Pestle and Swot Analysis

Running Head: ORGANIZATIONAL BEHAVIOR
ORGANIZATIONAL BEHAVIOR
Name of the Student:
Name of University:
Author Note

1ORGANIZATIONAL BEHAVIOR
Abstract
Kuhn Rikon is a popular premium kitchen appliances organisation which is trying to establish a
strong market capitalisation in the Swiss market. Therefore, the Pestle and Swot analysis have
been analysed where it can be stated that the innovativeness and unique product presence are
considered to be of high strengths for the business companies. In addition to this, there are also
some weaknesses for the organisation in terms of premium pricing trend that restricted the
organisation to a great extent. A number of threats are also able to dismantle the business
organisation where it can be seen that high market competitiveness and firm government
regulations are creating problem for Kuhn Rikon. On the other hand, there are speculation
regarding the opportunities for Kuhn Rikon and it can be stated that the economic growth and
government endorsement on effective organisational practice will foster strategic advantage for
Kuhn Rikon. Tools like Mckinsey 7S Framework is assistance for Kuhn Rikon in terms of
enhancing the shared values of honesty, integrity and transparency in the operations. Structure is
the parameter, which related with the strategy, including the staffs. All of these aspects
collaborate for forming the corporate governance, which aims at ensuring the safety of the
workers in usage of the hand blenders. Skills of the staffs are measured through training and
development programs, which proves beneficial in terms of enhancing their preconceived skills,
expertise and knowledge. The report also mention about the tool of Porter’s Five forces, which
acts as an agent in terms of influencing the bargaining power of the buyers and suppliers. Threat
of substitutes is low for Kuhn Rikon, which is an effective means for achieving higher
competitive advantage.

2ORGANIZATIONAL BEHAVIOR
Table of Contents
Introduction......................................................................................................................................3
Pestle analysis..................................................................................................................................4
Political........................................................................................................................................4
Economic.....................................................................................................................................4
Social...........................................................................................................................................5
Technological..............................................................................................................................5
Legal............................................................................................................................................6
Environmental..............................................................................................................................6
SWOT analysis................................................................................................................................7
Strengths......................................................................................................................................7
Weaknesses..................................................................................................................................7
Opportunities...............................................................................................................................8
Threats.........................................................................................................................................8
Balance scorecard............................................................................................................................9
McKinsey 7s framework................................................................................................................11
Shared values.............................................................................................................................12
Structure.....................................................................................................................................12
Systems......................................................................................................................................14
Style...........................................................................................................................................16
Staffs..........................................................................................................................................16
Strategy......................................................................................................................................17
Skills..........................................................................................................................................18
Porter’s five forces.........................................................................................................................18
Threat of new entrants...............................................................................................................18
Threat of substitutes...................................................................................................................19
Bargaining power of the buyers.................................................................................................20
Bargaining power of the suppliers.............................................................................................21
Competitive rivalry....................................................................................................................21
Recommendations..........................................................................................................................22
Conclusion.....................................................................................................................................22
Reference.......................................................................................................................................24

3ORGANIZATIONAL BEHAVIOR
Introduction
Kuhn Rikon Ltd is a Swiss company that is highly popular for its electrical kitchen
appliances like the hand held blender. The organisation was founded in 1926 and gradually it en
capsulated the Swizz market. There are not more than 160 employees who are currently working
in Kuhn Rikon. The CEO of the organisation is Dorothee Auwarter. Currently, Kuhn Rikon is
operated in more than 40 countries with exclusive distributors (Ch.kuhnrikon.com 2019). The
organisation was founded by Keinrich Kuhn-Boller who acquired the bankrupt copper and steel
manufacturer Kindlimann and established Kuhn Rikon. Kuhn Rikon manufactures different
kitchen appliances especially hand held blenders to specific customers. Niche marketing is also
considered to be one of the major aspects that the organisation must focus in the process of
getting strategic advantage in the competitive market. Therefore, this report aims to carry out a
situational analysis for both the internal and external environment and trying to figure out the
efficacy of expanding business through the niche marketing rather than offshoring.
Pestle analysis
Political
The political landscape of Switzerland is highly promising for the business organisations
to expand business in the Swizz market. In respect to this, it can be stated Switzerland
government is highly aware of the business practices inside the country and it is very important
for the government to continue its business so that it can garner more economic solidarity within
the country (Johnsen 2015). Government effectiveness in Switzerland is very stable with more
than 2.05 points in 2017. Therefore, it can be stated that the business companies feel highly
secured while expanding business in the Swizz market.

