Global Business Management Strategy of Tim Horton's in Singapore

This report examines the global business management strategy of Tim Horton’s in Singapore. It investigates the external and internal business environmental factors that would impact the expansion of the concerned company in the region of Singapore. It also provides the entry strategy and implementation of the same.

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
Name of the Student:
Name of the University:
Author Note:

1GLOBAL BUSINESS MANAGEMENT
EXECUTIVE SUMMARY
The primary objective of this given report is to examine the global business management
strategy of the company named Tim Horton’s that is headquartered in the region of Canada.
The global sector where the business is to be expanded is determined as the country of
Singapore. In this connection, the paper is focused on investigating the external as well as the
internal business environmental factors that would impact the expansion of the concerned
company in the region of Singapore. Hereafter, the report investigates the kind of entry
strategies that is available to a business entity in order to expand its business in the global
sector. On the examination of the same, the report states that the sole proprietorship kind of
business will be the most suitable form of entry strategy for the concerned coffee chain
industry. Moreover, the report also provides the reason for the same. Finally, the report
concludes with determining the implementation of the chosen entry strategy.

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Table of Contents
1.0 Introduction and Company Background..............................................................................4
2.0 External Business Environment...........................................................................................4
2.1 Formal business environment..........................................................................................5
2.2 Informal business environment......................................................................................11
3.0 Internal Business Environment..........................................................................................13
3.1 Research and Development............................................................................................15
3.2 Brand Management........................................................................................................15
3.3 Capabilities.....................................................................................................................16
3.4 Core Competencies........................................................................................................16
4.0 Entry Strategy.....................................................................................................................17
5.0 Implementation of the entry strategy.................................................................................19
5.1 Timeline.........................................................................................................................19
5.2 Key Processes.................................................................................................................19
5.3 Organisational Structure.................................................................................................20
5.4 Human Resource Management......................................................................................20
6.0 Conclusion..........................................................................................................................20
7.0 References..........................................................................................................................22
8.0 Appendices.........................................................................................................................25
8.1 Appendix 1.....................................................................................................................25

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8.2 Appendix 2.....................................................................................................................26
8.3 Appendix 3.....................................................................................................................27
8.4 Appendix 4.....................................................................................................................28
8.5 Appendix 5.....................................................................................................................29
8.6 Appendix 6.....................................................................................................................30
8.7 Appendix 7.....................................................................................................................31

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1.0 Introduction and Company Background
As stated by Doppelt (2017), global business is an ideology, which means that the
business entity deals with its business operations all across the world. With the synergy of
fast advancement in the technology and the expansion in international trade, every business
entity is incentivised to sell its products and services to the people all across the globe. In this
connection, the given report is focused on examining the global business prospect of the
coffee industry Tim Horton’s, Canada in the concern of establishing its business operation in
the nation of Singapore. Tim Horton’s coffee industry is determined to be a fast food chain
restaurant that specialises in the sale of coffee as well as donut items (Weatherby 2016). It is
considered to be the largest and the quickest service chain restaurant in the nation of Canada.
The same is also recorded to work with a number of 4,846 restaurants spread across 14
countries as per the statistical data presented in the year of December 31, 2018.
2.0 External Business Environment
As opined by Leonidou et al. (2017), the external business environment is determined
to consist of the outside market factors that influence the internal operations of a business
entity. With regards to this, the business entity is accountable to act according to the market
situations in order to keep its flow of operations smooth and efficient. In this connection, the
external environment of the business market of Singapore that would impact the start-up of
Tim Horton’s coffee chain is determined below.

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FORMAL BUSINESS ENVIRONMENT
Political
 Political Stability
Economic
 Money Supply
 Taxes on International Trade
Legal
 Theft Rate
 Control of Corruption
INFORMAL BUSINESS ENVIRONMENT
Social
 Employment Rate
Environmental
 Control in the emission of CO2
gases
Table 1: Formal and Informal Institutional-based view of Singapore
2.1 Formal business environment
The formal external business environment consists of the external factors of Political,
Economic and Legal factors. The impact of these factors as concerned with the country of
Singapore on the company of Tim Horton’s is determined as below.

