Tim Hortons Acquisition By Burger King: Strategic Implications

Tim Hortons: Overview

Tim Horton’s announced last year that they have joined with Burger King to form the 3rd largest quick service restaurant company in the world.

1- What corporate strategy (ies) does this represent for Tim Horton’s?

2- Complete a S.W.O.T. analysis for Tim Horton’s.

3- From Michael Porter’s five generic competitive strategies which do you think would best describe Tim Horton’s? Please give some reasoning behind your choice.

4- If you were the V-P of Human Resources for Tim Horton’s what would some of the impacts be upon your H.R. plans?

Tim Hortons Corporate Strategy   

Tim Hortons is a Canadian Multinational fast casual restaurant that is recognised for its doughnuts and coffee. It is the largest quick service restaurant in Canada. Rapid global expansion was the prime corporate strategy of Tim Hortons behind its merger with Burger King. The deal would make them the world’s 3^rd largest quick service restaurant provider. Tim Hortons would benefit from the huge brand recognisation and lean processes of Burger King across the globe and the company has assured to make Tim Hortons an iconic global brand

SWOT Analysis for Tim Hortons

Michael Porter’s five generic competitive strategies that describe Tim Hortons

Michael Porter has identified five generic competitive strategies that comprise of various ways by which organisations can compete in today’s dynamic market place namely; low-cost provider strategy, broad differentiation strategy, best-cost provider strategy, market niche strategy based on lower cost and market niche strategy based on differentiation.

Low-cost provider strategy describes Tim Hortons wherein their prime goal is to provide their product and services at a low cost that their competitors cannot match. Their acquisition by Burger King will enable them provide their products and services to a broad range of customers globally. Currently Tim Hortons has their complete focus on rapid global expansion and this strategy will help them achieve desired strategic goals.

Impact on Tim Hortons HR plans

Tim Hortons acquisition by Burger King will force them to make a number of changes in their HR plans. Burger King is known world as a company that offers cost advantage over competitors. They are owned by 3G capital that is an investment firm with profit being their prime goal. Burger King is recognised for its cost saving strategies that enable them offer lowest prices to customers. Tim Hortons already has declared mass layoffs from their corporate office. It will affect hundreds of employees which also include pregnant women and employees who were loyal since years⁴.

Tim Hortons will have to redefine their HR plans so that it align with their new strategic objectives and fits into Burger Kings culture. Changes in HR plans would include planning considerable changes in recruitment and selection process, redefining executive management structure, organisational structure and culture , having a well-defined change management plan and effective leadership to handle resistance to change.

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Owram, K., (2014) Burger King will turn Tim Hortons into ‘iconic global brand,’ Miles Nadal says. [Online]
Available at: https://business.financialpost.com/2014/08/30/burger-king-will-turn-tim-hortons-into-iconic-global-brand-miles-nadal-says/
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Available at: https://business.financialpost.com/2015/01/27/tim-hortons-inc-confirms-head-office-layoffs/
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