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The Growth Of Tim Hortons

This report is retrieved by intensive research on the Tim Hortons company. This statement contains all the facts and numbers related to the development of Tim Horton's. The main focus is on the improvement of the Tim Horton's, its aims, its quest and summary. This case by examining process that Tim Horton's has flourished all the way worldwide especially in metropolitan markets hence, this company can perform more progress and is going towards the correct path of success.


Tim Horton's is an easy food doughnuts chain at first from Canada. A couple of other cooked items, caffeine and doughnuts. Tim Horton's offers good variety of preference by offering high quality coffee, cappuccinos, and newly mowed sandwiches. Tim Horton's is one of the leading caffeine residences on birthday times. Tim Horton's offer many varieties. They are specialised in caffeine products, cooked items and possess some good types of home-style lunches. First Tim Horton's only offered two types of varieties espresso and donuts. Tim Horton's now offers many types like muffins, cakes, pies, croissants, cookies, and soups. For breakfast time in addition they offer sandwiches, sausages and poultry salad soups. They also have come up with new yoghurt berries and Cirebon rolls, Tim Horton's is basically well known because of its bagels. Tim Horton's has placed a new development of coffee spot to relax. Tim Horton's is located in many places aside from their new regular standalone restaurant. It is also found in shopping malls, highway outlets, they also offers a day drive through service.

Company background

In 1964 Tim Horton's was founded in Hamilton, Ontario, Canada. It is originally a part of the TDC communities Especially in Canada and america.

Originally Tim Horton's was together with Tim and Ron Joyce. Later in 1974 Feb, after the tragic fatality of Tim, Ron Joyce became the only real owner.

From the time of its starting until now Tim Horton's has been through the amazing quest. They started from a tiny restaurant now they are really successful restaurants string spread around the world.

The First Tim Horton's was exposed in Hamilton in Canada in 1964.

Later it protected major parts of Canada and in 1985 the 1st U. S restaurant was exposed in America, NY.

Tim Horton's received great response from U. S so from one restaurant the business enterprise flourished too many restaurants.

Today Tim Horton's have thousands of restaurants covering major parts of US and Canada. It was announced as a separate general public condition company in March 2006

Recently, Tim Horton's has signed a master license arrangement with the apparel groups to open around 120 restaurants and stand alone in the U. A. E

This journey started from 1964 and by 2011 Tim Horton's has been named a separate identity.

Today Tim Horton's have significantly more than 4000 restaurants worldwide.

Literature review

Corporate strategy - is a linking process between your organization and its environment which focuses specifically on value added and ecological competitive benefits of the organization and the need to be progressive. Adding value is of particular importance to many organizations, though for non-profit and federal government organizations this isn't necessarily the case. (Lynch, 2006)

Three core areas of commercial strategy - proper analysis, strategic development and strategy implementation. You can find two basic routes regarding how commercial strategy can be developed. First is the prescriptive model procedure and second is emergent model way. The two approaches have some common elements in the early stages: evaluation and the introduction of a quest for the business. Beyond this, they go their independent ways and lead two the latest models of for the corporate strategy process. Although the three areas tend to be presented as being strictly sequential, they'll be simultaneous in some circumstances. (Lynch, 2006)

Prescriptive procedure model - takes the view that three primary areas are linked jointly sequentially. Its purpose has been described in advance and whose main elements have been developed before the strategy commences. It requires a structured strategic planning system and governed by a couple of rules, fully formulated and prepared to implement. With this model it is necessary to identify things, analyze the environment and the sources of the organization, develop strategy options and choose included in this. The chosen process is then implemented. (Lynch, 2006)

Emergent way model - regards the three main areas as being interrelated. It really is an appearing and changing strategy that survives by adapting as the environment itself changes. It really is a strategy whose final target is unclear and whose elements are developed during its life, as the strategy proceeds. It generally does not identify your final aim with specific strategies. It depends on growing strategies whose last outcome might not exactly be known. Professionals will rely more on learning from your errors and experimentation to achieve ideal process. (Lynch, 2006)

PESTEL analysis - explores politics, economic, socio-cultural, technological, environmental and legal influences on the organization. It's important to develop a brief set of only the main items when commencing such kind of evaluation. In developing scenarios, it should be recognized that they offer another view of conceivable future occurrences, rather than predict the future. (Lynch, 2006)

