Tim Hortons' Expansion Strategy: SWOT, PESTLE, and Management Analysis

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FINAL PROJECT
RESEARCH & ANALYSIS PAPER PART II
FINAL PROJECT
RESEARCH & ANALYSIS PAPER PART II
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FINAL PROJECT
RESEARCH & ANALYSIS PAPER PART II
Summary
This report will be based on self-reflection after performing research analysis on the
management system of Tom Horton’s. Its future goal is to launch a new restaurant in other
countries. In this report, we will formulate the strategies of SWOT Analysis and PESTLE
Analysis. I will ensure that learner will understand the entire management concept by this
report like how to control, how to motivate the employees and how the strategies help in
achieving the respective objectives.
S.W.O.T. – Formulating Strategies
Strength: One of the most important advantages of any company is its workforce. Tim
Horton’s has a very experienced workforce which is it's the greatest strength. An experienced
employee knows how to handle customers and manage the restaurant during its peak time.
People generally don't like to travel a long way to have a nice and quiet meal at a restaurant;
hence the availability of these restaurants at convenient and approachable locations plays to
its benefit (Sosiawani, 2015).
Tim Horton’s takes into consideration that dining at their establishments must never burn a
hole in the pockets of the customer. Hence reasonable pricing helps in acquiring more
customers.
Weakness: One of the significant weaknesses of Tim Horton’s is its high franchise cost. The
amount to be invested in buying a franchise sometimes doesn't seem favourable in terms of
return on investment.
The limited variety of meals provided at Tim Horton’s hurts its sales since different people
have the distinct taste they are sometimes unable to find any dish that seems appealing to
them.

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Opportunities: On a global scale, Tim Horton’s was unable to make any significant
appearance. Its outlets in international markets like Dubai and Philippines are not doing well
and are still not popular among the local population.
Tim Horton’s can focus on increasing the range of their menu items. It will help in satisfying
the customer’s taste buds and also increase the probability of their dining again at their
restaurant.
Providing discounts and offers on meals to regular customers can help the restaurant in
retaining their customers and also encouraging other customers to dine there more often.
Threats: Large globally established fast food chains like KFC and McDonald's are a
prominent threat to Tim Horton’s. The recent decline in fast food eating habits of people due
to diet consciousness is also hurting Tim Horton’s fast-food chain.
Customers with tight budgets or low economic status avoid eating at establishments like
these, and it is tough to attract such customers.
Environmental Constraints
PESTEL analysis consists of various factors that affect every industry alike. These factors are
namely political, economic, social, technological, environmental, and legal.
Political factor
The political risks range from abrupt changes in the current legislative rule to the civil
conflict to significant measures taken by the political party. So Tim Horton’s must consider
these factors before investing in the concerned country.
Economic factor
The current investment, foreign exchange, inflation rates along with the country’s GDP are
the most prominent economic factors that Tim Horton’s must keep in mind before taking
financial decisions.
Social factor

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The beliefs, attitudes and values of the general population are the social factors that affect
Tim Horton’s. These factors are a straight reflection of the society in which Tim Horton’s
will be established.
Technological factor
Technology plays a vital role in maximizing the profits of any company in the industry.
Hence Tim Horton’s must continuously and consistently focus on innovation so that they can
quickly become the market leader.
Environmental factor
Tim Horton’s must take care in following the local environmental laws and adhere to them
strictly since failing to do so may cause them to be boycotted and also they may be charged
with fines.
Legal factor
Intellectual property laws, discrimination laws and health and safety laws are some of the
elements. They must take care if these laws and abide by them to safeguard their organization
as well as employees.
According to my opinion, the social factor faced by the organization. Tim Horton’s have a
lack of social awareness. Social impact will also affect in this situation when the audience
only like marketing strategies or approach, but the actual point is the quality of food and
services provided by Tim Horton’s.
Social is the most significant environmental constraint for the organization. All over the
world, there is a various number of marketing strategies, and different types of audience like
or prefer different marketing. So it is a difficult challenge for the organization. The social
element will create lots of opportunities for them since they can study the needs of the
customer and accordingly provide their services

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Stakeholders
Stakeholders of Tim Holton’s are the following:
Owner of the restaurant: It is the primary stakeholder of the organization. Its engagement
in the organization is less but involve in the critical situation and taking firm decisions.
Employees: These are the major stakeholders in every organization. Without employees, no
organization can perform its job. Using the skills of employees a company makes its growth
and improvement in their existing strategies.
Team Members: Tim Horton’s is the leading restaurant in Canada. Its team members are in
massive number by implementing all the ideas and recommendation of each member.
Guests: It is also a significant role in stakeholder's group. For them, only the organization
performs everything. The organization successfully offers its service to the guest. It is an easy
way to attract new guest and maintain good relations with the existing guest.
Analyst/Investors: These are the one who analyses all the activities performed by the
organization. By them, the only organization spends lots of fund on its service. The investor
provides fund and asset to the organization to run its business properly.
Organizational structure and Design
Figure 1: Organizational structure
Source: By author, (2019).
Psul House
President,CEO and
Executive Chairaman
SamSiddiqui
President of Tim
Hortons Canada
John Hemeon
Executive Vice
President ,Supply Chain
Wilianm Moir
Chief Brand and
MArketing Officer
Steve Wuthmann
Executive Vice
President of Human
Resources
David Clanchan
Chief Operations
Officer
Rohan Sood
Director of Operations
Jill Aebker
Executive Vice
President and
Coprporate Secretary
Marc Caira
Chief Executive Officer
Cynthia Devine
Chief Financial Officer

