Taking A Look At Tim Horton

Problem identification

The main issue with Tim Horton was that it was almost synonymous with the Canadian identity, its brand name and products were far less known globally. In order to stay competitive in the market and improve growth rates, international expansion was necessary. As a result, Tim Horton was acquired by G3 capital that owned more than 50% shares of Burger King. Burger King’s global experience could provide guidance for Tim Horton about how to operate and be successful in the international markets. Therefore, acquisition and global reach were the main issues that had to be resolved.

Similarly, inconsistent economic growth was another issue prevailing with Tim Horton and as a result, increased competition and consumer tastes

The number of visits to restaurants was declining in the United States and Canada in 2014, and it was predicted that the industry would grow on a limited growth rate of 1% for the next few years.

1. Situational analysis.

Strengths (internal analysis):

As Tim Horton uses a franchisee model and as 99.5% of outlets are franchised owned, therefore Tim Horton became the biggest fast food service restaurant chain in Canada. Tim Horton’s specialty was in coffee, baked foods, breakfast items and home style lunches. Similarly, Tim Horton was the fourth largest public limited company in the North America and its main focus was on market capitalization.

The stores were located almost all around the world including 3588 restaurants in Canada, 859 in the United States and 38 in the GCC countries, which sums at approximately 4546 restaurants across the globe which is a major strength. In addition, Tim Horton is still on the verge of expanding its global footprint more.

Legendary coffee is one of the major products of Tim Horton which competes in the market with several giants such as Starbucks and McDonalds. It was so popular in the market that the company changed the mind sets of the customers by creating forums and reviewing about

Thus, this could again increase the flow of customers to the restaurants because they may believe that now the restaurant is providing what they actually need rather than just guessing on it and providing those products which the company wants to sell.

Thirdly, competitive advantages should be gathered in a way that it makes the chain more competitive in the market. Competitive advantages such as extraordinary human resource should be developed with the help of training and development and the employees should know everything in detail about market trends, growth rates etc. As a result, the company can take precautionary measures.

Fourthly, the company should improve its financial position and have good relationships with investors and financial institutions because in future if inflation strikes again, then the company should not be adversely affected by the inflation rather it should have enough reserves to inject in the business in difficult times so that it does not require increasing its products’ prices for the