Case 5 Johnson Johnson

Topics: Johnson & Johnson, Carbon dioxide, Robert Wood Johnson I Pages: 5 (1699 words) Published: November 19, 2014
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 8 acquisitions

a. $1.1 billion acquisition of Mentor Corporation, allowing the firm to make a substantial move into the growing field of cosmetic drugs and devices 9. The company has a unique structure and culture

10. The independence has fostered an entrepreneurial attitude that has kept J&J intensely competitive, by responding swiftly to emerging opportunities 11. The firm is quite proud of the considerable freedom that it has given to its different business unit and execute their own strategies 12. However, the firm is consider no longer be allowed to operate in near isolation since Weldon believes the company can profit by working together 13. The firm plans to foster better communication and more frequent collaboration among J&J disparate operations a. James T. Leneham, vice chairman and president of J&J, set up groups that draw people from across the firm to focus their effort on specific diseases, reporting every 6 months on potential strategies and projects 14. The company has apply some changes to its corporate oversight of its supply chain and manufacturing 15. The firm’s diversified portfolio of products spread across various areas of the heath care have helped it to weather the problems that it has encountered B. Problems:

1. Lack of a well-established vision
2. Decentralized quality control system
3. No energy among the 3 units of the company
C. Strategies solutions implement by the company
1. Horizontal Integration
2. Related Division
3. Reorganization (Retrenchment Strategy)
V. SWOT Analysis
A. Strengths:
1. Brand Recognition
2. World admired company
3. Brand Presence in form of advertising media
4. It is triple A company
5. Excellent distribution networks
6. Good reputation
7. Recognized in different countries
8. Autonomy in order preserves an entrepreneurial culture throughout the organization. 9. Unique Strategies that allowed working with their own resources. B. Weaknesses:
1. Maintaining of global...
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