Week EOC 7: Tim Hortons

Tim Hortons Inc. is a Canadian restaurant known for its coffee and doughnuts founded in Hamilton, Ontario by Canadian hockey player Tim Horton and Jim Charade. It is also Canada's largest fast food service, overtaking McDonold's. The chain accounted for 22.6% most of all fast food industry revenues in Canada in 2005. At the end of 2013, Tim Hortons had 4,592 restaurants in Canada, 807 in the United States and 38 in the Persian Gulf region. In 1967, Horton partnered with investor Ron Joyce, who assumed control over operations after Tim Horton died in 1974. Tim Hortons was expanded into a multi-million dollar franchise by Ron Joyce, the investor, after Tim died in 1974.
On August 26, 2014, Burger King agreed to Warren Buffet's offer, to purchase Tim Hortons for US$11.4 billion in exchange for to move part of its headquarters to Ontario and avoid paying millions in U.S. corporate taxes (for $3B). "The move comes a month after President Obama denounced ‘inversion’ tactics like this as an ‘unpatriotic tax loophole." (NyDailyNews, Warren Buffett will pay $3B for Burger King to buy Tim Hortons — and avoid U.S. taxes)

The combined company, which will be majority-owned by Brazilian investment firm 3G Capital, based in Oakville, will be the third-largest operator of fast food restaurants in the world.
I think, financially this will be a smart investment. However, the two brands are very different and when thought of, they do not go hand-in-hand. I think it can work if Tim Hortons coffee is featured on the Burger King menu as a breakfast item, which will help them compete with Starbucks. Tim Hortons already commands 62% of the Canadian coffee market, compared to Starbucks at 7%. To bring this more nation-wide in America, it will be a great competitor for Starbucks and will of course make Burger King a happy investor. However, I do not think Burger King products should be featured in the Tim Hortons store. This will taint the Time Hortons brand and will make consumers feel differently about it. When it comes to brands, most people don't like change. It is important Tim Hortons stays traditional. What would work is to have a Burger King connected to a Tim Hortons or a connected menu (that is still separated by product) so customer doesn't have to travel to receive their food or drink. "Burger King’s new owners set out to attract more customers by making the restaurant’s menu more diverse and opening more franchises abroad." (TheNewYorker, Burger King May Make Tim Hortons Less Canadian​). "Tim Hortons hasn’t, in the past, been particularly successful in trying to expand abroad; even its restaurants in the U.S. ran into trouble at first." (TheNewYorker, Burger King May Make Tim Hortons Less Canadian​). This will give them a new foundation and a new approach to their brand for US citizens. Both companies will benefit. Overall, this investment will give McDonold's and Starbucks something to be worried about.

Week 6 EOC: Networking In America

In this week's episode of How To Make It In America, Cal and Ben are playing basketball. This is not just a regular basketball but is also a networking opportunity. Call and Ben are usually finding themselves in many networking situations that puts them at an advantage. This is something they do correctly. During the basketball game Cal is set to shoot but has the option of passing the ball to Ben. Instead of passing, he shoots the shot and misses. This is a symbolism to their relationship. To win, their objective is to use teamwork. It shows that sometimes Cal takes the initiative that he should sometimes not take and ends up in disaster. Throughout the season, he does this and takes action before he thinks. Sometimes he is successful in this and helps the two advance in journey to making their brand come to life. Other times, not so much.
In the show, they run into a friend and use this another opportunity to network. This is something they are very good at. They suggested lunch with the friend and ended up catching up on old ties. The friend gave them a source from Japan that frequently looked for new designers.
They took this reference before they got their jean sample. "Brands today represent more than a product, service or brand identity (the name and logo, design and voice of the brand)." (pg.27) When Cal and Ben got their sample, it was everything they didn't have in mind. It was horribly done and rose too high to Ben's waist. He was very upset and decided not to attend the meeting. This was something he did wrong. Cal decided he was going to go anyway and work his way around the situation. This was right. Even though the product was messed up, he still wanted to show his face which was an executive move. At the meeting, he had to wait to be seen and sat in the lobby with other people looking to start their brands. He did not receive anyone's business cards that could have helped him and opened a few doors in the future. This was what he did wrong.
Ben decided to show up last minute, apologizing for his behavior. He did the right thing by coming back and making amends. They went into the meeting and met with a Japanese retailer. Before they left, the Japanese man saw Ben's shirt and asked him about it's origins which Ben revealed was his own creation. He liked it a lot and asked Ben to produce 300 by next week to be shipped to Tokyo. Ben was lost for words while Cal took the opportunity for the both of them. Cal's initiative taking came in handy this time. That was something he did right again. "Branding is important because of its relationship and impact on the world we live in. Brands affect people’s lives simply because they are part of our daily choices and decisions." (pg. 32) Even though the designer didn't speak of their jeans, they would be in the door and could bring up their ideas once again in the future. This will build them their rapport and help them make new relationships with other designers that they wouldn't have the opportunity to make with before. Cal, ultimately, put Crisp in a better position this episode. "People are passionate about brands whether they support them or not. While some brands inevitably carry a financial status and equity that can make them powerful, they are ultimately accountable to their audience." (pg. 32)