Five forces research - consists of an study of buyers, suppliers, new entrants, substitutes and the competition in the industry. The aim of this idea is to analyze the balance of electric power between each pressure and the organization on the market. (Lynch, 2006)

Four links analysis - carries a review of the competition, networks and legal links that the business has using its environment. The purpose is to investigate the relative advantages of such links and their potential to improve the competitive advantages of the business. (Lynch, 2006)

Review of macro and micro environment


"Our guiding quest is to deliver superior quality and services for friends and communities, management, innovation and relationship. "

"Our main aim is to derive high quality products and services to your friends and customers through leadership, performance and relationship. We want to be a leader in the food industry obtaining superior quality preserving our value and delivering hygienic and balanced diet. "


"Our vision is usually to be the quality head in everything we do"

"The main concentration is to stand out in the meals industry and get ground breaking products and also to improve the existing services. We constantly strive to be the best through determination and interest. "


"The main objective is to guarantee the quality deserved. Maintain the image and standards of Tim Horton's. "

"Produce new superior quality products and services with enormous efforts and dedication. "

"Achieve the high expectations of success and quality through providing regular services to the pleasure of the customers. "


Tim Horton's strategy is all about gaining a position of gain over adversaries or best exploiting emerging possibilities. Since there is always an aspect of doubt about future to get ready a strategy is more in regards to a set of options. The strategy of Tim Horton's is based mainly on:

Increase the same store sales through marketing.

Invest to create brand in new and existing marketplaces.

Grow in several ways we've not cultivated yet.

Improve the business durability and franchise system.

Implementation of drive the activities.

Enhancing the interior and external surfaces designs, improve the menu items.

New designs to react to customers in both urban and rural areas.

Economic Performance

As per the recent studies the financial situation of Tim Horton's in Canada and US for the entire year of 2010-2012 (Second 1 / 4) is as follow. The sales expansion of Tim Horton's of 2012 is 40% in Canada and 6. 3% in USA. The operating income has increase to $ 569. 5 million. Per show price is $2035. The total revenue was 2. 9 billion in 2011. Tim Horton's has a good background of producing good financial results.

Research and development

The research, consumer and invention play an integral role in the release of services and services in Tim Horton's restaurants. One research and development team contributes a lot to produce innovative products and enhance the existing products. The primary responsibility of research and development team is to work meticulously the procedures and marketing clubs. The employees are customized in their departments for quality guarantee.


The marketing sector works together the rest of the departments to uphold the characteristics of the brand. They work diligently to maintain the rate of the growing opportunities. They do new nationwide advertising company marketing campaign, Sponsorship programs. Tim Horton's has been among the finest brands in Canadian industry. They have been awarded the best managed brand by the Canadian business newspaper.

Organizational structure

The head office of Tim Horton's is positioned in Cairo's Golden Equine sneaker in Oakville. Head office building includes corporate restaurants, the advancement centre and Tim Horton's School.

There are numerous regional office buildings of Tim Horton's around Canada and US. There are around more than 1800 employees in many areas. All the various departments, Marketing, HRM, operation, Research all interact as one team. The local offices are positioned in Calgary, Hangley BC, Debert NS, Kingston, Dublin OH and Brighton MI. The Tim Horton's syndication team also acts as a most important factor responsible for the success of Tim Horton's.

Tim Horton's determination to excellence and concentrate of teamwork cannot be matched in the industry. Tim Horton's College or university organizes constant training program of seven weeks for the employees. This training center is to ensure that Tim Horton's describe the best customer support. Tim Horton's University or college includes Labs, Classroom and operational Tim Horton's.


The Tim Horton's Financing team is principally responsible for the fiscal responsibility and business development. By January 1, 212 Tim Horton's acquired 4014 system extensive restaurants, including 3295 in Canada, 714 in the USA and 5 in the Gulf.

SWOT Analysis

This SWOT research for Tim Horton's is mainly predicated on their opening of more than 120 new stores over the Arab Gulf.


They have most affordable prices.

