Introduction/Executive Summary 

Tim Horton's coffee shop is located in Canada. It's a place where people purchase

doughnuts, breakfast, lunch, and coffee. The Company’s headquarters are located in Toronto. It

is ranked as the fastest restaurant chain located in Canada. It was started in 1964 in Hamilton by

a hockey player called Tim Horton. Since then, the Company has been involved in various

financial deals. In 2018, the Company sold more than 60% of its shares from the parent company

Restaurant Brands International (RBI). Since then, the Company has been accused of acting

against Canadian values. There have also been conflicts between the employees, franchisees and

the parent company (RBI). This has destroyed the Company's public image.

The shop has become a famous Canadian brand. It is known for its superb products,

which bring an extraordinary feeling of pleasure and passion. It is one of the best-selling coffee

shops in the country. According to research, 80% of the coffee cups sold in the country are from

the shop. The Company was able to create a remarkable brand by using various strategies. At

first, the Company opened numerous coffee shops around the country. In Canada, they have

more than 4 000 shops. Basically, if there is a party and people require coffee and doughnuts, it's

likely that Tim Hortons' products will be there. Secondly, the Company has the Canadian culture

in its DNA. It considers the Canadian culture while doing its marketing. The Company tries to

participate in the activities that take place in the community. For example, the Company tries to

sponsor hockey sports events around the country. During the Afghan war, when the soldiers went

to fight, the shop set up a shop in the military base to serve the soldiers during the war. Due to its

excellent participation in community activities, the Company is ranked as one that appreciates

Canadian values.
 However, the shop has begun losing some of its customers. In 2018, research was

conducted to position some of the country's most reputable companies. The Company was

ranked in the 67 place while it was in the 13 position in 2017. Though the Company may be
th th

facing one of its worst phases, it still has some loyal consumers. Therefore, it has the chance to

gain its position back in society. Though the Company wants to expand its activities in the

international market, it should focus more on the home market to avoid losing some of its clients.

There has been pressure by the Company to open shops in other countries. Some of the target

markets are in the USA and Asia. The Company plans to open more than 1500 shops in Asia.

The Company views China as a suitable location for its business due to its huge population and

its exciting economy. The citizens have also embraced the use of coffee as a beverage, which

presents a perfect opportunity.

This project aims to analyze the Tim Horton company and the strategic management

issues that the Company faces. The essay starts by analyzing the Company's product and

strategic issues that the Company faces. The research then conducts an external environment and

industrial analysis. The project will use various analytical tools to analyze the internal conditions

in the organization. The essay will also be used to develop various strategies and an action plan

that can be used to develop the strategies.

1. External Environment and Industry Analysis.  

General environment (demographic)

Canadian population can be described as an aging population. In Canada, the amount of

coffee consumed increases with the age of the consumers. It is estimated that more than 60% of

adults consume the beverage daily. This can be illustrated in the figure below. 
Fig 1.0 ("Canada coffee consumption statistics - Google Search," n.d.)

Economic segment 

According to research conducted in 2019 by Statista, Tim Hortons Inc. (Restaurant

Brands International Inc. is the leading restaurant chain with over 8,900 sales in a million dollars.

The Company also has the highest food service and fast food sales. Therefore, it is a leader in the

industry. 

Gross sales in a million Canadian

dollars

Tim Hortons Inc. (Restaurant Brands International

The Second Cup Ltd. 146.6

Fig 2.0 ("Best Canadian Fast Food Chains - Top Ten List - TheTopTens®," n.d.)

Technological segment 

The Company allows its consumers to pay using their visa cards. The Company has a

loyalty card that consumers can use to redeem their points. The Company has also created a

mobile application platform that consumers can use to pay for certain services. The application is

called Timmy Me. Just like other modern companies, the Company has used E-commerce to

ensure its efficiency.

Physical environment segment

The Company relates well to the community. The Company tries to sponsor hockey

sports events around the country. During the Afghan war, when the soldiers went to fight, the

shop set up a shop in the military base to serve the soldiers during the war. They also participate

in creating environmental awareness and trying to maintain the environment. The Company also

sponsors various children in schools and other educational programs. One of their famous

campaigns is making a true difference campaign.  

