Tim Hortons Company Analysis Paper Example

Paper Type:  Case study
Pages:  6
Wordcount:  1386 Words
Date:  2022-09-22

Q1. The Company's Mission, Vision, Values, Objectives, and Strategies

The company's mission is to deliver superior quality products and services to its guests and communities through partnerships, innovation, and leadership (Beardshaw, 2013). On the other hand, the company's vision is to be a quality leader in everything that it does (Beardshaw, 2013).

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The company has five core values; namely it is an amazing team, fair and ethical, it achieves excellence, it seeks opportunities, and lastly, it is 'Can Do' (Beardshaw, 2013). Nonetheless, the company has four operating objectives (Beardshaw, 2013). The first objective aims at establishing a leadership position in sustainability that reflects the company's commitment to doing the right thing. The second objective is to understand the perspectives of stakeholder on any given issue as well as considering their views in decision-making. The third objective is to minimize the potential negative impact of the organization's operations. The fourth objective is the creation of a positive change that benefits individuals, communities, the planet, and the company's business.

One of the company's strategy is increasing the same store sales (Song, Xing, Wu, Zheng, & Arnold, n.d). The company aims to achieve this strategy by leveraging its marketing advantages and strengths. Over the years, the company has continued to introduce a variety of hot and cold beverages as well as making menu innovations. This approach is intended to ensure that customers do not get bored with the same products and at the same time attract new customers. Also, the company has invested in advertising; this aims at increasing the company's brand equity.

The other strategy is integrated cost leadership and differentiation (Song, Xing, Wu, Zheng, & Arnold, n.d). Tim Hortons ensures that it offers relatively lower prices than its competition. The low cost of its products is intended to grant the company a competitive advantage. Nevertheless, the organization provides high-quality products, for instance, offering the most excellent Arabica coffee. Hence, the provision of quality products at affordable prices. The organization has been able to achieve integrated cost and differentiation through distributing a majority of the products itself as well as vertically integrating the roasting of its coffee, for example, the company roasts around 75% of the coffee itself (Song, Xing, Wu, Zheng, & Arnold, n.d). More so, this enables the firm to capture more of the value chain.

Additionally, Tim Hortons has several growth strategies. In 2014, it merged with Burger King; this enabled the firm to reach the markets already dominated by the Burger King (Mohtashim, 2015). Moreover, the merger resulted in product innovation that has played a critical role in bringing a variety of products to the organization's customers. Also, the company struck a deal with Wendy's startling joins for entry into the US market (Mohtashim, 2015). Both brands existed in the same building. Later, the organization entered into a contract with Cold Stone Creamery where both companies agreed to sell the products of each other via their outlets. Lastly, the company aims to expand internationally beyond the US market, for instance, the company has already started operating in Ireland and Dubai (Song, Xing, Wu, Zheng, & Arnold, n.d).

Q2. The Company's Operations Functions

The company's supply chain is made up of a vast network of suppliers who are responsible for providing goods that end up in the organization's restaurants (Tim Hortons, 2015). Others offer product and services that assist in everyday business operations. The company works with numerous suppliers who provide raw materials like wheat, oil, and sugar; these are the inputs. Other inputs include dry, frozen and refrigerated products, milk, cream, and cream cheese. Also, the service providers and corporate suppliers serve as the inputs into the company's operations. Nevertheless, the organization has a coffee roasting plant in Hamilton, Ontario and Rochester, New York as well as filling and manufacturing facility in Oakville, Ontario (Tim Hortons, 2015).

The company's transformation process occurs when processing coffee (Tim Hortons, 2015). The stage of production begins with farmers and producers who organize themselves into associations or cooperatives for producing coffee. Then there is an intermediary who links the farmers with the roasting plants through the provision of services that assist in getting their coffee to the roasting plant. The roasting process operates close to where the coffee is supposed to be consumed; this reduces the time taken to roast coffee as well as maximizing its shelf life. The two plants in Hamilton and Rochester does roasting of the coffee. Also, Tim Hortons makes use of third-party companies who roast the coffee on behalf of the company. The outputs of the company are coffee and baked products, especially doughnuts. About baked products, the company sources wheat and palm oil from the farmers. The palm oil acts as the main ingredient for baking; hence the company has a comprehensive palm oil sourcing policy (Tim Hortons, 2015).