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Political Factor
As stated by McNair (2017), the political factors are the ones which are related to the
policies of the government and its administrative practices that impact the business market of
any concerned nation. The political factors affecting the business market in the country of
Singapore is determined as its political stability. The same is specified below.
Political Stability
The political stability of a nation is described to be significant and stabilised in the
situation when the country is free of political coups as well as revolutions and civil wars
(Legg 2019). In this context, it was analysed that the political stability of Singapore has been
increasing since the fiscal year of 2014. Statistical data shows that the political stability of
Singapore, which was only at 1.18 points in the year of 2014 has increased to a significant of
1.59 points in the year of 2017. It was also examined that this rate of political stability in
Singapore has been recorded to be the highest as compared to its past years. Researches in
this connection expect that the political stability of Singapore would increase more
recognisably in the upcoming years. With regards to this, the report tends to state that Tim
Horton's coffee shop can effectively expand itself in the business market of Singapore. This is
so because, better the political stability of a country, and better the opportunities for a
business entity to run the business in a peaceful and healthy business environment. The same
is shown with the help of the given below diagram.

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Figure 1: Showing Political Stability of Singapore
(Source: Based on Tremewan 2016)
Economic Factor
As stated by Gilpin (2016), the economic factors are the ones that affect the
economies of scale of a nation and therefore, the business entities existing in the country as
well. In this connection, the economic factors that would affect the business of Tim Horton in
Singapore are specified below.
Money Supply
The money supply is an essential factor for any country to have an active business
established in its region. If the money supplied to the country is sufficient enough, the
business organisations will be able to work with better-advanced technologies and market
conditions. Studies show that the money supply condition of Singapore has improved since
the year of 2015 till date. This piece of evidence proves that the concerned coffee chain

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industry has excellent strength to explore their business in Singapore. The same is determined
with the help of the given chart.
Figure 2: Showing Money Supply condition in Singapore
(Source: Based on Baharumshah, MacDonald and Mohd 2017)
Taxes on International Trade
As stated by Dean (2017), the taxes that are imposed on international trade is proper
when it is at a lower level. In this connection, it was examined that the tax rate on the
international trade of Singapore has simultaneously been decreasing since the year of 2002.
The statistical data shows that the tax rate which lied at a higher point of 2.0 in the year of
2002 has shrunk to 0.2 in the year of 2007 and the same is known to be continued till the
present. This clearly depicts that Tim Horton's coffee industry can gain a higher amount of
profit and revenue since the tax to be paid would be of less amount.

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Figure 3: Showing International Tax Rate in Singapore
(Source: Based on McCluskey 2018)
Legal Factors
Legal factors are considered to be one of those external factors which determine how
the law and orders affect the working structure of a business entity (Epstein 2018). In this
connection, the legal factors affecting the country of Singapore are specified below.
Theft Rate
Theft is something that is considered a criminal activity. The level of the same
therefore should be a lower level in order to keep the nation and the business organisation
connected to the same at peace. Concerning to this ideology, it was examined that the theft
rate in the country of Singapore has been decreasing since the year of 2012. Thus, it can be
stated that Tim Horton's coffee industry can grow its business in Singapore in a peaceful and
safe manner.

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Figure 4: Showing decrease in Theft Rate in Singapore
(Source: Based on Ghosh, Robertson and Robitaille 2016)
Control of Corruption
The second factor that is determined is the control of corruption level existing in
Singapore. The better the control, the better the effectiveness of the business in the country.
In this context, it was examined that the corruption level in Singapore has recognisably been
controlled since the last few years. This depicts a great source of strength for the Tim
Horton’s coffee chain to establish a business in Singapore as the same will not be affected by
the adverse condition of corruption level and will be able to generate a better standard of
profit. The same is depicted in the given below diagram.

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Figure 5: Showing an increase in the level of corruption control in Singapore
(Source: Based on Quah 2018)
2.2 Informal business environment
The informal business environment consists of social and environmental factors. With
regards to this, these informal factors affecting the business environment of Singapore is
determined below.
Social factors
As stated by Fromm and Anderson (2017), the most important social factor that
impacts the society is the employment rate the country can provide to its people in order that
they can earn their livelihood.
Employment Rate
The employee rate is considered to be an essential aspect that impacts societal factors.
This is because the employment rate in the nation is what describes the societal stability of
any country. In this context, the employment rate in Singapore is increasing since the year of

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2017 till present. Therefore, the concerned coffee industry has excellent strength to hire better
and skilled employees for its working conditions.
Figure 6: Showing an increase in employment rate in Singapore
(Source: Based on Teo 2015)
Environmental Factors
Control in the emission of CO2 gases
As opined by Goudie (2018), the environmental factor that profoundly affects the
environment is the negative impact of the harmful emissions of the CO2 gases. Concerning
this factor, the studies investigated that the emission of the rate of CO2 gases have
significantly decreased in the country of Singapore and therefore, the environmental
condition the same is improved and stabilised. Thus, the company under discussion here in
the paper can profoundly work with better environmental sustainability available to it in
Singapore.

