Corporate Social Responsibility of Two Giants

Corporate Social Responsibility of Tim Hortons and Subway

1. WHAT MAKES YOU COME BACK? 1 1 3 2

2. The Importance And Decline of Customer Service:   A Case Study of Tim Hortons and Subway MADS 6662 Customer Service & Not For Profit LILIAN UGOCHI OHALETE 2054076 JASMEET KAUR 2091380 ERESI NANCY OJEBE 2047019 NIVYA SADANAN 2045956 SALONIBEN RANA 2092192 2

3. Machando and Diggines (2013) C ustomer service encompasses all the actions taken by a company to enhance the value of its goods and services from the viewpoint of its clients. 3

4. Global Customer Service: Enhancing Customer Satisfaction Significance of Customer Service: Excellent, global customer service is a key method for raising customer satisfaction (Khadka & Maharjan , 2017; Jeske et al., 2015; Ohwo & Agusomu , 2018). Customer Delight vs. Satisfaction: Customer delight exceeds expectations; satisfaction meets them ( Chiguvi , 2018). After-Purchase Perception: Customer satisfaction assesses pre-purchase expectations; positive service enhances satisfaction (Kotler & Armstrong, 2023). 4

5. Challenges in Customer Service Customer service automation uses technology and software to streamline support processes. Benefits: Instant Responses : Automation provides quick answers, eliminating customer wait times. 24/7 Availability: Customers receive assistance beyond regular business hours. Consistent Service : Automated systems deliver uniform responses. Multi-Channel Support: Automation works across email, chat, social media, and phone. However, Reliance on chatbots and self-service kiosks lacks personal touch( Holloman,2013). 5

6. Challenges in Customer Service Cost-cutting measures: Large customer service teams can be expensive. However, Downsizing customer service teams leads to wait times and reduced service quality (Zeithaml et al., 2018). Inconsistent Training: Quality of service varies significantly across locations due to a lack of standardized training (Lovelock & Wirtz, 2016). Inadequate training leads to inconsistent service quality. Productivity Loss: Untrained agents struggle to handle inquiries which could result in financial loss for the business. 6

7. Challenges in Customer Service Solutions Structured Training : Implement consistent uniform training programs. Continuous Learning: Encourage ongoing skill development Automation and Human Interaction: Companies must strike a balance to address these issues effectively. Automation and Human Interaction: To ensure satisfactory customer service Businesses must strike a balance between automated and human services. Task Allocation: Assign tasks based on strengths (automation for routine, humans for complex). 7

8. Tim Hortons Overview Founding: Opened first doughnut shop in Hamilton, Ontario in 1964. Expansion: Became Canada's largest quick-service restaurant chain. Unified Architecture: Consistent architectural style to highlight uniform offerings and practices. Expansion Diffusion Process: Growth from Hamilton to surrounding areas via word-of-mouth (Cliff et al. 1981). Success Factors: Consistency in offerings and business practices (Glynn, 2007). 8

9. Subway Overview Founding and Ownership: Owned and operated by Doctor's Associates Inc.; John Chidsey appointed CEO in 2019. Global Presence: Largest restaurant chain in the US and largest single-brand chain worldwide. Commitment to Quality: Focuses on fresh, high-quality food and community engagement. Innovative Approach: Emphasizes an inventive, entrepreneurial approach to business with a sense of urgency. 9

10. Operational Challenges for Tim Hortons Franchise Expansion: Challenges in maintaining consistent product and service quality. Uneven Client Experiences: Rapid growth leads to variations in customer experience across locations (Quebec et al., n.d ). Operational Efficiency: Need to streamline operations while managing expansion. 10

11. Operational Challenges for Subway Brand Dilution: Rapid expansion has led to inconsistencies in brand experience. Market Saturation: Presence in numerous locations causing internal competition. Quality Control: Challenges in maintaining standards across franchises. Franchise Compliance: Ensuring franchisees adhere to brand guidelines. 11

12. Health and Nutrition Concerns Tim Hortons: High sugar content in beverages counteracts demand for healthier options (Kent & Pauzé , 2018). Subway: Claims of healthiness challenged by high sodium content and use of processed meats (Lucan et al., 2017). Regulatory Scrutiny: Increased focus on nutritional information transparency and healthier menu options. Consumer Preferences: Shift towards healthier choices impacting menu offerings. 12

13. Brand Perception and Leadership Tim Hortons: Handling of social issues like minimum wage affects reputation. Subway: Frequent leadership changes cause strategic instability. Reputation Management: Both brands need consistent strategies to maintain public trust. Leadership Impact: Strong leadership is crucial for sustaining brand integrity. 13

14. Corporate Social Responsibility: Tim Hortons Efficient Management: Strong profitability and strategic expansion. Philanthropy: Community involvement through programs like Timbits Sports and Tim Horton Children's Foundation. Employee Welfare: Scholarships, training programs, and health and safety initiatives. Environmental Stewardship: Efforts to reduce ecological impact and support sustainable practices. 14

