Tim Hortons - Strategy, Core Competencies, Capabilities and Value Chain

1. Tim HortonsAlways Fresh

2. About the Company
Founded in 1964 in Hamilton, Ontario, Canada
Started as of a small restaurants and served only coffee
and two types of donuts
The company has diversified food products and locations
Tim Hortons have more than 4500 restaurants worldwide
On August 26, 2014, Burger King agreed to merge with Tim
Hortons for US$11.4 billion

3. Vision Statement
▪ “Our vision is to be the quality
leader in everything we do”
▪ “The main focus is to excel in
the food industry and get
innovative products and to
enhance the existing services.
We constantly strive to be the
best through determination and
passion.”

4. Mission Statement
“Our guiding mission is
to deliver superior
quality and services for
guests and communities,
leadership, innovation
and partnership.”

5. Organizational
Structure

6. PESTLE Analysis
Political
•Procedural
barriers to entry
•Political Instability
in nearby GCC
countries
Economic
•Fluctuating
exchange rates
put risk to volatile
commodities
•Increase customer
spending in the
fast food industry
Social
•Consumer
Behavior – Child
Obesity, healthy
food, Time.
•Attitude towards
foreign
employees

7. PESTLE Analysis
Technological
• Ordering food made
easy
• Inclusion of
automatic
transmission trucks
to save fuel costs
Legal
• BPSCC
• Implementation of
health conscious
laws – Trans fats and
Calorie Counts
• Environment
Regulations
Environmental
• Green Building
• Reducing Energy and
Water Consumption

8. Value Chain Of Tim
Hortons

9. Value Chain Of Tim
Hortons
Supply Chain
Management
• Pallet optimization
by shifting from 20
lb. to 22.5 lb. coffee
boxes which save
200 truckloads per
year
Distribution
• Better route and
truck selection to
ensure timely
delivery of fresh
products
• Three channel
Customer service
• 24 hours drive
through facility
• Outlets in shopping
malls, gas stations,
universities and even
near military bases
Market Research and
Planning
• Vertical Integration
of in-house coffee
roasting in value
chain
• Merger with Burger
king to capture

10. Competencies And
Capabilities
Remarkable products quality
Distribution Channels
Unparalleled Customer Service
Franchisee Training
Community Leadership
Leverage Technology for expansion
Product Innovation and Menu Expansion

11. Competitive Advantages
▪ Well known brand name
▪ Strong Customer Preference
▪ Price Points
▪ Store Location and Density
▪ Relatively low advertising and marketing per
store

12. The Competition

13. Industry Drivers
In Coffee and Fast Food Industry,
taste as well as quality of the
product is the main driving force
Variety in the range of products
offered also an important factor for
this industry
Timely delivery of order to
customers important
Customer loyalty an important
driving force to the company to
grow

14. Success Factors
▪ Tim Hortons has been famous for its high quality as well as
taste of the coffee that they give to the customers.
▪ Apart from Coffee, from time to time, Tim Hortons offers
various other products to the customers. This included the ice
creams that Tim Hortons sold from the tie up with Cold Stone
Creamery as well the non-coffee beverages that it offered to
customers
▪ As Tim Hortons had started initially keeping office people in
mind, they were famous for their quick delivery of orders.
▪ Being famous for its freshness as well as on time delivery, Tim
Hortons commands high Customer Loyalty.

15. Growth Strategy
▪ Tim Hortons initially made it self a major player in the
coffee market in Canada were they captured the major
market share with 3500 stores.
▪ For entry into U.S.A, initially they tied up with Wendy’s
starting joints where both brands were present in the
same building.
▪ After this, the signed a contract with Cold Stone
Creamery under which, both companies shall sell the
products of the other company via there outlets.
▪ Merged with Burger King in 2014 which has helped it
enter the markets where Burger King is already
present. Also this has helped with product innovation
that has helped it bring more products for its
customers.

16. Growth Strategy
▪ Canada: Lead, Defend and Grow
▪ USA: A Must Win Battle
▪ International
– Expansion in Gulf Cooperation Council
– Position of Potential Market Entries
– Validation of International Market Opportunities and
Approach

17. THANK
YOU
Group 6 – Section B