Tim Hortons Coffee Partnership - Case Study Example

Case Study of Tim Hortons Coffee Partnership Section A: Strategic Analysis of the case study In the contemporary corporate world, corporate social responsibility has become part of companies operating across the globe. In essence, CRS plays an essential part in improving a company’s brand image. In this context, driving social change by Tim Hortons Inc. is part of CRS meant to improve the company’s image. It is evident that, there has been a growing public interest with regard to issues such as fair trade where, the advanced nations seem to gain from the developing nations by exploiting the underdeveloped country’s resources (Bochenek & Lukasz 2013, p.143). For instance, according to a survey of Tim Hortorn’s, it is evident that customers using their coffee are worried about the plight of the coffee farmers who reside in the underdeveloped world and mostly exploited by western firms without being provided proper incentives. As a strategy, it is important for Tim Hortons to clear its name concerning the exploitation of coffee growers from Central and South America by western companies (Bochenek & Lukasz 2013, p.148). It seems in the public domain that, while people are enjoying coffee in the western world, on the other side, the coffee growers are living in squalid conditions regardless of the profits that coffee realises in the western world. In creating a fair-trade terms, it is important for western companies that are purchasing coffee beans from farmers in the Americas to use their gains to help these farmers improve their economic conditions. In such a step to help the coffee growers to improve their conditions, Tim Hortons Inc. has recognised the need to improve the economic situation of coffee farmers in the regions where the company sources its coffee. While improving the economic situation coffee farmers is a priority for the campaign, Tim Hortons Inc., also found it necessary to build social capital for the coffee growers. Building social networks is an important aspect when initiating community programs. This is because, having social networks for this campaign, play a role in bringing coffee farmers together in order to work effectively and to achieve success with the campaign (Anette & Yuval 2013, p.71). Conversely, while working on a program meant to benefit the coffee growers, it is important to consider both social and physical environmental of the coffee growers. This includes looking at the social setting and the immediate physical setting in which the coffee farmers live. This provides the campaign with a clear view of what needs to be done to improve the lives of the coffee farmers in the regions that Tim Hortons Inc. buys its coffee. On another note, the decision to undertake this project places the company in a positive light with coffee customers in Canada. In order to establish a good relationship with local farmers, it is essential to also come up with project meant to develop or benefit the community. In this context, Tim Hortons Inc., and the Hanss R. Neumann Stiftung Foundation (HRNS) collaboration with the local farmers from Guatamala, Colombia, Honduras and Brazil is a strategy that works to bring the farmers closer in terms of establishing a working alliance (Bonchenek & Lukasz 2013, p.155). While Tim Hortons Inc. is bound to gain by getting high quality coffee, the farmers on the other hand also stand to gain skills necessary to become successful entrepreneurs from the business of coffee farming. The idea of Tim Hortons Inc. involving HRNS in the project is significant in the eyes of the public who want to know how coffee growers gain by selling their produce to western firms such as Tim Hortons Inc. In putting the campaign in a positive light, HRNS add substance to the project because the Foundation is recognised worldwide for assisting coffee farmers globally (Sonya & Rowley 2011, p.462). In addition, HRNS suits the initiative that Tim Hortons Inc. is undertaking since the Foundation has a proven track record and other established contacts that provides credibility and the expertise needed by Tim Hortons Inc. to implement the project (Bochenek & Lukasz 2013, p.162). Analysis of the objectives of the campaign, strategic approach and key tactical communication channels for this campaign The objective of this campaign is in tandem with the need to consider the suffering encountered by coffee farmers on the other side of the world, while in the west, coffee earn firms more profit. As such, the objective of the restaurant chain in this campaign is to improve the economic status of the coffee farmers particularly, in the regions where the firm sources its coffee. This objective perfectly suits the public outcry concerning the lack of fair trade in the coffee industry. While companies from abroad buy most of their coffee from local farmers in the Americas, the profit they earn does not trickle down to the farmer who remains impoverished despite selling their produce to firms from abroad (Forma 2004, p.287). In order for the firm to distance itself from the negative publicity directed to coffee firms from abroad, their campaign objective stands right to rectify some of the problems that exist in the coffee industry that affect the local coffee grower. For instance, and as explained by Tim Faveri, their campaign reviewed the coffee certification programs that were used at the time, and realised that the certification program was not beneficial to the local coffee growers. This is because the certification lacked hands-on training, the needed technical support and education. According to the firm’s plan for their campaign objective, the firm believes that the aforementioned skills are necessary to assist the local farmer to improve their farming practices and to extent, improve their living standards (Torben & Minbaeya 2013, p.812). As such, the desire to help the local farmers improve their living standards resulted in the Tim Hortons Inc. starting a project known as, the Tim Hortons Coffee Partnership. On the other hand, the strategic approach used in this campaign involves needs assessment where the firm has recognised the needs of the coffee farmers in the regions where it sources its coffee. This has allowed the firm to come up with a project that is able to cater for the identified needs of the local coffee growers (Ertel & Kay 2013, p.63). In terms of carrying out the needs assessment, it means that Tim Hortons Inc. has to use communication channels that resonate with the coffee growers. Consequently, before meeting the targeted community, it is necessary to engage the local farmers in order to determine their needs, interests and motivation. As a communication tactic, the project can also