Organizational Structure/Control Mechanisms
Most companies evolve into a particular structure. As the company grows it is important to ensure that every function is managed. As time goes on the company reviews the structure and changes to meet the needs of the organization. Johnson & Johnson is deeply committed to the heritage of decentralized management. The decentralized operating companies, affiliates and business segments are brought together in an organization structure that ensures that their activities align with overall strategic objectives This approach sets J&J apart from many other companies their size and enables them to proudly serve as the world's most comprehensive and broadly based manufacturer of health care products. Through their decentralized structure they combine the advantages of being big with the agility and focus of smaller organizations. Many of their small-company environments provide more effective focus on the needs of customers and patients, as well as a more inviting and engaging business setting (Johnson & Johnson 2007). J&J is comprised of three business segments Consumer, Pharmaceutical and Medical Devices and Diagnostics, which reflects the way products and services, are delivered to their customers. Across the three business segments are 38 principal global businesses, each having its own area of focus within its business segment. Many affiliates develop, produce and market the products and services which consumers and health care professionals have come to know and trust. Over 250 highly autonomous operating companies extend the geographic reach of J&J's affiliates around the world and provide still greater marketplace and product focus. The operating companies serve as the foundation of each business segment with responsibility for helping grow profitable brands. This is where the people are closest to the customers and to the business. Through the operating companies, employees can have a direct impact on their...
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