15. Field Trip 15

16. Purpose of the Field Trip Assess customer service quality at Subway and Tim Hortons Understand how different factors influence customer experience 16

17. Subway Experience Positive Customer Service at Subway: Warm greeting and prompt answers from the manager Proactive engagement demonstrating strong commitment to customer satisfaction Well-coordinated and attentive employees Highlights effectiveness of training and leadership at Subway Effective Leadership and Training: Leadership at Subway ensures employees are well-trained Comprehensive training programs result in attentive and well-coordinated employees Proactive engagement with customers is a key focus Strong commitment to customer satisfaction is evident 17

18. Tim Hortons Experience Less Satisfactory Service at Tim Hortons: Lack of greeting and engagement from the team member Unanswered queries during the visit Experience not indicative of all Tim Hortons locations . Variables Influencing Customer Service: Long queues of customers waiting for their orders Shortage of workers impacting service quality Various external factors can influence employee behavior and customer experience 18

19. Recommendation & Implementation of Subway : 19

20. Recommendation & Implementation of Tim Hortons : 20

21. Conclusion Customer Service: Critical for achieving customer satisfaction and delight. Field Trip Observations: Differences between Subway and Tim Hortons highlight impact of leadership and training. Challenges and Opportunities: Both brands face distinct challenges and opportunities in improving customer service. Recommendations: Balancing automation and human interaction, enhancing training, and addressing health concerns are key strategies. 21

22. References Chiguvi, D. (2018). Critical success factors in customer relationship management strategy in the local government authorities in Zimbabwe (Doctoral dissertation). Cliff, A. D., Ord, J. K., Haggett, P., & Versey, G. R. (1981). Spatial diffusion: A historical geography of epidemics in an island community . Cambridge University Press. Gim, J., & Jang, S. (2023). Dividend and investment decisions in asymmetric information environments: Evidence from the restaurant industry. International Journal of Contemporary Hospitality Management, 35 (5), 1779-1801. Glynn, M. (2007, July 12). Tim Hortons developed a taste for the Buffalo Niagara region; the area is the top market in the US for the firm. Buffalo News , B7. Holloman, C. (2013). The social media MBA guide to ROI: How to measure and improve your return on investment . Wiley. Jeske, H., Chimusoro, E., & Karodia, A. M. (2015). An evaluation of customer service and the impact of efficiency on Namibia's logistical sector: A study involving selected courier companies. Singaporean Journal of Business Economics and Management Studies, 3 (6), 1-38. Kent, M. P., & Pauzé, E. (2018). The frequency and healthfulness of food and beverages advertised on adolescents' preferred websites in Canada. Journal of Adolescent Health, 63 (1), 102-107. Khadka, K., & Maharjan, S. (2017). Customer satisfaction and customer loyalty: Case trivsel städtjänster (trivsel siivouspalvelut). Kotler, P., & Armstrong, G. (2018). Principles of marketing . Pearson Education. Kotler, P., & Armstrong, G. (2023). Principles of marketing (19th ed.). Pearson Education. Leppänen, P., George, G., & Alexy, O. (2023). When do novel business models lead to high performance? A configurational approach to value drivers, competitive strategy, and firm environment. Academy of Management Journal, 66(1), 164-194. 22

23. References Lovelock, C., & Wirtz, J. (2016). Services marketing: People, technology, strategy (8th ed.). World Scientific. Lucan, S. C., Maroko, A. R., Sanon, O. C., & Schechter, C. B. (2017). Unhealthful food-and-beverage advertising in subway stations: Targeted marketing, vulnerable groups, dietary intake, and poor health. Journal of Urban Health, 94 , 220-232. Lundgren, J. (2009). “Eating Fresh” in America: Subway Restaurant’s nutritional rhetoric. Young Scholars In Writing, 6 , 110-117. Machado, & Diggins. (2013). Customer service . Juta. Ohno, O., & Agusomu, T. D. (2018). Residential customers satisfaction with public water provision in Ojota , Nigeria. European Scientific Journal, 14 (23), 117. Pasquerro, G. (2004). Corporate social responsibility and business ethics. In M.-F. Turcotte (Ed.), XYZ Publishing . Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance . Free Press. Quebec, Q. C., Generoux, K. J., & Lynch, M. S. (n.d.). Current operational challenges identified by Western Canadian Tim Horton franchisees. Reidenbach, R. E., & Robin, D. P. (1991). A conceptual model of corporate moral development. Business Ethics Quarterly, 1 (3), 233-251. Subway. (2023a). Vendor code of conduct. Retrieved from https://www.subway.com Subway. (2023b). SIP code of conduct. Retrieved from https://www.subway.com Susanto, A., & Fauziah, H. (2023). The influence of product placement and product attributes toward purchase intention of Subway sandwich. International Journal of Science and Business, 19(1), 128-146. Tim Hortons. (2023a). Guest services policy statement. Retrieved from https://www.timhortons.ca Tim Hortons. (2023b). Tims for good: Sustainability report. Retrieved from https://www.timhortons.ca Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2018). Services marketing: Integrating customer focus across the firm (7th ed.). McGraw-Hill Education. 23