Report on Tim Horton's Global Business Expansion Strategy in Singapore

This report provides a comprehensive analysis of Tim Horton's global business management strategy, focusing on its potential expansion into Singapore. It begins with an executive summary and an introduction to the company, highlighting its position as a major coffee chain. The report then delves into the external business environment of Singapore, examining formal factors like political stability, economic factors (money supply and taxes), and legal factors (theft and corruption). It also investigates informal factors, including employment rates and environmental considerations (CO2 emissions). Following the external analysis, the report explores the internal business environment of Tim Horton's, including research and development, brand management, capabilities, and core competencies. The report then proposes a suitable entry strategy, advocating for a sole proprietorship model. Finally, it outlines the implementation of the chosen strategy, detailing timelines, key processes, organizational structure, and human resource management considerations. The report concludes by summarizing the key findings and providing relevant references and appendices.

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

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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