence and superiority in the growing competition and are disadvantageous for the organization.

All the environmental factors are consider as a threat to an organization that could affect the efficiency and effectiveness of the organization.

Limitations of Tim Hortons SWOT analysis

However there are certain limitation attached with it. The SWOT analysis is only a one stage of the business planning process and do not provide the organization with an in-depth analysis or research that could lead to a firm decisions. Apart from this it only cover the issues that are definite and doesn’t priorities them. In addition to this it does not provide any solution or alternatives decisions. As a framework, SWOT does processes a value but it doesn’t provide the organization with any specific direction on how the key aspects can be identified.  It significantly rely on the capabilities of the manager that how effectively it can prioritize and determine the most important element. Another limitation associated with Tim Hortons SWOT analysis is that it provide equal weight to each factor regardless of their impact or relevancy.

Tim Hortons Porter’s Five Forces

Tim Hortons Porter five forces reflects the competitive environment of an industry. It is a strategic tool that is used to avoid or minimize the risk of losing the competitive edge that the organization has and to ensure the profitability of the products in the long run. The company holds its vision closely as it allows them to orientate its innovation in terms of choices regarding the investment and strategies. Within the industry the businesses profitability is dependent upon the following forces:

  • Competitive rivalry
  • Threats of new entrants
  • Threats of substitute
  • Bargaining power of suppliers
  • Bargaining power of customers

Structure of porter’s five forces analysis

Tim hortons competitive rivalry.

The competition among the firms help in identifying the lucrativeness of an industry where companies are competing hard in order to maintain their power within the industry. The Tim Hortons competition is moreover on basis of diversity, the development within the sector and the barriers related to entrance in the market. The competitive rivalry is the analysis of the brands and the product, its strengths and weakness along with the strategies, competitors and the share in the market.

Threat of new Tim Hortons entrants

It is in the favor of the companies that exist in the market to create barriers for the new entrants to prevent them from entering into the industry. The organizations could be the new companies or the companies that are planning to diversify itself in the market. The barriers can be both industrial and legal. Apart from this the size and the reputation of the companies that are already operating in the market also play an important. Furthermore the cost related to the entry, access to raw materials, barriers related to culture and technical standards also play a major role and can affect the decision of the new entrants in the market.

Threat of substitute products

The Tim Hortons substitute products are an alternatives that are available in the market at comparatively better prices. Such products prevail due to the technological and innovative advancement. Due to which the products being produced by the companies that are already existing in the market and is using the same technology are than replaced by the other company’s products that are comparatively better in terms of price and quality and are being produced from sectors with significant profits. The substitute products are dangerous as the companies are under constant threat of being replaced.

High threat of substitute leads to low profitability as it limits the industry profits by placing a price ceiling due to the fear of being substituted by other product. Apart from this it also affect the growth potentials of the industry as a whole but reducing the profitability margins.  

Bargaining power of suppliers Tim Hortons

Powerful suppliers possess more power to capture significant value for themselves by demanding high prices while limiting the quality and the quantity of the product or services or by transferring the cost on the participant of the industry. Many condition imposed by the suppliers generally include the increase in price while compromising the quality and quantity.

A bargaining power of a supplier in the market is strong if:

  • It is more concentrated than the industry it is selling to.
  • It is not heavily relying on the industry for its profits
  • If the participants in the industry have to incur high cost for switching suppliers or the firms are located adjacent to the suppliers manufacturing facilities.
  • The product being offered by the suppliers are highly differentiated.
  • And when there is no close substitute available for the products being supplied by the suppliers.

Tim Hortons Bargaining power of customers

The buyers having strong bargaining power can highly influence the profitability of the suppliers operating in the market by imposing condition that are not much favorable for the suppliers in terms of price, quality or service. Therefore choosing clients often become crucial for the organizations as to avoid the situation of being highly depended on the buyers. The level of interest and concentration of buyers toward the product gives them more or less power.

Powerful buyers could flip the side of the powerful supplies by forcing the prices to move downwards and by demanding high quality and services by creating a competition between the participants in the industry on the basis of price and quantity. Tim Hortons Customer are deemed strong if they contain negotiating leverage specifically if the industry is sensitive to price, the buyers can pressure suppliers for further price reductions.

The customer are assumed to have strong buying power in case:

  • If the number of buyer are limited or each of the buyer purchases large quantity relative to the size of the suppliers.
  • The products in the industry are standardized or are undifferentiated.
  • The cost of switching is comparatively low.

Limitations of Tim Hortons Porter’s five forces

Though the model from a strategic point of view is an important tool but there are certain limitation associated with the application of the porter five forces model. The framework use a classic perfect market and relatively a static structure of market i.e. it only incorporates the aspects of the present day and only incorporate the events that took place within the short term period. Tim Hortons Apart from the model only provide the overview of the environment and does not define the industry clearly.  As it can be difficult to group the companies having similar business lines and to call it an industry. Therefore Porter framework due to its limitation is too inert to be depending upon outside the short term to medium, term objectives.  It emphasizes more on external factors and ignore the specific factors that are more specially related with the firm. The model doesn’t incorporate new business model and the changing dynamics of the market and the impact of globalization. Moreover it does not consider non-market forces.

