Johnson and Johnson

Genevieve Lilley

March 13, 2017

BIS 101 H

Central Michigan University

 Executive Summary

Johnson and Johnson

In the following document the author researched the Johnson and Johnson

company. Through their research they learned about the company’s extensive history,

which included all of their many acquirements. They also learned about the various

products that Johnson and Johnson offers and the work culture and organizational

structure of the company as a whole. The author also learned about the company’s future

outlook and plans, both philanthropic and professional. Finally, the author reached a

conclusion, based off their information, on whether or not they would choose to work for

Johnson and Johnson.

Johnson and Johnson was started in 1886 by Robert Wood Johnson and his

brothers when they created a medical bandage that would help patients avoid infection

due from airborne germs within operating rooms. Johnson &Johnson's first product was

an improved medicinal plaster that used medical compounds mixed in an adhesive. Soon

after they developed this plaster, they designed a soft, absorbent cotton-and-gauze

dressing which further helped to prevent infection. Over the years as the company

continued to expand their product line their company grew as well. What started off as a

small company grew to become one that had over twenty-six operating companies in

sixty different countries with their products sold in over one hundred and seventy-five

countries.

The products and services offered by Johnson and Johnson cane be divided into

three different categories or sectors: consumer products, medical devices, and

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pharmaceutical products. The consumer product sector contained their brands such as

Neutrogena, Aveeno, and Band-Aid. This section contained the products that most

individuals would see on a regular basis in stores. Most of them are beauty or health

related (lotions, soaps, sunscreens, Band-Aids etc.) The medical device sector was

comprised of various companies that Johnson and Johnson has acquired over the years,

such as Ethicon or DePuy. These companies created prosthetics, implants, or hearing and

sight aids for patients. They also aided in research for each of these fields. The final

sector was pharmaceutical products which was a field dedicated to research. This field or

sector researches cures and therapies for diseases relating to the heart, the immune

system, pulmonary hypertension, the brain, and even cancer.

While the extensive product lines brought in the revenue of the company, the

management and corporate culture were what kept it growing. The corporate structure at

Johnson and Johnson was made up of several chief officers of different fields

(Information Systems, Finance, Executive, VP, Supply Chain, and Human Resources)

that were overseen by a board of directors (Wengel, 2017). The structure for the

employees was made up of great communication network with decentralized structures

where people worked independently and reported back to heads of their department who

in turn reported back to their bosses as well. Johnson and Johnson cared for the health of

their employees as well and they showed this by implementing sport and health

programs, flexible working hours, opportunities to work from home, and sabbaticals This

structure coupled with the excellent corporate culture made for a great work environment.

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 Due to the excellent corporate culture and product line, the future of the Johnson

and Johnson company looked quite bright. They have continued to introduce new

products within the past five years that have accounted for approximately 22% of 2017

sales. They also have continued to invest in themselves. In 2017, $10.6 billion was

invested in research and development and $35.2 billion spent on acquisitions. In 2017,

worldwide sales also increased 6.3% to $76.5 billion. Johnson and Johnson also recently

acquired another company. They secured a contract in November of 2017 from Guys &

St Thomas NHS Foundation Trust for Orthopedic services. This contract was valued at

approximately 310 000 000.00 GBP. Along with this acquirement, Johnson and Johnson

gave back to the community and committed $25 million in financial and product

contributions to Operation Smile over the next five years. This donation also helped with

their corporate image as this organization helps with children’s dental health.

After having researched the company of Johnson and Johnson extensively, the

author concluded that they would want to work for this company for many reasons. One

of the biggest factors was the excellent corporate culture and extensive research that the

company performed to help those with diseases. The greatest factor that contributed to

their decision, however, was the company’s ability to adapt and bounce back from any

incident that befell them. Johnson and Johnson learned from their mistakes and made sure

to never repeat them again. These traits, along with the positive ending yearly balances,

caused the author to decide that they would ultimately want to work for Johnson and

Johnson.

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v
 History of Organization

Whenever the company Johnson & Johnson was discussed in conversation the

thought that was brought to mind by most individuals was that of a successful public

corporation with brands and lines found within numerous markets that ranged from

healthcare to baby products. This massive corporation that was recognized by so many

individuals was started over a century ago in the late 1800s in New Brunswick, New

Jersey within a former wallpaper factory (“Johnson & Johnson- Company Profile,” n.d.).

