Strategic Implementation (Tim Hortons Inc)


StrategicImplementation (Tim Hortons Inc)


Table of Contents

Overview and Back ground Information 3

Organizational Description 4

Strategic Objectives Employed 6

Strategy Analysis on Value Addition 6

Good Strategy Implementation 7

Poor Strategy Actions 9

Linkage of Strategic Implementation at Tim Hortons 10

Implementation and Core Issues 12

Corporate governance 12

Organizational culture and ethics 13

Core competencies 15

Corporate social responsibility 15

Expansion and Entry to Foreign Markets 17

Franchising 17

Recommendations, Plan of Action for the future and Conclusion 19

References 23

Overviewand Background Information

Themodern world of management has witnessed drastic changes startingfrom new labor laws to integration of IT in the running oforganizations. In the study of organizational behavior, a cleardemarcation is drawn in the instance organization are lured toembrace change and innovation. Managers should master the art ofmanaging change and also integrate the concept of innovation in theirwork. This will avoid cases of becoming obsolete in today’s worldof dynamism. For any organizational change to be properlyimplemented, flexible culture of embracing new things is paramount. Strategic management process encompasses many distinct stages andsteps to be adopted by the management to achieve their goals(Thompson 2014).

Managementconcept calls for a multi-faceted person with the capability tohandle the pressure and offer impeccable results. Many are thetemporariness that happens in the course of management andimplementation of various strategies. Change is being experienced inthe job categorization and descriptions. This has explained thenecessity of acquiring new skills and also embracing the change.Managers are struggling with dealing with more dynamic employees whocall for tolerance and flexibility. There is an aspect of workforcediversity where managers are supposed to gear their managerial skillstowards recognizing talents and not generalizing events. The ongoinghigh demand for high-quality and productivity has resulted to thechange of managerial tactics. Managers are shifting focus on the setof programs meant to improve the productivity and quality of theorganization. All the aforementioned business dynamism calls forimmediate action to be taken with a focus of rescuing organizationalstrategy development and implementation.


TimHortorns is in the same caliber with Starbucks and represents a greatshare of the market in Canada. Considering its long time in business,many people associate the company with the development and history ofthe company (Penfold 2008). It represents a culture of identity andoffers high-quality produce to the consumers. The level of servicedelivery is also perfect as portrayed by the high level of integrityof the sales people. The organization owes its birth to two partnersHorton and Jim. Tim Hortons was founded in Hamilton Ontario, Canadawith the sole goal of offering fresh coffee and baked cakes. The firmonly used to offer two specific products, which were coffee anddonuts. The original varieties of donuts offered were the AppleFritter and the Dutchie. A key principle of operation wasspecialization before adopting the diversification model. The firmheavily invested in the branding concepts that gave it a competitiveadvantage and also easy recognition from people (Thompson 2014).

Expansionstrategy led to the incorporation of a third partner, Ron Joyce. Hewas incorporated as a full partner in the year 1967, following thedeparture of Jim in the year 1966. With the funds that he provided,Hortons moved through a rapid expansion phase that saw the firm openup new outlets all across Canada, and the menu being also expanded.Unfortunately, Tim Horton died in 1974 through tragic road accident(Joyce 2013). However, this did not affect the expansion momentum atHortons as the menu was expanded further with the brand “Timbits”being introduced in the year 1974. By the year 1984, the first outletin the US was opened in Tonawanda New York. This was greatlyinfluenced by the international appetite for the firm to go global.This meant that the fast food chain was competing directly withestablished market players such as McDonalds and Starbucks. Tofurther cement it presence in the US, Tim Hortons purchased Wendy’sInternational Inc, another fast food chain of restaurant operatingboth in the US, Canada and other countries (Penfold 2008). In theyear 2000, the firm had opened over a hundred outlets in the US andover two thousand in Canada. In the present moment, there are overthree thousand outlets in Canada and more than six hundred in the US.