Tim Horton's is abundant with terms of location. It includes all major regions of Canada, USA, and now Middle East. They have significantly more than 3700 stores across the world.

They have one of the best menu, items. The menu mainly protects all the types of sandwiches, caffeine and donuts.


Inspire of the development of Tim Horton's they lack customer services.

The employees are less compared to the number of branches.

More employees training programs should be integrated.


Since the Tim Horton's is widening. There are more employments opportunities.

Employment in International level will definitely improve the economy.

More extension can promote profitability in Asia and Middle East.


The major hazard is to compete with the existing famous coffee properties as star bucks.

Increase the expense of labor and creation can get undesirable affect on the income of Tim Horton's.

Competitive analysis

In our view competition within this specific market is dependant on factors such as product quality and price, convenient and easy accessible locations, speed of service and atmosphere inside the stores. Other critical indicators which add value to the brand might be the amount of stores, appeal of facilities and general brand acceptance.

Tim Horton's in other hands is facing a very tough competition in this region since the forex market itself is very attractive for the firms which operate in similar segment of services. They contain a multitude of restaurants including quick service restaurants and junk food restaurants focused on drinks and pastries, as well as petrol channels and other convenience locations that sell snack foods and beverages. These opponents include several amounts of brands, both international (Starbucks, Dunkin' Donuts, Costa, Cinnabon, Gloria Jean's, Second Cup) and locally centered ones (Caribou, La Gaufrette, Paul Caf, The BEANS & Tea Leaf). But also for the analyzing goal we have considered two most challenging ones.

Critical analysis of the strategies from viability aspect

Tim Horton's tactical ideas regarding financial outlook and long-term targets derive from successful implementation and execution of these. These strategic ideas also targeted into increasing the results of business functions and driving a car the long term strategic plans. Nonetheless it cannot be assured that they will have the ability to implement almost all their strategic programs and such plans provides the expected results, unless they over go beyond the local competition. Otherwise it could cause scarcity of achievements of financial aims and long-term plans.

Tim Horton's expansion strategy on large range basically depends upon their potential to raise the variety of their stores through internal development, local acquisitions, joint ventures and maybe substitute business models, such as self serve kiosks inside shopping malls and petrol channels. But growth strategies in other palm cannot be assured to reach your goals either, because new stores might not exactly be profitable, proper initiatives may not achieve success and expose to various hazards. To overtake it Tim Horton's should greatly rely on the market analysis and considers double before acquiring any local stores or go for joint endeavors.

Findings and conclusion

The segment of the meals service industry where Tim Horton's operates is quite competitive. It has to contend with various international, local, and even local organizations which operate in same portion. Principally this competition is performed through product variety, its quality and value of the products. Other competitive factors will be the amount, location of restaurants, quality of service, elegance of facilities, success of advertising, marketing, deals, price, movements and consumer preferences.

So if Tim Horton's is unable to maintain its competitive position, it can experience low demand because of its products, downward pressure on prices, reduced margins. And yes it won't be able to make the most out of business opportunities, will lose the market share and won't get qualified restaurant owners in the foreseeable future.

Tim Horton's financial performance is highly reliant on its Canadian operations, which is roughly 93. 9% of its revenues and 97. 6% of its operating income in 2011. Any significant inability in their Canadian operations will affect its financial performance immediately.

Tim Horton's financial performance and ability to keep its contending position depends upon the ability to effectively point the course of market styles and successfully identify, develop, produce, market and sell new or superior products in response to such movements. So quite simply Tim Horton's should rely on emerging tactical planning approach somewhat than on prescriptive way of computer.

Coming to the GCC region, Tim Horton's have granted a master certificate to Attire Free Area Company, so called branch in this region which is likely to develop up to 120 stores in the markets of UAE, Oman, Bahrain, Qatar and Kuwait. The grasp license agreement with Clothing Free Area Company is a royalty centered business model and it also includes an upfront license fee. Outfits is responsible for capital spending and real property development to available restaurants, along with local businesses and marketing.

In 2011 Clothes Free Area Company developed 5 Tim Horton's stores. So far Tim Horton's has 12 stores across UAE. Benefit of that arrangement is that it decreases Tim Horton's capital requirements and allows to pursuit international development opportunities.

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