COMMERCE 4PA3 Study Guide - Final Guide: Tim Hortons, Brand Awareness

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5 Aug 2016
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1.1 Resource Analysis
In the strategic proposal “Winning in the New Era” by Tim Hortons Inc. they want to grow their
business on an international level by planning to have a profitable U.S. business by 2018 and
aggressively scaling it. In order to achieve their goals they have focused on four core ideas:
Increasing same store sales, investing to build scale in the market, growing in new ways and
leveraging its core business strengths.
Step 1: Identify resource requirements: Determine the resource requirements of the strategic
proposal
In order to implement the new strategic proposal, Tim Hortons will need some additional
resources for the successful implementation of the strategies. For them to have increased same-
store sales they have to take advantage of the growing trend of snacking between meals which
can be done by additional marketing of their quickly served snacks. Product innovation and
development would also be needed to ensure that these new snacks are healthy. In order to
increase their market share in the beverage category they need to increase customer awareness
and accessibility which can only be done by increasing marketing and expanding geographically
which would require financial resources. The expanding of their business would require them to
open new stores which would require more sourcing and increased production and distribution.
Tim Hortons is also considering different options to maximize throughput in the stores which
would require additional financial and development resources for new store layouts, equipment
and menu items.
Step 2: Test the strategy-resource linkage – identify gaps between the required and available
resources
Currently Tim Hortons does not have the resource requirements in order to implement the new
strategy. In order to increase the brand awareness in the US, Tim Hortons will need to increase
marketing in southern US and especially in the state of New England where it has performed
badly historically. Current they air commercials only in Canada to reinforce the connection
between Tim Hortons and Canadian people. They could do the same by airing commercials in
US to increase the brand popularity and customer awareness. Tim Hortons has a goal of opening
800 new locations in US and GCC to increase accessibility which would require immense
financial resources. Along with the financial resources, increased sourcing and production would
also be needed to meet the increased demand. They will also have to open new distribution
centers and warehouses to support the new stores. Although, Tim Hortons does continuous
product innovation it has not changed the layout of the stores which has restricted the
throughput. Development of the features of the store and equipment is needed to utilize the
existing store space more efficiently.
Step 3: The following table shows the gap closing analysis that is need to reduce the gap between
available and required resources.
Resource
Category
Required
Resources
Available
Resources
Major Gaps Gap-Closing
Analysis
Marketing Marketing in US
and GCC to
Commercials,
TV and Radio
Brand awareness
in southern US
Increased
marketing to
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