Thecurrent number of the firm’s employees in the restaurant andfranchises stand at over one hundred thousand in both Canada and US.The parent company, TDL Group Corp, employs over 1800 employees inheadquarters and across all regional offices. There are severalwarehouses located in strategic locations that distribute foods tothe various franchises through branded trucks. About 95% of thestores are franchise owned and operated (Joyce 2013). The franchiseagreement requires franchisees to pay an initial franchising fee inaddition to setting up the stores and also submit annual royalty feeas a percentage of their profit. This model has worked consistentlywith total revenues recorded in 2012 hitting over C$3.12 billion andthe stock price at C$59.80 in TSX and US$54.85 at the NYSE. Anymanagement of a firm that is global entails addressing the variousrisks associated to it. For instance, in 2010, the firm announced theclosure of 36 stores and 18 kiosks in the US, which were deemedunprofitable.

Tremendouschanges have taken place much favored by the favorable businessconditions. Some of these contributed to the expansion of the firmand the listing of the company at the Toronto Stock Market on the29thday of September, 2006. This was later followed by a similar move atthe New York Stock Exchange. In the same year, the restaurant openedits 3000thoutlet in Orchard Park New York. All along, the hotel relied onfranchising as and mergers for expansion. Some of the firms thatHortons merged with include Wendy’s and Kahala Corp. However, it isWendy’s merger that was most conspicuous as it saw the firm changeowner temporarily from Canadian to American (Joyce 2013). However, in2009, Wendy sold its stake in the Hortons and thus the firm retainedits Canadian identity. Today the firm’s headquarters are located inOakville, Ontario, Canada.

StrategicObjectives Employed

Thefirm’s success is founded in its vision and mission statementswhich emphasize on the quality of services and the concept ofachieving quality. This is through innovation and partnership. Thecompany has employed various strategic objectives in its quest toremain competitive. The business world is full of dynamism and thiscall for the formulation and implementation of very competitivestrategies. The firm under consideration took a SWOT analysis andembarked on the recommendations (Thompson 2014). The firm hasinvested in branding of its products as the major competitiveadvantage tool. Hortons has become a family brand name both in the USand Canada. However, before entering the US market, the firmconcentrated on building a reputation in Canada. This gave it a goodopportunity to venture new markets abroad as it already had anestablished customer base in the home market (Speculand 2009).

StrategyAnalysis on Value Addition

TimHortons have also invested in the analysis of the various trendshappening in the retail markets both in Canada and the US. This isbecause of the direct influence to the management and running of thefirm. The most significant aspect relates to the internet ande-commerce. In the current age of multi-channel retailing ande-commerce, Tim Hortons has lagged behind. The firm just launched itsmobile application only recently while its competitors launched suchtechnologies way back. Such technologies offer industry players newopportunities and platforms to interact with their customers and evenreceive market feedback in a more convenient and timely manner.Additionally, the introduction of the e-commerce platform has boostedthe revenues of the firm. Therefore, it is a competitive strategy nomatter the timing in the adoption (Thompson 2014).

Multi-channelretailing has been adapted by consumers all over the world to combinethe benefits on in-store shopping and online shopping. While Hortonshas embraced online shopping for a significant range of its products,an online store has yet to be harmonized with its various stores.Multi-channel retailing allows shoppers to order and make purchasesonline and pick the goods in person at a chosen store nearby (Joyce2013). Global retail outlets such Australia’s Coles supermarkethave adopted this model that has increased sales significantly andalso promoted online sales. For the food retail industry, themultichannel retailing approach can enable consumers to order theirmeals from the menu and pick it when it is ready and in effect savethe waiting time before a meal is prepared.

Inthe case of Hortons, the maximum time a client should wait for coffeeis 20 minutes which is hinged on promoting the ‘fresh coffeealways’ concept (Joyce 2013). This potential in combining onlinestores and physical stores in fast food is yet to be adopted by anyof the industry players in the US, Canada or even the UAE.Nonetheless, this is the future of fast food retailing that promisesto reduce the waiting time once an order is placed. This is becauseconsumers can place such orders even on their mobile phones usingcustomized mobile applications.