In 1886 Robert Wood Johnson thought of an ingenious idea that would solve one

of the largest problems in the medical industry at that time: infection due to airborne

germs within operating rooms (“Johnson & Johnson- Company Profile,” n.d.). Johnson

was a druggist at the time and joined forces with his two brothers, James Wood Johnson

and Edward Mead Johnson, who helped him carry out his vison. They began engineering

proper medical dressings and bandages that helped the patients to avoid infection with

only fourteen employees within an old wallpaper factory (“Johnson & Johnson-

Company Profile,” n.d.). Johnson &Johnson's first product was an improved medicinal

plaster that used medical compounds mixed in an adhesive. Soon after they developed

this plaster, they designed a soft, absorbent cotton-and-gauze dressing which further

helped to prevent infection (“Johnson & Johnson- Company Profile,” n.d.).

In 1891 the brothers transferred their business, which had begun to grow, into a

research facility where they began to develop a zinc-oxide -based adhesive plaster. This

plaster eliminated the problem of skin irritation that many patients suffered with their

previous bandages (“Johnson & Johnson- Company Profile,” n.d.). At the end of the

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century the company’s founder, Robert Wood Johnson, passed away and left his

flourishing company to his two surviving brothers. James Wood Johnson led the company

to great success throughout the following century.

James first move in his new position came n 1916 when he purchased Chicopee

Manufacturing Corporation in 1916. This acquirement solved the problem of the

company’s increasing need for supplies and different materials (“Johnson & Johnson-

Company Profile,” n.d.). In 1921 Johnson and Johnson invented the Band-Aid which

revolutionized the medical bandage industry (“Johnson & Johnson- Company Profile,”

n.d.). The Band-Aid made it possible for people to easily bandage their own scrapes at

home without any irritation or cumbersome gauze. This invention propelled the company

even further and in 1923, after a trip overseas with his nephews, James decided to

continue to expand the company when he saw the potential markets that awaited the

company over there (“Johnson & Johnson- Company Profile,” n.d.). The innovations did

not end there in 1927 Johnson and Johnson developed the first feminine hygiene product

titled Modess Sanitary Napkin. This product made their company a household name and

was what helped them begin to branch out into other fields (“Johnson & Johnson-

Company Profile,” n.d.). Due to the success of the Band-Aid and the Sanitary Napkin,

Robert Johnson, James’ nephew, took the company public in 1944 (“Johnson & Johnson-

Company Profile,” n.d.). With the success of their stock Johnson and Johnson was able to

purchase one of their most significant acquirements in 1959: Tylenol. This would greatly

affect the future of their company, both positively and negatively.

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 In 1966 Johnson and Johnson hired James Burke from Proctor & Gamble who

aided them greatly throughout the following years in their various marketing campaigns.

Burke revolutionized the marketing field by placing ads on television for not only

Johnson and Johnson’s Band-Aids, but feminine products as well (“Johnson & Johnson-

Company Profile,” n.d.). At the time, this had never been done and was considered a

taboo topic, but Burke’s plan paid off. By 1978 Johnson and Johnson had captured half

the market and had begun to expand their feminine hygiene line and mas market Tylenol

due to the success (“Johnson & Johnson- Company Profile,” n.d.).

Throughout the remainder of the seventies and into the early eighties Johnson and

Johnson acquired several more businesses that expanded their corporation more heavily

into the medical field. In May 1977 they bought Extra corporeal Medical Specialties, a

manufacturer of kidney dialysis and intravenous treatment (“Johnson & Johnson-

Company Profile,” n.d.). Three years later, they acquired Iolab Corporation, who made

ocular lenses for cataract surgery. This helped Johnson and Johnson to smoothly and

effectively enter the field of eye care and ophthalmic pharmaceuticals (“Johnson &

Johnson- Company Profile,” n.d.). In 1981 the company continued to extend its

involvement in eye care industry through the acquisition of Frontier Contact Lenses. All

of these acquisitions caused them in 1979 to create Critikon, Inc., a separate branch

dedicated to products that related to the field of eye health (“Johnson & Johnson-

Company Profile,” n.d.).