4ORGANIZATIONAL BEHAVIOR
Economic
One of the major factors for Kuhn Rikon to expand its business in Switzerland is the
steady economic growth and purchasing power of the customers. From the fact sheet of Young
and Pagliari (2017) it is derived that economic growth of Switzerland touched the percentage of
2.5 which is optimistic for the business companies existed in the Swizz market. The consumer
price index is also escalated at a rapid pace where it will be beneficial for the business companies
to offer premium product with high pricing strategy. However, competitiveness in the market is
too intense despite of having monitoring and control of the government. Therefore, for small and
medium scale companies it becomes a challenge to survive in the highly competitive market.
Social
The Swizz society is highly diversified but have great respect for the national interests.
People also have a high wage levels with high cost of living. As a result of that it becomes easier
for the business companies to earn high profitability as the customers are ready to purchase
premium products. However, the research of Upward and Jones (2016) characterised that the
Swizz people are very particular in investing their money. In other words, it can be stated that the
Swiss people are reluctant to invest money in non-profitable matters. It reflects in their
purchasing capabilities as well where the trend of the customers is to evaluate the price of a
product by its utilities.
Technological
The telecom market of Switzerland is highly developed and it provides technological
support to other business companies. Therefore, in terms of communication, it is not a problem
for the companies to facilitate b2b and b2c business operations. Furthermore, the growth
prospect and the specialisation of the business companies has been endorsed by the government.

5ORGANIZATIONAL BEHAVIOR
As a result of that the business companies feel enthusiastic to introduce new and advanced
technologies in business so that it can deliver further expansion and market capitalisation for the
business companies (Aithal 2017). Knowledge and creativity are part and parcel of the
technological advancement in Switzerland that helps the existing companies to enrich their
operations and manufacturing steadfastly.
Legal
As far as the Wall Street Journal index 2011, it can be stated that Switzerland is
considered to be the 5th freest economy around the world. As a result of that it becomes easier for
the business companies to move freely in the market and bring positive result to the economy of
Switzerland. Moreover, the federal law and government initiative to maintain competitiveness in
the market is also considered to be one of the fundamental characteristics of legal aspect that
makes it promising for Kuhn Rikon to expand in the market effectively. Kabue and Kilika (2016)
states that low corporate tax and strict measure in packaging and labelling the products is
identified as one of the major government initiative to deliver a strong and optimistic business
environment in the country.
Environmental
The Swiss government puts a great deal of focus on the environment regulation and the
business companies are bound to pledge to the Federal Environmental Protection Act 1983
(EPA). It is important for the business companies to abide the legal regulations of the
government and reduces carbon footprints at an extensive level as a gesture to feel responsible in
protecting the environment. As a result of that it becomes a pertinent aspect for the business
companies to follow the government regulations and foster a better practice so that it can provide
a healthy business environment in the Swiss market (Aithal 2017).

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SWOT analysis
Strengths
There are some strengths that are the advantages of Kuhn Rikon. First of all, uniqueness
of the products and the innovativeness in product designs are considered to be the most effective
factor that Kuhn Rikon perceives. As per the research of Phadermrod, Crowder and Wills (2019),
it can be stated that the looks and design of the product plays a pivotal role in attracting the
customers. In response to this, Kuhn Rikon also follows the same practice. Moreover, the
creative mind of the R&D team also helps the organisation to create a strong brand image in the
competitive market. Accompanied with this the sales and marketing team of Kuhn Rikon is also
focused on the customer insights and able to create a niche market for the professionals and
chefs. It provides a strong brand awareness and pragmatic approach for the organisation.
Weaknesses
The major weakness that Kuhn Rikon follows is associated with its niche marketing. It
creates limited market entry for the company which is detrimental for its extensive market
expansion. In addition to this, high pricing of the organisation is also create severe problem for
Kuhn Rikon because a number of customers are reluctant to buy the Kuhn Rikon kitchen
appliances due to its high pricing. As per the research of Gürel and Tat (2017), it can be referred
that high pricing strategy creates limited expansion for the business companies so that in high
competition it could be a major setback for the companies. In association with this, lack of
extensive marketing and promotional strategies are also contributed to the sustainability of the
organisation. As a result of that Kuhn Rikon faces challenges in expanding its business properly.

