Case 5 Johnson Johnson
Johnson & Johnson
I. History
A. Founded in 1886 by three brothers:
1. Robert Wood Johnson
2. James Wood Johnson
3. Edward Mead Johnson
B. Three main categories:
1. Medical devices (40%)
2. Pharmaceutical (37%)
3. Consumer packaged goods (23%)
C. Presented as 250 different operating companies that are spread over 60 countries
D. The company has the headquartered in New Jersey
E. Listed among the Fortune 500
F. 125 and more years of experience
G. Competitive Advantages of the company
1. Work across the company
2. Diversification within the industry
3. More than 100 years of experience
4. Decentralized corporate structure results in different people with different skills, and ideas in a more innovative ways
5. Possible interaction among the business division
II. Vision: J&J does not have a clear vision
III. Main Objective: “To provide scientifically sound, high quality products and services to help heal, cure disease and improve the quality of life.”
IV. Case Study
A. Information:
1. January 26, 2011 earnings had declined in the fourth quarter of the previous year and lowered its estimates for its earnings for 2010
a. Due to the depressed economy and to a string of product recalls: 7 recall since September 2009
2. Problem surf at McNeil Consumer Healthcare: recall an estimated of 136 million bottles of children’s Tylenol, Motrin, Benadryl, and Zyrtec
3. Excoriated by the Food and Drug Administration for failing to catch McNeil’s quality problems
a. Causing the company to close down the factory until 2011
4. The company began to have acquisitions
5. Operating companies enjoy unit of autonomy to preserve an entrepreneurial culture
6. William Weldon, the firm’s chief executive, have been thinking about taking steps to be more actively involved with its far-flung business units
7. The concern about quality have pushed the firm to try to find a more effective method of running its businesses without stripping them to their relative autonomy.
8. Since 2008, J&J has made
I. History
A. Founded in 1886 by three brothers:
1. Robert Wood Johnson
2. James Wood Johnson
3. Edward Mead Johnson
B. Three main categories:
1. Medical devices (40%)
2. Pharmaceutical (37%)
3. Consumer packaged goods (23%)
C. Presented as 250 different operating companies that are spread over 60 countries
D. The company has the headquartered in New Jersey
E. Listed among the Fortune 500
F. 125 and more years of experience
G. Competitive Advantages of the company
1. Work across the company
2. Diversification within the industry
3. More than 100 years of experience
4. Decentralized corporate structure results in different people with different skills, and ideas in a more innovative ways
5. Possible interaction among the business division
II. Vision: J&J does not have a clear vision
III. Main Objective: “To provide scientifically sound, high quality products and services to help heal, cure disease and improve the quality of life.”
IV. Case Study
A. Information:
1. January 26, 2011 earnings had declined in the fourth quarter of the previous year and lowered its estimates for its earnings for 2010
a. Due to the depressed economy and to a string of product recalls: 7 recall since September 2009
2. Problem surf at McNeil Consumer Healthcare: recall an estimated of 136 million bottles of children’s Tylenol, Motrin, Benadryl, and Zyrtec
3. Excoriated by the Food and Drug Administration for failing to catch McNeil’s quality problems
a. Causing the company to close down the factory until 2011
4. The company began to have acquisitions
5. Operating companies enjoy unit of autonomy to preserve an entrepreneurial culture
6. William Weldon, the firm’s chief executive, have been thinking about taking steps to be more actively involved with its far-flung business units
7. The concern about quality have pushed the firm to try to find a more effective method of running its businesses without stripping them to their relative autonomy.
8. Since 2008, J&J has made