2023-05-031

Tim Hortons® Hong Kong Market

ExpansionManaging International Projects – SCS2236-028

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Project Manager - Shanna Pritchard (Toronto, Canada) Project Coordinator – Putheary (Tery) Tek (Amsterdam,

Netherlands) Cost and Procurement Manager – Amanda Heydorn (Nairobi,

Kenya) Quality Manager – Neda Bayat (Hong Kong, China)

Project Team

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1. Project Overview2. High Level Objectives3. Milestones4. Anticipated Benefits (Hard and Soft)5. Estimated Costs6. Work Breakdown Structure (WBS)7. Top 3 Identified Risks8. Risk Probability-Impact Matrix9. Risk Breakdown Structure (RBS)10.Top 3 Internal and Top 3 External Identified Stakeholders11.Lessons Learned12.Questions

Agenda

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Project Name:

Tim Hortons® Hong Kong Market Expansion

Start Date: January 3, 2017

End Date: December 31, 2017

Project Sponsor:

Elias Diaz Sese, President of Tim Hortons®

Project Budget:

$4.5 million USD, plus 10% contingency

Project Overview

Hong Kong has been identified as a key city to introduce Tim Hortons® to the Chinese population with feasibility studies and consumer engagement.

Approximately 500,000 people of Hong Kong descent live in Canada and about 300,000 Canadians live in Hong Kong, there already exists a strong bilateral relationship.

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Identify key locations to open 3 corporate stores Sales target of $100,000 USD for December 2017

(soft opening) 2018 (calendar year) sales of $2 million USD Brand increase net promoter score of 2% Social media engagement of Tim Hortons® brand in

Hong Kong of 10% or higher

High Level Objectives

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Date of Completion

Milestones

January 2017 - Location of 3 corporate stores identified and secured- Bids for local contractors released- Media releases prepared and circulated

February 2017 - Contracts awarded- Cultural and regional studies/market research conducted

March 2017 - Construction contracts finalized, SOWs confirmed and construction begins

May 2017 - Local vendors identified and RFP’s/RFQ’s accepted for procurement and supply chain

June 2017 - Procurement/supply chain proposals and quotes awarded, contracts finalized

September 2017 - Recruitment process begins for store employees, store manager positions awarded and contracts finalized

November 2017 - Construction completed, punch lists completed and quality confirmed- Government regulatory, food and safety inspections completed- Promotional campaigns launch- Training of staff completed

December 2017 - Soft OpeningJanuary 2018 - Completed project handover to operational/regional management

Project Milestones

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Anticipated Benefits

Hard Benefits

New sales generated in Hong Kong market, with sales target of $2 million USD for 2018

Hong Kong real estate acquisitions valued at $675,000 USD

New partnerships with key local producers and suppliers (expected value of $20,000 USD)

Trained and experienced staff valued at $30,000 USD

Soft Benefits

Brand awareness in Chinese market (increased awareness to 50%)

Cultural and regional studies beneficial to business operations and food/beverages sold in store (new product development)

Future franchise opportunities Increased brand awareness

through social media channels

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Item Cost per Store (USD)

Total Cost (USD)

Location (Real Estate) $225,000 $675,000Site Development & Design (Construction)

$480,000 $1,440,000

Equipment $500,000 $1,500,000Training $10,000 $30,000Professional & Licensing Fees

$50,000 $150,000

Insurance $22,000 $66,000Marketing $80,000 $240,000Initial Supplies & Consumables Procurement

$50,000 $150,000

Total $1,417,000 $4,251,000

Estimated Costs

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WBS

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Top 3 Identified Risks

Risk No. R1 R2 R3Rank 1 2 3Risk Category Environment Construction MarketingDescription Tropical cyclone season (May to

November, with peak time in July to September)

Construction delays affecting the opening/ transfer dates.

Adapting to local cultural considerations and needs.

WBS Category 2.2 2.2 1.5.1Project Phase Execution Execution, Performance &

ControlPlanning

Root Cause Weather Labour disputes, material and supply problems.

Culture

Trigger Natural weather patterns. Contractors and materials Consumer and cultural expectations.

Potential Response Accept Mitigate MitigateContingent Action(s) -Prepare construction schedule

with fast-tracking techniques to minimize delays.-Schedule activities that are impacted by weather, prior to July.-Use project buffers to help control project timeline.-Reschedule tasks in event of unforeseeable weather.

-Contract terms written clearly with time lines, quality and payment terms. -Detailed SOW, schedule planning and quality requirements.-Inspection of work at each construction milestone.- Labour contracts clearly written and defined.

-Research and survey target consumers to better understand their needs and expectations of an international coffee and bakery retail chain.-Develop and market the unique selling proposition for Tim Hortons® in Hong Kong.

Risk Owner QM QM PCProbability 10 8 5Impact 6 6 9Risk Value 60 48 45Status (A/C) A A AOpportunity/ Threat Threat Threat Threat

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Risk Probability-Impact Matrix

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RBS

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StakeholdersTop 3 Internal & External

Internal ExternalID Name Power Intere

stAttitude

Current Engagement

Management Strategies

S1 Elias Diaz Sese

High High Positive

Leading Project sponsor and very supportive of the project. It is important to manage Elias closely and keep informed on the progress of the project, project milestones, project changes, project risks and budget.

S2 Sarah Hardman

High High Positive

Supportive

Manage closely and keep informed of project milestones and project budget/procurement spending. Any additional need for funding for the project will be approved by Sarah.

S3 April Johnson

High High Positive

Supportive

Manage closely and keep informed of project milestones. April will be involved in the project during the project monitoring and controlling, as April will be involved with regional management in Hong Kong.

ID Name Power Interest Attitude Current Engagement

Management Strategies

S9 Michelle Yoeh

High Medium

Neutral Neutral Keep informed of any arising/current issues throughout the project life cycle. All project contracts will require close management.

S10

Jackie Chan

High Low Negative

Resistant Keep informed and manage closely during the execution and performance and control phase of the project.

S11

Jet Li Low Low Neutral Neutral Keep informed and manage closer during the performance and control phase of project.

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Asian cultures prefer a ‘dine-in’ experience. App development can improve sales and service. Bicycle delivery in a large city can help alleviate

delays of goods deliveries. Support within the project and a support network is

necessary, especially with international projects and working remotely.

Without a Project Manager ensuring deadlines and project objectives were met, this project would not have been a success.

Lessons Learned

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Questions?

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