7ORGANIZATIONAL BEHAVIOR
Opportunities
Free trade environment is contributed enough to the market expansion of Kuhn Rikon.
There is no intervention from the government to override the decisions of the organisation.
Moreover, the stability of the government and government endorsement on implementing cutting
edge technologies is also helping Kuhn Rikon to introduce products with unique technologies
with high usage value. Moreover, Gupta and Mishra (2016) states that the economic expansion
of Switzerland is also creates opportunity for Kuhn Rikon to facilitate rapid expansion of its
business and developing a strong future of the company by relying on the economic growth
effectively. In addition to this, the market trends is also created better practice for Kuhn Rikon to
sustain its business by manufacturing product for niche market and it emboldens the product
development and maintains the quality of the product.
Threats
The major threat that Kuhn Rikon is suffering with is associated with intense competition
in the market. There are number of business companies that are targeting the same market with
nearly same products. As a result of that it becomes a problem for Kuhn Rikon to create a strong
brand awareness. Moreover, the impact of globalisation is also create enough opportunity for the
multinational companies to enter into the Swiss market. In addition to this, Jasiulewicz-
Kaczmarek (2016) opines that the political stability in the Swiss market is also creating
scepticism among the business companies to sustain market. As a result of that it is important for
Kuhn Rikon to think about the business sustainability in the market.

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Balance scorecard
Image 1: Balance Scorecard
(Created by the author)
As far as the business process is concerned, it can be stated that the role of Kuhn Rikon is
to launch new products that are important for the organisation. Moreover, it can be stated that the
customer segmentation has to be set perfectly so that it can deliver a unique brand value to Kuhn
Rikon. According to Akkermans and Van Oorschot (2018), it can be stated that customer
segmentation is the core practice that business companies must follow before design a new
product. Therefore, for Kuhn Rikon also it seems a great advantage to establish strong

9ORGANIZATIONAL BEHAVIOR
organisational awareness. In addition to this, it is also essential to reduce the cycle time so that it
can foster better organisational practice.
From the financial perspective, it is important to retain customers so that it will maintain
a flow of revenue. The role of the organisation is to carry out a better practice in association with
the customer satisfaction so that it can generate enough organisational practice. Cost
effectiveness is also identified as a great advantage for Kuhn Rikon to foster strong
organisational practice. Form the research of Hansen and Schaltegger (2016), it can be stated that
the role of cost effective manufacturing can lead to operational efficiency. In respect to this, it is
pertinent to state that Kuhn Rikon must follow the cost effective nature so that it can bring
improvement in the financial situation of the organisation. Furthermore, partnering with other
companies will also help Kuhn Rikon to develop its financial health to a great extent.
Online services are implemented by Kuhn Rikon for enhancing the standards and
excellence of operations. Uploading the specific information about the hand blenders, packaging
and the utility value on the social networking sites is assistance in terms of enhancing the
trafficking of the audience towards the brand image. Quizzes and contests add value to the
promotional advertisements, which expands the product line. For tracking the number of
customers, pay per click advertising is adopted (Jasiulewicz-Kaczmarek 2016). This is a means
for stabilizing the financial parameter. Security cookies and policies are implemented by the
staffs for protecting the personal information shared by the customers. This approach is effective
for gaining trust, loyalty and dependence of the clients and customers.
Learning and growth is conducted through the means of organizing quality training
programs for the employees. Cross training is also implemented for enhancing the cultural