Week 5 EOC: Ferguson and Marketing

On Saturday, August 9, 2014, Michael Brown was shot down in Ferguson, MO by police officer Darren Wilson. Michael was suspected of a store robbery, however, his encounter with Officer Wilson had nothing to do with that. Ever since the shooting, Ferguson has been the topic of the month with notable hashtags “#handsup” and “#dontshoot”. Celebrities, politicians, and activists have shown their support in this white-on-black incident. Even the Redskins, "We just wanted everybody to know that we support Michael and acknowledge what happened in Ferguson,'' (USA Today, Redskins defensive backs pay tribute to Michael Brown). In response to the riots in Ferguson, police have come equipped with military and riot apparel, a $4.3 billion gift from the Federal Government. Police were also given military-grade armor trucks. From the marketing standpoint, Ferguson is not doing so well. The only people protesting equality are the minorities and the Ferguson government only seems to be fueling the fire. The police can be seen in footage in their military gear, pointing their guns at innocent and harmless bystanders. This is a red flag, considering you aren’t supposed to point guns unless you are intending on pulling the trigger, something these officers were not trained and certainly not qualified for. An ongoing debate about whether or not military gear for a police department is necessary. It makes you wonder if they are really that fearful of the population or are they just overreacting as Darren Wilson did, shooting Michael Brown 6 times to his death? The Ferguson police force demographics are mainly white with 2 Pacific Islanders, 1 Hispanic and 5 Blacks, Mayor Jim Knowles revealed. Earlier, this year former officer, Patrick Hayes told his men to arrest specifically Black people, “Let’s have a Black day. Let’s make the jail colorful.” This only showed how much more racial issues Ferguson has had. As the mayor tried to mask the racist town by saying there weren’t any racial issues and everyone got along, it didn’t help when an interviewer asked a Ferguson resident about living there. He revealed that Blacks and other minorities are always being harassed by cops and if not physically then verbally. “Blacks are also disproportionately pulled over by police in Ferguson. Whites make up about a third of Ferguson's population but accounted for just 12.7 percent of the stops by Ferguson police.” (Huffington Post, Police Officer Caught On Video Calling Michael Brown Protesters 'F***ing Animals'). Ferguson is not gaining any reputation that involves positivity. Their police mission statement is to serve and protect, but nothing about serving and protecting has been seen. “Bring it on, you f**king animals! Bring it!” a cop says to protesters. Many police officers fail see these people as individuals and have shown why this is such an issue. “A grand jury is set to begin hearing evidence related to Michael Brown’s death Wednesday. It is still unclear whether Darren Wilson, the Ferguson police officer who shot and killed Brown, will face charges.” (Washington Post, Grand jury will hear evidence related to Michael Brown shooting through October) He probably won’t, he’s white. And yes, that is EXACTLY why!

