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Date: 31st December, 2014
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Index
Particulars
Introduction(about co., credo, history,
subsidiary holdings, product)
Strategic framework
Pg.Nos
.
03
Environmental
analysis(PESTEL,Porter,SWOT,competit
or, value chain)
Business level strategy
Corporate level strategy
Strategic acquisitions
Corporate governance
References
12
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Introduction
Johnson & Johnson is an American multinational pharmaceutical, medical devices, and
consumer packaged goods manufacturer founded in 1886. It is headquartered in New
Brunswick, New Jersey and being listed among the Fortune 500. The corporation includes
some 250 subsidiary companies with operations in over 57 countries and products sold in
over 175 countries. Johnson & Johnson and its subsidiaries (the Company) have
approximately 128,100 employees worldwide engaged in the research and development,
manufacture and sale of a broad range of products in the health care field. The Company
conducts business in virtually all countries of the world with the primary focus on products
related to human health and well-being.
Our Credo:
Credo,a deeply held set of values that have served as the strategic and moral compass for
generations of Johnson & Johnson leaders.
We believe our first responsibility is to the doctors, nurses and patients, to mothers
and fathers and all others who use our products and services. In meeting their needs
throughout the world. We must respect their dignity and recognize the merit.
We are responsible to the communities in which we live and work and to the world
community as well.
Our final responsibility is to our stakeholders by providing fair return.
History
Inspired by a speech by antiseptic advocate Joseph Lister, Robert Wood Johnson joined his
brothers James Wood Johnson and Edward Mead Johnson to create a line of ready-touse surgical dressings thus began the company began the company, Johnson & Johnson, in
New Brunswick ,United States in 1885. The company produced its first products in 1886
and incorporated in 1887.
A year later, J&J pioneered the first commercial first aid kits, which were initially designed to
help railroad workers, but soon became the standard practise in treating injuries. In 1894,
J&J's heritage baby business began, by the launch of maternity kits. These kits had the aim of
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making childbirth safer for mother and babies. JOHNSON's Baby Powder also went on sale
during this year and was extremely successful. Between 1896 and 1897, J&J enabled a huge
step forward for women's health when it manufactured the first mass-produced sanitary
protection products.
Johnson & Johnson spread its roots into India in 1947 with the arrival of Mr. Patrick Whaley
and in 1948, started marketing Johnsons Baby Powder which was manufactured by a local
company, British Drug House, in Mumbai. In September 1957, a new company - Johnson &
Johnson Limited was created and registered with 12 employees on its roll. The company was
licensed to manufacture a broad range of consumer and hospital products.
One of J&J's subsidiaries is Ethicon, a manufacturer of surgical sutures & wound closure
device was incorporated as a separate company in 1949 so as to expand and diversify the J&J
product line. In 1959, J&J acquired McNeil Laboratories in the US and also CilagChemie,
AG in Europe. These two acquisitions enabled the company to gain a significant presence in
the field of pharmaceutical medicines for the first time. It was in 1961 that Belgium's Janssen
Pharmaceutica N.V. joined the J&J Family of Companies. Its founder, Dr Paul Janssen, is
recognised as one of the "most innovative and prolific pharmaceutical researchers of the 20th
century".Today, Janssen is one of the world's leading research-based pharma companies and
markets prescription medicines in the areas of gastroenterology, women's health, mental
health, neurology and HIV / AIDS, to name a few.
In 1987,The vision care business introduces ACUVUE Brand Contact Lenses, the first
disposable contact lenses which eliminate the need for cleaning, disinfecting solutions and
storage. During 1990-2002, Neutrogena Corporation, Kodak's Clinical Diagnostics business,
Cordis Corporation and Centocor join the Family of Companies. In 2006. Johnson & Johnson
acquires Pfizer Consumer Healthcare, which brings in heritage consumer brands such as
LISTERINE Antiseptic (first formulated in 1879), BENGAY & BENADRYL.
Johnson & Johnson celebrated 125 years of caring in 2011 and looks to the next 125 years of
transforming care for patients, consumers and communities around the world.
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Subsidiary holdings
Advanced
Ethicon, Inc.
Global
Sterilization Products
ALZA
Systems Inc.
Pharmaceutical
Corporation
Supply Group
ANIMAS
Corporation
Johnson &
Johnson Merck
(GPSG)
Johnson &
Consumer
GroupeVendme
Pharmaceuticals Co.
SA
BabyCenter,
L.L.C.
Biosense Webster,
Gynecare
HealthMedia
Independence
Johnson
Pharmaceutical
Research &
Inc.
Centocor Ortho
Technology, LLC
Biotech, Inc.
Children With
Development, L.L.C.
Pharmaceutical
Technology Services
Services, L.L.C.
Cilag
Codman
&Shurtleff, Inc.
Janssen
Pharmaceutica
LifeScan, Inc.
Janssen
McNeil Consumer
Cordis
Corporation
Crucell nv
DePuy, Inc.
Consumer
McNeil
Nutritionals
Johnson &
Johnson, Group of
Healthcare
Pharmaceutica
Products, L.P.
