Johnson And Johnson Strategic Plans

Johnson And Johnson Strategic Plans gate delegacy is formed as the brief background of Johnson Johnson. The revolve virtually of this report go forth be fixed on JJs subsidiary Johnson Johnson, Group of Consumer Companies, Inc. Johnson Johnson. We provide be focal pointing and relating this report on the itch w be line of Johnson Johnson.The strategical initiatives of Johnson Johnson s skills, dodge, staff, complex body part, system, staff and divided up value will be discussed and interpret in this report. We looked into their club functions so as to outgo(p) look them to alter effective end makings. A political frugal analysis is conducted to win spheric risk insights for Johnson Johnson that is near to JJ manage those risks as potential and risk. In relation to Johnson Johnson s baby palm harvest-times, Porters forces instance is used to disassemble the hawkish advantage of the firm. One of the key dreads is that the middle-high tilt is puzzl e with less number of competitors on treat wangle crossing line from competitor wish California Baby, Simple. deck out analysis convey that Johnson Johnson holds strong competitive advantages after comparing its pros and cons in spite of of a a few(prenominal) disadvantages of globose standardization strategy. The harvest strategy of Johnson Johnson will be selected found on both internal and external environment f human activityor for the lead years plan. These diagnoses argon in summon to the SWOT analysis base on the keep order resources assets, intellectual property, and mountain. Lastly, the modes of admittance will be affected by the several internal factors in this report. It comprises of internal requirement, engineering science know-how, concern know-how as well as pressure for embody reduction.The recommendation post would provide several suggestions for the improvement of Johnson Johnson through the cheek structure and human race Resource Mana gement.IntroductionWe name chosen to be seducen on Johnson and Johnson (JJ) for our strategic worldwide argument solutions consider report for it is a world(a) American pharmaceutical, medical devices and consumer packaged goods tally to passr founded in 1886. With more(prenominal) than 250 subsidiary companies locate in 57 countries around the orb and having its overlaps sold in everywhere 175 countries, JJ is a listed company evident with its listing among Fortune vitamin D and registering its stock with NASDAQ (NYSE JNJ). With a diverse range of products sold in global grocery stores, JJ adopted the business strategy of global standardization whereby there is restrict customization needed for its products for focus is position on having customers recognise and identify JJ as a household make.Focus of this report will be placed on JJs subsidiary Johnson Johnson, Group of Consumer Companies, Inc.Strategic Initiative of Johnson JohnsonSkillsAs Johnson Johnson is a global manufacturer with some subsidiaries on a global subdue, JJ would use up its employees through a stringent process of selection and focus on unitys performance. This implies that JJ recruits people of experience and ability with a global passset hires third-country discipline (TCN), indicating that recruitment of people is mainly dependent on existence self- arranged with JJs organic lawal structure.StrategyWith the mark of market turn overth and maximizing mesh make for in order to be responsible to their stockholders, JJ adopted the business strategy of global standardization. Choice of global standardization strategy is because JJs focus is placed on minorering costs and that there is limited need for customization of products for it more often than not the same some other than slight changes in the products packaging.StaffThe employees of JJ can be said to be well motivated to work for JJ has provided their staff with galore(postnominal) incentives ra nging from personal to performance values (i.e. yearbook incentive bonus, long-term incentive awards, and severing benefits). As JJ redeem high expectations on their employees, JJ sends their staff on unceasing employee training that clocks an average of 8 hours or more periodical (i.e. leadership developing and focus teaching method in fields the desire finance and trade). JJ also makes sure that their employees argon motivated by better-looking them the sound to voice iodines opinion on company issues through JJs creed survey.StructureJJs organizational structure is dictated by its corporate strategy. JJ ab initio adopted a decentralized approach to management but in the early 1900s, changed it to a more standardized approach for JJs vertex executives notice that their subsidiaries argon not well-positioned on a global platform to assist customers directly. The change in corporate management allowed JJ to mitigate limitations posed by the decentralization appr oach. One instance would be JJ having categorized all subsidiaries into collar categories namely, consumer, pharmaceutical and professional. The chairman of separately category is given the responsibility of identifying opportunities for leverage profits and expertise across companies in every market and the franchise managers assigned the responsibility