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Figure 7: Showing decrease rate in CO2 emissions in Singapore
(Source: Based on Lau, Choong and Ng 2018)
3.0 Internal Business Environment
As stated by Rauter, Jonker and Baumgartner (2017), the internal business
environment of any business entity is known to compromise of those elements that are
associated internally with the firm and affects the working structure of the same. In this
connection, the internal factors that would impact the concerned coffee industry in the
context of expanding its business in Singapore are specified below.

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Value Chain Capabilities Resources VRIO Sustainable
Competitive
Advantage
Primary Activities
Inbound Logistics
Outbound Logistics
Management
Promotion
Brand Management
Manufacturing
Supply Chain
Product
Innovation
Machineries
and pieces
of
equipments,
Engineers in
Canada,
Suppliers,
Raw
Materials.
V
Y
R
Y
I
Y
O
Y Yes
Supporting
Activities
Procurement
Technology
HRM
Firm Infrastructure
Research and
Development
The Human
Resources
of the top
level
management
, stores.
Y Y Y Y Yes
Table 2: Resource Based view of Tim Horton’s

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3.1 Research and Development
Eriksson et al. (2015), is of the viewpoint that a business organisation in the concern
of succeeding and gaining better paradigm in the level of the business market needs to work
according to the change in the fact and factors of the market condition. In order to gain this,
any business entity should have a well-built research and development team. This is because
the concerned team would be accountable to study the changes in the market conditions the
business is dealing with. The current market state is to be understood by the R&D team and
therefore communicate the same to the managerial level of the company to decide and
strategical implement the required amount of changes needed to be done for the betterment of
the firm. Similarly, the organisation of Tim Horton, Canada, in the concern of expanding
itself in Singapore has to study the entire food and beverage market structure of Singapore.
This is because researching the market structure before-hand will help the company to know
about its peer competitors and the strategies they use to succeed in the market. Not only this,
but the research process will also help the company to understand the work process it has to
work with to earn the objective of high-profit ratio as well as sustain itself in the market of
Singapore for a more extended period of time. Moreover, the research process will also help
the concerned company to gain knowledge about the taste and preferences of the potential
customers they need to target while processing their business.
3.2 Brand Management
Brand Management is considered to be that activity of a business entity that helps in
the regulation and supervision of promoting the products and services offered by the firm and
therefore improving the brand name of the firm respectively (Charter and Tishcner 2017). In
this connection, the internal factor of brand management will help the concerned business
industry of Tim Horton’s to let the people of Singapore know about the existence of the
same. Moreover, the company will able to promote itself in the different sectors of the food

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and beverage market of Singapore and many small retail areas of the restaurant would tie-up
with the brand name of the concerned firm. This would help the company to grow as well as
earn a more significant amount of profit. Take, for example, in order to promote itself, in the
beginning; the company can offer free food products so that the customers get a taste of the
food and beverages product served by the company and later opt for the same. Secondly, the
business organisation can also offer a discount on its products in the initial of the business to
attract the attention of the customers and also promote themselves effectively and efficiently.
As stated by McDonald and Wilson (2016), every customer wants the best at the least.
Therefore, the company should focus on managing their brand in a manner that the customer
satisfaction level remains at the highest paradigm as compared to its peer competitors for the
complete life-cycle of the firm.
3.3 Capabilities
As examined with the help of the study, it was analysed that the concerned coffee
industry is known to have effective and effective capabilities that helps the same to attain a
better level of competitive advantage as well as the desired goals and objectives. The
capabilities of the organisation were recognised as better manufacturing strategies, effective
supply chain strategies, product innovation capabilities and the research and development
management.
3.4 Core Competencies
As stated by Malik, Ngo and Kingshott (2018), the core competencies of an
organisation are referred to as the distinguished and harmonised combination of resources,
skills and talents that differentiates the same from other working organisations of the business
market. Thus, the foundation of the company is also impacted by the same. In this concern,
the core competencies of Tim Horton’s were recognised as the quality of the products it