Week 3 EOC: How To Make It In America (Week 3)

1. What’s your superpower? What do you do better than anyone else?
2. What are your top values – your operating principles?
3. What do people frequently compliment you on or praise you for?
4. What is it that your manager, colleagues, friends, and clients come to you for?
5. What adjectives do people consistently use to describe you – perhaps when they’re introducing you to others?
6. How do you do what you do? What makes the way you achieve results interesting or unique?
7. What energizes or ignites you? What are your true passions?

In this week's episode of How To Make It In America, Ben and Cal are offered a chance to make a prototype of their denim line, Crisp. The only disadvantage was that they would have to give up $1500 to do so. Their superpowers were their hustles characteristics. Cal was more of a hustler than Ben and resorted to selling the skateboards that he hand in his apartment. The boards represented a skateboarder who could have been the best boarder in NY but went crazy and ruined his chance of stardom. After trying to persuade other skateboarders that these boards were must-haves, Cal failed. He ended up selling the boards to private school kids after telling them the truth about the skateboarder who went crazy. He ended up coming up with the $1500. Before Ben knew this, he was going to ask his father for the money, but he choked and ended up not doing so. He decided to use his rent money as a sacrifice and revealed this to Cal. Ben and Cal were probably known around town as cool people, being that they had a good group of friends. They were probably looked at as hustlers in their own ways, very ambitious and slightly unrealistic. But they had heart. Their friends probably come to them to assist each other in a hangout spot or to go on a weird business venture. The way they achieved results was by going after them and taking the opportunities that were offered. They would suddenly be invited to parties and this was networking opportunities for them. When they were offered to make a prototype of their Crisp jeans, it was sudden and unexpected, but they took the challenge and got the money for it. With this sort of attitude they may make it in the denim industry. 

Week 4 EOC: McDonold's and Hot Coffee

WARNING: GRAPHIC IMAGES

On February 27, 1992, Stella Liebeck ordered a cup of coffee from a McDonold's. She was a 79-year-old woman from Albuquerque, New Mexico. As she sat in her the passenger seat of her grandson's car, he pulled over so she could add cream and sugar to her drink. While attempting to open the lid of the coffee, between her knees (because the car had no cup holders) Liebeck the entire cup of coffee on herself and into her lap! Her cotton sweatpants absorbed the coffee (180-190 degrees, hot) against her skin, causing third-degree burns on 6% of her skin and lesser burns on over 16%. She was admitted into the hospital and remained there for 8 days until she underwent skin grafting. Liebeck wanted to settle with McDonald's for $20,000 to cover her medical expenses. but the company offered only $800. After their refusal, she decided to hire Texas attorney Reed Morgan. "Morgan filed a suit in New Mexico District Court accusing McDonald's of "gross negligence" for selling coffee that was "unreasonably dangerous" and "defectively manufactured"." (Wikipedia, Liebeck v. McDonold's Restaurants)

 McDononld's refused Morgan's offer to settle for $90,000 and then Morgan offered to settle for $300,000. McDonald's also refused to settle out of court for $225,000.

 During trial, media made Stella look like an embarrassment. Facts were lost as she was constantly made fun of and misunderstood. There was even an award ceremony named after her called the Stella Awards, which awarded people with the most outrageous lawsuit claims. "The real story is more traumatic and less lucrative than the media made it out to be." (Business Insider, How A $2.9 Million Jury Verdict Over Spilled Coffee Became America's Most Misunderstood Story)

The jury found Mrs. Liebeck to be 20% at fault for her injuries, reducing the compensation for her injuries. The jury’s punitive damages award of $2.7 million made headlines, though it was later decreased to $600,000. Mrs. Liebeck and McDonald’s later reached a confidential settlement. "McDonald’s admitted it did not warn customers of the nature and extent of this risk and could offer no explanation as to why it did not." (Caoc.org, The McDonold's Hot Coffee Case) Now, all McDonold's coffee comes with warning labels and reduced temperatures.