No company has a perfect track record, and in 1982 Johnson and Johnson suffered

one of their first major scandals. During this time it was reported that seven people had

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died after consuming Tylenol (“Johnson & Johnson- Company Profile,” n.d.). After an

investigation from the FDA, it was discovered that the deaths were a result of tampering

at the retail level, not during manufacturing. This however, did not stop stores from

removing the products from their shelves and sales took a dive as the product fell out of

favor with the general public (“Johnson & Johnson- Company Profile,” n.d.). Stock

dropped eighteen percent the week after the deaths, but Johnson and Johnson faced the

issue head on by placing ads which explained how to exchange Tylenol for refunds in

various stores. They also worked closely with the press by not avoiding questions, but

instead responding directly which helped to keep the public up to date. The company also

placed a coupon for $2. 50 off any Tylenol product in newspapers across the country to

reimburse consumers for Tylenol capsules they may have discarded. By the end of the

decade Johnson and Johnson had regained over ninety percent of their original customers

and were selling five hundred million dollars in sales annually (“Johnson & Johnson-

Company Profile,” n.d.). In 1990 the success was so great that they began to expand the

Tylenol line into Tylenol P.M., a sleep aid for people with colds.

While success had returned to the company, the nineties was a difficult period for

the company. Revenues increased at only a twenty-six percent rate due to the economic

climate at the time, but Johnson and Johnson continued to invest in themselves and move

forward despite this (“Johnson & Johnson- Company Profile,” n.d.). They acquired

Neutrogena for $1 billion and DePuy Inc. for $3.7 billion in 1998. Neutrogena helped

them to expand into the beauty and dermatological field and DePuy helped them to

expand into orthopedic products (“Johnson & Johnson- Company Profile,” n.d.).

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Simultaneously at this time Johnson and Johnson decided to decrease their workforce by

4,100 and close 36 plants around the world over the next 18 months (“Johnson &

Johnson- Company Profile,” n.d.). Johnson and Johnson aimed to save between $250

million and $300 million per year by doing this.

With the new budget in place the company decided to merge with Centocor Inc. in

a $4.9 billion stock-for-stock transaction (“Johnson & Johnson- Company Profile,” n.d.).

This was the largest deal like this in company history. Now having acquired Centocor and

Ortho Biotech, Johnson and Johnson was one of the world's leading biotech firms

(“Johnson & Johnson- Company Profile,” n.d.). In 1999 they acquire another company,

S.C. Johnson, who was most well known for their brand Aveeno (“Johnson & Johnson-

Company Profile,” n.d.). The acquisitions continued throughout the early 2000s as they

acquired both ALZA Corporation, a leading developer of drug-delivery technologies and

the drug Concerta, as well as Guidant Corporation (“Johnson & Johnson- Company

Profile,” n.d.). Despite their numerous acquisitions throughout the 90’s and early 2000s,

Johnson and Johnson made a revenue of 4.17 billion. Their net earnings had nearly

quadrupled since 1989, while their net sales had nearly tripled as well (“Johnson &

Johnson- Company Profile,” n.d.).

Johnson and Johnson’s history shows continuous growth and innovation, despite

several struggles that they faced along the way. Their adaptability was what caused them

to be one of the leaders in their industry. They have continued their success throughout

the past decades by increasing their product lines and continuing to research and invent

newer medical technology and drugs.

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 Types of Products and Services Offered

Through the numerous companies that they have acquired over the years, Johnson

and Johnson has branched into numerous markets. The three sectors, or markets, where

their products are located are consumer products, medical devices, and pharmaceutical

products. Each branch included not only products, but extensive research programs as

well that factored into the making of the final product.

The consumer product industry was the one that Johnson and Johnson was most

recognized for as many individuals have seen it daily in their local stores. This branch

included their baby, beauty, wound care, over the counter, and oral products (“Consumer

Products,” n.d.). The baby product line was made up of Johnson’ Baby. This included

safe, mild and gentle products for babies that were soap-free, hypoallergenic,

dermatologist-tested and paraben-free (“Consumer Products,” n.d.). This line includes

baby wash, bubble bath products, cologne, cotton, diaper creams, gift

packs, haircare, lotion, nursing pads, oil, and powder wipes (“Consumer Products,” n.d.).