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serves, the customer services, the community leadership, the leveraged technology of
expansion and the training of the franchisee.
4.0 Entry Strategy
According to the viewpoint of Blythe and Martin (2019), entry strategy is considered
to be the planned strategy of distribution and delivery of the goods and services that a
business firm offers to an entirely new base of the market. In this connection, the three
different market entry strategies that are available to a business organisation is specified
below.
Joint Venture
As stated by Axelsson and Easton (2016), a joint venture business organisation comes
into existence when two or more parties are involved in the creation of the firm. This type of
business is generally characterised by the ideology of shared form of ownership as well as
risks and returns and shared governance. The business type of joint venture is pursued in the
condition when the two interested parties wish to share and combine their part of assets and
operations in a business. Not only this, but the parties involved are ready to share the
significant investments as well as the projects that are included in the transaction of the
business. The profit earning, as well as the loss incurred, are all shared in the aspect of joint
venture business.
Merger and Acquisitions
The ideology of merger and acquisition states that the ownership of one company is
shared with other business organisations or entrepreneurs (Means 2017). One or more
business entity is known to consolidate or transfer their business operations and units with
other firms. The M&A allows the business enterprises to grow and change the nature of the
existing business as well as the competitive position of the same. Thus, two different business

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entities are merged together as one legal organisation, and in a few cases when one company
takes over the ownership of other, the same is termed to be the acquisition of the company.
This kind of business deal takes place mostly in the situation when an entrepreneur feels that
starting up a new venture would cost more and even the competency level of the existing firm
is at a much higher level.
Sole Proprietorship
The above mentioned kind of business organisation is determined to be a type of
business that is solely owned by a single entrepreneur. The sole trader, however, does not
work alone for the business but is recorded to employ different interested candidates to work
for the same. The single entrepreneur is known to be the only owner of the complete profit
earned out of the business transactions (Kirzner 2015). However, the major drawback of this
kind of business is that the entrepreneur becomes the sole owner of the losses incurred in the
business too.
Choice of entry strategy for Tim Horton’s
Based on the examination of the above-mentioned kinds of market entry strategy, the
report tends to state that establishing a sole proprietorship business would be the most
suitable form of entry strategy for the concerned coffee chain industry. This is because
starting up with a sole business would help the company to gain better growth in the market
of Singapore (Lin 2019). This is because the kind of cuisine that would be offered by the
coffee industry would be a different and a new taste for the people of Singapore. Moreover,
the synergy of sole business will provide employment opportunities to the people in
Singapore as well as all across the world (Amabile 2019). In addition to this, be it the profit
or the loss, a sole entrepreneur would be responsible for the same. Therefore, the conflicts
that would arise in the partnership would not happen in this case. Not only this, but the

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dealing of the operations would be all fresh and new in case of a sole business as compared to
a merger or acquisition where the company would have faced past issues and the brand image
of the same would have been affected.
5.0 Implementation of the entry strategy
5.1 Timeline
As discussed above in the paper that the most suitable form of entry strategy for Tim
Horton’s in the country of Singapore is the sole proprietorship form of business, in this
context, the timeline to set the same would be a period of six months to one year. This is
because the entrepreneur would need ample time to search about the pros and cons of the
business market of Singapore and therefore decide the location where the business is to be
established (Parboteeah and Cullen 2017). Moreover, the target market and the competitors'
strategy is also to be taken into consideration, and therefore, a time period of six months to
one year would be needed.
5.2 Key Processes
The key processes that are involved in the concern of establishing a new sole
proprietorship business are specified as under,
 Making up a business plan.
 Building the credit required.
 Gaining the required permits as well as licenses.
 Registering the business.
 Opening a bank account.
 Preparing the tax season.
 Minimising the liability.
 Getting the resources.

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 Setting up the firm.
 Starting the operations.
5.3 Organisational Structure
5.4 Human Resource Management
As the concerned business is chosen to be opened as a sole proprietor business, the
Strategic Human Resource Management of the business would be a plan that would facilitate
the manner the concerned business organisation would run its operations as well as
transactions (Bendell 2017). Both the ideology of the HRM strategy as well as the new
business strategy should be integrated to ensure the smooth flow of business operations.
When the HRM and the business structure would work hand-in-hand, only then will it be
possible that the desired goals and objectives of the business would be achieved (Bratton and
Gold 2017). The HR people may include the Resourcing Managers, the Research and
Development team, the HR operations Advisor, the Store Manager, the Administrator, the
HR business partner as well as the Compensation and Benefits Analyst.
6.0 Conclusion
Hence, to conclude, it can be stated that running a business enterprise in the global
perspective does give a higher amount of profit and brand image to a business entity, but the
same is not as easy as it seems. In order to expand a business in the global and international
sector, a business entity has to go through many challenges and risks. Moreover, there is a
CEO
Marketing Production HRM IT Customer
Service

21GLOBAL BUSINESS MANAGEMENT
high risk for the business firm that the same would be able to succeed in the global
perspective or not since there would be a large number of similar and renowned business
entities already existing in the chosen international country. The factors of the internal as well
as the external business market are also to be considered in the concern of expanding the
business globally.

