Swot Analysis Tim Hortons
Tim Horton’s Strategy Components:
“we fit anywhere”
Goals
Growth goal structure
As demonstrated by its recent activities, Tim Horton’s is following a goal structure of growth. The growth model is characterized by a focus on market, plant and personnel investments, sometimes at the expense of current profitability.
Tim Hortons has been eyeing the US quick service restaurants (QSR) market for the past decade, but only recently has Tim Hortons started pushing more aggressively into the US. Just last year (2009), Riese Organization, a restaurant franchisee and real-estate company, approached Tim Hortons with a contract to open 12 new locations in and around the New York area.
However, it is not without significant risk to profitability …show more content…
2010 Operational Objectives * Same store sales growth of 3% - 5% in Canada; 2% - 4% in the US * To open a total of 130 – 150 restaurants in Canada; 40 – 60 in the US * Convert 15 – 30 existing Tim Horton’s restaurants to include Cold Stone Creamery; 15 – 30 new restaurants in US will be co-branded with Cold Stone Creamery
2010 Financial Objectives * EPS of $1.95 to $2.05 * Operating income growth of 8% to 10% * Tax rate of approximately …show more content…
* Anyone from children to seniors * Students * Business people * “on the go” people * Where? * High traffic, visible & easily accessible locations * Regional markets, such as Ontario (Canada – 23.8%), New York, Ohio & Michigan (US – 0.2%)
Value Proposition
- value to customers (from sales), not franchisees
Features | Benefits | Visible locations | - convenient: customers can easily find a location if they want to buy food | Fast | - saves time: customers don’t have to wait for service, can “grab and go” | “Always Fresh” | - tastes good | High Quality Control | - feel safe eating the food; know it was made in a clean environment | Variety of menu items | - convenient: “one stop shop” for breakfast, lunch, dinner, snacks | Value items | - affordable | Buy in bulk offers (discounts) | - saves money; don’t need to invest time on buying snacks for a group, can easily drive to a Tim Horton’s and purchase a dozen donuts etc… | Simple (vs. Starbucks) | - customers feels comfortable & know what their ordering |
Core Activites & Value Chain *
“we fit anywhere”
Goals
Growth goal structure
As demonstrated by its recent activities, Tim Horton’s is following a goal structure of growth. The growth model is characterized by a focus on market, plant and personnel investments, sometimes at the expense of current profitability.
Tim Hortons has been eyeing the US quick service restaurants (QSR) market for the past decade, but only recently has Tim Hortons started pushing more aggressively into the US. Just last year (2009), Riese Organization, a restaurant franchisee and real-estate company, approached Tim Hortons with a contract to open 12 new locations in and around the New York area.
However, it is not without significant risk to profitability …show more content…
2010 Operational Objectives * Same store sales growth of 3% - 5% in Canada; 2% - 4% in the US * To open a total of 130 – 150 restaurants in Canada; 40 – 60 in the US * Convert 15 – 30 existing Tim Horton’s restaurants to include Cold Stone Creamery; 15 – 30 new restaurants in US will be co-branded with Cold Stone Creamery
2010 Financial Objectives * EPS of $1.95 to $2.05 * Operating income growth of 8% to 10% * Tax rate of approximately …show more content…
* Anyone from children to seniors * Students * Business people * “on the go” people * Where? * High traffic, visible & easily accessible locations * Regional markets, such as Ontario (Canada – 23.8%), New York, Ohio & Michigan (US – 0.2%)
Value Proposition
- value to customers (from sales), not franchisees
Features | Benefits | Visible locations | - convenient: customers can easily find a location if they want to buy food | Fast | - saves time: customers don’t have to wait for service, can “grab and go” | “Always Fresh” | - tastes good | High Quality Control | - feel safe eating the food; know it was made in a clean environment | Variety of menu items | - convenient: “one stop shop” for breakfast, lunch, dinner, snacks | Value items | - affordable | Buy in bulk offers (discounts) | - saves money; don’t need to invest time on buying snacks for a group, can easily drive to a Tim Horton’s and purchase a dozen donuts etc… | Simple (vs. Starbucks) | - customers feels comfortable & know what their ordering |
Core Activites & Value Chain *