rely on coordinators that come from the same region and able to identify “farmer promoters”. These participating farmers hold meetings as an avenue to share their learned knowledge with other farmers (Ertel & Kay 2013, p.63). This contributes to more farmers gaining interest in the project because of encouragement by other farmers from the same region. Talking one-on-one with the farmers is also important as a communication tactic because the farmer is motivated by the care and concern he or she receives from the firm that buys his or her produce (Ertel & Kay 2013, p.64). In this campaign, the main targeted audience are the Tim Hortons Inc. customers who are concerned about the plight of the coffee growers. Section B: Proposed evaluation methods The type of information that I would collect to use to evaluate the success of this campaign involves relying on information from the coffee growers, which acts as the primary data. The information that forms the secondary data, would come from Tim Hortons customers and the public concerning what they perceive the coffee growers are undergoing despite the prices that coffee fetch in restaurants located in the western countries like for instance, Canada. Gathering information from the field by having first-hand information from the coffee growers themselves is important in terms of proving whether the campaign is meeting its defined goals and objectives (Lawrance & Usman 2013, p.30). Relevant information to gather from the field would include how the farmers are being paid, whether there are forms of exploitation and how Tim Hortons Inc. compared to other firms, is treating the farmers in the regions where it sources its coffee. While asking the local farmers on how the project is of assistance to them, it is also necessary to gather information using other means such as personal observation to get the clear picture of what is going around because of the project initiated by Tim Hortons Coffee Partnership (Lawrance & Usman 2013, p.35). In the field, data or information can also be gathered through the means of focus group where the investigator engages the local coffee growers to discuss how the project is of assistance in their lives and vice versa. Gathering first-hand information from the field is not an easy task and requires the investigator to take a number of necessary measures. Since this campaign involves what Tim Hortons Coffee Partnership is doing for the coffee growers in a number of regions in the South and Central America, the collection of data by the investigator can encounter certain barriers like language or communication barrier. As such, to gather concrete information or data, it is important for the investigator to look for a translator or convince the local community to provide one, if available. Further, the investigator may need other materials necessary to collect information or data. This includes the use of notebooks, tape recorder or other necessary tools that can help in collecting primary data. On the other hand, the investigator can also rely on secondary data regarding the previous surveys that have been conducted in relation to the projects taken by Tim Hortons Coffee Partnership (Lawrance & Usman 2013, p.37). Further, while in the field, the information that needs to be collected include determining whether the approaches used to initiate Tim Hortons Coffee Partnership are achieving their objectives. It is also necessary to authentic the outcome of the campaign and whether it is the truth as reflected by Tim Hortons Inc. This includes looking at the achievements lauded by Tim Hortons Inc. that include having entrepreneurs with increased self-confidence, technical skills and with financially stable businesses. This is important to evaluate while still in the field because, the key intention of this campaign involves improving the livelihood of the coffee growers in the regions where Tim Hortons Inc. buys its coffee (Lawrance & Usman 2013, p.37). Conversely, secondary data can come from the Tim Hortons Inc.’s customers and the public in general. This information is necessary in terms of evaluating public opinion on the issue to do with the plight of coffee farmers. The information provided by the Tim Hortons Inc.’s customers and the public in general is important in terms of understanding some of the problems that the public thinks the coffee growers are facing in South and Central America. While the campaign is meant to display what Tim Hortons Coffee Partnership has achieved, the opinion from the customers and public in general also provides information to some of the issues that needs to be tackled concerning the plight of coffee growers. The campaign may have achieved success to some level, but information from customers and the public in general provides an in-depth view to the problems faced by coffee growers and what should be done to that extent (Lawrance & Usman 2013, p.38). With regard to analysing the data from the field, this can be done using logical techniques or statistical instruments. The logical techniques in particular are important in this case in that, the information from the field can be compared with the information provided by Tim Hortons Inc. for purposes of drawing conclusion on whether the campaign is a success or did not meet its goal. In addition, using logical techniques in analysing data for this campaign will make it simple for the readers of the report or other interested parties to understand exactly what is transpiring on the ground regarding the project initiated by Tim Hortons Coffee Partnership. However, it is also necessary to use statistical instruments because this will assist in providing the statistics related to the number of coffee farmers who have benefited from the project. In using statistical instruments for data analysis, it will be easier to determine the figures related to the number of farmers producing better quality coffee and whether this has increased their income. Where the quality and income of coffee growers is found to be high, this will mean that the project achieved success and vice versa. The information from customers and the public can be analysed using logical techniques to illustrate some of the key issues that they feel the coffee growers are facing or need to be resolved (Lawrance & Usman 2013, p.40). Section C: Critical reflection Issue Framing As a theoretical framework used in the field of public relations, issue framing denotes the presentation of an issue in a manner that is likely to convince the audience to agree with the facts presented. In this campaign, it is clear that Tim Hortons Inc. is in a campaign to prove to its customers that they care for the coffee farmers in the regions that they source their coffee. In the