The beauty line from Johnson and Johnson includes the Aveeno, Clean & Clear,

Neutrogena, and La Petit Marseillais. The Aveeno brand has used natural ingredients to

produce lotions, scrubs, face washes, sunscreen, shampoo, conditioner, and numerous

other products (“Consumer Products,” n.d.). Clean & Clear had a similar product line to

that of Aveeno, but they specialized specifically in the field of acne medications and

washes. This includes scrubs, washes, toners, wipes, blotting papers, and targeted acne

treatments (“Consumer Products,” n.d.). The Neutrogena line was also similar to that of

the two previous brands, but has been slightly more expanded. They carry shampoo,

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conditioner, makeup (which includes mascara, foundation, blush, concealer, bronzer,

powder, eyeshadow, eyeliner, and lipstick), sunscreen, facewashes, lotions, masks,

serums, toners, anti-acne devices and antiaging devices (“Consumer Products,” n.d.). La

Petit Marseillais is a French brand bought by Johnson and Johnson that specializes in

soaps and body washes (“Consumer Products,” n.d.). This beauty line gave Johnson and

Johnson their household name and was one of their keys to such great success.

The wound-care line was comprised of the Band-Aid brand. This line obviously

included Band-Aids in their various forms. Johnson and Johnson has expanded the line to

include decorative Band-Aids, waterproof Band-Aids, athletic Band-Aids, advanced

protection Band-Aids, and durable Band-Aids (“Consumer Products,” n.d.). Also

included in this line was Neosporin, an ointment that protects users from infection and

helps with irritation and discomfort with cuts (“Consumer Products,” n.d.). The Band-Aid

line was first introduced in 1921 when Johnson and Johnson created the first Band-Aid.

Since that day it has brought great success to the company and has continued to expand

throughout the years (“Consumer Products,” n.d.).

Johnson and Johnson’s over the counter line included many different drugs

mostly related to pain relief or cold and flus. This line included Motrin, a pain relief drug

that relieves headache, muscular aches, minor pain of arthritis, toothache, backache, the

common cold and menstrual cramps; and also, temporarily reduces fever (“Consumer

Products,” n.d.). This line also included Tylenol which has helped with pain relief as well

and fevers. It was a reliever from headache and muscle pain, arthritis pain, sinus, cold &

flu, as well as pain with sleeplessness for adults (“Consumer Products,” n.d.). Tylenol can

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also be used for infants and children due to the brand’s infant line (“Consumer Products,”

n.d.). Benadryl is another brand included in this line. It was an allergy reliever that helped

with allergy symptoms of sneezing, runny nose, itchy, watery eyes and itching of the

nose and throat (“Consumer Products,” n.d.). Finally, this line also included the brand

Zyrtec which was another allergy reliever much like Benadryl. It relieved the symptoms

of sneezing, runny nose, itchy, watery eyes and itching of the nose and throat as well

(“Consumer Products,” n.d.).

The final consumer product brand that Johnson and Johnson owned is Listerine.

This line specialized in oral health and provided protection against various bacterias that

reside in the mouth through a variety of mouthwashes (“Consumer Products,” n.d.).

These mouthwashes included Sensitivity Mouthwash (for sensitive teeth), Total Care

Mouthwash, Fluoride Defense Mouthwash, Healthy White Mouthwash, Smart Rinse for

Kids Mouthwash, Naturals Mouthwash, and Ultraclean Mouthwash. Listerine also sold

toothpaste, toothbrushes, and floss (“Consumer Products,” n.d.).

The second industry that Johnson and Johnson is heavily immersed in is the

medical device industry. Their main brand or specialist in this area was a company called

Ethicon (“Medical Devices,” n.d.). Ethicon offered a complete portfolio of devices for

open and laparoscopic procedures. Their main focus in the creation of all of their devices

was to solve unmet surgical needs through in-depth knowledge of tissue and energy

sciences (“Medical Devices,” n.d.). Ethicon specializes in surgical stapling. They provide

surgeons with advanced instruments across the spectrum of surgical methods which were

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all designed to support optimal patient outcomes. They believe that this wide range of

options ensures the right solutions for the right procedures (“Medical Devices,” n.d.).