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diversity of the workplace. In this process, alignment is done with the personal goals, which the
employees have been instructed to possess for achieving growth and development. Technological
training is a means for enhancing the productivity. Technology forms the basis of hiring key
talents in terms of accomplishing the identified goals and objectives. On the contrary, weaker
workforce is a weakness for Kuhn Rikon in terms of enhancing the productivity. This situation
necessitates the need for revising the recruitment and selection policies. Cross training also
relates to group discussions and forums, which helps in enhancing the adjustability skills and
competencies of the employees (Gürel and Tat 2017). Discussions and sessions reflects the
transfer of essential skills from one employee to other.
McKinsey 7s framework
Fig: Mckinsey 7s Framework of Kuhn Rikon, Switzerland
(Created by the author)

11ORGANIZATIONAL BEHAVIOR
Shared values
In a company and organization, the employees possess shared values of honesty,
integrity, transparency towards accomplishing the goals and objectives. Same is the story with
Kuhn Rikon where honesty, integrity, transparency in the processes is assistance in terms of
enhancing the efficiency in the operations. Versatility is also one of the other values to which
Kuhn Rikon employees works for fulfilling the specific needs, demands and requirements of the
customers. Adherence to the core inner values is assistance for the brand to enhance the
workplace culture. Continuous improvement strategy has enabled Kuhn Rikon to secure the
future (Ch.kuhnrikon.com 2019).
Structure
Fig: Hierarchical structure of KuhnRikon
(Created by the author)
CEO
Marketing Finance Sales and
operations
Human
Resource
management

12ORGANIZATIONAL BEHAVIOR
Initially, the structure of KuhnRikon was hierarchical, which was an obstacle in terms of
practicing niche marketing. The major drive behind this is the authoritative decisions and tax
obligations towards competitive policies, import and export policies and other marketing tools
and techniques. As the plans catered towards practising niche marketing, there was a need for
altering the organizational structure to functional, so that individual departments can work
towards enhancing the overall productivity.
Fig: Organizational structure of Kuhn Rikon, Switzerland
(Source: Ch.kuhnrikon.com 2019)
The organizational structure of Kuhn Rikon comprises of Administration, Sales and
Operation, Finance and Research and Development. In the segment of administration, the
parameters of Human Resource Management is included, where the plans are chalked out for
managing the operations in an efficient and effective manner. The head of the departments are
Organizational
structure
Administration Sales and
operation Finance Research and
development

13ORGANIZATIONAL BEHAVIOR
instructed to share the reports for taking decisions regarding application of the next course of
actions. The Sales and Operations Department is contacted for collecting reports on the progress.
Finance department is involved in the meetings and sessions, which helps in developing the
budget. Time management is maintained in the process of setting the budgets, which proves
beneficial for acquiring the additional requirements before initiating the actual orders (Shaqrah
2018).
Research and development is one of the important parameter in the business of Kuhn
Rikon. The engineers are hired for adding innovation into the designs of the hand blenders. For
this, the chefs and cooks are involved in the meetings for gaining an insight into the requirements
towards preparing the dishes. Testing is done for the produced hand blenders in order to achieve
infrastructural development. The main aim of marketing sales and operation department is to
enhance the excellence in the customer satisfaction. Line supervisors and production team
collaborate for making plans to expand the production line (Shiri et al. 2015).
Systems
The systems of Kuhn Rikon are flexible for producing lip smacking and delicious foods
and beverages. The members of the research and development team collaborate with the
engineers for introducing hand blenders, which easily mixes the ingredients. Infusion of the
latest technologies in the blenders results in radical transformation of the operations. These
technologies are assistance for the cooks and the chefs to prepare the dishes in an attractive
manner (Gökdeniz, Kartal and Kömürcü 2017).

