Strategic Analysis of Kuhn Rikon: An Organizational Behavior Report

This report presents a comprehensive organizational behavior analysis of Kuhn Rikon, a Swiss kitchen appliance company. It begins with an abstract summarizing the company's market position and the application of analytical tools such as PESTLE and SWOT to evaluate its external and internal environments, respectively. The report delves into the political, economic, social, technological, legal, and environmental factors influencing Kuhn Rikon's operations. It then provides an in-depth SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report utilizes the McKinsey 7S framework and Porter’s Five Forces to assess the company's internal alignment and competitive landscape. The analysis includes a balance scorecard to measure the financial and non-financial performance of the company. Finally, the report offers strategic recommendations based on the findings of the analysis, aiming to enhance Kuhn Rikon's market position and overall business performance.

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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).

6ORGANIZATIONAL BEHAVIOR
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.

8ORGANIZATIONAL BEHAVIOR
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

10ORGANIZATIONAL BEHAVIOR
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