Tim Hortons: Comprehensive Analysis of Business Strategies in Canada

This report delves into the business situation of Tim Hortons, a prominent food chain in Canada. It begins with a summary and then proceeds to a SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. The report examines the environmental constraints, including political, economic, social, legal, technological, and environmental factors (PESTLE analysis) affecting Tim Hortons. It also identifies key stakeholders, including employees, shareholders, suppliers, customers, the government, and competitors. The organizational structure and design are analyzed, followed by a discussion on employee motivation strategies. The report concludes with strategic recommendations for Tim Hortons, including expanding store presence, focusing on food safety, improving CSR policies, and implementing technological advancements. Finally, the report suggests control mechanisms, like feedback control, employee involvement, and performance tracking, to measure the success of the proposed strategies, referencing relevant literature to support the findings.

Running head: TIM HORTONS
TIM HORTONS
Name of the Student:
Name of the University:
Author Note:

1TIM HORTONS
Table of Contents
Summary:...................................................................................................................................2
SWOT- formulation strategies:..................................................................................................2
Environmental constraints:.........................................................................................................3
Stakeholders:..............................................................................................................................4
Organizational structure and design:..........................................................................................5
Motivating employees:...............................................................................................................5
Recommendation:......................................................................................................................6
Controls and recommendation:..................................................................................................7
References:.................................................................................................................................8

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Summary:
The aim of this report is to discuss the business situation of one of the most important
food chain company in Australia namely Tim Hortons. There are several strength and
weaknesses and opportunities open in the market of Canada for the coma but it is not being
able to understand the importance of grabbing each and every chance to exploit the market
properly. The issue of poor presence of their company in the highly populated areas has
affected the growth of the company. Despite the fact that it provides high quality food, thus
developed an effective brand image, but the market share of this company in the Canadian
market is not very high. His report therefore, will be discussing how the company can be
making strategies from the SWOT analysis. The PESTLE analysis of the Canadian market in
the context of Tim Hortons will be discussed here. The company’s organizational structure
and design from the market point of view and how the stakeholders will be supporting the
business will be discussed here. Through the analysis of the company, some of strategies
have been recommendation which will be effective for gaining competitive disadvantage in
this market of Canada.
SWOT- formulation strategies:
By maintaining the taste and quality of the products, Tim Horton has created a
reputable brand image in the market which is not being affected by the change of
management or internal policies of the company. Hence it can utilize the support of the loyal
customers which many of its competitors do not get in the large market of Canada
(Timhortons.com 2019). By properly utilizing the product diversification and clear
communication with the customers, the company can overcome its weakness of not being
present in the market in high density. Poor market presence and lack of expertise in the
product diversification can make the company understand that it needs to invest more on the

3TIM HORTONS
R&D of the food items it is providing to the customers. In addition to tis, the company can
gain the support of the local skilled labors, Preferences of the high-quality offerings by the
customers. Tim Horton also may get proper path to flourish to be an alternative place where
the customers prefer to visit and enjoy the food which they cannot make in their homes. The
company however needs to take care of the food related issues that may lead to have health
problems among their valued customers.
Environmental constraints:
Political factors:
 Political stability and integrity of politicians
 Contract law in the country
 The county does not have any intellectual property rights
 Trade barriers are strong to protect the Tim Hortons
Economic factors:
 Canada has a perfect competition economic system
 Rate of growth of GDP will fact Tim Hortons
 Interest rate is higher that leads individuals to borrow and invest high rates have
increased investment in Tim Hortons.
Social factors:
 Higher standard of living among customers
 Class distribution in Canadian society has mandated to rely on the niche market.
 Highly skilled labors.
Legal factors:
 Discrimination laws are placed by the government for protecting employees
 Health and safety laws are supporting of the human resource of the country
Technological factors:

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 All types of support for the utilization of technological support
 Helps in improving and transforming products can give the firm competitive
advantage
Environmental factors:
 Current environmental factors can impact on the ability of Tim Hortons
 Climate change will render some of the products of the company quite useless
 CSR activities in protecting climate (Capurso, 2016)
The organization will face the issues of the legal factors which may mandate it to
restore the rights of the employees. Moreover, the use of technology if not used properly, the
company will lose the ground of competition.
The organization has currently implemented the policy of localization of its products
and services where it is changing the organizational structure to match the expectations of the
employees as well as the loyal customers.
The economic and political stability will give the company to explore the market of
Canada and increase its market presence.
Stakeholders:
The key stakeholders of the company are of two types, internal and external. The
internal stakeholders are the employees, shareholders and suppliers of the company and the
external stakeholders are the customers, the government and competitors. The employees are
engaged in the product and services of the company, shareholders invest and suppliers
provide all the necessary resources for the growth (Jones, Wicks & Freeman, 2017). The
government regulates economic situation of the market that controls the success of the
company. Customers are the most important stakeholders and competitors help to find out
own flaws and scope of growth for the company.