14ORGANIZATIONAL BEHAVIOR
Fig: Architectural design of the hand blender
(Source: Ch.kuhnrikon.com 2019)
The engineers and the research and development team experiment with the designs of the
hand blenders, with specific focus on the spare parts and their placement. The cooks and the
chefs are involved in the meetings, which helps in assessing the feasibility of the designs for
preparing the dishes. Presentations and seminars are conducted for collecting the feedbacks
regarding their launch. Practical demonstrations enhance the awareness towards avoiding the
instances of malfunctioning at the time of preparing the dishes. The initial target market of the
company were the housewives and professionals. The plans include infusion of the technologies,
which blends the ingredients in less time. According to Javied, Deutsch and Franke (2019), this
plan helps in maintaining the balance between the time for preparing a dish and serving it to the
customers. Computer controlled machines are used by Kuhn Rikon for conducting performance

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review of the hand blenders. This is one of the cost efficient means of detecting the defects,
which needs to be eliminated for enhancing the standards and quality of the hand blenders. The
immediate result of this is the enhancement of the durability and quality of the foods.
Style
Trade fairs are the means through which Kuhn Rikon identifies the target customers.
Various events are organized for the customers, which influences their purchasing decision and
power. The luxury edition of the hand blenders adds to the status symbol of the professional
cooks and chefs. The major drive behind this is the ‘eye-catching’ designs, which are levied for
the chefs and cooks to select from (Ch.kuhnrikon.com 2019). One product strategy is the
cornerstone towards enhancing the shelf life and durability of the blenders until it reaches to the
customers. Multi purposes of the blenders is an aspect, which helps in achieving higher
competitive advantage over the contemporary brands. Quality controls and assurance is an
integral part of the business, which helps in averting the instances of adulteration. The focus of
the business is on service excellence, which is achieved through the means of adding reliability
to the cooking and baking requirements. Aiming to cater to the local customers through product
innovation and independence in the financial investments is the keystone towards stabilizing the
market position in the competitive ambience of Switzerland market (Zincir and Tunç 2017).
Staffs
The staffs are provided with training and development programs, which enhances their
preconceived skills, expertise and knowledge. Important information about the state of art
machines are disseminated to the employees for enhancing the efficiency in the production. The
strategic plan is shared with the employees, which reflects the participative management style.
This approach enhances the stability in the relationship between the employees and managers.

16ORGANIZATIONAL BEHAVIOR
Along with this, the approach is also effective in terms of enhancing the exercising transparent
and fair decision-making (Alam 2017).
Strategy
The strategy of one product is shared with the employees, which enhances their
awareness about the ways and means through which the processes are to be executed. The
knowledge disseminated to the employees is managed and processed through the knowledge
management systems, where the main focus is on the assessment of accuracy, reliability and
validity. The main theme of the marketing strategy is niche marketing, which helps in improving
the focus of the business. Niche marketing has acted assistance in securing jobs in the threshold
of Switzerland. This is one of the aspects, enabling Kuhn Rikon to achieve higher competitive
advantage than the contemporaries (Ahmad 2015).
Win-win situation is created through involvement of the staffs in the mainstream business
operations. Social workshops are the machines, which helps the staffs to learn about the
soldering of the cables to the circuit boards, assembling and packing the spare parts, grindling
the chopper and others. The staffs are also briefed about the working mechanism of the
powerhouse, which is the guarantee of success in terms of producing premium quality dishes for
the customers. These events generate teamwork, which enhances the productivity. Practical
application of the learnt skills helps in invoking the premium quality products. Promotional
advertisements are conducted on the TV and social networking sites, which helps in increasing
the trafficking of the audience towards the brand image (Galli 2018). Specific mention can be
made of the cooking programs and reality shows, which witnesses the assemblage of
professional cooks and chefs across the world. These shows are a means for segmenting the
targets for improving the sales revenue and the profit margin.