Johnson &
Johnson
Information
Diabetes, Inc.
Johnson &
Mentor
Worldwide, L.L.C.
Companies, Inc.
Noramco, Inc.
OraPharma
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Ortho-Clinical
Penaten
Pharmaceutical
Diagnostics, Inc.
OCD
Alkaloids
Group Strategic
Ortho-McNeil
Ortho-Neutrogena
Dermatological)
Personal Products
Company
Tibotec
Transform
Peninsula
Pharmaceuticals, Inc.
Pharmaceuticals, Inc.
(a merge of
Neutrogena and Ortho
Marketing (PGSM)
Pharmaceutical
Tasmanian
Veridex, LLC
Vistakon
Corn Huskers
PriCara, Inc.
Scios Inc.
Synthes
Products
Acuvue
Carefree
Actifed
Aveeno
Coach
Lotion
Bactidol
Benadryl
Benecol
Bengay
Cortef
Dolormin
Band-Aid
Cortaid
Coach
Professional
Coach Sport
E.P.T.
Codral
Efferdent
Combantrin
Euthymol
Compeed
First-Aid
Conceptrol
Gynol
Healthy Woman
Benylin
Bonamine
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Inadine
Nu-Gauze
Imodium
O.B.
Rembrandt
toothpaste
Johnson's
Pediacare
Penaten
Lactaid
Listerine
Polysporin
Ponstan
Motrin
Motrin Children
Quantrel
REACH
Neosporin
Neutrogena
Simply Sleep
Simponi
Sinutab
Sirturo
Splenda
Stayfree
Steri-Pad
Stim-u-dent
Tucks Pads
Tylenol
Tylenol Baby
Tylenol Children
Reactine
Nicoderm
Purell
Neko
Savlon
Provin
Mylanta
Priligy
Myadec
RoC
Pepcid AC
Modess
Piz Buin
Lubriderm
Risperdal
Pepcid
Listermint
OneTouch
Jontex
Remicade
Olysio
Regaine
Nicorette
Visine
Nizoral
Zyrtec
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Strategic framework
Johnson & Johnsons senior management is fully committed to the companys diverse programs
that contribute to society in a meaningful way. The strategic leaders include Alex Gorsky
(Chairman, Board of Directors, and Chief Executive Officer) and Dominic J. Caruso (Vice
President(Finance) and Chief Financial Officer)
Johnson & Johnson is the principal management group responsible for the strategic operations
and allocation of the resources of the Company. This Committee oversees and coordinates the
activities of the Consumer, Pharmaceutical andMedical Devices and Diagnostics business
segments.In all of its product lines, the Company competes with companies both locally and
globally, throughout the world.
Foundation
The Strategic Framework starts with its Credo, the guide to help us navigate the way through
challenges and opportunities. From that, Aspiration emerges by caring, one person at a time, it
help billions of people around the world live longer, healthier and happier lives.
Strategic Principles
It builds from this foundation a unique set of strategic principles. They are broadly based in
health care. The focus is on managing for the long term. It operates under a decentralized
management approach. And it does all this through a unique culture that values and fosters the
development of its people.
Growth Drivers
They are the specific areas of focus that help ensure robust growth for the future. In today's
highly competitive global marketplace, it is also essential to focus on the critical drivers of our
future growth: to create value through innovation, to extend our global reach, with local focus, to
execute with excellence in everything we do. It pursues growth drivers guided by the Leadership
Imperatives: Connect, Shape, Lead and Deliver.
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reach larger audience. Announced a first-of-its-kind pediatric HIV treatment donation program to
improve access to the companys approved HIV medicines for people failing HIV treatment in
sub-Saharan Africa.
PESTEL Analysis
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PORTERS MODEL
Level of Competition
The level of competition in the health care industry is fairly high. This is because there are
several large companies that have a good hold on the current market. This includes companies
such as Johnson and Johnson, Merck, Novartis, Pfizer, and more. However, there are
organizations which may be able to enter the industry because of an already established business.
One example of this would be Wal-Marts entry into providing pharmaceuticals.
Threat of New Entry
The level of difficulty involved in entering the health care industry varies depending on the
particular business segment. Medical and Diagnostics are difficult to enter due to the high
overhead costs and the importance of investing heavily into research and development for new
advances. Pharmaceuticals are also difficult to enter due to the research and development
required for this segment as well. In addition, the current leaders in the pharmaceutical industry
have an established brand and have a certain level of customer loyalty. A new company in the
industry would have to sway customers to try their pharmaceuticals rather than the established
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brands. The easiest level of entry is in the consumer segment. This segment relies more on
marketing towards the brand recognition rather than a high level of research and development for
cutting edge medical treatment. There is a high level of competition in this segment, which is the
most difficult aspect for a new firm to overcome.
Threat of Substitutes
For the health care industry, there are few substitutes that an average consumer would have
access too, especially regarding pharmaceuticals and medical/diagnostics. Consumer products
that Johnson and Johnson offers do have close substitutes; there are generic brands which
customers may purchase, as well as alternative methods of health care, such as ayurvedic tea or
eating soup to ease headaches rather than taking a Tylenol.