Tim Hortons PESTLE Analysis

PESTLE analysis is one the significant and widely used tool or framework mostly by organizationswith the intent of considering the market environment before commencing the process of marketing. In fact, the analysis of the environment needs to feed all planning aspects as well as it should be continuous. The internal environment of an organization includes internal customers or staff, wages, office technology and finance etc. whereas the micro environment includesthe external customers of an organization, distributors or agents, competitors and suppliers. Additionally, the macro environment includes legal and political factors, sociocultural forces, economic forces and technological factors.

PESTLE Analysis

PESTLE Analysis

For the purpose of maximizing the benefits of such analysis, it is important that it should be used on regular basis so that an organization would be able to identify the trends. The effect of the particular external factors or forces might have extreme consequences for the specific department or divisions, also the analysis better helps companies in clarifying the needed or required changes, thus identifying the potential options (Norton, 2008).

The factors or forces are discussed below;

Political forces:

These are the Tim Hortons forces that tends to be altered by the influence of government on the infrastructure of country. The political factors may involves environment regulations, employment laws, tariffs, tax policy, trade restrictions, political stability and reforms. It is noteworthy, that the charities needs to be included where a government are not willing services and goods to be provided.

Economic factors:

The Tim Hortons economic factors or forces involves interest rates, inflation, and growth of economy, cost of living, working hours, wage rate and exchange rates. Combining these factors, it last greater and inevitable impact on organization.

Social factors:

The culture or social influence on certain businesses vary from country to country. It is significant to consider these factors. The social factors includes safety and health consciousness, various demographics, population growth rates and cultural aspects.

Technological factors:

Notably, Tim Hortons technology is one of the most important way of being competitive in the highly competitive market arena. Not only this, it drives globalization, the factors includes environmental and ecological aspects, and available services as well as products. An organization should innovate and be compatible with the technologies.

Legal factors:

The Tim Hortons legal factors involves the certain laws and regulations which might effect on the business operations of an organization. It also includes impending and current legislation that tends to impact on the industry in areas including competition, employment, safety and health. An organization should consider the influence of the national and international laws where the organization would originate the business operations.

Environmental factors:

The environmental factors include all those factor lasting impact or influence, the surrounding environment most likely determine environmental factors. The factors involves awareness of the seasonal or climate change or terrain variation. The analysis of the environment including internal and external elements is vital for organization since it impacts on the performance of an organization.

Limitations of Tim Hortons PESTLE:

The limitations are discussed below;

  • The external factors are dynamic and can be change at a rapid pace. Overtime, the changes might be occur in less than one day, therefore the companies should make it tricky in order to predict how and why these forces might influence the future or present of the certain project.
  • There are many occasions, in which the environmental changes have an adverse influence on the project that might not be noted in the initial stages of project, indicating that the uncertainty sis still there even after the pestle analysis have carried out. This in turn might defeating the prime reason of the pestle analysis.
  • The usual or common procedure for pestle analysis is presenting a simple list of the environmental factors affecting the project. Until& unless, the organization critically examine the attributing factors, the analysis’s findings does not seem to be of greater value or consideration.
  • The analysis is supposed to be insufficient for the strategic planning objective, since it likely scans the externa environmental, whereas avoiding the competitive scenarios and internal environment. Nonetheless, the analysis needs to be conjunction with other frameworks such as S-W-O-T analysis in order to get a more realistic picture.

Tim Hortons Conclusion

To conclude, PESTLE analysis is considered as an effective tool of planning and it offers viable and effective technique foranalyzing and scanning the operating environment of an organization. The effectiveness of the analysis highly depends on the accuracy of the collected data, updates to accommodation changes in timely manner and other tools trimming down the PESTLE limitation to some extent.

Tim Hortons VRIO Analysis

The Tim Hortons VRIO analysis is basically the extension of the Tim Hortons PESTEL analysis, which allows the oragnation to understand the resources, competitive edge, value proposition and its value in the market. The Basic idea of the Tim Hortons VRIO model is to analyze the factor that are valuable for the organization. Such may include the supply chain efficiency, value chain maintenance, technology or other factors, that offer value to the company and in return allows the organization to offers similar value to the customer.

In addition, it also analyze the factors that are Rare within the organization. Such analysis of the compatibilities or capacities is important, as it allows the organization to develop the sustainable competitive edge over it. The value factor analysis of the organization gives an eye opening view to the management and also offers the solution on where the organization may build the market utilizing the area value creation factors

Moreover, it also determines the Imitable factors. These are the factors that are easily imitable by the organization (other players) and thus needs to be considered. In addition, the imitable factor also outlines the factors that are inimitable by the other organization. These in-imitable factors allows the organization to developed the sustained competitive edge in the market and hence enhances the chances of sustainability ion the long-term.