corporate world image is very important for business survival. Where the image of a company is daunted, this might not be good for business. Tim Hortons Inc., as a Canadian restaurant chain is concerned about the outcry from customers regarding the plight of coffee growers in Central and South America. While Tim Hortons Inc. is undertaking other measures to improve the living standards of coffee farmers in the regions the firm sources its coffee, this information may not be in the public domain (Randall & Roger 2011, p.88). As such, issue framing as a way of improving public relations for Tim Hortons Inc. is important in clearing the company’s name from dealing in unfair trade to source its coffee from Central and South America. Over the years, various groups concerned with human rights issues because of the evident exploitation of farmers and use of child labour to harvest coffee in parts of the Americas have attacked the coffee industry. While coffee fetches high prices in the western world, this does not trickle to the coffee growers who are exploited by the intermediaries working for multinational companies from abroad. These companies make huge profits from selling coffee, but do not help the farmer to improve their livelihoods. However, to distance itself from this exploitation, Tim Hortons Inc. convinces its customers of how the company is trying to improve the lives of coffee growers from the regions that the firm buys its coffee (Randall & Roger 2011, p.101). For instance, issue framing is evident in Tim Hortons Inc. where the company asserts itself as being the first to recognise faults with the coffee certification program. To convince the customers and the public to agree that they have the best interest of the growers at heart, the company reiterates in their campaign that they have started their own program to rectify the identified problems. Such problems as reflected in the campaign include lack of hands-on training, education and other vital technical support that can assist farmers to improve farming practices and lift themselves out of poverty (Merilainen & Vos 2013, p.123). While customers might be of the different opinion regarding how companies dealing in coffee are improving the lives of coffee growers, Tim Hortons Inc. provides the results of their campaign to showcase to the public the improvements realised since the initiation of their project. This is covered well by providing information on how the project has contributed to an increased number of entrepreneurs who are confident, have technical skills and have established financially stable businesses. As part of using issue framing in their campaign, Tim Horton’s Inc., has provided an in depth illustration of the strategies that they have used to impact positively on the lives of the coffee grows in the regions that they buy their coffee. This provides a clear insight to the public with regard to the initiatives that Tim Hortons Inc. is undertaking to improve the lives of coffee growers and clear its name from the blacklisted coffee dealers (Merilainen & Vos 2013, p.130). Relationships management As part of a theoretical framework in the field of public relations, relationship management is important in terms of managing the business relationship with customers. In this context, Tim Hortons Inc. uses the campaign to manage its relationship with customers and the public in general. As a result of concerns from customers regarding the plight of coffee growers, it is possible for the restaurant to lose its customers unless something is done to address the customers concerns. As such, the campaign provides the restaurant with an avenue to improve its relations with the customers and the public in general. Since it is in the public domain that coffee dealers often exploit farmers and leave them without proper pay, human rights activists have taken an initiative to highlight on the difficulties faced by coffee grows while the product fetches a good price in the west. This has led to a situation where customers are at loggerheads with coffee dealers from the west to improve the conditions of the coffee growers (Lefaix-Durand & Kozak 2009, p.1006). In ensuring that they do not severe the relationship they have with customers, Tim Hortons Inc. use the campaign to explain to customers that the restaurant chain has taken an initiative to ensure that the livelihood of coffee growers in the regions that it buys coffee is improved. To be more persuasive, the Canadian restaurant chain goes further to illustrate extensively in their campaign the areas they identified needed to be utilized in order to improve the living standards of the coffee growers from the regions it sources its coffee. In applying relationship management, it is important to ensure that the customer is kept happy and their concerns are addressed. On the other hand, the Canadian restaurant use relationship management in their campaign by making sure that the coordinators they use in the project to motivate farmers on adapting better farming practices come from the same region. In addition, as part of assisting the farmers, they also take a one –on- one approach in assisting the farmers develop better farming skills. This particularly is geared at ensuring that the company not only improves their relationship with customers, but also the coffee growers (Lefaix-Durand & Kozak 2009, p.1009). In addition, Tim Hortons Inc. carried a needs assessment before starting the project; this was helpful in terms of determining the farmers’ interests, motivation and needs. In addition, conducting a needs assessment also plays an important role in improving the relationship that exists between the company and the coffee growers. This is because both parties have reached a consensus regarding what needs to be undertaken in the project. As a result of the coffee growers being the partners of the Tim Hortons Coffee Partnership, the relationship management is maintained by the campaign realizing its goal of improving the livelihood of the farmers. This is evident in the campaign where the results suggest an improvement in entrepreneurship among farmers who were involved in the project. They were able to improve the quality of their products and in turn, received better income from the sales of their produce (Lefaix-Durand & Kozak 2009, p.1011). References Anette, M., Hall, M., & Yuval, M 2013, ‘How Experts Gain Influence’, Harvard Business Review, Vol. 91, no. 7, pp. 70-71. Bochenek, L & Lukasz M 2013, ‘Profiling corporate communications strategy: Mastering organisational learning - A dynamic maturity model for corporate communications strategic management’, Marketing Review, Vol. 13, no. 2, pp. 143-165. 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