Global segment

The Company is the leading player in the fast-food industry in Canada. However, in

international markets, the Company seems to be struggling. However, the Company merged with

Burger King, which may make the Company more competitive in international markets. Burger

King is one of the leading global restaurants, as indicated in the figure below. The figure below

shows the leading restaurant chains across the globe. 

Fig 3.0 ("America's Favorite Fast Food Chains, And Who's Visiting Them - Marketing Charts,"

n.d.)

Industrial Analysis

The five porter forces can be used to analyze the industry environment using various

factors. It allows one to analyze a business using five forces, namely, the threat of new entrants,

the bargaining power of customers or buyers, competitive rivalry, the threat of substitution, and
the bargaining power of suppliers. In our case, Tim Horton restaurants operate in a field that has

very strong competition. The essay will rank the intensity of the five forces.

Competitive rivalry (strong force).

The business faces very high competition, especially in the coffee and foodservice

industries. There is strong competition in the market since there is a large number of companies

that are there in the industry. The Company faces competition from different firms that are in

different sizes. It is also easy for consumers to switch from one company to another. The

consumer will experience minimal demerits after switching their allegiance. The industry is also

in the maturity stage. During this stage, there is minimal growth, and the market is saturated.

Some of the companies that the Company faces competition from are McDonald's, Starbucks,

etc.
Fig 4.0 ("Why Tim Hortons isn't as popular as Starbucks or Dunkin' in the U.S.," n.d.)

The threat of new entrants (Moderate)

This force analyses the threat of new entrants in the market. The threat can be categorized

as a medium due to the following reasons. The cost of doing business depends on the food chain.

A smaller restaurant has fewer costs compared to that of a big restaurant. Therefore, a smaller

food restaurant has low supply needs hence low supply chain cost. As a result, it makes it easier

for smaller businesses to compete against larger firms. However, developing a brand name is

expensive. It also consumes a lot of time. Therefore, it becomes difficult for new entrants to

reach a higher level. Therefore, the force is substantial but also limited. 
The threat of substitution (strong)

The business experiences a strong force of substitution. Several factors contribute to the

above force. The products that the business provides have readily available substitutes. The

consumers' costs of switching from one product to another are also low. Some of the substitute

products are cheap and affordable.

Bargaining power of suppliers (weak force) 

The bargaining power of suppliers is weak. They have very little impact on the

Company's strategic management. There are quite a huge amount of suppliers ("SWOT analysis

of Tim Hortons - Tim Hortons SWOT analysis," n.d.). Therefore, they lack enough power to

negotiate. There is also a large overall supply. However, the size of the supplier's firm may

increase its bargaining power.

Bargaining power of buyers (strong force)

The influence of the consumers on the Company's strategic management is quite strong.

The buyers have high bargaining power. The switching costs are low; hence it is easy for a

consumer to move one from brand to another. There are a huge number of substitutes. However,

buyers only buy small sizes of products.

3. Analysis of Internal Condition

The Company is positioned as one of the favorite coffee companies found in Canada. For

it to maintain this position, the Company has to maintain its strengths and take advantage of its

opportunities. The Company also needs to take care of its threats and weaknesses. The segment

below represents the company SWOT analysis.

 The Company's products have a good pricing strategy that appeals to all groups despite

their income. Their rivals, such as Starbucks, have a pricing strategy that does not

consider all the income groups "Starbucks Coffee Five Forces Analysis (Porter's Model)

& Recommendations - Panmure Institute," n.d.). 

 The Company focuses on markets that analysts have predicted that their brand will grow.

They aim to ensure they penetrate such markets such as the U.S.

 The Company has very loyal consumers, especially in Canada.

 The brand is always considered to be authentic. This shows that the brand has good

business values. 

 The Company has a clear communication strategy. They are transparent and honest. They

also appreciate their consumers' feedback.