A line included in Ethicon that specialized in wound closure was Dermabond. In

Dermabond they researched heavily every type of tissue, whether skin, fascia or organ

which led advancements in wound closure that are transforming surgery (“Medical

Devices,” n.d.). Their comprehensive wound closure portfolio allowed surgeons to match

the closure needs of each tissue type to the appropriate closure device (“Medical

Devices,” n.d.).

Another brand owned by Johnson and Johnson was Acclarent, Inc. Their main

focus was to design, develop and commercialize medical devices that addressed

conditions affecting the ear, nose and throat. Many ENT surgeons use Acclarent devices

and research throughout their everyday practice (“Medical Devices,” n.d.). Another

company owned by Johnson and Johnson was Biosense Webster, Inc. They specialized in

diagnosing and treating heart rhythm disorders (“Medical Devices,” n.d.). They regularly

partnered with clinicians to develop technology that improved the quality of care for

arrhythmia patients worldwide.

Another device company owned by Johnson and Johnson was Codman Neuro.

They were a neurosurgery and neurovascular company that offered devices for

hydrocephalus management, neuro intensive care and cranial surgery, as well as

aneurysm coils, vascular reconstruction devices and other technologies used in the

endovascular treatment of cerebral aneurysms and stroke (“Medical Devices,” n.d.). Most

of these companies, while they have created numerous devices, spend most of their time

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researching for their field before they attempted to create a device (“Medical Devices,”

n.d.).

One of the largest companies owned by Johnson and Johnson in the medical

device category was DePuy. They specialize in joint reconstruction, orthopedic trauma,

spinal care, orthopedic sports medicine, electric and battery-driven systems, associated

dissections tool, crania-maxillofacial devices (facial trauma), metal implants in trauma,

spine and crania-maxillofacial surgical procedures, and breast aesthetics (“Medical

Devices,” n.d.). The products for each of these lines were generally the same, they are

just applied and specialized for the different fields. Each specialization field produced

screws, plates, nails and other implants for each surgical procedure required (“Medical

Devices,” n.d.).
 Another company owned by Johnson and Johnson that specialized in

creating various products for the surgical aesthetic field was Mentor Worldwide

(“Medical Devices,” n.d.). The company has focused on two strategic areas: breast and

body aesthetics and was the only brand to have their implants made in the United States

(“Medical Devices,” n.d.).

Another field that one of Johnson and Johnson’s company was involved in was

diabetes. Their company LifeScan Inc.
 helped patients to manage their diabetes

effectively (“Medical Devices,” n.d.). They designed a pump that helped patients with

effective diabetes management. LifeScan was a leader of blood glucose monitoring

systems for home and hospital use (“Medical Devices,” n.d.). The company is dedicated

to helping their patients enjoy healthy lives with pumps that are no invasive but are

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effective. Johnson & Johnson also specialized in eye products through their brand Vision

Care, Inc. Through Vision Care, Inc. they have created as the world’s first disposable soft

contact lens in 1987, and have continued to be innovative and produce quality, and

scientific advancements to the industry (“Medical Devices,” n.d.).

The pharmaceutical product sector of Johnson and Johnson also included many

brands, as did the previous consumer and medical device sectors. However, they

specialized mostly in researching different fields so that they can create quality devices.

The first field that they specialized in researching was immunology. Their vision was a

world without immune diseases. They accomplished this by building a pipeline of

innovative biologic and oral therapies in disease areas such as rheumatoid arthritis,

inflammatory bowel diseases, and psoriasis (“Pharmaceutical Products,” n.d.). They have

continued to research throughout the years and hoped to deliver a new vaccine in these

areas in the future.

Johnson and Johnson also researched vaccines and cures for various diseases that

have a global impact on our world. They specifically have looked into cures for diseases

such as HIV, viral hepatitis, respiratory syncytial virus, influenza and Ebola

(“Pharmaceutical Products,” n.d.). They have researched this field extensively and are

looking for any therapies that can help patients to cope with these diseases and cures for

the overall disease as well. They have not produced a product relating to either of these

two areas (“Pharmaceutical Products,” n.d.).