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Organizational structure and design:
Figure 1. Organizational structure and design Tim Hortons
(Source: created by author)
The organization is much more mechanic rather than organic. The hierarchical
structure is completely clear where each of the persons are aware of their departments and
therefore their responsibilities (Winnubst, 2017). Each of the departments have their work
specialization which mandate the smooth flow of actions for the company. The higher
authorities like the boards of directors are responsible to ensure the planning of the changes
or policies to make the company more efficient in the Canadian market. The decision making
power remains in the hands of the CEO, boards of directors making it to have a centralized
decision making company. The gain or command starts from the higher level and the lower
levels of management abide by the orders in best possible manner.
Motivating employees:
In Tim Hortons, the employees are mainly motivated through Maslow’s hierarchy
need theory which depicts five tier model of human needs (Hale et al., 2018). The company
CEO, executive
chairman
Board of
directors
President
Executive vice
president for
supply chain
Executive vice
president for
HR
Director for
operation
Executive vice
preent for
head quarter
Vice president
Chief
executive
officer
Chief finacial
officcer

6TIM HORTONS
tries to fulfil the physical needs of the employee through salary. It also supports the idea of
safety needs while working in the organization. This develops a feeling of belonging among
the employees hence the company has been able to develop a strong workforce to gain
competitive edge. Similarly the ERG theory of motivation (Neubauer & Martskvishvili,
2018). The existence, relatedness and growth are three factors of the need of the employees
while working on the organization the company (Cramer, 2017).
Actions Results
Allowing employees to meet their basic
needs
Psychological needs
Providing security, resources morality Safety needs
Creating scope for work life balance Belonging needs
Respecting the skills of the employees Self esteem
Problem solving, morality and creativity to
support the growth of the organization
Self-actualization
Recommendation:
Based on the avoided analysis it can be suggested that
Firstly, Tim Hortons needs to be increasing the number of stores in the Canadian
region
Secondly, the company needs to be focused on the food safety so that the issues of
providing low quality food can be faced and trust can be regained.
Thirdly, Tim Hortons need to be more focused on the CSR policies to develop and
manage reputation in the market.
Finally, it needs to implement changes within organization relating to the
technological advancement.

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Controls and recommendation:
In order to measure the performance of the firm the feedback control can be
applied. This process takes his system results intro consideration that can enable the system
for adjusting the performance for meeting the desired output responses. In this process the
cooperation or dealing with the changes in the plan becomes easy. In this respect two specific
controls will be relating to employee involvement and tracking employee performance. The
employees if know what exactly they are doing in the projects, they get motivated and take
initiatives to complete tasks within given time. On the other hand another control relates to
the employee performance measurement. Tim Hortons will be utilizing various tools for
employee performance measurement. In measuring the success of the each decision, these
two control will be effective. By evaluating the rate employee retention, profit increase and
customer feedback about the services and products, it will be understood whether the goal has
been achieved or not.

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References:
Capurso, C. (2016). Burgers, Doughnuts, and Expatriations: An Analysis of the Tax
Inversion Epidemic and a Solution Presented Through the Lens of the Burger King-
Tim Hortons Merger. Wm. & Mary Bus. L. Rev., 7, 579.
Cramer, J. (2017). Corporate Social Responsibility and Globalisation: an action plan for
business. Routledge.
Hale, A. J., Ricotta, D. N., Freed, J., Smith, C. C., & Huang, G. C. (2018). Adapting
Maslow's hierarchy of needs as a framework for resident wellness. Teaching and
learning in medicine, 1-10.
Jones, T. M., Wicks, A. C., & Freeman, R. E. (2017). Stakeholder theory: The state of the art.
The Blackwell guide to business ethics, 17-37.
Neubauer, A. C., & Martskvishvili, K. (2018). Creativity and intelligence: A link to different
levels of human needs hierarchy?. Heliyon, 4(5), e00623.
Timhortons.com/. (2019). Tim Hortons. Retrieved from
https://www.timhortons.com/ca/en/index.php
Winnubst, J. (2017). Organizational structure, social support, and burnout. In Professional
burnout (pp. 151-162). Routledge.