Bargaining Power of Suppliers
Johnson and Johnson relies on a majority of their supplies to be provided by unique and small
suppliers. These include:
Small and large minority owned businesses
Small and large women-owned businesses
Small disadvantaged businesses
Small veteran-owned businesses
Small HUBZone businesses.
This allows Johnson and Johnson to have more power when bargaining with suppliers because
the proportion for which and individual supplier is responsible is much lower than the proportion
of business that Johnson and Johnson provides for that business.
Therefore, the supplier relies more on Johnson and Johnson than they rely on the supplier.
However, because Johnson and Johnson has been using suppliers for several years in a row, it
can be assumed that both parties have an equally beneficial stake in the success of the other.
Bargaining Power of Customers
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The amount of power that individual customers have with regard to Johnson and Johnson is
small. Because Johnson and Johnson is so diversified, customers rely on a large number of
Johnson and Johnson products on a daily basis. In addition, the medical and pharmaceutical
segments have a lower level of competition and therefore do not allow customers to have many
options. Therefore, when it is necessary for someone to use these devices, they are required to
use one of Johnson and Johnsons products or one of the few competitors.
SWOT ANALYSIS
Strengths
Weakness
Opportunity
Threats
Competitor analysis
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Value chain
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priorities
for
these
divisions.
Key
subsidiaries
Devices); McNeil Laboratories, Inc., Cilag, and Janssen Pharmaceutica (Pharmaceuticals). The
company is into High diversification category with 25%-Primary care 11% Biologicals 64%others (Non-drug).
Following are the segments:
Pharmaceuticals
The Pharmaceuticals business segment is dedicated to addressing and solving the most important
unmet medical needs of our time, including oncology (e.g., multiple myeloma and prostate
cancer), immunology (e.g., rheumatoid arthritis, irritable bowel disease and psoriasis),
neuroscience (e.g., schizophrenia, dementia and pain), infectious disease (e.g., HIV/AIDS,
Hepatitis C and tuberculosis), and cardiovascular and metabolic diseases (e.g., diabetes). These
products are distributed directly to retailers, wholesalers and health careprofessionals for
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prescription use .Driven by the commitment to its patients, they develop sustainable, integrated
healthcare solutions by working side-by-side with healthcare stakeholders, based on partnerships
of trust and transparency. With $28.1 billion in worldwide sales in 2013, it is the seventh-largest
pharmaceuticals business in the world and the sixth-largest biotech business. Also it is the
fastest-growing top 10 Pharmaceutical Company in the United States, Europe and Japan and
recorded 15 consecutive quarters of operational sales growth in this segment.
Consumer Healthcare
The Consumer segment includes a broad range of products used in the baby care, skin care, oral
care, wound care and womens health care fields, as well as nutritional and over-the-counter
pharmaceutical products, and wellness and prevention platforms. These products are marketed to
the general public and sold both to retail outlets and distributors throughout the world. With
$14.7 billion in worldwide sales in 2013, Consumer segment is the sixth-largest health care
consumerbusiness in the world and achieved operational sales growth of 2.8 percent.
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Data Access (YODA) Project to extend its commitment to sharing clinical trials data to enhance
public health and advance science and medicine. This is the first time any company has
collaborated with a completely independent third party to review and make decisions regarding
every request for pharmaceutical clinical dat
2) Johnson & Johnson Acquired Synthes : Combination Creates the World's Leading
Orthopedics Business
Johnson & Johnson announced the completion of the acquisition of Synthes, Inc. for a total
purchase price of $19.7 billion in cash and stock on June 14,2012. Synthes Holding AG is
a multinational medical device manufacturer based in Solothurn. It is the world's largest maker
of implants to
mend bone
fractures,[2] and
also
tools and
advanced biomaterials. Synthes got integrated with the DePuy franchise to establish the DePuy
Synthes Companies of Johnson & Johnson. The completion of the Synthes acquisition creates the
world's most innovative and comprehensive orthopedics business and reflects its long-standing
strategy of leadership within attractive health care markets. The combination of these two
respected leaders -- Synthes and DePuy -- will enable to better serve clinicians and patients
worldwide, bring new innovations to the marketplace in orthopedics and neurologic, and
strengthen its ability to compete in developing markets. Operational sales growth in medical
devices segment of 6.1 percent included the impact of the acquisition of Synthes, net of the
divestiture of the DePuy Trauma business since it is primed to offer new, value-added solutions
that will help transform health care delivery.
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Corporate Governance:
Johnson & Johnsons management is responsible for timely, accurate, reliable and objective
financial statements and related information. As such:
To encourage strong and effective corporate governance from our Board of Directors.
To continuously review our business results and strategic choices:It reviews financial
results and develops strategies and initiatives for long-term growth. The Committee's intent is to
ensure objectivity in business assessments, constructively challenge the approach to business
opportunities and issues, and monitor business results and related controls.
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References:
http://www.2013annualreport.jnj.com
http://www.jnjindia.com
http://www.janssenpharmaceuticalsinc.com
https://www.depuysynthes.com
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