Weakness in the SWOT analysis

 The Company lost focus after introducing brands such as smoothies and soups. They

were introduced after receiving pressure from their rivals.

 The Company has also tried introducing brands that have failed, such as lunchtime

snacks.

 In foreign markets, the Company has failed to succeed.

Opportunities

 Numerous consumer behavior trends may favor the Company's activities. For example,

rural to urban migration, increase in income, high level of employment, and increase the

use of the internet.

 The Company faces strong competition from rival companies.

 There are health campaigns against junk and fast foods. They are encouraging people to

eat home-cooked meals. This is a huge threat.

4. Tim Horton's Strategy Development

         Based on Tim Horton's internal and external environment analysis, it is evident that the

company is experiencing some strategic issues which can affect its current and future

competitiveness and growth. To change the firm's current position, it is essential to develop

strategies that can help address these strategic issues effectively.

Competitive Strategy

         Today, some companies fail to determine customer trends based on their requirements,

and this exposes the business to high risks because it may lose its customers to rivals who can

satisfy their needs. Thus, to address this issue and win customers to itself while retaining the

existing ones, Tim Hortons will have to develop a new strategy that will increase its competitive

advantage by meeting clients' needs and expectations. Since it currently operates using the low-

cost strategy only, which so far has been successful, it may be time to consider another generic

strategy to support its goals. The company should, therefore, make use of the differentiation

strategy since adding value to its existing products and services or developing new ones may be

crucial in fulfilling customers' desires. This is because today, they are mostly concerned about

the value that the firm offers them. 

         Frick, Gergaud and Winter (2017) argue that the ultimate goal of making strategic

decisions in restaurants is for the realization of sustainable profit. To meet this objective,
managers of Tim Horton need to devise ways of building and capturing the value while at the

same time reducing the cost of production, consumer transaction, and introducing new food

items or services. Tim Horton's differentiation strategy should help it distinguish its products and

services by making them more attractive to specific groups of clients. The company should

consider making vertically differentiated products that differ in quality from those offered by

rivals. The aim is to develop a position that customer’s value or potential clients view as unique.

This will require Tim Horton to know its market and its customers well to help build lasting

relationships.

         Currently, the company only concentrates on older customers who enjoy coffee as

opposed to other products. However, the new trend shows that the Millennials are increasing

hence the potential clients. Their daily activities create an opportunity for Tim Horton to come

up with new flavors that influence their dining decisions. The company should, therefore,

cultivate crave-ability by developing unique signature items that have the power of transforming

potential customers into regulars. Introducing unique and eco-friendly ingredients in the menu

that meet the nutritional needs of each specific market segment will help differentiate the

company from other competitors like Starbucks. This is because the firm reveals how well it

understands customers and works towards satisfying their needs in a differentiated and unique

way. 

Business Diversification Strategy

         As business gets older, it may be challenging for it to increase profit and market share.

This is because customers get used to similar products, thus the need to diversify into new ones

to give the company an opportunity to increase its income, decrease business risks and attain

competitive advantage. Diversification concerns branching out into new opportunities by

successfully in a market where stiff competition occurs due to the provision of other products

that counterparts do not offer.

         From the company analysis, there are health campaigns against fast food and junk food,

and also continuous encouragement for people to consider eating home-cooked meals. Thus, it

may be time for Tim Horton to diversify into local and sustainable ingredients that are tailored to

meet the needs of a specific subset, including vegetarians. As such, it requires the establishment

of brand new restaurants that prioritizes sustainability and offers new food items such as ethnic

foods, meat alternatives, and exotic-seeming options. To do so, the company will have to

diversify to related food retail business that considers the way customers think about healthier

products while at the same time creating value. This will aid the company to stabilize and grow

its revenue, improve its overall growth activities, and exploit underutilized competencies and

markets. Tim Horton, however, will have to use its resources and capabilities accordingly to

determine the most demanded food items in the market so that it can concentrate on providing

only products and services that can meet customers’ needs. This will help reduce wastage and

additional cost while maximizing organizational revenue.