Lastly, Organization factor includes the resources and functions that are offering certain value to the company. This determination of organization allow to the company to understand what additional things or function is required to be in place, or needs to be improvised in t=long term.

All in all, the advantage of using the VRIO analysis is to determine the sustained competitive edge in the market. Such determination is important for the organization to expand in the market and continue its operations with sound profitability. In addition, it offers clear view what are the factors that are valuable and inimitable o can be easily imitated in the long-term, thus preparing the organization to either use the valuable factor to delight the customer and develop a sustained competitive edge, or enhance its value and oragnation strengths to develop a strong competitive edge in the market, which is important to develop and maintain in order for the organization  to remain profitable and allow the maintenance of market share in the long-term (Hille, 2015).

Tim Hortons Financial Analysis

Tim Hortons Financial analysis is the assessment of the stability, viability as well as profitability of a sub-business, business or project. It is the process that is widely used for identifying the financial weaknesses and strengths of the corporations, this can be done by building the relationship between items of the profit & loss account and balance sheet. It can be used for examining the business operations from the variety of perspective for determining the ways that can be used to strengthen the business and understating the greater financial condition or situation. The process scan the financial statement to evaluate the relationship the disclosed items. In other words, the analysis keep focusing on the past performance evaluation in terms of profitability, liquidity, growth potentiality and operational efficiency. The analysis of the financial statement involves the methods use in interpreting and assessing the outcome of the current and past financial position or performance since they associate to particular interest factors in investment decisions. Thus, the analysis of the financial statement is important mode of assessing the past performance as well as planning and forecasting the future performance.

Elements Assessed By Tim Hortons Financial Analysts:

The elements are listed below;

Profitability: the financial analyst generally assess profitability of an organization since it is the ability allow organization sustaining growth and earing income in both long term and short term. A degree of profitability of an organization highly depends on the income statement reporting on the operations results of company.

Solvency: it is the ability of an organization paying off its liabilities or obligations to third parties or creditors in long term. The solvency depends upon the balance sheet of company indicating the company’s financial condition at a given period of time.

Liquidity : it is the ability of an organization satisfying immediate obligations, maintaining positive cash flows and it most likely based on the balance sheet of company depicting the financial condition of organization.

Stability: the ability or an organization to remain in the business for the longerperiod of time without sustaining significant losses while conducting the business operations. By assessing the stability of the company needs use of balance sheet and income statement as well as non-financial and financial indicators.

Users of Tim Hortons Financial Statement Analysis

The users of the financial statement are listed below;

  • Management: the controller of the company most likely prepares the ongoing analysis of the financial results of companyin relation to the unseen operational matrices by outside entities.
  • Investors: both prospective and current investors tends to examine the financialstatements for leading the ability of company to continue generating cash flows, issuing dividends and growing at historical rate.
  • Creditors :one who has landed funds to the organization likely show his interest in its ability paying back the debt, thus keep focusing on measures of cash flows.

Types of Tim Hortons Financial Analysis

            Financial ratios:

Significantly, creating the financial ratio add meanings to the accounting and financial data of the business. Therefore, being the use of the financial ratios would provide assistance thereby leading to the overloaded information. Theratios are sub-divided into the major groups that tend to cover the financial areas.

The sales amount of an organization depicts the business size. The sales implications for the selling and purchasing power, economies of scale and amount of market share. The % change in sales invocates that how rapidly or quickly the sales has been growing over the period of time, thus leading to answer the question regarding growth in relation in competitors and general economy.

Profitability:

It is significantlyimportant for companies measuring profit in context, for example; if it is stated that the company has generated 10% profit returns and did not ensure the provision of profitability-oriented information but in case if the company had make a 10% gross profit or return on equity, then the profit term would give meaning. The ration lay under profitability are discussed below;

Return on assets (ROA): it is one of the most commonly and widely used performance measure of an organization. The return on equity likely measures the profit amount that had generated by assets. It is used with the intent of analyzing that how well an organization have put their assets to work comparing to other competitors.

Return on equity (ROE): This performance measuring parameter measures the return that the company has earned in relation on the owner funds. The matric can be adjusted for thepurpose of reflecting the average equity amount being employed during the span of year, giving the more accurate and realisticpicture of how the organizationhas been performing throughout the year.

Gross profit margin (GPM): it is also referred to operating profit margin. It is most common use with the objective of assessing the business model and financial health of company through revealing the remaining portion of money from revenues after deducting cost of goods sold.

Operating return on total assets (ORTA): this matric most commonly provides better way of looking at the ability of the organization to generate profit returns from the principle or core activities since it does not involves other expenses including interest expenses not it includes marketable securities income, interest income or onetime extraordinary transaction.