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After involving in research, I identified that Tim Horton’s is the largest chain of restaurant.
Approximate 100,000 employees are working in this organization in Canada and other
countries. Tim Horton’s take care of the organizational design in which it concludes that
restaurant requires departments to the done job in an efficient manner. The restaurant needs
various department like cooking, serving or catering, administration, marketing etc. Every
department has a unique responsibility to complete its task practically. The organization
makes command over every chain because every operation is connecting through some links.
So the organization must take care of this responsibility that they will adequately follow
every command proves the better performance rate (Al-Qatawneh, 2014).
Motivating Employees
For motivating employees Maslow’s hierarchy theories is best because in theory there are
five levels of human need such as physiological, safety, love, esteem and self-actualization
need. By this theory the organization motivates its employees to become the better part of the
organization.
In my opinion, the manager used motivational strategies in Tim Horton’s restaurant. Its
approach is to motivate its employees and maximize the performance rate of each employee.
Motivation is to if their price will large organization earn more profit. Making more profit
means organization growth, and surely the increment in the salary and reward system will
upgrade. Manager recommends the reward system, inspirational speech and motivates
employees through promotion. These aspects are directly or indirectly related to the
organization and personal growth (Akinola, 2014).
Recommendation
According to my opinion, this research will be beneficial for my future. I learned how to
analyze an organization perspective deeply. I can evaluate the strength and weakness by
SWOT analysis of Tim Horton’s. PESTLE provides me with how environmental aspects

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influence the growth of the company. Following this in the whole research, I sincerely
explained and discussed several points like in the Organization Structure. I take a step
forward to knowing the team of this leading organization. At least I can remember their name
and understand their responsibilities. Now I value the motivational aspects of the
organization. I know why it is useful for everyone who is directly or indirectly involve or
engage in the organization. I recommend these researches always help in enhancing personal
and skills in an individual (Schraeder, 2014).
Controls and Recommendations
Planning is essential for monitoring every progress. Business plans depend on planning from
the initial stage to the implementation stage and continue further until the life of the business
is there and I use a feed forward system to monitor or control all the activities throughout the
path. I planned like what is the next requirement, and sometimes I used feedback because
experience shows the last time mistake which can avoid in real time. Feed forward uses in the
training system in the organization and feedbacks used in the management system in the
organization like Human resource and financial management etc. I would ensure when I do
not get any negative feedback by providing service. Getting positive feedback is again
securing tool which evaluates the success rate of the organization. Happy and satisfied
customer proves that the organization accomplished goals.

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References
Akinola, G, O and Akinbobola, A, O.,(2014). Motivational Strategies and Enhancement of
Employees’ Performance in the Nigerian Food, Beverage and Tobacco (Fobeto)
Industry[Online]. Global Journal of Management and Business Research: A
Administration and Management. Available at:
https://pdfs.semanticscholar.org/acde/ea3beb026d849eff62ad0e7f027ca2ee33de.pdf
[Accessed on 4th April 2019]
Al-Qatawneh, M, I.,(2014). The Impact of Organizational Structure on Organizational
Commitment: A Comparison between Public and Private Sector Firms in
Jordan[Online]. European Journal of Business and Management.Available at:
https://pdfs.semanticscholar.org/4da5/1db29a692cf866b58a9c701663b1c6b0607c.pdf
[Accessed on 4th April 2019]
Cambalikova,A, and Misun,J.,(2017) The importance of control in managerial work[Online].
Munich Personal RePEc Archive. Available at:
https://mpra.ub.uni-muenchen.de/83776/1/MPRA_paper_83776.pdf [Accessed on:
4th April 2019]
Ibrahim,R and Primiana,I.,(2015). Influence Business Environment On The Organization
Performance[Online]. International journal of scientific & technology research.Vol 4.
Issue04. Available at: http://www.ijstr.org/final-print/apr2015/Influence-Business-
Environment-On-The-Organization-Performance.pdf [Accessed on 4th April 2019]
Schraeder,M, et.al.(2014). The Functions of Management as Mechanisms for Fostering
Interpersonal Trust[Online]. Advances in Business Research. Vol. 5, pp- 50-62.
Available at: http://journals.sfu.ca/abr/index.php/abr/article/viewFile/71/91 [Accessed
on 4th April 2019]

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Sosiawani, et al., (2015). Strategic Planning and Firm Performance: A Proposed
Framework[Online]. International Academic ResearchJournal of Business and
Technology. Available at: http://www.iarjournal.com/wp-content/uploads/IBTC2015-
p201-207.pdf [Accessed on 4th April 2019]