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7.0 References
Amabile, T.M., 2019. Educating leaders who make a difference in the world. Perspectives on
Psychological Science, 14(1), pp.7-11.
Axelsson, B. and Easton, G., 2016. Industrial Networks (Routledge Revivals): A New View
of Reality. Routledge.
Baharumshah, A.Z., MacDonald, R. and Mohd, S.H., 2017. Exchange rates in Singapore and
Malaysia: are they driven by the same fundamentals?. Malaysian Journal of Economic
Studies, 47(2), pp.123-141.
Bendell, J., 2017. Terms for Endearment: Business, NGOs and sustainable development.
Routledge.
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Charter, M. and Tischner, U. eds., 2017. Sustainable solutions: developing products and
services for the future. Routledge.
Dean, J.M., 2017. International Trade and the Environment. Routledge.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Eriksson, K., Johanson, J., Majkgård, A. and Sharma, D.D., 2015. Experiential knowledge
and cost in the internationalization process. In Knowledge, Networks and Power (pp. 41-63).
Palgrave Macmillan, London.

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Fromm, E. and Anderson, L.A., 2017. The sane society. Routledge.
Ghosh, A., Robertson, P.E. and Robitaille, M.C., 2016. Does globalisation affect crime?
Theory and evidence. The World Economy, 39(10), pp.1482-1513.
Gilpin, R., 2016. The political economy of international relations. Princeton University Press.
Goudie, A.S., 2018. Human impact on the natural environment. John Wiley & Sons.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago Press.
Lau, L.S., Choong, C.K. and Ng, C.F., 2018. Role of Institutional Quality on Environmental
Kuznets Curve: A Comparative Study in Developed and Developing Countries. In Advances
in Pacific Basin Business, Economics and Finance (pp. 223-247). Emerald Publishing
Limited.
Legg, K.R., 2019. Managing political change: Social scientists and the Third World.
Routledge.
Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., 2017. Internal
drivers and performance consequences of small firm green business strategy: The moderating
role of external forces. Journal of business ethics, 140(3), pp.585-606.
Lin, L., 2019. Private Equity in Singapore.
Malik, A., Ngo, L.V. and Kingshott, R.P., 2018. Power, resource dependencies and
capabilities in intercultural B2B relationships. Journal of Services Marketing, 32(5), pp.629-
642.
McCluskey, W. ed., 2018. Property tax: An international comparative review. Routledge.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them how to profit
from them. John Wiley & Sons.

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McNair, B., 2017. An introduction to political communication. Routledge.
Means, G., 2017. The modern corporation and private property. Routledge.
Parboteeah, K.P. and Cullen, J.B., 2017. International Business: Perspectives from developed
and emerging markets. Routledge.
Quah, J.S., 2016. CONTROLLING CORRUPTION IN ASIAN COUNTRIES. Routledge
handbook of corruption in Asia.
Rauter, R., Jonker, J. and Baumgartner, R.J., 2017. Going one's own way: drivers in
developing business models for sustainability. Journal of Cleaner Production, 140, pp.144-
154.
Teo, Y., 2015. Interrogating the limits of welfare reforms in Singapore. Development and
Change, 46(1), pp.95-120.
Tremewan, C., 2016. The political economy of social control in Singapore. Springer.
Weatherby, G.J.V., 2016. Tim Hortons (Doctoral dissertation, University of Prince Edward
Island).

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8.0 Appendices
8.1 Appendix 1
Figure 1: Showing Political Stability of Singapore
(Source: Based on Tremewan 2016)

26GLOBAL BUSINESS MANAGEMENT
8.2 Appendix 2
Figure 2: Showing Money Supply condition in Singapore
(Source: Based on Baharumshah, MacDonald and Mohd 2017)

27GLOBAL BUSINESS MANAGEMENT
8.3 Appendix 3
Figure 3: Showing International Tax Rate in Singapore
(Source: Based on McCluskey 2018)

28GLOBAL BUSINESS MANAGEMENT
8.4 Appendix 4
Figure 4: Showing decrease in Theft Rate in Singapore
(Source: Based on Ghosh, Robertson and Robitaille 2016)

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8.5 Appendix 5
Figure 5: Showing an increase in the level of corruption control in Singapore
(Source: Based on Quah 2018)

30GLOBAL BUSINESS MANAGEMENT
8.6 Appendix 6
Figure 6: Showing an increase in employment rate in Singapore
(Source: Based on Teo 2015)

31GLOBAL BUSINESS MANAGEMENT
8.7 Appendix 7
Figure 7: Showing decrease rate in CO2 emissions in Singapore
(Source: Based on Lau, Choong and Ng 2018)