Asset Management – Tim Hortons

The ratios under asset management includes current asset turnover, day’s receivable, days of inventory and inventory turnover.

            Asset turnover: this measure is widely used in order to measure the ability of the company in generating sales from the fixed assets. Not only this, it also indicates that an organization has a lot unproductive assets for instance inventory, receivables, equipment and plant for its current sales’ level.

Fixed assets turnover : it is supposed to be vulnerable to the asset valuation issue. It is most important ratio in companies which are capital intensive. It is comparatively low importance for the companies with minimum need for capitals such as leased retail operations and wholesale distribution. In case an organizationis decreasing fixed asset turnover so it means that the production has been running at lower than capacity.

Current asset turnover: it measures the current asset level that is require for supporting sales.

Day’s receivables: it is the measure of how long will it takes for an organization collecting bills owing to it. The collection time is measured by days receivables on credit sales.With increasing day’s receivable, the company would need more working capital. The credit policy of an organization last greater impact on the day’s receivables. It is important to note there that it also highlights the needs to beaware of keep emphasizing on the company’s specific concerns without appreciate secondary influence on other ratios.

Days of inventory: it is the indication of how the company efficiently managing inventory. The inventory amount can be monitored by analyzing day’s inventory ratio.

Tim Hortons Financial Structure

Financial leverage multiplier : it is the connection between return on equity and return on assets of an organization. It provides the way of looking at the relative equity and debt amount that has been using by company in order to finance the assets.

Current debt to equity ratio: it is the mix if the debt of an organization. In case of high current debt to equity ratio, it means that the company would be in problematic situation while paying its bills.

Equity turnover : in case of high debt to equity ratio, it might because of the too little equity or too much debt burden on an organization. In case of high equity turnover ratio, indicating that the shareholders have efficiently used equity.

DuPont’s Tim Hortons Profitability Model

It is considered as the best model as it does not reveal anything regarding the liquidity of an organization. Also it likely reveals about the organization’s expense. One of the unavoidable advantage of this model is thatit has begun establishing benchmarks – across companies and over the period of time which can be used for flagging the potential issues areas where more than one ratios are reflecting the key problem or issue.

Trend or Percentage Analysis

The useful snap shot can be taken by analyzing the financial condition of an organization in a particular time period. Also, there are many questions that can be bets answered by comparing the figures in Tim Hortons percentages. For instance; which are the areas of company getting stronger or weaker? Which areas are in need of immense attention? Etc. for the purpose of answering these type of question, it is important for organization recasting the financial statement in to the percentage terms. The major advantage is that it enables the significant comparison between time periods. There percentages are most likely providing analysts or managers with the fast or rapid way for finding key issues or problems. Additionally, the attention can be paid to certain weakness and strengths through seeing the appropriate changes over the period of time.

After considering the major top problems, the business analysts or managers would then be able maximizing the shareholder’s wealth.

Comparative Tim Hortons Analysis

The evaluation of the performance of company is often easier in case of having benchmark or standard performance for the comparison. The suitable benchmark can be found with some problems such as unique attributes problem and averages problem etc. it is not appropriate setting an average as an objective. An upper performance quantile can be the most appropriate performance standard (D’Aveni, 2007)

Operational Tim Hortons analysis

The Tim Hortons assessment of the operational efficiency in the initial stage as a whole for business or any of the business sub-division is likely performed through a percentage analysis of income statement. Individual expenses or cost items are associating to gross sales revenue adjusted for all allowances and returns. The sales’ common base permitting a ready comparison between key expenses from time to time against industry databases and competitors in the market over longer stretches of time

Cost of goods sold and gross margin analysis: in operational analysis the most commonly used ratios involves the calculation of the cost of sales as a percentage of sales. The ratio depicts that the magnitude of the cost of services provided or cost of good manufactured or purchased in relation to gross profit or gross margin left over for operating profit and expenses. It is noteworthy that the gross margin reflect the relationship of volume, price and cost. A change in the gross margin might derived from the combination of the changes in the product’s selling price, manufacturing cost level for the product and the variation in the business’s product mix.

Contribution analysis : this analysis is mainly used for the internal organization’s management, even though it is increasingly applied in broader analysis of financials, it includes relating sales to the individual product group’sor total business contribution margin. Such type of calculation needs very selective estimate or analysis of the variables and fixed cost or expenses of the company while taking into consideration the operating leverage effect.

Tim Hortons Market Indicators

There are two equally important ratios used as indicators of the values of stock market.

the simple relationship between current stock market price and expected or current earnings per share is often quoted by both owners and management.  The earnings multiplier ratiois considered as a broad indicator of how the earnings performance and prospects of organization is judged by the stock market. The straightforward calculation related the common share current market price to the most recent available EPS on the yearly basis.

