Tim Hortons Essay

In August 2014, what is Tim Hortons’ strategy?

Tim Hortons’ strategic plan entitled “Winning in the New Era,” would focus on Canadian business rejuvenation, US profit growth and increase international presence by 2018. According to Tim Hortons’ 2013 annual report, the company would allocate resources to marketing efforts to fulfill their promise to delight every customer who encounters its brand. Growing their Canadian business even further (i.e., across the country) seemed to be a given since they already have a sturdy base and customer loyalty in this culture. Increasing market share in the Canadian market would require an internal focus on products and services within existing stores (same-store growth). Two challenging aspects of the new strategy was 1) to optimize their business model and continue to develop a foothold in the US market—referred to as “A Must-Win Battle”—and 2) to leverage their relationship with 3G and to learn more about the international environment

Good income statement performance is a measure of how well the company manages its core business. Although the balance sheet ratios, such as the current and debt/equity ratios, are declining slightly, the ROA, ROE, and ROIC are increasing, which is a good sign of resource management as well. 3G has noticed the opportunities for creating a synergistic venture between Burger King and Tim Hortons to become the third largest global quick service restaurant company. 3G can capitalize from Burger King’s global branding to bring Tim Hortons to locations it could not have broken into otherwise. A bonus is the location of 3G and Tim Hortons’ headquarters; both are in Oakville Ontario, Canada, which provides the company with a tax benefit and opportunities for more strategic endeavors. (Scharr and Rowe,