1. 1
1. How can a company like Tim Hortons maintain its quality when operating in different
global markets?
Tim Hortons can maintain its quality by focusing on consistency. This includes
strengthening their coffee and donut recipes, high standards for customer service, setting
consistent hours of operation at all locations, and training staff to ensure they adhere to these
standards. The company should also strive for continual customer feedback in each new market
it enters through surveys or focus groups to address any potential issues with product and service
quality quickly and effectively. Moreover, to ensure further customer satisfaction, Tim Hortons
should also consider developing systems to measure and monitor quality. This could include
surveys of the customer experience after each visit, feedback from employees on product
consistency and operations standards, or even continuous monitoring using automated data
collection tools such as beacons or RFID readers. With a strong focus on consistency in both
product offerings and service delivery, as well as rigorous quality control measures in place, Tim
Hortons can continue its successful expansion across new markets with confidence that its
brand reputation for high-quality coffee is maintained no matter where customers are located
around the world.
2. Is there anything wrong with a company like Tim Hortons staying with a marketplace
that it knows well?
No, there is nothing wrong with a company like Tim Hortons sticking to a marketplace it
knows well. Familiarity allows the company to understand its customers better and anticipate
their needs and provides a more accessible entry point into internationalization since many of the
existing processes used in Canada can be replicated abroad. Moreover, staying put does not
necessarily mean that Tim Hortons has missed out on growth opportunities; merely expanding
2. 2
product offerings or locations within current markets could still provide greater profitability
without sacrificing quality or brand identity. Tim Hortons has already made great strides in the
Canadian market, where it now enjoys immense brand awareness and loyalty. By focusing on
expanding product offerings or opening new locations within existing markets, Tim Horton's can
capitalize on its well-established reputation and provide additional convenience to customers by
meeting their needs in closer proximity to home.
Furthermore, for companies wanting to internationalize into newer markets with different
cultures that may be more unfamiliar than Canada itself, staying put is often a wise business
decision since it allows them all the time they need to properly research potential customer
preferences so that when the company does decide to expand its geographic borders at some
point down the road (eagerly or reluctantly), such efforts are not done without proper knowledge
of local consumer tastes but rather complemented by a firm understanding of what works
abroad as well as proven success from previous ventures at home.
3. Can a company grow too quickly? What are the problems associated with fast growth?
Yes, a company can grow too quickly, and potential problems are associated. Rapid
growth often stretches the resources available to a business, which may lead to poor-quality
control or customer service, inadequate training for new staff, supply chain difficulties due to
increased demand for products/services, and financial constraints related to financing expansion
opportunities. Additionally, rapid growth has the potential of overwhelming existing
infrastructure that needs to catch up with the rate of change while taking away from efforts in
developing longer-term strategies necessary for sustained success over time. The potential pitfalls
associated with fast growth are further magnified for companies like Tim Hortons who operate in
multiple markets across the world. A company must have adequate access to local resources,
expertise, and capital to effectively grow its operations while simultaneously managing any legal
3. 3
or compliance issues pertinent to each market. Additionally, cultural differences between
countries can create marketing challenges as products/services may need modification or
customization based on customer preferences which would require more research & effort due
to specific needs in different regions of the globe leading a business into uncharted territory that
could be too difficult–and costly–to navigate safely. As such, it is important for companies
engaging in international expansion efforts to undertake thorough analysis before and during
their journey by seeking out experienced consultants well-versed in global trends if they wish to
remain competitive while avoiding any hidden drawbacks yet unknown related to their chosen
path of growth.
4. Based on Internet research, provide an update on Tim Hortons' ownership structure
and expansion abroad.
Tim Hortons is owned by Restaurant Brands International (RBI), a multinational fast-food
holding company headquartered in Oakville, Ontario. RBI was formed after Burger King
acquired Tim Hortons in 2014 for $12 billion and merged it with its business operations. Since
then, the chain has seen rapid global expansion across Canada, the United States, Mexico, Spain,
and Portugal via franchising agreements as well as more than 2200 locations opened up
internationally from 2017 - 2019 alone through partnerships with local partners such as IHOP or
Pancake House and KFC owners Alsea SAB de CV of Latin America.
In addition, Tim Hortons has announced plans to open a flagship store in India sometime in
2020. They are looking to capitalize on the growing market for coffee and snacks as more
Indians have begun taking an interest in Western food trends. The new store will feature both
traditional and fusion items such as Chai-flavored donuts alongside other offerings from the
regular menu lineup. As part of its efforts to develop regional products outside of Canada,
they've also added: "wallas" (Indian tea stands) located near Indian train stations & airports
4. 4
since 2016 which allow travelers access to their signature beverages while on the go. Despite
some initial obstacles related to a lack of brand recognition among local consumers, these
stores have seen strong sales figures with many loyal customers returning each week due to
various product discounts being offered from time to time at these locations throughout
2019/2021 indicating potential for long term success if further investments continue into later
years.
5. What markets do you see as a good fit for Tim Horton’s future expansion? Explain
your choice.
Tim Horton's would be an excellent fit for expanding into the European and Asian
markets. In Europe, there is already an established culture of cafe-style coffee shops and robust
economic growth in several countries that could provide fertile ground for Tim Hortons' business
model. Additionally, a country like China offers potential opportunities given its large population
and growing middle class, which may demand a greater variety of food and beverage products
than currently available domestically. Moreover, expanding into Asia also presents untapped
possibilities with many regional cuisines still unknown outside of their respective countries,
which can be leveraged by bringing Canadian specialties such as Maple Donuts or Apple Fritters
to an even wider audience and, at the same time uncovering new recipes from different cultures
around the globe that could potentially become part of future Tim Hortons menus items.
Tim Hortons recognizes the challenge of being successful in international markets and is
already taking steps to make sure its business model continues to be effective wherever it
expands. For example, Tim Hortons works collaboratively with local partners when entering new
markets - such as their agreement with IHOP/Pancake House for expansion into Mexico, Spain
& Portugal - to ensure that all locations provide high-quality food products while at the same
time preserving the company's brand identity. Additionally, notwithstanding certain adjustments
5. 5
for regional tastes by offering signature items such as "Spicy Sausage Biscuit Melt" sandwiches
available only in India or vegetarian donuts dubbed "Vegirnuts" offered exclusively throughout
Central America; Tim Horton's maintains a consistent menu across countries which helps avoid
confusion among customers from different regions and guarantees product freshness no matter
where you are around the globe.