Relative movements in price: targeting for the purpose of creating the shareholder value depends on the relative performance of price. The movement in price are likely expressed in mentioned ratios and absolute dollar terms. While the typical investor shows their greater interest in absolute change in shares value, the insights from the stock performance to the appropriate average and to the market for some industries are supposed to be helpful to assess the company’s particular trend (Rappaport, 2010).

Value drivers : in recent time, the approach that has been significantly gaining the increased recognition is identifying the key elements standing out as vital in shareholders value creation of the specific organization. From the standpoint of owners, the key value drivers may be the growth potential company’s key services and products, key technology capabilities providing the competitive edge, superior process’s cost effectiveness as well as the strategic differentiated positioning. Combining all of these lasting inevitable impact on the expectations of market regarding the cash flow generation and future success of the company.

Value of firm: this is the most common concept recognizing the components of capital structure of an organization debt and equity are tends to be values separately in the market. The formula for calculating the value of firm is showing value of the shares of company is the function of the firm’s total value less debt value (Harms, 2015).

By having a closer look over the matrices used for financial analysis, it is to say that the financial statements holds notable importance because it evaluates the management performance, plans and corporate strategy for future.

In addition, the financial analysis helps companies in making the more informed decisions for the firm. The underlying objective of the financial analysis is organizing the financial statement as well as other accounting data of an organization enabling the comparisons with other companies, also enabling to accurately evaluate raw data. In short, it provides the basis to company’s executive, analysts and manager of making the company profitable in forthcoming years (Helfert, 2017).

Alternatives

The particular section deals with the different ways the problem can be resolved. In particular section, the management/teams develops different options through which the problem can be resolved. Many times these options are already in hand with the management or re-developed from the scratch through strong brain storming.

In typical situation, there are three options that are developed in by the organization to deal with the given problem. The options developed entails and includes the maximum factor that the organization should analyze or achieve, thus offering great value.

While developing The Alternative, the following factor are taken in account, in order to develop the best alternative that may resolve the problem effectively.

These factor includes the consideration of the following:

Reliability

Invulnerability, compatibility, reversibility, tim hortons cost:.

The cost includes if the option proposed is cost effective or can be afforded easily by the company without effecting the overall profitability and other operations of the company. The consideration of cost is important in the alternative generation in order to attain the maximum feasibility with overall business strategy and the budget allocated.

The reliability factor includes if the option developed is successful or has the successful track record in the past or with the pats companies. Such is important to analyze or else it would lead to failure.

The Invulnerability of the option is also analyzed, in order to understand the sustainability of the option if the one part factor is missing so to understand the suitability of the option.

The merit factor, outlines if the option really resolving the issue or aligned with the given situation.

The simplicity factor analyses if the option proposed is easy to implement. Because adopting or proposing an alternative that is difficult to implement or takes a lot of resources with no definite outcomes is vain.

In addition, the compatibility of the option is also analyzed, in order to understand if the given option is aligned and compatible with the procedures of the organization. Such factor analysis is important in order to avoid any resistance implementation and also save the resources and efforts.

Among the above factors, the reversibility factor carries high importance. It is due to the fact that the organization needs to analyze exact factor in terms of its reversibility to see, if the process can be reversed, if the option fails to offer the respective results.

The ability of the option is considered while the alternative generation process, so gauge if the option will remains table, if the given situation and markets changes. And will it make the organization sustained in the changing market situation.

The robustness of the option also needs to be analyzed. It is due to the fact that such analysis allow the organization to see, if the option will remain strong in future or not.

Apart from this while developing the option, it is important to consider the realistic nature of the option. The option has to be realistic and should have imperative results on the organization. The realistic and SMART nature of the option is important to be considered and developed, so it offer maximum value and also resolves the problem effectively.

Lastly, while developing the options/alternatives, it is important to consider the nonrealistic factors that may make the alternatives complicated, leading to poor implementation, time consumption and other related issues. Hence, it is suggested, that while developing the alternatives, it is important to consider the realistic and smart nature of options along with the avoidance of developing  such issues that are not offering the right solution or the suggesting such options that are of no use to the organization.

Tim Hortons Evaluation of Alternatives

Alternative are the different ways of achieving a same end goal through two or more different methods. It is not a close substitute of a first define choice or other alternatives or must provide the solution of the problem in a particular way. For instance, lower price, special offer, and money back guarantee etc. are all the different ways for achieving the same objective that increased sales. Alternatives are generally mutually exclusive in a way that if we combine two or more alternatives together it will eventually create a new alternative.

They are the Tim Hortons technical and economically ways through which the project can be carried out feasibly. It is encouraged to be consider especially for a projects that are large and complex in nature

Under the evaluation of alternatives the pros and cons of the alternatives developed above are gauged based on the benefits they offer to the organization and also the strengths the carry that may help the oragnation in overcoming the problem. In addition to this, the disadvantages of the alternatives entails the costs that are associated with implanting the option, and thus required to  be considered before the implementation process, in order to avoid any mishap in future or during the implementation.