GoodStrategy Implementation

Thefirm has also adopted a strategy of entering the foreign-basedmarkets. This is a competitive advantage as there is increased marketbase for the firm. There is also the integration of new technologiesfound in those markets. Hortons’ entry in the US market marked anera of competition with the global food giant, McDonalds. It was astrategy that was well crafted by the management and it saw itssuccess after few years of entry. The scenario of foreign marketentry is guided by the dynamism ranging from competencies to highlyavailable labor. However, the entry was not an easy task andtherefore, called for a thorough analysis of all the uncertainties(Speculand 2009).

Anotherarea of competitive advantage to the Hortons is their brand.Intellectual property is the form of intangible assets created bypeople and is protected through copyrights, trade secrets and patentlaws (Penfold 2008). Organizations in the modern world are shiftingtheir concentration with tangible assets to intangible ones. Someorganizations have their intellectual property portfolio far muchahead of their tangible assets. Tim Hortons have invested on thissector by making its brand an asset. The return on investment isgained through the fees charged to acquire a franchise. Severalpeople in the world have applied for the franchise from Hortons. Thisplaces the firm above its competitors (Joyce 2013).

Performancemeasurement role in the management of the firm has become a paramountconcept in today’s business world. Performance measures may bediagnostic, where they monitor whether the business remains incontrol or strategic measures which define the strategy designed toachieve competitive excellence and the future success. Performancemeasurement tools monitor and ensure that companies are functioningas expected and signal when to take corrective actions. Managementneed not to take action as long as the actual performance meets thestandard through a process called management by exception. A firmensures the measure on balance score to direct the attention ofmanagers and employees to those factors that lead to exemplaryperformance and ultimately competitive advantage. The concept of abalanced scorecard is holistic in nature. Al critical areas in theorganization that produces financial outcomes are assessed. Thisincludes financial, customers, internal activities among others(Joyce 2013).

Managementmust critically identify all the internal business processperspectives that result to strategic competitive advantage. Critical internal business process enables a firm to deliverpropositions that lead to customer attractions and retentions. Thisconcept when geared towards a certain market segment will result inshareholders’ satisfaction as a result of excellent financialreturns. Tim Hortons have applied unique set of processes forcreating value for customers and producing financial results. Thereis the application of the value chain model which encompassesinnovation, operations and service to customers (Penfold 2008). Thesehave placed the firm at a competitive edge both locally and globally.

Aleading strategic action witnessed at Tim Hortons is the increasedrange of products from just coffee and doughnuts to include juices,specialty teas and sandwiches among other snacks and beverages. Thishas been effective in reducing buyers bargaining power as they have awide variety of products to choose from. A narrow range of productsallows buyers to wield power against firms as they demand morespecifications from products. The strategy has witnessed an embracefrom the buyers thus increased customer base resulting to higherrevenues (Penfold 2008).

PoorStrategy Actions

Thedecision to enter the international markets is a suitable one interms of expansion however, it may result a poor strategyconsidering the market situations. Entry in the US market saw a risein competition and also a redirection of resources to sustain thosebusinesses. Tim Hortons faces intense competition from other playerssuch as McDonalds, Java and Starbucks. These players operate in thesame market and thus compete for the same market base. Othersubstitute drinks and beverages such as alcohol, Pepsi, water andCoke all combine to reduce the company’s market share. On the otherhand, the company competes for allocation of disposable income byhouseholds who have to cater for other needs. As such, the budget isa constraint to the products and encourages substitution of theproducts.

Anotherpoor strategy is a failure to place themselves as an industry playerto the market reviewers. Most of them have often identified TimHortons as a fast food restaurant. This has unfairly categorized thebrand in the same category of other brands associated with unhealthyfoods or unhealthy eating habits such as McDonalds. Consequently,such players have positioned themselves in the market as perfectsubstitutes for Starbucks and thereby exposing it to unnecessarycompetition (Speculand 2009). The entry of the firm to new marketssuch as the UAE also exposes the firm to competition from localestablished players. Another consequence that was witnessed in the USmarket was the closure of 36 outlets and 18 kiosks as a result ofpoor performance.

