St Jean sobre Brebeuf C. S. S i9000.
Business/ Computer system Studies Section
BOH4M1: ORGANIZATION LEADERSHIP – MANAGEMENT FUNDAMENTALS
1 . Explain Tim Hortons' and McDonald's " facelifts”. What is identical about them? What is different info? (2 marks)
2 . What struggles can be Tim Hortons' facing? (3 marks)
3. What is McDonalds' tactical plan to gain a strong place within this competitive market? (2 marks) some. Chapter several describes many ways in which businesses can remain successful within a dynamic and changing globe. How is definitely Tim Hortons trying to keep up with this changing economy? That which strategies could you suggest? (3 marks)
A Bernard Hortons in Toronto. (Fred Lum/The Earth and Mail)
Can Tim Hortons drive back McDonald's strike?
MARINA STRAUSS -- RETAILING MEDIA REPORTER
The Globe and Mail
Released Saturday, February. 23 2013, 8: 00 AM EST
After final for several weeks, a Tim Hortons cafe in north Toronto reopened this month with a brand new look: A sleek flat-screen television is now mounted on a stone wall above a gas fire place, while buyers slide on to benches to sip their very own lattes for tables missing an bigger kitchen area. McDonald's is also giving its Canadian restaurants a facelift – with flat-screen televisions, gas fireplaces, very long communal furniture and armchairs where customers can remain over their particular McCafé brews.
The makeovers seem comparable, but there's a big difference for the eateries' dash to pull more customers and encourage them to spend even more: Today, McDonald's Canada offers remodelled about 70 % of its 1, 400-plus restaurants in Canada and will have got three-quarters of these completed right at the end of this year, says the household chain's chief executive officer John Betts. By contrast, Tim Hortons Inc. will have near to 10 per cent of it is roughly several, 300 eating places refurbished at the conclusion of 2013, a speaker says. At that rate, the task still won't be done by the final of the decade. A market discuss battle can be brewing in the fast-food sector, with Harry Hortons dealing with an unprecedented challenge to its decades-long reign since Canada's coffee-and-doughnut icon. Inside their glory days, Tim Hortons' franchisees were guaranteed achievement and satisfying profits. As Judge George Strathy of Ontario Outstanding Court stated last year in tossing out an tried class-action suit by dispenses: " Beneath the Tim Hortons system, the franchisees are given the licence to sell Harry Hortons trademarked coffee – a brand that is certainly about since iconic as there is in Canada. ” But now its coffee business, as being a foundation of Harry Hortons' durability, is beneath attack. As the Oakville, Ont-based cycle faces a hesitant buyer and fiercer competition, it really is grappling with a few franchisees whom are becoming restless about the cost of upgrading their stores, and also an ever-increasing menu of low-margin foods, making them more reliant than ever on higher-margin coffee for his or her bottom line. And the toughest challenge of all comes from global juggernaut McDonald's Corp. of Walnut Brook, Ill. The sequence is gunning for Harry Hortons coffee business, offering an current McCafé shop ambiance, improved drinks and free week-long promotions. The efforts are forcing rivals to shave rates as well, bruising their profits, but the endeavours are demonstrating signs of bolstering the cheese burger purveyor's location in the caffeine sweepstakes: McDonald's Canadian reveal of the roughly $3. 3-billion out-of-home coffee market has more than bending to 15. 3 % in just several years, relating to their data. The coffee fight comes at a moment of slow growth over all in the cafe industry, together with the number of restaurants having jumped by a lot more than 12 percent to seventy two, 000-plus before five years, but consumer traffic having perked up only by simply between you and a couple of per cent, says market researcher NPD. " Coffee battles are with your life and well in Canada and it's really just gonna continue, ” said Robert Carter, professional director of food providers at NPD. McDonald's is usually gaining business, but until now Tim Hortons...