Tim Hortons' Response to the 2007 Financial Crisis: A Case Study

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CORPORATE LEADERSHIP
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Table of Contents
Introduction.................................................................................................................................................3
The assertion of Issue and Finding:.............................................................................................................4
Conclusion...................................................................................................................................................9
Reference...................................................................................................................................................10
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Introduction
Financial Crisis in 2007 is the major financial event around the world which had several impacts
on most of the major global companies in the market. There is a certain issue which is raised by
the Global Financial crisis for the companies around the world. This study is evaluating the
performance of Tim Horton which is Canada's largest quick serves restaurant during the time
period of financial Crisis and also evaluated how the company or management used their
leadership skills and strategies to overcome the impact of the financial crisis on their business
performance.
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The global financial crisis is the incident in which they money on the global market had
tremendous downfall which decreases the economy of various nations around the world.
Financial crisis highly impacts on the economy of the nation which is majorly impacting on the
financial performance of the company.
The assertion of Issue and Finding:
Here some of the issues are identified which cause the money related emergencies in the market
during the year 2007 which impact on the performance of the company and economy of the
nation.
 Companies are not learned any of the lessons from the past experience. They are more focus
on the usage of financial funding for current requirement instead of future saving for the
financial issues (Carbo‐Valverde et. al., 2016). This kind of Human tendency is majorly
causing the financial crisis during the time period of recession. If they engage in the process
of saving for the future crisis then the company is able to safeguard their business process
and overcome the financial crisis.
 Some of the money centered business giants accumulated the fund so that they are able to
maintain adequate administration activities to overcome the financial crisis and also
disregards the signals which indicate the major causing signal to the company about their
financial stability in the market during the downfall of the economy.
 Overcome the cost o loan or financial funding is the major tool which is used in every
budgetary stun which helps in overcome the financial issue for the short-term period but not
making solid moves towards the framework of the financial funding is invited the major
financial emergency in the economy of the nation (Polyakova & Fligstein, 2016). Further
Company also had significance on their financial models which helps them in better
movement of the fund in the time duration of the financial crisis.
 Short term venture funding decrease the cash and cash equivalents availability in the market
which major reason behind the financial crisis in 2007 where subprime mortgage majorly
fall down for the investment bank due to liquid non-availability for the nation and also had a
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major impact on the cash and liquid market of financial market of the nation (Zhou, 2016).
This kind of activities had their thesis on various sectors of the nation and resulted in major
downfall in the performance of the nation.
 Routine activities of the prestige corporate giants in the context of the use of advertising
system in benefit of the organization majorly impact on the brand value of the companies and
also impact on the financial institution from which they had funding. This kind of activities
drives financial institution towards the liquid crisis which pushed financial institution in
bankruptcy. For providing safeguard to the global interested this kind of bookkeeping
activities is never be approved or permitted so that overall welfare is achieved from the
business practices and overcome the chances of the financial crisis in the market for the
nation and the companies.
 There are many of the corporate giants are exist in the market which using the approach of
unethical valuation of the offices to generated the ratings for their security so that they are
able for funding more than their capabilities. This kind of practices leads towards the
financial instability for the corporate and financial institution in the market.
 Market administrative offices are performing carelessly in the market and also they aren't
working properly for the adequate market information so that they are not aware for the
market emergencies and also not paying any of the attention towards the marketing
signals(Lockwood et.al, 2018). The Careless behaviors of the major market administrative
officers are the major causes of the financial crisis in 2007.
 During the financial crisis instability among the financial funding guide high-cost options for
the money related funding on the high cost of borrowing. This practice provides credit
defaults for the companies in the market and also impact on the securitization of the advances
of the company. This activity increases the imbalance among the demand and supply of the
goods in the market so that faced major financial issue for the maintenance of the funds in
the market which increases the financial crisis for the companies and also for the economy.
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Tim Hortons takes certain Major Actions to improve their business process which they needed
from the financial crisis of 2007 in the market which is known as the global financial crisis.
 Tim Hortons is the company which is works for a fast serving restaurant for which they need
to maintain the cash available to meet up their emergency liquid requirement context of
working capital. The company is accurately maintaining its fund for its business activities
which help inadequate financial performance.
 The company also set standards for the financial funding which helps them towards the
adequate financial assessment of funding options in the market so that they are able to
identify the appropriate fund for their investment or business purpose and also provide
assistance in better control of the financial fund.
 Tim Hostons are used proper management mechanism for their disaster management or
future medical emergencies so that they can assure about their future circumstances in the
market which also provide adequate control on their business activities.
 Tim Hostons also used major policies changes in their credit framework which helps them in
better evaluation of the financial capability of the business and also assist for better decision
making of the financial stability strategic decision of the company.
 Management of the company is very much proactive for the market trends and major
financial events in the market which helps them to an evaluate international financial
framework for better decision making in the market and also assist for key performance
factor identification for the international market.
 Tim Hortons works for identified their sustainable objectives and works towards the adequate
addressable objectives for the financial information of the companies which indicates that
management is more proactive towards their CSR policies which help in the achievement of
the sustainable growth in the market.
 The company needs to provide adequate financial information and also maintain the accurate
financial proactive in the company which assists them in better management of the financial
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stability in the market and also provides safeguard mechanism for future complexity in the
market related to the financial crisis.
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Tim Hortons makes several corrections required after the global financial crisis and the
management conducted adequate analysis which helps in better identification of the financial
issue which can be major impact the performance or position of the company and also provide
strategic helps for decision making to improve the business framework so that they are able to
cope up with future uncertainty in the financial market for the company (Mau, 2017).
Management identified some of the factors which can impact on the financial performance of the
company and also can be the reason for financial indiscipline in the market for the company.
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Conclusion
This study is conducted to analysis the various issue which arises due to the global financial
crisis for Tim Hortons so that management is able to identify the major mechanism for the
improvement of business activities. During the study some of the cause of the financial crisis are
discussed and the major action which can use by the management of the company to overcome
the uncertainty of the company and also provide assistance for better decision making for
improvement of the mechanism of the company.
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Reference
 Carbo‐Valverde, S., Rodriguez‐Fernandez, F., & Udell, G. F. (2016). Trade credit, the
financial crisis, and SME access to finance. Journal of Money, Credit and Banking, 48(1),
113-143.
 Lockwood, J., Lockwood, L., & Lau, S. T. (2018). Price Discovery Of Internationally Cross‐
Listed Stocks During The 2008 Financial Crisis. Journal of Financial Research, 41(3), 351-
381.
 Mau, T. A. (2017). Leadership competencies for a global public service. International
Review of Administrative Sciences, 83(1), 3-22.
 Polyakova, A., & Fligstein, N. (2016). Is European integration causing Europe to become
more nationalist? Evidence from the 2007–9 financial crisis. Journal of European Public
Policy, 23(1), 60-83.
 Timhortons. (2019). About Our Company. [Online]. Timhortons. Available at:
http://sustainabilityreport.timhortons.com/overview-about-our-company.html [Accessed on
04.07.2019]
 Zhou, Y. (2016). Performance of Cross-Border Acquisitions: Empirical Evidence From
Canadian Firms Acquired by Emerging Countries.
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