Linkageof Strategic Implementation at Tim Hortons

Inits quest for continuous improvement, Tim Hortons have embraced SixSigma quality programs. The most significant features of the TimHortons approach to strategic human resource management are thesix-sigma programs and the Balanced Scorecard. Competition in thefast food business is getting bigger, and the Tim Hortons has had tostep up its operations too. The six-stigma programs were importantfor the Tim Hortons in that they have helped improve the operationsin the company (Penfold 2008). Besides, the six-sigma programs wereheaded by an expert that helped in the implementation andconstruction of the scorecard. This strategy has created an enablingenvironment to the staff of the firm. This program has enabled thefirm in the definition and measurement of its goals and the needs ofthe customers. This is evident in the decisions to introduce a newrange of products and also venturing in the global markets. TiHortons has also been able to apply the concept in the analysis ofthe existing process of management and also in the design of new waysof managing the firm. Finally, the program has enabled the firm toconcentrate on the verification of the new strategies adopted whetherthey meet the goals of the firm as well as satisfy the customers’needs.

TimHortons also apply the concept of a balanced scorecard in themanagement of the various strategic actions implemented by itsmanagement team. This concept is able to offer a communicationlinkage between the firm’s objectives and the innovation strategiesavailable to achieve the set objectives. It is a principle thatshould be both intensive and extensive to the management of the firm,whereby all the activities should be aligned to the organizationalgoals achievement (Penfold 2008). The firm is able to execute andmonitor the performance as compared to the objective of realizationof goals. It is through the help of this principle that affirm isable to translate its vision and mission statements into objectives.

TimHortons has maintained a strong value that guides its interactionswith all employees and between the corporate entity and itsstakeholders. The strategies applied make it possible for all thedepartmental areas to be assessed. Additionally, the firm is able tomeasure the capability to handle the financial requirements and thecustomer needs. Moreover, because of the nature of the principle, thefirm is able to measure the performance in a forward way. This helpsthe firm to identify the weak areas that require attention so as toachieve organizational goals (Penfold 2008). Due to the simplicity ofthe concept, there is a simple way of communicating theorganizational plans and how to meet the financial objectives. TimHortons’ policy statement also contains the guidelines based onthis concept, and they help in ensuring future firm’s improvements.Tim Hortons is also able to establish whether the organizationalimplementation and execution strategy is able to meet the basicimprovement of the firm through the help of this principle(Joyce2013).

Implementationand Core Issues

TimHortons have embraced various strategic implementations actions. Thisincludes corporate governance concept, social responsibility andsustainability, organizational culture and ethics, organizationalleadership among others.


Becauseof a series of corporate collapses and audit failures, perception ofmanagement disclosures has been on the rise over the recent pastyears. The concept of corporate governance outlines the various majorissues related to management and the relationship with the outsidecommunity. Managers are the stewards tasked with the responsibilityof managing the firm on behalf of shareholders who are the owners.Theseparation of ownership and control motivates the owners to incurcosts to monitor the activity of the managers.Oneof these controls is the hiring of an external auditor who certifiesthe accuracy of the financial information provided by the managers.Corporate governance has led to increased transparency in disclosuresand reporting by the management. This enhances the credibility ofpublicly reported financial information. Tim Hortons adopted thecorporate governance codes and philosophy in the year 2006.

Thechairmanship of the board is held by Paul House, who previously heldthe position of president and CEO. Mr. House has a long history withthe firm having joined the team back in 1985. Paul has gone throughthe various positions in the firm before being appointed as the CEOin the year 2006, and later ended up becoming the chairman in theyear 2013. Mr. House is assisted by the Lead Director, the Hon.Franck Iacobucci. There are other eight directors. Marc Caira is thecurrent president and CEO. The CEO is the one charged with the roleof looking after the running of the business. The CEO is helped inmanagement by eight executive directors (Joyce 2013). The board isaccountable in all their actions during the process of management.

