Firm and Industry Analysis of Tim Hortons

Running head: BUSINESS ANALYSIS
Business analysis
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1BUSINESS ANALYSIS
Executive summary
The aim of this report is to discuss about the firm and industry analysis of Tim Hortons. The
industry where they are operating is critically analyzed and different insights had being gained.
In addition, the major external factors relevant in the business operation of Tim Hortons are also
identified and discussed in this report. This report identified that intensity of competition is high
for Tim Hortons with the presence of number of competitors. Moreover, it is concluded that they
should initiate market development strategy to overcome the challenge of limited market
presence. Associated costs are also discussed for the implementation of the plan.

2BUSINESS ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
Industry analysis..............................................................................................................................3
Economics of the Industry...............................................................................................................4
Determination of the external business factors................................................................................4
Market analysis................................................................................................................................5
Firm analysis....................................................................................................................................6
Determination of the business level and corporate level strategies.................................................7
Organizational analysis....................................................................................................................7
Identification of strategic problem...................................................................................................7
Generation and Evaluation of Alternatives (Strategic Cost Benefit)...............................................9
Recommendations..........................................................................................................................11
Implementation schedule...............................................................................................................11
Reference.......................................................................................................................................12

3BUSINESS ANALYSIS
Introduction
Strategic management analysis is one of the major ways for the contemporary business
organizations in the determining the competitiveness in the market. This involves analysis of the
current situations of the business on the basis of different tools and models and identifies the
strengths and weaknesses of the firm. Thus, the more effective will be the process of strategic
analysis for the business firms, the more will be the potentiality for long term viability of the
business. This report will discuss about the strategic analysis of Tim Hortons on the basis of
different perspectives. Tim Hortons are the largest quick service restaurant in Canada and is
majorly catering to the customers seeking coffee and donut items. Thus, they are operating in the
confectionery industry (Ashton et al., 2014). However, in the recent time, the intensity of the
competition for Tim Hortons is increasing with the entry of the global competitors. Hence, it is
important for Tim Hortons to analyze their current situations, which will be discussed in this
report. This report will involve industry analysis, market analysis and firm analysis in order to
identify the key strategic issues of Tim Hortons. On the basis of these issues, cost benefit
analysis of the alternatives will be discussed as well as a few recommended steps.
Industry analysis
It is reported that the number of coffee and snacks shops witnessed tremendous growth in
Canada in the last few years. This is in line to the increase in the coffee consumption of the
average customers in the country. One of the major reasons behind the emergence of this
industry is the busier lifestyle of the customers, which is further contributing in increasing the
footfall of the targeted customers. It is reported that that this industry will have more than $5
billion as revenue and it is also forecasted that this industry will have 4.8 percent of growth rate
by the end of 2019 (Barrows et al., 2016). Thus it can be concluded that the overall attractiveness
of this industry is positive and the firms operating in this sector will witness growth in the
coming years. Some of the major competitors of Tim Hortons are Burger King, McDonalds,
Dunking Brands and Starbucks. Thus, the intensity of the competition is high for Tim Hortons in
the Canadian market. From the industry analysis, a few critical success factors are identified to
be successful in this sector (Richelieu & Korai, 2014). One of the major success factors is the
value proposition. This refers to the fact that customers expect the maximum value in this
industry and cost is not a major determining factor. This is due to the reason that premium