Under the Cost/benefit analysis of the alternatives, different factors such as cots, competitive edge, market share, financial feasibility and human resource required are considered to be the major factors of implementation. In addition to this, the careful and deep consideration is given to the political, economic, social and other porter 5 forces and pestel model so to understand the alignment of right alternative with maximum value and weightage in resolving the problem.

Moreover, under the particular section, the decision criteria is also developed. The particular decision criteria incorporates all the factors that the company aims to archives. Such factors may include sales, profitability competitive edge, market share and other. Once it is done, each alternate is compared against each other and with the decision criteria develop, and are given different weigtage. These weigtage are given based on most favorable to least favorable, and the option with most rating s ultimately selected.

Also, during the evaluation process, the financial feasibility of the organization is also considered and the drawbacks/weaknesses of the organization. This is important as it allows the organization in meeting the ultimate goals and addressing the problem effectively.

Lastly, while doing the evaluation of Tim Hortons alternatives, it is important to quantify the options through different techniques. Though in many cases, it is difficult to analyze the feasibility of the options especially the intangible factor, however, quantifying the maximum option is important, in order to develop a clear image and understanding of option that will address the problem.

Also, while selecting a particular course of action/alternative, it is important to ask” whether the option will resolve the problem directly, or will an additional efforts will be required to address the problem. In Addition it is also needed to be considered, if the given option or the alternatives have the right alignment with the organization and re offering value.

Perhaps, it is important to involve other members to take the active feedback on the alternatives, in order to gauge the value of the alternatives and the value it may offer to the organization in the long-term. The open discussion and review from past enables to see more clear picture of the ultimate outcomes, leading to better implementation and selection of the right alternative.

Tim Hortons – Recommendation

Once the options are developed and evaluated, the recommendation is made, on the basis of the best suited option that offers the maximum value to the company and address the problem succinctly. The recommendation is mad in away, that not only offers the solution the problem, but also depicts the implementation process and the course of action that the organization needs to take in order to be successful.

A strong Tim Hortons recommendation must cover the key areas as how the organization will implement the alternatives, what benefits will it receive if it implement the when alternatives and what could be the cost, that he organization will need to overcome or address, in order to effectively implement the alternatives.

In addition to this, once the alternative is selected, the recommendation needs to entail what change it will bring to the organization like the 20 % increase in the Tim Hortons sales or profits or the sustainability or increases in market share. These factors are important to be mentioned in the recommendation, in order to make itr strong and firm and allow the stakeholders/reader to connect the problem and solution, leading to better understanding.

Moreover, the recommendation also needs to entail the plan B, that if for instance the results are not generated as per the plan, the second set of recommendation must be incorporated in the plan, in order to allow the organization to quickly shift to the plan B, in order to avoid the losses and sustain the presence of the company in the market.

Lastly, under the recommendation, it is important to incorporate the finding from the past, so to make the given Solution more acceptable. A good recommendation is that, incorporates the findings from the past. This is important, as it allows the reader and stakeholders to understand the proven facts, and the pasts results such recommendation has harvested, leading to more acceptability and also the determination of the plan that may be in need to be  adopted so to avoid the delays and resistance in the organization, while implementing the change.

Infact, the set of recommendation offered should also have a contingency plan, and the other course of action for plan A and B both. This makes recommendation more firma and acceptable.

All in all, the recommendation include, what, why, how and whom factors. Thus is important as to allow the organization. Shareholders to clearly understand what is required to done, how it is required to do, who are the key player and how it will be implemented. In addition time required has to be mentioned. This allows the stakeholder to understand and determine the time and resources required to implement the plan effectively (Turner, 2012).

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Tim Hortons Inc Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Tim Hortons Inc Case Solution

The Tim Hortons Inc case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Tim Hortons Inc case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Tim Hortons Inc case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Tim Hortons Inc case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Tim Hortons Inc Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Tim Hortons Inc is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Tim Hortons Inc HBR Case Study

The objective of the case should be focused on. This is doing the Tim Hortons Inc Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

  • In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
  • The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
  • Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Tim Hortons Inc

An important tool that helps in addressing the central issue of the case and coming up with Tim Hortons Inc HBR case solution is the SWOT analysis.

  • The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Tim Hortons Inc.
  • Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Tim Hortons Inc Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Tim Hortons Inc

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Tim Hortons Inc operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

  • These are the threats that the industry faces due to new entrants.
  • It includes the threat of substitute products.
  • It includes the bargaining power of buyers in the industry.
  • It includes the bargaining power of suppliers in an industry.
  • Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Tim Hortons Inc

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

  • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
  • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
  • These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Tim Hortons Inc case solution.