Thedirectors of Tim Hortons have been on the frontline in embracing theprinciples of good corporate governance. They have solely taken theaccountability of the successes and failures of the organization.This has increased the level of transparency and efficiency in theoperations of the firm. The board is governed by the principle ofmaximizing shareholders wealth. Corporate governance at Tim Hortonsis also enhanced by the way the board of directors is represented. Aline drawn to signify the separation of powers and duties, and thishelps in eliminating instances of conflict of interest (Bullen 2010).Hiring of employees is also transparent and guided by the values ofthe firm that promotes harmony. The ownership of the firm is alsoseparated from the management, and this helps in marking theboundaries that prevent conflict of interest. This has placed theorganization at a competitive edge as compared to the rivals.However, the firm requires analyzing the new strategies to align themwith the corporate governance principles.

Organizationalculture and ethics

Culturerepresents the values that count in the management of a firm or inthe existence of being. There are various dimensions to the conceptof organizational culture as outlined below:

  • An outcome oriented culture where the organization focuses mainly on the results of the actions committed by the employees and the management. In this type of culture, the central focus is directed towards quality of the products or services offered. Tim Hortons has successfully established a culture guided by the quality of the products they offer, this is in line with their slogan of offering fresh products.

  • Another dimension of organizational culture is the team-oriented culture. This entails the involvement of main stakeholders in the decision making process. This form of culture promotes transparency and openness among the employees and management. The level of productivity is increased through the application of this concept. At Tim Hortons, the contribution of each and every person is valued, and this has led to its success. It has also promoted the level of transparency thereby creating a global brand (Joyce 2013).

  • Where the concentration is offered to people the culture is said to be people-oriented culture. Mainly, this dimension focuses on the needs of the consumers in the management process. Consumer words such as complaint and compliments are acted upon in a swift manner. Tim Hortons has invested on this concept in its operations, where they are guided by the principle of being a global leader in offering quality products to their consumers.

Theabove stated dimensions of culture positively influence the revenuegeneration of Tim Hortons. However, where the culture adoptionprocess is not multifaceted, problems arise. For instance, theadoption of the outcome-oriented culture at the expense of consumers’satisfaction. Ethical standards have also been emphasized at TimHortons by the management. This has been reflected in the areas ofemployees hiring process, and also interaction of employees andmanagement. The firm has also concentrated on ethical standardsoutside the firm in terms of packaging, preservation of theenvironment, carbon emission levels and community participation(Joyce 2013).


TimHortons’ core competence lies in the ability of the firm toposition the brand around Canadian culture and national character.The Canadian national character and identity revolves aroundneighborliness, trustworthy, friendly, unpretentious and gentlyplayful. The firm uses these values in orienting its strategy. CathyWhelan Molly, the firm’s vice-president of brand advertising andmerchandising, indicates that the focus of every action by the firmis geared towards the creation of all-inclusive environment (Alston2013). Such ideas are communicated and implemented through marketingproduct development and customer service.

Thefirm has achieved this through years of innovation and reinvention.To start, the firm first utilized the name Tim Hortons to identifywith a Canadian icon and hero who had excelled in Hockey, theCanadian national sport. Despite venturing in new markets such as USand the UAE, the firm has retained this Canadian identity as the coremarket. This association with Hockey was not by name only but also byinitial colors of blue and white associated with Marple Leafs, theteam that Tim Horton played for.

Corporatesocial responsibility

Thisconcept is underpinned in the principle of a mindful operation of thebusiness. This entails the involvement of the local communities inthe major strategies affecting them. The concept advocates thepromotion of workforce diversity and promotion of ethical standardsin the operation of the business. The concept also highlights theimportance of contributing positively towards the events of the localcommunities.

Thepreservation and sustenance of the environment and resources is anarea of managements’ social corporate responsibility. Tim Hortonsis not an exception to this area of management, and it is involved inthe following areas:

  • In modern times, the firm has been involved in sponsoring children in under-privileged children in junior hockey leagues through the Tim Hortons Children’s Foundation. Children’s camps over the years have been promoted by Tim Hortons in its business.

  • The company has also embarked on other several programs involved with integrating the local communities. These include the free skate program meant to promote cohesiveness among people when taking holidays.

  • There is also the free swimming program meant to bring people together and enjoy the facilities of the firm as a way of appreciation.

  • Additionally, the firm is involved in the charity work where a certain amount of money spent on cookies is directed towards charity work.