Another field that Johnson and Johnson extensively researched was

Cardiovascular & Metabolic Disease. Their vision was to one day find a cure to all

xvi
cardiovascular diseases (“Pharmaceutical Products,” n.d.). They worked to develop new

therapies that will one day eliminate these diseases. They developed these therapies by

targeting underlying disease pathways, important pathways, and novel mechanisms of

action (“Pharmaceutical Products,” n.d.). Johnson and Johnson also researched cures to

pulmonary arterial hypertension through their company Actelion.
 They also have

researched the pathways and molecular mechanisms that relate specifically to PAH

(rather than cardiovascular diseases) and have started developing medicines based on this

research (“Pharmaceutical Products,” n.d.).

Another Johnson and Johnson research field is neuroscience. In this field, they

researched different ways to the burden, disability caused by serious neuro psychiatric

diseases and pain conditions (“Pharmaceutical Products,” n.d.). The main researched

neuroscience diseases included Alzheimer’s Disease, various mood disorders and

Schizophrenia. They have looked into synaptic plasticity and cellular resilience, with an

emphasis on developing novel therapeutics for the treatment of severe mood disorders

and neurodegenerative dementias (“Pharmaceutical Products,” n.d.). Johnson and

Johnson also hired research specialist to search for a cure for cancer. This particular field

grew throughout the years, but is still looking for an answer (“Pharmaceutical Products,”

n.d.).

Johnson and Johnson has built up a heavy line of products all related to very

different markets. They have continued to expand their lines throughout the years which

has brought them great corporate growth. While most consumers have known them for

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their extensive beauty lines and cough medicines, in the future they will be known for

their extensive research and possibly even a cure to a global disease.

Organizational Corporate Culture

What began as a small medical bandage company in an old workhouse grew into

one of the largest corporations in the world. Johnson and Johnson created over twenty-six

operating companies in sixty different countries and their products are sold in over one

hundred and seventy-five countries (Wengel, 2017). They are the sixth largest consumer

health company, the most competitive medical device company, and the fifth largest

pharmaceutical product company (Wengel, 2017). All of this is a result of excellent

corporate structure and culture.

Like most public corporations, Johnson & Johnson had several chief officers of

different fields (Information Systems, Finance, Executive, VP, Supply Chain, and Human

Resources) that were overseen by a board of directors (Wengel, 2017). This board of

directors was split up into different committees to better oversee such a large corporation.

These committees were Audit Committee, Compensation & Benefits Committee, Finance

Committee, Nominating & Corporate Governance Committee, Regulatory, Compliance

& Government Affairs Committee, and Science, Technology & Sustainability Committee

(Wengel, 2017). All of these committees together ensured that the company has grown

each year and performed a checks and balances system on all of the chief officers.

The overall operating structure of the company as whole was described best by

Jim Schweiz, a Johnson and Johnson employee in Switzerland. He described the whole

company’s structure as one where, “Employees operate in decentralized structures in

xviii
independent, specialized subsidiaries. This gives them constant access to the knowledge

base and financial resources of a large group of companies” (Schweiz, 2013). This is

how Johnson and Johnson managed to grow and achieve such success with such a large

company. They established a great communication network with decentralized structures

where people worked independently and reported back to heads of their department who

in turn reported back to their bosses as well (Schweiz, 2013).

Schweiz also described the corporate culture of Johnson and Johnson as one that

was inclusive and one that lived out their core values every day (Schweiz, 2013). One of

Johnson and Johnson’s main core values is responsibility. Schweiz said that this was seen

best in one of their potential business deals. Johnson and Johnson backed out because

they discovered that the company they were about to partner with had dine some

unethical dealings in the past that violated their core values. Because of this they backed

out of a deal that potentially could have made them millions (Schweiz, 2013).

Johnson and Johnson not only stuck to their values, but also treated their

employees with respect as they were aware that they are the driving force of their

company. They cared about the health of their employees and showed this by

implementing sport and health programs, flexible working hours, opportunities to work

from home, and sabbaticals (Schweiz, 2013). They also created various diversity

recruiting programs to increase diversity in their workplace because they realized that it

was healthy for their business in the long run and the right thing to do as well (Schweiz,

2013).

