Tim Hortons' Organizatinal Structure

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Tim Hortons' and
Organizational Structure

Names: Javier Flores
Noor Alawaid
Noor AAAAAAAA
Maggie Khouri
Andrea Moulisova
Class: MGMT 2384, Lab G
TA: Felecia Thomas
Date: March 25th, 2009

Introduction
It is hard to find a resident in Canada who would not know where to find a Tim Horton’s fast food restaurant. Tourists visiting Canada who don’t have a Tim Horton’s in their country visit this restaurant and become familiar with the valued beverages and specialty dishes that so many Canadians rave about.  When Tim Horton’s first opened the mission statement was written as: “Top quality, always fresh products, value, great service and community leadership has allowed it to grow into the largest quick service restaurant chain in Canada specializing in always fresh coffee, baked goods and homestyle lunches.“ (The Story of Tim Horton’s, par. 1)

By following this mission statement, Tim Horton’s was found to be the most successful marketing company in Canada. From the insightful research found, our group has chosen to research Tim Horton’s organization and its structure to learn how it reached such great success in such a short period of time. Tim Horton’s History

Tim Horton was a Canadian hockey player who opened his own doughnut shop in Hamilton, Ontario in 1964. The initial menu included a few specialties dishes from his culinary ideas and over the years Tim Horton’s menu has grown immensely. In 1967, Ron Joyce became full partners with Tim Horton; when Tim Horton died Ron took over all of the existing Tim Horton’s restaurants found across Canada. When first opened, Tim Horton’s chain offered only two products- coffee and doughnuts but as time passed and costumer’s tastes became more demanding more products and beverages, such as cappuccinos, muffins, soups, chili, etc. were introduced to the menu. In 1995, Tim Horton’s merged with Wendy's International, Inc. but continued its operations as a separate entity. Merging with Wendy's provided a new focus for Tim Horton’s to expand its operations into the U.S., where it has expanded today. Tim Horton’s can now be found in several US states with over 400 store opened and over 3000 in Canada. Approximately 95% of the Canadian operation Tim Horton’s is franchise owned and operated. In 2006, Tim Horton’s became a fully separate company from Wendy’s, and it also celebrated the opening of its 3000th store in Orchard Park, New York. Tim Horton’s has expanded its locations to shopping malls, highway outlets, universities and hospitals. Topic Research

“Organizational structure refers to the division of labor as well as the patterns of coordination, communication, and formal power that direct organizational activities“(McCone, 2008, page 308). The two main parts of organizational structure is the division of labor and coordination, which evolves along with the four main steps which are: span of control, centralization, formalization, and departmentalization. We will also focus on the contingencies of organizational design including organizational size, technology, external environment and strategy. Each point mentioned above will be relayed in more detail throughout the paper. Organizational Structure

Tim Horton‘s is a large organization employing over 100,000 people across Canada and therefore an organized labor division is needed. Division of labor is the way jobs in organizations are divided according to different task requirements. The corporation that operates all of Tim Horton’s chains is the TDL Group Corporation which deals with the following department divisions of labor: Operations, Research & Development, Training, Construction, Finance, Franchising, Marketing and more. Since the TDL Group Corporation has so many different large divisions, they must be spread all over Canada, for example, the head office is located in Ontario while the other regional offices are located in Alberta, British Colombia and Nova Scotia. These regional offices...
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