  • Lastly, but not the least, Tim Hortons has invested highly in the protection of animals and natural resources.

Theseprograms have positioned the firm at a competitive edge as comparedto their rivals. However, as much as the programs are meant topromote the position of the company, there are associated costs tothem. It is therefore, advisable for the firm to carry out acost-benefit analysis before investing in any of the programs.Moreover, the organizational missions and values should be aligned tothe program adopted (Alston 2013).

Expansionand Entry to Foreign Markets

TimHortons’ growth strategy led to the incorporation of a thirdpartner in the year 1967, this followed the departure of Jim in theyear 1966. Tremendous changes have taken place much favored by thefavorable business conditions. Some of these contributed to theexpansion of the firm and the listing of the company at the TorontoStock Market on the 29thday of September, 2006. This was later followed by a similar move atthe New York Stock Exchange. In the same year, the restaurant openedits 3000thoutlet in Orchard Park New York. All along, the hotel relied onfranchising as and mergers for expansion. Some of the firms thatHortons merged with include Wendy’s and Kahala Corp. However, it isWendy’s merger that was most conspicuous as it saw the firm changeowner temporarily from Canadian to American (Joyce 2013). However, in2009, Wendy sold its stake in the Hortons and thus the firm retainedits Canadian identity. Today the firm’s headquarters are located inOakville, Ontario, Canada.


Thisis a business concept that enables a franchisor to offer the rightsto the franchisee in the operation of a business. The concept isapplied where a firm has an established brand that is embraced andrecognized by many consumers. The parties involved engage in theexchange of ideas, knowledge and materials for smooth running of thebusiness. A franchise may take several forms such as the following:

  • Product franchising where a franchisor allows the franchisee to produce and distribute products it owns. When this happens, the right to ownership of the trademark and the formula involved in the manufacturing is retained by the owner (Franchiser).

  • Name and process franchise which involves the use and applications of the methods of production in the business of the franchisee.

Thisform of marketing strategy is highly applied in the entry to foreignmarkets. Tim Hortons applies the concept in its global entrystrategy. Although, mergers and acquisitions concepts have also beenapplied, they do not account to a greater percentage likefranchising. Tim Hortons has greatly attributed its success to theconcept of franchising beginning from the time it was founded. Thefranchises have enabled the firm to enlarge its territory and conquerthe global dominants (Alston 2013). It is clearly stated in themanagement manual as a principle of operating the business on a dailybasis. The concept was first applied in the local market and latertransferred to the global scene. The franchisees are highly supportedin terms of materials and professional guidance. This concept hasplaced the firm at a competitive edge both locally andinternationally.

Thecurrent number of the firm’s employees in the restaurant andfranchises stand at over one hundred thousand in both Canada and US.The parent company, TDL Group Corp, employs over 1800 employees inheadquarters and across all regional offices. There are severalwarehouses located in strategic locations that distribute foods tothe various franchises through branded trucks. About 95% of thestores are franchise owned and operated (Joyce 2013). The franchiseagreement requires franchisees to pay an initial franchising fee inaddition to setting up the stores and also submit annual royalty feeas a percentage of their profit. This model has worked consistentlywith total revenues recorded in 2012 hitting over C$3.12 billion andthe stock price at C$59.80 in TSX and US$54.85 at the NYSE.

Recommendations,Plan of Action for the future and Conclusion

Thecurrent situation facing Tim Hortons provides a very promising futureif the firm can utilize the opportunities that the industry providesand make necessary amendments to manage its weaknesses. One of mostpressing weaknesses of the firm that is impacting on its sales andhas resulted to closure of several outlets in the US is poor brandawareness in the US. The success of the firm in Canada has beenachieved by exploiting Canadian patriotism and positioning the brandas an icon of Canadian nationality, heritage and culture. The resultshave been impressive and have allowed the firm to surpass McDonaldsin Canada as the fast food outlet of choice in the country. However,this same strategy is not applicable in the US and other foreignmarkets such as the UAE. Although other countries have successfullymanaged to export national cuisines such as Indian, Mexican andChinese food, the same is impossible in the case of fast food becausethe recipe is the same. In that regard, the firm needs to develop adifferent strategy that will appeal to American market. Americans arepatriot and recognize other brands such as McDonalds and Starbucks asmore representative of the American culture and identity.