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 Johnson and Johnson was a company that many wanted to work for because of

their success. This success is a direct result of their fantastic corporate culture and

organizational structure.

Future Outlook of the Company

The future outlook for Johnson and Johnson as a company was quite bright. They

have continued to introduce new products within the past five years that have accounted

for approximately 22% of 2017 sales (“Annual Report,” n.d.). They also have continued

to invest in themselves. In 2017, $10.6 billion was invested in research and development

and $35.2 billion spent on acquisitions. In 2017, worldwide sales also increased 6.3% to

$76.5 billion (“Annual Report,” n.d.). Their annual report showed that sales by

U.S. companies were $39.9 billion in 2017, compared to $37.8 billion in 2016 (“Annual

Report,” n.d.). Sales in each of their three sectors increased as well. Consumer segment

sales in 2017 increased by 2.2% from 2016, resulting in sales of $13.6 billion (“Annual

Report,” n.d.). Pharmaceutical segment sales in 2017 were $36.3 billion, which was an

increase of 8.3% from 2016 (“Annual Report,” n.d.). The Medical Devices segment sales

in 2017 were $26.6 billion, which was an increase of 5.9% from 2016 (“Annual Report,”

n.d.). With statistics like these it was clear that they will continue to prosper throughout

the next years.

Johnson and Johnson also recently acquired another company. They secured a

contract in November of 2017 from Guys & St Thomas NHS Foundation Trust for

Orthopedic services. This contract was valued at approximately 310 000 000.00 GBP

(“Pivotal Sources,” 2017). Along with this acquirement, Johnson and Johnson gave back

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to the community and committed $25 million in financial and product contributions to

Operation Smile over the next five years. This donation also helped with their corporate

image as this organization helps with children’s dental health (“News Bites -

Pharmaceuticals & Biotechnology,”2015)

The only potential roadblock that can be found in Johnson and Jonson’s

continuous path to success is that of the heightened US drug safety and overuse concerns

(Bowe, 2007). In 2007, it caused two of their newest drug products, which they counted

on to bring in a steady revenue that year, to tank for that quarter. Some ideas that they

have conceived have been extremely innovative, but because they have not passed all of

the new tests have resulted in a waste of the company’s money and time (Bowe, 2007).

However, this was not too large of a concern for the company as they were involved in so

many other fields that compensated for the losses they incurred from this incident.

Through the years the company has adapted to these policies and begun to develop drugs

that passed these tests with certainty so as not to waste any more of the company’s money

(Bowe, 2007).

Johnson and Johnson is a strong corporate company that built a foundation on

which they were secure through all of the business world’s many ups and downs. They

have adapted well throughout the years and have gained great knowledge in the field of

risk management to better help their company continue to grow throughout the coming

years. The author is confident that they will have no trouble continuing to grow due to

their numerous product lines and their impressive and organized leadership and corporate

structure.

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 Summary

Throughout this report the author discussed many different aspects of the Johnson

and Johnson company. They discussed the history and background of the organization;

how it was started by brothers as a simple medical bandage company that grew into a

massive corporation. They also discussed the numerous product lines that grew from this

small family start up and the work culture that ensured this company’s continual success,

despite the setbacks that it has faced. They also discussed the future outlook of the

company, how it continued to exceed sales of the previous year and strove for success

with every decision made.

After having analyzed all of this information, the author concluded that they

would work for this corporation. From an employee’s standpoint, they learned that

Johnson and Johnson respected their employees and offered flexible schedules. They also

learned that they were constantly innovating and moving forward in whatever field they

worked in, especially the medical field. The author considered their work within the

medical field to not only be revolutionary, but also something that was caring and showed

that the company truly wanted the world to thrive and overcome these diseases.

The various setbacks that the company faced, from the Tylenol incident to the

newly introduced government policies, also showed that they are adaptable and because

of this the author felt that they would continue to succeed throughout the years. All of

these factors, along with their great core values of adaptability and responsibility, not

only ensured their success, but also made them a company that the author wanted to work

xxii
for.

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