17ORGANIZATIONAL BEHAVIOR
Ensuring the safety of the stakeholders is one of the integral components of strategic
approach in case of Kuhn Rikon. Emulsification is applied for invoking the hand blender to be
one of the fascinating devices for the chefs and cooks. Strategic alliance with the distributors is
apt in terms of expanding the scope and arena of the supply chain network. The market share
achieved through exports accounts for 90% of the total operating income. As stated by Bolcaş
and Ionescu (2017), premium product and pricing are one of the other aspects in the strategic
approach of Kuhn Rikon towards marketing. Multi-functionality and strength adds value to the
hand blenders, resulting in the development of unique value proposition.
Skills
The skills and resource competencies of the staffs relate with effective communication
skills, problem solving skills, time management, self-organizational skills for influencing the
purchasing decisions and power of the clients and customers. Along with this, flexibility towards
handling the responsibilities is also considered for measuring the skills, abilities and
competencies. Ideal operating conditions are assistance for the employees to expose the talents.
One of the interesting facts is that the hand blenders are thoroughly checked on the operating
levels for ensuring that no defective products are sold to the chefs. Practical tests are taken for
ensuring whether the staffs are conscious of evaluating the performance before achieving final
closure for the production (Gaspar et al. 2018).
Porter’s five forces
Threat of new entrants
Combi-steam cookers, ovens, microwave and coffee centres provide VZug a higher
competitive edge than Kuhn Rikon. Therefore, continuous improvement strategy needs to be

18ORGANIZATIONAL BEHAVIOR
revised for upgrading the standards and quality of the production. Moreover, the vocational
training provided to the staffs is assistance in terms of extracting the needed labour. Their order
catalogue for the orders and prices is one of the aspects, which Kuhn Rikon needs to consider for
the enhancing the systematic approach towards online marketing. This situation necessitates
revision of the selection and recruitment policies for adding flexibility into the meagre workforce
of Kuhn Rikon. Continuous improvement strategies act as an agent, which reduces the threat of
the new entrants. Countering this, Stindt et al. (2017) opines that weaker workforce can be a
weakness in terms of achieving higher competitive advantage. One of the ways in which the
resolution can be achieved is evaluation and audits on a frequent basis. This consistency would
be effective for upgrading the standards and quality of the hand blenders.
Threat of substitutes
Tailor made packaging services reduces the threat of substitutes for Kuhn Rikon.
Packaging methods are uploaded on the social media for addressing the queries of the customers.
This approach is beneficial in terms of expanding the scope and arena of the corporate social
responsibilities. Mention can be made of Ruegg, which also takes pride in the production of
premium quality kitchen appliances. However, Burns and Dewhurst (2016) states that
computerized monitoring of the production of hand blenders, lab tests, and quality control
nullifies the threat of substitutes. On the contrary, various designs of the microwave might act as
a threat for Kuhn Rikon, if quality certificates are not introduced for the hand blenders. Diversity
in the microwave and cookers of VZug might lure the customers to switch brands, however,
computerized monitoring review systems act assistance for Kuhn Rikon in terms of retaining the
prospective customers. Rationality and strategic approach in this context is assistance for
achieving trust, loyalty and dependence from the customers. Relative pricing strategy of the

19ORGANIZATIONAL BEHAVIOR
substitutes is higher, which compels Kuhn Rikon to practice premium pricing strategy. This
situation results in targeting the professional cooks and chefs, which contributes in increasing the
sales revenue and profit margin. Product differentiation exists in both of the brands, however, lab
tests through computerized devices placed Kuhn Rikon on a higher pedestal (Rothaermel 2017).
One of the weaknesses is the weaker workforce, which needs to be modified for accomplishing
the targets.
Bargaining power of the buyers
Designed hand blenders with various colours and multi-functionality is a means for
influencing the buying decision and power of the buyers. Online retail channels is a cornerstone
for increasing the trafficking of the customers towards the brand image. The income in this
aspect accounts for 60% of the total operating income. TV cookery programs are the platforms,
which provide the ease to the chefs and cooks to showcase their talents. The response to these
programs help the staffs in selecting the target audience, who can contribute in enhancing the
sales revenue and profit margin. Partnering with YouTube is a means for expanding the scope
and arena of the business, resulting in strengthening the customer base. There is enough in store
for the brand to cater to the specific tastes and preferences of the customers. As per the
arguments of Serrat (2017), price sensitivity is detecting from the response of the customers
towards the offers levied in the social networking sites. As the switching cost is lower, therefore,
customer portfolios is prepared for gaining an insight into the capability and competencies. Pay
per click advertising is practiced for calculating the number of customers, investing in the
services of Kuhn Rikon. Security cookies and policies are installed in the websites and social
networking sites for enhancing the privacy and security of the information shared by the
customers (Jarzabkowski and Kaplan 2015).