TimHortons has adapted opening of new franchise stores as its keyexpansion strategies. The results have worked in Canada as the firmhas managed to dominate the fast food market. The strategy has notworked very well for the company as some outlets in the US marketwere closed due to poor performance that resulted to loss making forthe firm (Bullen 2010). Furthermore, the increase in the number ofstores has not enabled the firm to increase sales per store. Whilethe number of consumers served in particular stores has remainedstable, the amount of money consumers spend in each visit has notshown impressive growth. Increasing the amount of money each consumerspends increases sales for the firm but at the same time keeps costslower and keeps traffic in stores at manageable levels. In short, itincreases efficiency enables the firm to be sustainable in itsoperations.

TimHortons should consider introducing multichannel retailing tocapitalize on the rise in online shopping. The idea of enablingcustomers to place their orders online either on the mobile appTimmyMe or through an online platform will reduce the waiting timebefore orders are processed. This in the process increases efficiencyin the outlets reduces congestion of consumers and enables consumersto reach a wider market.

TimHortons should introduce a line of healthy foods with lower amountsof calories, reduced sugar and fat content to address a healthyconscious market. In the developed, the number of people who are moreaware of their health in terms of calorie and sugar intake is rapidlyincreasing. To target this market, Tim Hortons needs to introduce anew line of healthy products to expand its market (Alston 2013).Similarly, such strategic actions and approaches have been adoptedand implemented by other competitors such as McDonalds and Coca-Cola.Eating healthy is a new trend in the developed world that can onlygrow larger as health awareness courtesy of the government andcorporate initiatives grows stronger.

Thelevel of competition is aggressive for Tim Hortons. This has mainlyresulted from well globally positioned firms and also from newentrants. Tim Hortons requires changing its approach towardscompetition from the other players in the industry to preserve andeven grow its market share. Currently, McDonalds has upped its gamein Canada by offering frequent free coffees to its clients. Suchactivities are directly targeted at Tim Hortons’ consumers with theintention of encouraging them to return to the McDonalds store. TimHortons thus needs to engage in more intensive marketing campaigns toaddress the threat of substitution from competition.

Marketingis the most important tool in ensuring that customers are aware ofwhat company products are in store and what makes them different fromalready existing products. It is also responsible for introducing newproducts in the market and informing potential customers of thepossible use of the product to the consumers (Alston 2013). For thecase of Tim Hortons, consumers are already aware of the company`sproduct and probably know how to locate the nearest store. As aresult of the world business dynamism, it would be appropriate forTim Hortons to consider the formulation and implementation of newways of competing in the industry. Another instance to the strategyformulation and implementation is the application of a thoroughmarketing research to establish what the consumers’ value. Apossible strategy should be to brand the stores outside of Canadadifferently and tie the brand around the American identity of otheridentities in whatever markets the firms operates in (Bullen 2010).

TimHortons still commands the market and as such should use its positionto establish a more involving relationship between the company andthe market that should be aimed at locking out the competitors(Alston 2013). A good way of doing so would according to me be bycreating a forum through which consumers could narrate their firstTim Hortons experience. This will create a longing feeling for theconsumers of Tim Hortons’ products who have already switched toconsuming coffee from other coffee makers and houses. This will makethe customer feel like he is cheating on Tim Hortons as suggested byproduct and brand loyalty.

Thethreat of climate change can affect the supply and quality of some ofthe firm’s raw materials that include coffee and wheat. Erraticweather patterns around the world including drought affects the priceof these products in the global market which passes on the cost toTim Hortons. Therefore, for the firm to fully cushion itself fromsuch price fluctuations resulting in climate change, the firms shouldseek to sponsor sustainable farming methods among its core supplierfarmers. This can entail funding irrigation schemes together with thehost governments in order to ensure a stable supply of its productsregardless of the climatic conditions (Bullen 2010).


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