VRIO Analysis of Tim Hortons Inc

This is an analysis carried out to know about the internal strengths and capabilities of Tim Hortons Inc. Under the VRIO analysis, the following steps are carried out:

  • The internal resources of Tim Hortons Inc are listed down.
  • Each of these resources are assessed in terms of the value it brings to the organization.
  • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
  • Each resource is assessed whether it could be imitated by competition easily or not.
  • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Tim Hortons Inc

The Value chain analysis of Tim Hortons Inc helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

  • The firm’s primary and support activities are listed down.
  • Identifying the importance of these activities in the cost of the product and the differentiation they produce.
  • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Tim Hortons Inc to increase its competitive advantage.

BCG Matrix of Tim Hortons Inc

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

  • Identify the relative market share of each strategic business unit.
  • Identify the market growth of each strategic business unit.
  • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
  • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Tim Hortons Inc BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Tim Hortons Inc

Ansoff Matrix is an important strategic tool to come up with future strategies for Tim Hortons Inc in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

  • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
  • The organization can develop new products for the existing market. This is known as product development strategy.
  • The organization can enter new markets with its existing products. This is known as market development strategy.
  • The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Tim Hortons Inc

Tim Hortons Inc needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

  • Analyse the company’s products and devise strategies to improve the product offering of the company.
  • Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
  • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
  • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Tim Hortons Inc Blue Ocean Strategy

The strategies devised and included in the Tim Hortons Inc case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Tim Hortons Inc

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Tim Hortons Inc looks at the direct and indirect competitors within the industry that it operates in.

  • This involves a detailed analysis of their actions and how these would affect the future strategies of Tim Hortons Inc.
  • It involves looking at the current market share of the company and its competitors.
  • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
  • It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Tim Hortons Inc Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Tim Hortons Inc case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

  • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
  • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Tim Hortons Inc Case Study Solution that the business unit should focus on costs.
  • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Tim Hortons Inc case answers should be written down in the Tim Hortons Inc case memo, clearly identifying which part shows what. The Tim Hortons Inc case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Tim Hortons Inc HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Tim Hortons Inc is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Tim Hortons Inc Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

  • A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
  • It shows that one has been clarified with the HBR fundamentals on the topic.
  • It shows that the details provided in the case have been properly analysed.
  • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
  • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Tim Hortons Inc Harvard case is complete and properly answered.

Recommendations and Action Plan for Tim Hortons Inc case analysis

For Tim Hortons Inc, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

  • Tim Hortons Inc should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
  • Tim Hortons Inc should enhance the value creating activities within its value chain.
  • Tim Hortons Inc should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
  • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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  1. Iconic Canadian Coffee Brand Tim Hortons Now In India, Expansion Plans In India

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COMMENTS

  1. Tim Hortons Inc. Case Study Solution [7 Steps]

    The Tim Hortons Inc. case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix ...

  2. Int'l Strategic Management (Case Study

    Their 4-year window is 11 to 13 percent compounded annual growth rate, increasing free cash flows of approximately $2 billion, operating income generated through the U. segment of up to $50 million, and opening 800 or more new locations in North America and the GCC. because prices on coffee become more and more volatile in the coming years due ...

  3. Tim Horton's Case Study

    Tim Horton%27s Case Study - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. This document provides an analysis of Tim Horton's strategic management. It includes sections on the company's history, mission, vision, Porter's Five Forces analysis, PESTEL analysis, SWOT analysis, external and internal factor evaluations, and various strategic ...

  4. Tim Hortons Case Study Analysis

    Tim Hortons Case Analysis. Tim Hortons Inc. is a multinational fast food restaurant known for its coffee and donuts. It is also Canada's largest quick service restaurant chain; as of December 31, 2016, it had a total of 4,613 restaurants in nine countries. The company was founded in 1964 in Hamilton, Ontario, by Canadian hockey player Tim ...

  5. Tim Hortons Inc.

    In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete ...

  6. 04-Tim Hortons-Case Study

    Tim Hortons is now looking at major international growth. Although there currently are 290 self-serve kiosks in Spar convenience stores in Ireland and England, Tim Hortons does not have the international presence of a competitor like Starbucks, which has outlets in 51 countries. Source: Marketing - Lamb, Hair, McDaniel, Faria, Wellington

  7. Tim Hortons PESTEL Analysis

    Before we dive deep into the PESTEL analysis, let's get the business overview of Tim Hortons. Tim Hortons is a popular Canadian multinational quick-service restaurant chain focused on coffee, baked goods, and various fast food items. Founded in 1964 in Hamilton, Ontario, by former ice hockey player Tim Horton and his partner Jim Charade, the ...

  8. T4 Final Report

    Tim Hortons- Case Study and Analysis Alen Alexander Mathew, Dhruv Pateliya, Jasmeen Kaur, Manan Shah, Ishneet Singh and Vinitha Varghese Business and Project Management, Vancouver Community College MGMT 1003: Principles of Management Laurel Xiao July 19, 2020. Abstract Tim Hortons (1964) is a quick-service restaurant chain, uniquely famous for coffee and doughnuts.

