Transaction cost economics applies to Tim Hortons in a very simple way. ‘Transaction cost economics is mainly concerned with the governance of contractual relations.’ (Douma 195) This is due to having their own coffee roasting facilities, they also have their own facility to pre-bake and packaging facilities. Thereby they can avoid suppliers acting bounded rationally or opportunistic. This minimises the interaction to external suppliers and thus minimises dependability, and avoids possible hold-ups. The transaction cost within the firm solely lies in contact, contract and control of the franchise owners.Similar to most other firm, Tim Hortons is not fully vertically integrated, which means they still have contact, contracts,…
Ah, A Tim Horton’s double-double. This north of the border slang refers to a steamy coffee with double cream, double sugar, and to top it off, a beautifully glazed maple donut. This is a staple snack of the gray, cold, Canadian morning. What could make it better, you ask? A multi-billion dollar Canadian-American merger of course! This is huge news, as it has enormous implications for both entities, as well as the mega-company that they will become. According to Forbes, Tim Hortons has 4,546 restaurants across Canada and the U.S., and has had a 9% increase in revenues from Q2 2013 to Q2 2014. However, Burger King hasn’t been as lucky. They suffered a 6% reduction in revenue during the same year-long span, and a stock price of $26 before the…
Discussion Question #4 How well does Tim Hortons perform on “The Brand Report Card?” 1. The brand excels at delivering the benefits customers truly desire 2. The brand stays relevant The benefits that Tim Hortons customers desire is that of valued quality. Tim Hortons consumers are looking for a quality product at a decent price, they want this because most customers frequent on a 1-2x per day basis. Their brand does this, the customer knows that wherever in Canada and the world that they get their coffee, it will be the same tasting. This is because Tim Hortons has spent a lot of money ensuring that the brand they sell is consistent wherever you get it. Tim Hortons advertising has made many switches over the years from portraying good quality…
Where else to begin? Toronto has some of the best restaurants in the world, and its multiculturalism lends itself to a wide variety of cuisines. If you're as committed to carbs as I am, you have to check out Terroni. This Italian restaurant has locations across the city, so you'll be able to access one wherever you're staying, but my personal favourite is the Adelaide site. It’s housed inside of an old court house and jail, and you can even see some of the cells in the washrooms downstairs! This restaurant may have a few quirks (like their refusal to make changes to the menu or serve pre-cut pizza), but the delicious food is definitely worth the slight annoyance. If you prefer pasta, I recommend the Spaghetti al Limone, a tangy lemon dish which is light but still slightly creamy and definitely filling enough for a full meal!…
I have chosen to discuss two examples, in relation to how the changing economic and competitive pressures have impacted organizations, and what these organization's reaction has been.…
a. Starbucks Corporation makes money in a few different ways, it’s highest revenue source are through the company-operated stores, here they sell things like different coffee brews, teas and pastries. Starbucks’ other revenue sources include product sales to licensed stores, this includes royalties and other fees paid to Starbucks for using it’s brand. Another source of revenue is consumer packed goods (CPG), food service and other, threw CPG, food service and other, Starbucks sells already packaged goods like coffee and tea to other retail stores like grocery stores, gas stations, warehouses, etc. Starbucks also holds short and long-term investments, which primarily consist of investment grade debt securities as well as certificates of deposits all of which are classified as available-for-sale. The last way Starbucks makes money through by investments is in it’s trading securities portfolio, this portfolio is comprised of marketable equity mutual funds and equity exchange-traded funds. Starbucks is also a public corporation so it also raises capital by issuing stock.…
If I were a Tim Hortons Restaurant Owner I would find the best ways possible to make sure my team is committed and engaged. Getting to know my team members is one way I would start. To find out the learning style and how my teams works best, I would create a survey that would be distributed to each team member to complete. The survey would consist of questions like, “What encourages you to work harder?” or “What can be done to help you feel more motivated to achieve goals?” By getting to know how each of my team member’s work I would be able to relate to and work on ways to help make their time working at Tim Hortons exciting while getting their job done. This survey would be a helpful way for me to quickly find out how my team works best.…
The barrier to enter this industry is low only for the local coffee and snack shops because the investment is quite low. Also, the foodservice regulations can be achieved and licensing required for this industry is not difficult to obtain. However, it would be high enter barrier for these specialty coffee shop or chain shop due to the mature life cycle of coffee and snack shops in Canada and high investment on both physical and human capitals. As stated in the article, the industry is concentrated with Tim Hortons and Starbucks with 86.9% market share. Brand identity is essential for the big player since it is difficult to change customer’s daily routine and taste. Also, the economies of scale help larger operators to negotiate favorable terms with suppliers. Moreover, due to the large capital requirement, these major players in the industry can extend their business against the potential competitors. So the newcomers would, therefore, have a cost disadvantage.…
Ultimately, variations in fixed and variable costs and their impact on profits made me think. At Kroger, I reviewed the operating statement each month and focused on items I could control, such as: salaries and inventory.…
Why the Issue has arisen: Tim Hortons corporate objectives are for further expansion and sustained growth…
But that mounting pressure from rivals, and a soft economy, are forcing Tim Hortons to shake up the competitive formula that has churned out profits for decades. “We are working hard to adapt to current market conditions,” Paul House, chief executive officer at Tim Hortons, told analysts on Thursday.…
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.…
Technological- Technology is very important for any country wanting to be successful in the modern world. In order to be successful, Tim Hortons needs to be up to date technologically speaking. Tim Hortons has kept up with the times by having an application available for people to find their locations. Technology is not only important for the customer, but for the retailer as well; for example, their distribution and communication is done in an advanced technological way. They have assembly lines that exceed the average technology used in other corporations.…
Their successful growth in the consumer foodservice over the years can be attributed to its insistence on quality, menu innovation and product development, great customer service, their expansion to non traditional location. (Tim Hortons Inc in Consumer Foodservice (Canada), 2015) Tim Horton most popular product over the years is its legendary coffee but also provide baked products, pastry, and accessories. (Euromonitor, 2015)…
"We are setting out to be bold, different and daring. We envision a Tim Hortons that is one of the industry's most consumer-centric brands, leveraging technology to build our understanding of emerging consumer insights and to connect with them in new and innovative ways. We are focusing on flawless execution and creating the ultimate guest experience. We are asserting our coffee and food leadership, simplifying our operations and pursuing differentiated innovation. Our team is aligned, focused and committed to strong execution and market leadership," said Marc Caira, president and CEO. Tim Hortons plans on continuing their success in Canada and the U.S. Their goal is to continue to serve their employee, customers, environment, and communities. The menu will continue to add new items based in the location of the restaurant and tastes of the targeted customers. With technology on the rise, Tim Hortons plans to take advantage of the use of technology, by offering new ways for customers to get the latest Tim Hortons news, as well as being able to pay on their smart phones. The Company has set a goal of opening 215-255 restaurants in Canada and 46-60 restaurants in the U.S. With the opening of the new stores, they would like to see a sales increase of 1-4% in Canada and the U.S. Their long-term goal is to open 800 restaurants in North America between 2014 and…