Global Competitive Strategy

         The company has had a lot of conflicts between franchisees, employees, and the parent

company Restaurant Brands International (RBI), which has damaged its public image. As a

result, considering an alternative global competitive strategy is vital to boost competitiveness.

According to Chathoth and Olsen (2003), the inter-firm relationship has enabled companies to

gain competitive advantage, especially now that firms are exposed to strategic risks linked to

political, technological, economic, and market uncertainties, which may affect the survival of
restaurants. Value-adding resources have become scarce, forcing companies like Tim Horton to

consider alliancing with other ventures collaboratively to address the issue and also share

resources.

         The analysis has revealed that Tim Horton has an opportunity of expanding to US and

Asian markets. However, the company should first enter the US because of its close proximity to

Canada, the home country. Through the international partnership, this fast-food restaurant will be

able to successfully enter the US because the venture that it is supposed to alliance with already

occurs in that market and hence has sufficient information concerning the existing market trend.

Tim Horton expansion plans need to be adequately crafted for months if not years to allow

research to occur on the right partner for alliancing purposes. For the partner to be considered

correct, it must possess a menu that matches with that of Tim Horton and also the market

demographics.

         However, the company should take care of when expanding at an international level

because many risks need consideration. They include complex regulations, distinctive customer

preferences, and highly complicated business environments that need to be navigated

appropriately. Fortunately, since the company is financially stable after long years of

establishment, it will be able to invest in this partnership in order to expand abroad successfully.

Its competitive edge will be determined by how well its menu item will best translate to the local

demographic, and this means that it needs proper planning to include local food items without

entirely altering its menu. For instance, the firm should change its menu by only 20% to

concentrate on local dishes, and this will help it create and retain its brand image and value while

collaborating with its partner in an attempt to avoid selling similar products. By this, the

profitability of each company will be attained.

For a successful implementation of the recommended strategies, Tim Horton will need to

develop a strategic action plan. As known, Tim Horton is a famous brand in Canada where many

Canadian love to go to, but with the expansion to the U.S., Tim Hortons have to develop a

strategic plan on how they will maximize their growth in the country before rapid international

expansion outside of the U.S. They will have to carry out their strategy by focusing on strategic

leadership, organizational structure, resource and capability development, and human resources

strategy. 

Tim Hortons have strategic plans that they will put in action. First off, they need to have

strategic leadership. Strategic leadership is important in business and for successful

implementations of their plans. Tim Hortons is famous in Canada, but is expanding in the U.S.

and with the potential expansion to other countries, therefore, they have to find management that

has the potential to express a strategic vision for the organization for it to be successful in that

country. With poor management that does not know much or is not willing to adapt to culture

change will have difficulties in reaching out to customers and identifying their needs. Because

Tim Horton is famous and well-known in Canada, it does not mean that it will be the same in the

U.S. It’s a different environment and they have to know what is best in capturing customer’s

trust and loyalty in the new country. Seeking for leaders who are motivated, open to change,

understanding, and visionary for implementing in maximizing the market share for the

organization, Tim Hortons will start off good in the U.S. 

The overall organizational structure is an important part to carry out a successful business

for Tim Hortons in the U.S. An organizational structure helps outline how activities are directed

in order to achieve an organization’s goals. With this structure, it provides guidance to all
employees because it lays out the reporting relationship that governs the workflow of the

company and how information flows between levels within the company. Having a formal

structure will help with efficiency and provide clarity for everyone at every level within the

company. It will also eliminate any difficulty of whom to report as that can lead to uncertainty as

to who is responsible for what in the company. With the structure in place, Tim Hortons

employees will also be put on the pay structure that is best for their position and this led to a

clear pay structure of pay for the position each employee is in.

