JOHNSON & JOHNSON CASE ANALYSIS
Johnson & Johnson is a multi-national company comprised of various operating companies situated all over the world, and the world’s most comprehensive and broadly based manufacturer of pharmaceuticals, medical devices and high-value diagnostic products and services for the global health care community. General Robert Wood Johnson and his two brothers started a company in 1885 that would eventually help revolutionize the surgical and medical fields with innovative products and services. The products made by the various operating companies affiliated with Johnson & Johnson are summarized as follows: Johnson & Johnson products and services
These includes products designed to various markets such as
Skin and hair care
Wound care and topical medicines
Over the counter medications
Oral Health Care
2. Medical Devices & Diagnostics
These J&J products are included various orthopedic products, implants, artificial joints, endovascular devices, and products used in sports medicine and trauma, diabetes, heart and vascular diseases, coronary artery disease, peripheral and vascular disease, neurovascular disease, arrhythmia, self-measured blood glucose monitors, insulin delivery devices, various surgical products and devices, and in urologic surgery and plastic surgery treatment. J&J also provides products that are used for a variety of medical diagnostics ranging from lab equipment and blood screening products to advanced molecular diagnostic equipment. 3. Prescription products
Various semi-autonomous J$J operating companies located in nations around the world produce or supply drugs used for the treatment of a variety of diseases affecting a wide range of human bodily systems.
J&J is structured as a business that operates using an extensive web of semi-autonomous company units, i.e., the parent firm has spun off and acquired a number of independent subsidiary firms such as Neutrogena and a myriad of others around the world. J&J has gained a strong product share and financial position in various segments of the health products market by managing its operating companies as independent businesses. However, this structure has presented difficulty for vendors who prefer "one stop shopping" with J&J as a whole. J&J executives have tried to solve this problem by organizing the operating companies into three groups: consumer products, pharmaceutical products and professional products. Additionally, in 1992 and 1995 its Customer Support Center and J&J Health Care Systems were introduced respectively to work with US companies specifically to market J&J products to large managed care health and medical care service providers. To summarize and reiterate how J&J operates, the following points are relevant: •
Each of the many J&J operating companies functions managerially as independent units. Therefore, each company is responsible for managing its own product lines, administrative and financial systems, and strategic marketing plans, setting their own market and operational goals and targets. •
For functional purpose the operational companies are organized into three groups – Consumer, Professional and Pharmaceutical. •
Entities such as the Customer Care Center and J&J Health Care Systems were created to leverage the advantages from having a large number of products and product lines. These entities have marketed both consumer goods and healthcare goods to larger buyers in these separate industry sectors. The J&J way of doing business through these entities may be characterized as functioning essentially as cross-functional teams within the larger J&J corporate structure. Organizational culture and limitations
With respect to J&J organizational culture and its limitations, the following points are important to understand: •
The autonomy of the numerous J&J...
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