Q3. Factors that Influence Tim Hortons' Capacity

One of the factors that can influence the capacity of Tim Horton is the privacy protection (Tim Hortons Inc. responds to notice of lawsuit, n.d). If the business fails to meet the current and increasingly challenging rules and regulations concerning the safety of business data, employees and customers, the corporation's status could be damaged; this could result in reduced sales, alteration of management responsiveness and lawsuits. Secondly, the mergers and acquisition can impact the activities of the company due to disagreements between different management or the acquisition of a company that is performing below the expected standard. Recently, one of the company's franchisee filed a lawsuit of around $4 million; the franchisee accused Tim Hortons of failing to renew a license for one of its stores in bad faith (Sagan, 2018). Such a scenario influences the capacity of the company by dragging it behind.

Culture plays a critical role in Tim Hortons' capacity, for instance, the merger with Burger King resulted in the adoption of a new culture. Older employees were replaced with new and young staffs. The organization's building underwent a complete cosmetic makeover with the interior reflecting 3G's cultural tenets such as the company's mission and goals.

Nonetheless, real-time electronic billboards were introduced; this displays employee success metric, for example, the total number of sandwiches sold each restaurant on a daily basis. This approach has made employees feel as if they are running their small businesses. Former employees have applauded the introduction of the new culture. More so, the impact of the new culture has been reflected in the company's performance, for instance, in 2016, the revenue increased by $0.15 billion down from $4.05 billion to $4.2 billion. Also, the company was able to reduce its operating costs by 14%, i.e., from $2.86 billion to $2.47 billion (Shaw, 2017). Furthermore, the 3G method of reducing waste and simplifying processes as well as pursuing an aggressive growth agenda has made it acquire significant businesses in the US; the company's mode of operations has instantly impacted Tim Hortons operations.

Moreover, economy and competition influence Tim Hortons capacity, for instance, in 2013, the management attributed the company's decline in profits to the competition from company's in North America as well as a still-soft economy (Marotte, 2018). Reduced benefits hamper the expansion of any company in that a company cannot plan on opening new outlets. Instead, the company is forced to adopt new measures, for example, in 2013 Tim Hortons introduced measures like menu innovation.

Q4. Type of Operation

Tim Hortons falls under the storage operations.


Beardshaw, T. (2013, June 14). Tim Horton's. Retrieved from Prezi: https://prezi.com/emktrfrr2mxk/tim-hortons/

Marotte, B. (2018, May 11). Tim Hortons sales growth hampered by economy, competition. Retrieved from The globe and mail: https://www.theglobeandmail.com/globe-investor/tim-hortons-sales-growth-hampered-by-economy-competition/article8909566/

Mohtashim, M. (2015, June 10). Tim Hortons- Strategy and core competencies. Retrieved from Slideshare: https://www.slideshare.net/Keyesscientist/tim-hortons-strategy-and-core-competencies

Sagan, A. (2018, May 15). Tim Hortons franchisee files $4 million lawsuit against chain after license renewal denied. Retrieved from The Canadian Press: https://globalnews.ca/news/4210731/tim-hortons-franchisee-lawsuit-license/

Shaw, H. (2017, May 26). At Tim Hortons it's not business as usual: Profits are up, but so is franchisee discontent. Retrieved from Financial Post: https://business.financialpost.com/news/retail-marketing/at-tim-hortons-its-not-business-as-usual-profits-are-up-but-so-is-franchisee-discontent

Song, Q. Y., Xing, Y., Wu, C., Zheng, N., & Arnold, C. (n.d.). Tim Horton's company synopsis. 1-8.

Tim Hortons. (2015). 2014 sustainability and responsibility report. Retrieved from Tim Hortons: http://sustainabilityreport.timhortons.com/overview-about-our-company.html#value

Tim Hortons Inc. responds to notice of lawsuit. (n.d.). Retrieved from Exhibit 99: https://www.sec.gov/Archives/edgar/containers/fix240/1345111/000118143108038781/rrd210857_24811.htm

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Tim Hortons Company Analysis Paper Example. (2022, Sep 22). Retrieved from https://proessays.net/essays/tim-hortons-company-analysis-paper-example

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