Tim Hortons and Starbucks Culture Comparison - Assignment Example

Based on the number of units and profit maximization, Tim Horton's culture is rated the strongest in Canada. Its corporate structure under founder Ron Joyce has led to 76% of the market. It has surpassed food chain store such as Mc Donalds due to its increased market sales through expansion of branches countrywide. Its Canadian culture has led to the loyalty of its customers, a strategy that has made it difficult for other coffee houses such as Starbucks to make it in the Canadian Market. Tim Horton’s culture has been able to adapt more in its local market as compared to international markets. The main reason for its adaptation strategies is the ethics of its culture locally leading to customer preference and loyalty. According to research, it has the largest customer share in Canada despite the entry of other giant rivals such as Starbucks and Burgerking.

Starbucks, on the other hand, is a coffeehouse chain based in America with its headquarters in Washington. The largest share of its market is found in the United States where its corporate culture has grown strong since its foundation in the late 1970s. It's capital and asset accumulation has led to its international infiltration in markets from all continents. It has also made entries in the Canadian market where it has faced competition from Tim Hortons. Its ethics and customer relations have led to sales acceptance and sales in most international markets where customers are after its trademark. Starbucks has also been involved in environmental projects such as recycling leading to improvements in its corporate culture.

Starbucks is the better performer depending on its capital accumulation and market share. Tim Hortons only has its markets in the U.S, the Persian Gulf and Canada while Starbucks has expanded to all continents with over 13,000 units worldwide. Its wide variety of products has led to an increase in sales, unlike Tim Hortons that has not diversified its products. However, Tim Hortons merger with Burgerking will lead to the accumulation of capital that may lead to its expansion and increased performance.

Conclusion on the best performer has been based on assets, capital accumulation and market share. Starbucks has higher operating revenue than Tim Hortons hence has an added advantage in performance. Expansion strategies have also put Starbucks on the top due to its large markets in Asia and Europe. Acquisitions of other restaurants have also led to Starbuck's strength in various cultures. Its merger too with Wendy's restaurants led to its expansion in most U.S cities.

The organizational cultures of both companies have led to unique interactions between the staff and customers (Kotter and Heskett, 2008).  Starbuck's culture has stronger visions, values, ethics and norms that have led to its increased performance rates. It has changed its social and environmental policies to suit its customer surroundings (Kotter and Heskett, 2008). It has emphasized environmental protection and funded various projects globally. Tim Hortons is also involved in community projects, but most of them are found in Canada.