Analysis of Tim Hortons

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PESTLE and SWOT Analysis of Tim Hortons


This report includes the discussion of a company which is recognized for its versatile menu and the name of that company is Tim Horton’s Inc. This company was originated as Tim Donut Limited which later on changed to the TDL Group. Tim Horton’s which is a Canadian restaurant was founded on 17 May, 1964 in Ontario and its headquarters are at Ontario (Canada). This company was founded by Ron Joyce, Jeffery Ritumalta Horton and Tim Horton and has its sites at other locations such as Kuwait, United Kingdom, Qatar, Saudi Arabia, Oman, China, United Arab Emirates, Spain and Mexico (Tim, 2018).

Major Themes

The main objective of this research is to discuss SWOT analysis and formulate the strategies for Tim Horton’s. In order to analyze environmental constraints, PESTEL analysis of Tim Horton’s company is conducted in this report. Moreover, the stakeholders that are associated with the Tim Horton’s are discussed in this report along with the organizational design as well as structure. This report also presents motivation theories in context of Tim Horton’s.

SWOT analysis: Formulation of strategies

Strategies in order to take advantage of the strengths analysed:

  • The main strength of Tim Horton’s includes affordable menu and with the help of this strength, the company can enhance their customer base.
  • Another strength of this company is its consistency to provide high quality of products and with this strength, the company can take benefit of this strength in order to develop positive brand image among their consumers.

Strategies in order to protect against the weaknesses:

  • The main weakness of Tim Horton’s is its inability to offer variety of products. In order to protect the company from against such weakness, specified product strategies like bundling must be acquired in effective manner.

Strategies to take advantage against opportunities:

  • Expansion of business in international market is the main opportunity of Tim Horton’s and in order to explore this opportunity, the company might form Joint Ventures with the local companies for gaining trust of the consumers (Bondy, 2018).

Strategies in order to protect against threats:

  • High competition is the main threat of this company which is mainly faced from the global and domestic players. In order to protect the Tim Horton’s against this threat, the company is required to acquire Porter’s strategies like differentiation, focus etc.

Environmental Constraints

P(Political /Legal Factor)

E (Economic Factor)

S (Social Factor)

T (Technological Factor)

E (Environmental Factor)

Government Rules and Acts are some of the legal or political factors that affects the restaurant industry in Canada. One of such rule and act is the Health Menu Choice Act and according this act, healthy food services are required to be provided by the company.

Canada’s total GDP is 1653.049 USD billion and the restaurant industry of Canada contributes to the economy of Canada by 38,648 billion dollars. Moreover, Canada’s inflation rate in 2018 is 2.57% and it is expected this value of inflation might decrease in 2022 by 2.08%.

Social factors include the organic food prioritization among consumers of Canada.

Negative effect is created by the technology used by KFCs and McDonalds on the Business of Tim Horton’s.

Significant impact is created by the environmental concerns on the Tim Horton’s which include business operations that would be implemented in the production of food techniques.

Addressing constraints

Certain environmental constraints are faced by Tim Horton’s like small land holdings and storage facilities. By increasing the product’s selling at less prices or current market price, such constraints can be addressed by the company.


Technological constraint will be the biggest challenge that might be faced by the company as the main competitors of Tim Horton’s are using latest technologies that might create negative effect on the Tim Horton’s business.

Creation of opportunities:

Requirements of the customers are the main element that creates opportunity for Tim Horton’s. Tim Horton’s can put emphasis on the customer centric strategies as the company changes their production and policies according to their customer’s requirements.




Restaurant owners


Importance: The main stakeholders of Tim Horton’s are the employees as they may have stock in the company but many of the employees hold economic stake in the company only due to job as their primary income source.

Impact: Handle queries.

priority: 1


Depends on company for frozen and fresh products.


Helps in increasing growth of company and market value.

priority: 2


Regional meetings are conducted twice in a year.


Impact: Provides fresh food products to customers.

priority: 3


Interested in gaining return on investments.


Impact: Investments increases stock of company.


Organizational Structure of Tim Horton’s

Formal organizational structure is followed by Tim Horton’s. From top level to bottom level, effective communication between different hierarchies is conducted using formal channels. Vertical and formal channels are followed for managing conflicts between various teams of this organization.

Motivating employees

For managing motivation factors between number of employees which belongs to particular hierarchy in an organization, Equity Theory can be used. This type of theory is suitable because it works as per the requirements of the leaders that wants to motivate their team members in Tim Horton’s.


  • Tim Horton’s is recommended to integrate Business Intelligence which will help them in competing with their competitors and issues associated with integrated platforms.
  • The company is recommended to expand their business to international market.

Controls and recommendations

The recommendations which are recommended to Tim Horton’s can be monitored by implementing controls known as on-job training and employee involvement. Such controls helps in making employees aware regarding implications associated with technology adoption in an organization.

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