Canadian Tire Corporation

Review and Evaluation of Progress

Review by seeing if objectives and goals have been met

1. Net Revenue increase of 3%

• review Income Statement over 5 years to measure growth
• Increase of issuance of Loyalty program

2. Increase in Target Market

• Customer Reward Program
• Increase in demographic - measure by sign up

3. Start Construction and open 3 new Smart Stores

• measure by completion of store over 5 year

Action Plan and Implementation

Open Smart Stores in AB and SK

Year 1 -

• Complete assessment
• Start R & D

Year 2 -

• Continue R & D
• Choose sites and Start Construction

Year 3 -

• Continue construction
• If money available - start constructions on second/ third location

Year 4 -

• Construction on all Locations should be underway
• Begin hiring process

Year 5 -

• Complete hiring process
• If no delays open first location

Customer Reward Program

Year 1 -

• Technology - Cards, Key Tags, and link to MC
• Start Advertising

Year 2 -

• Implement program
• Discontinue Production of Canadian Tire Money
• set stop date for accepting Canadian Tire Money

Continue Advertising

Year 3 -

• Offer Incentives for Sign Up

Year 4 -

• Measure Performance - Evaluate if additional resources required

Year 5

• Feedback from customers
• Make changes if required

Change of Advertising Campaigns

Reach out to Additional Demographics

Year 1 -

• R & D of structures
• During Reward Program implementation structure questions for sign up to specify demographic

Year 2 -

• Continue questions on Sign up
• Start collecting and measuring the current demographics
• Implement the new advertising campaigns designed by research and development

Year 3 -

• Continue collecting and measuring the current demographics
• Compare previous and current demographic

Year 4 -

• Continue steps from Year Three

Year 5 -

• Analyze if the change in advertisement has made a difference
• Analyze effectiveness

Customer Service Training

Year 1 -

• Develop Training Process
• R & D on aspects of training

Year 2 -

• Continue R & D
• Implement program nationwide
• Train upper management
• Nation wide conference amongst executive

Year 3 -

• Implement training program to middle / lower management

Year 4 -

• Implement program with all staff including entry level positions
• Gather feed back from upper management regarding success of the program

Year 5 -

• Implement training at the time of hire

Questions?

Proposed Mission Statement

Organizational Assessment

To be the first choice for Canadians in automotive, sports and leisure, and home products, providing total customer value through customer-driven service, focused assortments, and competitive operations. We seek to gain financial rewards for investors as we provide opportunities for growth and enrichment to our employees, to our business partners and to the communities in which we operate.

Strategic Plan

Mission Statement

Vision Statement

Positioning

Objectives and Goals

Current Mission Statement:

To be the first choice for Canadians in automotive, sports, leisure, and home products, products, providing total customer value through customer-driven service, focused assortments, and competitive operations.

Home Depot

(similar Home Stores

Current Vision Statement:

To be the best at what our customers value most.

Walmart

• Increase Net Revenue by 3% per year
• Increase Size of Market Share
• Start Construction of 3 new Smart Stores with in 5 Years

Price

Quality

Choices Made

Canadian Tire

Market Analysis

• Customer Service Reward System Upgrade
• Open Smart Stores
• Customer Service Training
• Change of Advertising Campaigns

Internal Assessment

Strategic Options and Analysis

• Industry Analysis
• Target Market
• Customer Profile
• Market Segmentation
• Competitive Comparison
• Research and Development
• Products and Services

-Management

-Marketing

-Products Service and Planning

-Finance and Accounting

-Production, Operations, and Research and Development

-Management Information Systems

Threats

Opportunities

Weaknesses

Strengths

External Assessment

• Easily copied products
• Quality of Products compared to Competitors

• Rewards Program
• Multitude of Companies

Strengths

- Economic Forces

- Social, cultural, demographic, and natural environment forces

- Political, governmental, and legal forces

- Technological Forces

- Competence Force

Products and Competitive Comparison

Weaknesses

Fixing

• Decreasing value of Canadian Dollar
• Increase in transportation and shipment cos

Walmart

Home Depot

Canadian Tire

• Small Tool Section - Very little home reno products
• Low Quality
• not recognized for Fixing
• Customers looking for low cost

• Large Selection
• Ranges from Low to High Quality
• Highly Recognized for Reno
• Wide range of customers

• Large Selection
• Ranges from Low to High Quality
• Moderately Recognized
• Customers looking for minor repairs or renos

• Inability to Expand Internationally
• Customer Service Reputation
• Lack of Change in Demographic

Table of Contents

Background of Canadian Tire

1922

1995

Launches Canadian Tire Options MasterCard

Toronto brothers, John W. and Alfred J. Billes with $1,800 in savings bought Hamilton Tire and Garage Ltd.

Sold it the following year and became Canadian Tire Corporation

1958

2001

Online Shopping is Available for Customers

First gas bar opens

Introduced discount coupons - later known as Canadian Tire money

1980

2011

- Around for more than 90 years started 1922, 490 retail locations, including online shopping

-Retail Categories include:

Living, Fixing, Playing, Driving

-Own FGL Sports, retail banner includes:

Sports Check, Sport Mart, Atmosphere, National Sports, Hockey Experts, S3, Nevada Bob's Golf, and many more

-Owns Marks Work Warehouse

Gross Operating revenue exceeds $1 billion for the first time and employees share $7,265,000 in profit sharing and share purchase bonuses.

Background on Canadian Tire

Organizational Assessment:

Mission an Vision Statement

Internal and External Assessment

Market Analysis

Strategic Plan:

Positioning of the Organization

Objectives and Goals

Strategic Options and Analysis

Choices

Actions Plan and Evaluation:

Plan of Action

Plan of Implementation

Review of Progress

Acquired Forzani Group

• Sport Chek • Sport Mart

• Atmosphere • National Sports

• Hockey Experts • S3

• Sports Experts • Nevada Bob’s Golf

• Intersport • The Tech Shop

• Pro Hockey Life

Has 344 associate stores, and a total of 116 gas bars and “Pit Stop” fast-lube facilities in Ontario and Quebec