Tim Hortons Research Paper

Written Assignment
Situation Analysis Report
Scenario – Should Tim Horton’s merger with Burger King?

By:

Haylee Joudrey, student number:
Jennifer Wong, student number: 60
Nina Louise Marboe, student number: 69
Emilie Dangibeaud, student number: 70

Section 011

Submitted to:

Professor Francescucci
Ted Rogers School Of Management
in partial fulfillment for the requirements

for

MKT 100 – Principles of Marketing

Submitted on:

10/22/2014

Ryerson University

TABLE OF CONTENTS

Introduction……………………………………………………………………………………………………………………..pg 3

Strengths……………………………………………………………………………………………………………………….pg 3-4

Weaknesses…………………………………………………………………………………………………………………..pg 4-5

Opportunities………………………………………………………………………………………………………………..pg 5-7

Threats………………………………………………………………………………………………………………………….pg 7-8

Recommendations…………………………………………………………………………………………………………pg 8-9

Appendix……………………………………………………………………………………………………………………..pg 9-10

References…………………………………………………………………………………………………………………pg 11-13

INTRODUCTION

Tim Hortons, the well-known fast-food chain in Canada, is looking to merge with one of the biggest U.S.-owned companies, Burger King. This report will conduct a comprehensive SWOT analysis in order to assess the suitability of the potential merger between Tim Hortons and Burger King.

STRENGTHS

One of Tim Hortons most important strength is what we can call “deep pockets”: very strong financial resources. In fact, with revenue of more than $3 billion in 2013 and continuously growing dividends, there are strong chances that financial investors and existing shareholders trust the company on the merger. Moreover, Tim Hortons should be able to assume the costs incurred in the merger without any troubles.

Another strength of the company is its important brand reputation and awareness. 95% of the population knows about Tim Hortons. When it comes to sales, Tim Hortons is the largest quick service restaurant in Canada, with 42% share of the Quick Service Restaurant (QRS) traffic. Thus, Tim Hortons already has a strong customer base. This awareness and customer loyalty would be an advantage in the merger because it is likely that Tim Hortons customers will continue buying products from their favorite brand even when it is combined with another brand. Moreover, Tim Hortons is also known for its Corporate Social Responsibility. The company tries to limit its impact on the planet, in part with their Business Partner and Supplier Code of Conduct, which requires every supplier or partner to be respectful, fair, and ethical. In the merger, we can assume that this environmental aspect will remain, and some customers from Burger King could be attracted by this aspect of the firm and decide to purchase more products from the new combined firm.