Resource and capabilities is also an important thing to consider for a successful

implementation of Tim Hortons’ action plan to maximize market share. There are many

competitors out in the real world and Tim Hortons has to frame its resources and capabilities 

using VRIO analysis to measure its strength relative to those of its competitors. By measuring

Tim Hortons’ resources and capabilities to see whether it is valuable, rare, imitable, and

organized to exploit the full potential of its resources and capabilities, the resources that satisfy

all four dimensions are most likely to provide Tim Hortons with a long-term competitive

advantage. A long-term competitive advantage is important because the products or services

provided by the company are hard to imitate, which differentiate the company from the rest of its

competitors and is at a competitive advantage over other competitors. By setting the resources

and capabilities of Tim Hortons, they start off in the market with competitive advantage and this

will increase their chance of successfully implementing their plans to maximize their market

share.

Aside from strategic leadership, organizational structures, and resources and capabilities

as an important form to carry out a successful implementation on Tim Hortons action plans,

human resource strategy is also as important. In order to improve other resources, it’s essential to
understand how HR works and have a strategy on HR development. The company has to ensure

that there will be adequate staff to meet the company’s goals. Even though Tim Hortons is

successful in Canada, they still have to assess their current HR capacity before hiring new

employees, that means assessing whether any employees are transferring to other store locations.

Hiring and recruitment is essential in HR development since this used up a lot of funds from the

company. There are a lot of strategies that the company has to put in place to help with staffing

for new stores that are to be open; not too short staff nor over. The company has to select the

right employees that determine the best fit for the company because employees are the most

important factor for the company’s success. With HR strategies, Tim Hortons will be able to

determine where they are currently standing and where they are going in order to ensure that they

are on track.

Control Systems

In regards to control systems of a Tim Horton, their main focus was to market the top

quality of food, fresh products, value, great services and community leadership. Tim Hortons

always make sure they produce the fresh coffee, baked goods and homestyle lunch and have it

available for every customer that walks in. Avoiding long lines, they make sure everything is

well prepared before they serve out to the customers. Tim Horton makes sure that its employees

conduct themselves and perform great job duties to customers. For a perfect control system,

business must consist of procedures and processes to help an organization achieve their original

mission and objectives. After training all the employees to work well professionally to represent

the store, lead managers and business owners have the right to track and monitor performances

of employees for better improvement and adjustment to reach their mission and store targets.  
 Next, Tim Hortons did very well with their store appearances according to their business

control system. they want to make sure they provide the best and clean environment for their

customers. Most of the restaurants were renovated to include a special memory-lane museum for

attractiveness. The memory-lane museum holds a large collection of old Hamilton city pictures,

retro coffee cups, employee uniforms, and vintage bakery equipment. The location in Saint

Cloud, Minnesota of Tim Hortons has the newer version of renovation. The newly renovated

restaurant was built with low-flow fixtures, high efficiency hand dryers, LED lighting and

lighting controls and energy management control for the HVAC system. Tim Horton is working

on providing the newest environments with the most memorable history of theirs to stay on with

upgrades and improvement. By doing this, could possibly help customers to understand more of

their history of being one of the restaurants that provides fresh products and coffee throughout

the whole history. In addition, showing the more professional and inspirational appearance of the

stores will help market better. This strategy helps customers feel like the restaurants and products

are warm home welcome and could possibly gain more target markets due to the theme and clean

environments. 

Furthermore,  the marketing functions of Tim Hortons, develops a plan and establishes

marketing objectives. While it is a restaurant and mainly kitchen works, managers are

supposingly to control the measure, monitor and regulate marketing campaigns and related

activities within the communities and restaurant itself. Targets or performances objectives cover

a wide variety of standards, for example; sales volume, market share and profits. Managers’ jobs

are to report tracking progress of sales and make comparisons of daily sales for adjustments. 