  9. Tim Hortons Case Study

    Tim Hortons Case Study - Free download as PDF File (.pdf), Text File (.txt) or view presentation slides online. Tim Hortons is a Canadian coffee and baked goods chain with over 3,400 locations across Canada and the United States. It has become an iconic Canadian brand through consistent branding focused on quality and community. While offering standard coffee and baked goods, Tim Hortons has ...

  10. Tim Hortons: On the Road to Recovery?

    This case discusses the revival of Canada's largest fast-food restaurant chain Tim Hortons, founded by the hockey superstar of the same name in 1964. ... Organizational Crisis; Strategic Change; Leadership; Strategic Management; Brand Revival; Back-to-Basics; Crisis Management; Buy this case study (Please select any one of the payment options ...

  11. Tim Hortons: A Case Study

    Tim Hortons was founded in Hamilton, Canada in 1964 by an eponymous hockey legend. The founder died in a car accident ten years later, setting the conditions for the first franchisee to take over ...

  12. Tim Hortons Inc. Case Study Analysis & Solution

    Step 2 - Reading the Tim Hortons Inc. HBR Case Study. To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map.

  13. Strategic Management

    Adrienne Kelly Professor Brian Snowden Strategic Management January 30, 2019 Tim Hortons Inc. - Case Analysis Tim Hortons is a quick-service restaurant established in Hamilton, Canada in 1964 by hockey legend Miles G. "Tim" Horton. Dominating in quick-service restaurants with 42 percent share in traffic and 27 percent share in dollars, Tim Hortons is an industry leader in Canada.

  14. Tim Hortons Marketing Strategy Case Study: Selling a Feeling

    This commercial is a great example of how the Tim Hortons marketing strategy tries to sell you a feeling rather than a product. The coffee is not, at least not obviously, the focal point of the commercial. The feeling of belonging, tradition, familial bonds, and of course, a newfound Canadian identity, are the main themes.

  15. Case Study of Tim Hortons: Success Factors and Struggle to Stay

    The new management charges higher prices for their supplies especially for coffee. In 2017, the company had charged $17, 650 or even more from each franchisee. ... Case Study of Tim Hortons: Success Factors and Struggle to Stay Relevant to a New Generation. (2020, April 02). ... This case study will analyze the company's strategic decisions and ...

  16. PDF Strategic Analysis Of Starbucks Corporation

    Coffee, Tim Horton's etc. taking the rest as shown in Appendix 1.4 2.2) Industry Life Cycle and Market Share Concentration: This industry is in a mature stage with a medium level concentration. Starbucks and Dunkin Brands make up more than 60% of the market share (Appendix 1), giving them considerable market power in determining industry trends.

  17. Tim Hortons Case-Study.docx

    View Tim Hortons_Case-Study.docx from MBC 645 at Syracuse University. MBC-645 Strategic Management Tim Hortons Tim Hortons Inc. (Case Study) 1. ... MBC-645 Strategic Management Tim Hortons Tim Horton's strategic choices can be divided into those that influence the direction of the business in general term vs options that may enhance the ...

  18. Tom Hortons.edited.docx

    2 Final Case Analysis: Tom Hortons Executive Summary This case explores Tim Hortons' business operations over the years since its inception in 1964. The Canadian coffee house and restaurant chain competes with the world's most renowned fast food and coffee brands, such as McDonald's, Starbucks, and Dunkin Donuts. The case probes Tim Hortons' competition, mergers, and acquisitions and how they ...

  19. Tim hortons case

    Dunkin' Donuts. Tim Hortons' locations in this area did not perform well, leading to the closing of 36 stores in the northeastern United States in 2010. 33 U. locations close to the Canadian border seemed to perform the best, due to brand awareness. In 2014, Tim Hortons' locations continued to be focused in the

  20. Tim Hortons Case Solution & Analysis

    The Tim Hortons competition is moreover on basis of diversity, the development within the sector and the barriers related to entrance in the market. The competitive rivalry is the analysis of the brands and the product, its strengths and weakness along with the strategies, competitors and the share in the market.

  21. Tim Hortons Case Study.docx

    The restaurant industry in North America is divided into two categories: full- service and limited - service, with quick service restaurants falling into the limited - service category. Tim Hortons, along with competitors like McDonalds and Dunkin Donuts, are considered fast food restaurants within the quick service industry. As stated in the case, the quick-service restaurant market in Canada ...

  22. Tim Hortons Inc Case Analysis and Case Solution

    Tim Hortons Inc Case Study Solution - Tim Hortons Inc Case Study is included in the Harvard Business Review Case Study. ... The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of ...

  23. TIM HORTONS.docx

    TIM HORTONS CASE STUDY STRATEGIC MANAGEMENT SUBMITTED BY: NIKHIL KHANNA. SWOT ANALYSIS OF TIM HORTONS 1. STRENGTHS: Tim Hortons had a strong presence and brand image in Canada. Company always focused on the customer trends as more emphasis was placed on the kids' meal to promote a healthy nutritional needs of children.