20ORGANIZATIONAL BEHAVIOR
Bargaining power of the suppliers
Suppliers are levied with quality materials, so that quality products can be supplied to the
brands. Logistic operators are contacted for ensuring that there are flexible transports for
carrying the finished hand blenders from the factories to the customers. There is no dearth of
electricity suppliers in the Switzerland market, therefore, the bargaining power of the suppliers is
higher. As the production is of high quality, therefore, supply is also estimated to be of premium
quality for achieving higher customer satisfaction. Online means prove to be beneficial for Kuhn
Rikon in terms of expanding the supply chain network. Uniqueness in the supply lies in the
application of the tailor made packaging services, which helps in luring more customers. Ability
to substitute the products is also an integral component towards influencing the bargaining power
of the suppliers (Sölvell 2015). This situation arises upon the condition when the intention is to
increase the customer base through niche marketing and localization. In this context, innovation
acts as an agent for luring large number of clients and customers.
Competitive rivalry
There are numerous brands in Switzerland market dealing in the kitchen appliances,
which intensifies the competition with Kuhn Rikon. The product range of Ruegg, VZug are
diversified, which enhances the resources and capability of the industry in terms of enhancing
the efficiency in the business. Quality of the appliances differ, which is subjected to the
individual perceptions of the brand. Here, Kuhn Rikon is at an advantage point because of the
multi-functionality and diversification of the hand blenders, which is missing in the microwave,
cookers of VZug. Therefore, the switching costs is low, nullifying the aspect of exit barriers
almost to null. However, continuous improvement strategy needs revision for ensuring that all of
the points of quality, storage, utility value are covered. According to Huggins and Izushi (2015),

21ORGANIZATIONAL BEHAVIOR
competitive policies are fair enough, which reflects consciousness towards the instances of
conflicts, misunderstanding and the illegal instances. Tactics adopted by the competitors are
considered for making the necessary changes in the productions. Reviews, audits and inspections
are conducted for detecting the areas, which can be developed for expanding the product line.
Industry trends and growth is assistance in terms of mapping the position in the competitive
ambience of the market. Niche marketing upon the professional chefs and cooks acts as an agent
in terms of standardizing the product quality for the hand blenders (Huang et al. 2015).
Recommendations
 Kuhn Rikon should focus on the importance of its brand value. It will help to deliver a
strong market capitalisation for the organisation.
 Focusing on the innovation and product differentiation is also considered to be an
effective organisational practice that Kuhn Rikon must opt for.
 The marketing and promotional strategies are providing enough exposure for Kuhn Rikon
to build up effective organisational practice.
Conclusion
The above report is trying to facilitate an effective understanding of the situation that
Kuhn Rikon is suffering with in the process of setting up strategic advantage in the competitive
market. The Pestle and Swot analysis is trying to deliver deep insights into the environment of
Switzerland and the market trends that can help the organisation to procure sustainable
development. In association to this, it can be stated that it is important to note that the strategy of
Kuhn Rikon is focusing on the premium pricing so that the niche market can be addressed

22ORGANIZATIONAL BEHAVIOR
properly. In fact, the Pestle and Swot analysis is also defined the strengths and weaknesses of the
organisation so that it will be effective for Kuhn Rikon to design better strategy of encapsulating
the market and practice. Strategic approach towards adopting social media marketing is
assistance for Kuhn Rikon in terms of enhancing the standards and quality of the production of
hand blenders. Training and development programs helps in achieving infrastructural
development, which is an agent in terms of achieving higher competitive advantage over
competitors like Ruegg and VZug. Therefore, it can be concluded that the report clearly
highlights different situation and environment of business that can help and create challenges for
Kuhn Rikon.

23ORGANIZATIONAL BEHAVIOR
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