Control sales mechanisms include budget, sale quotas, credit criteria and sale force automation. 
 Lastly, every business must have quality control, which are the procedures in place to

review and check the quality of materials, products and services. The quality procedures depend

on the function. Tim Hortons is a kitchen base workplace, for their best result in quality control,

they may require controls at specific phases. Which the manager will need to determine what

quality assurance methods to use, the manager may use statistical techniques to ascertain the

quality of raw material on arrival to the products or may perform visual inspections of finished

products. Which the manager or lead must check upon every product's arrival and make sure the

restaurant serves the best fresh and cooked products out to customers. Tim Hortons focus a lot on

their food quality, customer services and store appearances. To perfectly get good reviews and

results, they named themselves as the restaurants that serve out fresh food and coffee. By this

means, their leads and managers have extra work and they have been using this strategy

throughout their history for success. 

Conclusion

The economy would also play an important role which includes the market situation

resulting in inflation and recession. This includes complete detailed planning for the production

of coffee and to have the required venture capital to carry out the long term working of the coffee

production. The change in interest rate and the exchange rate would also be considered because

the marketing and trade of coffee would be affected by these two important factors. The pricing

strategy needs to be done by keeping in account the element of economy slack and the market

conditions. The demographics also form an important area while marketing the coffee. There is a

need to select the right location for the marketing of the Tim Hortons and creating awareness

among the people. Because of the rapid advancements in technology, one also needs to have the
account of the automated technology with the use of machinery operations and other elements.

This could also include the provision of online campaign for better marketing skills. There will

be 6 operating businesses to sell the Tim Hortons and also various promotional items would be

used to serve the purpose in an effective way. 

Pricing is defined as the value any product is having. The price of any product depends

upon its demand, quality and the value it provides to any consumer. Meet-the-competitor pricing:

this involves establishing the price of a product or service based on what the other competitors

are charging. This kind of pricing is used by companies selling similar products. Knowing what

your competitors charge for and what quality they sell is significant to the success of our

competitive pricing strategy. A business may set the price below the competitors, at the same

amount or above their competitors. 

Premium green pricing: this pricing technique establishes a price higher than its

competitors. This is useful if a product is different from the normal products in the market and

has new features so people would not mind paying extra for this. 

Bulk pricing: bulk pricing is used when order is placed in large numbers or in "bulk".

Bulk purchases usually cost less and the price of the product is found out based on the total

quantity ordered. 

Service-life pricing: this pricing method takes the product's useful life into consideration

and decides a price for it. The value and condition of the product reduces over time, and may

also become "disposable" in future. 

Rent /lease pricing: in this strategy the seller transfers rights to the buyer to use the

product but the buyer is not the owner of the product. At the end of the period the seller takes the
product back for reuse or recycles. The buyer does not have to bear the full costs of the product

and can also use it by paying the rent. 

Trade policies are framed and dictated by the Canadian Government for the products

marketed in Kamloops, B.C. The Canadian Government imposes economic sanctions against

non-state actors and foreign states in order to ensure compliance with international laws.

Canadian economic sanctions affect businesses as it prohibits trade with a foreign market and

restricts financial transactions to a certain extent. These laws need to be kept in mind while

marketing Tim Hortons through the retail outlets in Kamloops. The sanctions imposed by the

Canadian Government vary from country to country. The import/export restrictions and financial

prohibitions need to be understood for the purpose of meticulous marketing of the product.

Permits and Certificates have to be acquired by the Minister of Foreign affairs for the successful

marketing of Tim Hortons. The geographical, political and legal environments in Canada are

thus the key deciding factors for the production of Tim Hortons.  

The charges levied for the import of Tim Hortons depends on the environmental and

political factors in the province of British Columbia. The environmental laws and policies in

Canada should not be disobeyed to ensure that the smooth trade of Tim Hortons. The raw

materials should be produced without resulting in high pollution levels beyond the permissible

limits as it leaves a carbon footprint and Canadian laws lay an emphasis on environmental

sustainability. The sustainability of the environment is crucial during the manufacture of the raw

materials for Tim Hortons. Corporate Social Responsibility and following a legal course of

action take precedence for the marketing of the product in Canada. 

