Pestle and Swot Analysis

Running Head: ORGANIZATIONAL BEHAVIOR
ORGANIZATIONAL BEHAVIOR
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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).