Tim Horton S Case Study

3647 Words15 Pages
Executive Summary Primary Problem: Burger King must determine if the expansion of Tim Hortons into US markets is necessary for the successful growth of the company. Alternative Solutions: 1. No expansion of Tim Hortons into the US market 2. Expand Tim Hortons into the US market as a stand alone company 3. Expand Tim Hortons into the US through presence in Burger King restaurants Recommendation: In order for both Burger King and Tim Hortons to reach their maximum growth potential, it is necessary for the Tim Hortons brand to expand into new US markets. In order to do this, the company should implement a combination of alternatives 2 and 3. The main justifications are as follows: Limited opportunity for expansion in the Canadian…show more content…
Depending on the execution and implementation of an expansion and its success rates, shares could go up or down in value accordingly, which then effects the companies’ shareholders. An unsuccessful attempt to expand into US markets also puts the companies at risk for experiencing loss in capital. Many new stores will have to be designed and built in the US markets in convenient locations. One must recall that Wendy’s absorbed the company in 1995, and only 11 years later spun it off as its own company again. Wendy’s could not figure out how to successfully expand Tim Hortons in the US, which makes one wonder if Burger King will be any different. It has been proven before through the example of Wendy’s and Krispy Kreme that it is difficult to penetrate markets across borders (Hemmadi, 2014). Implications on the Personnel: The merge of Burger King and Tim Hortons will undoubtedly have considerable effects on the personnel of both companies while an expansion into US markets will result in more substantial effects. First, if the company chooses to expand in the US, and chooses to relocate the headquarters of Burger King to Canada, this will cause a lot of administrative employees of Burger King to relocate as well. This type of relocation would also be a cause for change in the way business is conducted due to varying labour laws, political, economic, and legal policy from Canada to the US. Additionally, the CEOs and top
Open Document