The market situation plays a key role in the marketing of Tim Hortons. While

manufacturing the product, the market conditions and economic factors need to be closely
monitored. When funds are acquired from various banking institutions, the interest rates levied

or taxes to be paid will be in relation to the market situation at that point in time. Even though

marketing Tim Hortons is a long-term investment, the investment needs to be planned according

to the market conditions. The appreciation or depreciation of the Canadian dollar rates need to be

considered while manufacturing the product. Venture Capital is a constructive source of

achieving the organizations goals of expansion through appropriate funding without increasing

the company’s liabilities and ensuring successful marketing through appropriate investment. 

The interest rate charged as well as the exchange rate prevailing in the market is

extremely crucial. As money exchanges hands, it’s of paramount importance to ensure that while

doing business the profit margins are maintained in relation to the market conditions with respect

to the interest rate and exchange rates in Canada. The international trade and marketing of

Arabiana Coffee will be affected considerably if the company fails to break even during a market

crisis. Hence, the cycle of acquiring raw materials, packaging and marketing needs to be

continuous so as to generate profits during any market conditions such that the sale is consistent.

The competition for Tim Hortons is other Coffee manufacturers in Canada which provide

ground coffee beans and coffee powder to various famous coffee shops. In addition to this,

coffee shops are also a major competition as most coffee shops manufacture and market their

own brand of coffee. The primary and secondary competition for Arabiana Coffee in the market

are Bridgehead Coffee, Van Houtte, Tim Horton’s and other popular coffee manufacturers in the

Canada who have their own coffee plantations as well as coffee houses worldwide. In order to

ensure the success of Tim Hortons, it is important to analyze the competition in the market and

reach the desired target audience.

media tools. The brand will reach the target audience through innovative advertising and a tactful

marketing plan to reach out to the masses. Tim Hortons will stand out amongst its competitors

through its USP which will be highlighted in order to create increasing demand for the product

amongst other brands. 

Tim Hortons also need to focus on its strategic management. Strategic planning in any

organization tells that how the company will follow certain process and its strategies in order to

achieve their targets. The basic purpose of strategic planning is to define the set of strategies that

would lead the company to its heights and success. It actually provide a framework for the

company to follow the mechanism that would guide the company with the step wise procedures,

steps and tactics that would grant them a guidelines to achieve the targets and objectives. 

According to this survey, performance management is the third important factor in the

strategic planning process while “the most important factor is “organizational direction”,

followed by “organizational flexibility and uncertainty”.” (Dyson, 2005) The major role of

performance management system is considered in a way that it helps the organizations or

companies in supporting the achievements of organizational goals and it is considered as an

effective and efficient factor while on the other hand, performance management does not have

any impact on the adoption of successful implementations of the strategies or in making the

strategic planning process a successful process (Malhotra, 2000). According to the research

results it has been seen that there is a need to link the performance management systems with the

strategic making process as it has been considered to be a successful design implementation

while I think there is a flaw in it as the results obtained from performance management systems

are not always favorable or successful so completely relaying on the performance management
systems for better strategic planning results is not a good idea at all as “the insignificant impact

of performance measurement in the areas detected may not be a result of the inadequacies of

performance measurement itself but of weaknesses in its implementation.” (Dyson, 2005) 

This shows that in order to get the results better from the performance management

systems, it is important to link all the departments of the organization and thus there should be

better commitment, efforts and resource allocations all the organizational levels. Yet another

very interesting thing which has been evaluated from this survey is that the results and impacts of

performance management systems on the strategic planning is good and positive in organizations

which are of comparatively larger in size as compared to the ones which are not large. This

shows that organizational size also has a great impact on the working of the strategic planning

systems.

Tim Hortons will be manufactured keeping in mind the sophisticated technology that it

markets. The automated technology utilized to produce Tim Hortons will be state of the art and

imported from Japan after careful selection. The machinery will have flavor shot knobs and

variants in order to ensure a unique manufacturing and production strategy. The machinery will

be upgraded and customized to serve the customer’s needs by conducting market research and

ensuring that the production is meticulous. Any challenges like hindrance in machinery operation

will be resolved by employing a team of Japanese engineers on the field to ensure that any

technical glitches are resolved immediately. 

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