of coordinating cross-company gross r as yetue of a family of products (e.g. baby deal out products in US, France, Australia). The centralized management approach benefits JJ for it gives JJs top management a better view of its global subroutines and are able to efficaciously manage and integrate its global operations. This led to the success of JJ in being globally effective in terms of operations for cost of takings is trim backed in terms of reducing redundancies and duplications during the processing and manufacturing process.SystemsIn the business of health care, Johnson Johnson is inspired and united by a common b lueprint to care for the health and well-being of the people they serve around the world. sympathize with sustains the people of Johnson Johnson in their aim to make the world a better and healthier place through everything that they do. It is core to their business strategy and initiatives, the programs and partnerships which they phase, the positions that they manoeuvre on public policy issues, and their care for the environment.As the company moves forward, it proceeds to coerce the innovation envelope as coordinated activities under the centralized control, infusing topnotch technology and ingenuity into every product they make and every project which the company undertakes. The procedure of the JJ functions as a system in which build from in spite of appearance organization, as 95% of their people start at founding take aim and then progress and prosper throughout the organization. This not just creates more wonderful opportunities to grow and advance, it creates a special camaraderie among expletive JJers, many of whom came up through the ranks together.Johnson Johnson came up with this credo which speaks about their representation narratements, views and their pledges to the customers and society. Robert Wood Johnson, former chairman from 1932 to 1963 and a member of the Companys founding family, crafted Our church doctrine himself in 1943, just onwards Johnson Johnson became a publicly traded company. This was long before anyone ever heard the term corporate social responsibility.WILLIAMC.WELDON is the chairman, Board of Directors, and drumhead Executive Officer of Johnson Johnson. He takes pride in the organization work procedures and describe their operation of their day-to-day work is about their response to the unmet necessitate of their patients and customers and also their response to the needs of their colleagues their response to supporting the global communities in which they live and work finally, their response to the ca ll for research and innovation in health care.StyleThe parent company of Johnson Johnson which is Procter Gamble (PG) has been pioneering products in to the highest degree 50 different categories and their baby product line will be the function in which this report will be focusing on.As the company moves forward, it continues to push the innovation envelope every day, infusing superior technology and ingenuity into every product they make and every project which the company undertakes. The procedure of the JJ functions as a system in which build from within organization, as 95% of their people start at entry level and then progress and prosper throughout the organization.This not only creates many wonderful opportunities to grow and advance, it creates a special camaraderie among fellow JJers, many of whom came up through the ranks together.This also explains why their hiring process is so rigorous. JJ s system is as such that they are not just religious offering a job, they ex pect you to grow into one of their future leaders. From day one youll help develop or support exciting brands you know piece of music working on projects that cause a direct impact on their global, $61.9 billion sales in 2009.Shared note valuesJohnson Johnsons management style of helping to shape and define what health and well-being inwardness in everyday lives. Their products, services, ideas and giving now touch the lives of at to the lowest degree one billion people every day. They credit their strength and survival of the fittest to a invariable approach to managing their business, and to the character of their people. They are conduced in everything they do by their Credo, a management document authored more than 60 years ago by Robert Wood Johnson, former chairman from 1932 to 1963, and by four strategic principles.Their company style is deeply rooted in their Credo and deeply in filtered into their employees and leaders. Johnson Johnson s system is such that their overarching ism which guides their business is their Credo, a deeply held set of values that have served as the strategic and moral compass for generations of Johnson Johnson leaders and employees.Above all, their Credo challenges them to regularize the needs and well-being of the people they serve first. It also speaks to the responsibilities they have to their employees, to the communities in which we live and work and the world community, and to our shareholders. They believe their Credo is a blueprint for long-term growth and sustainability thats as relevant today as when it was written.The company behavioral style is that their values embodied in their Credo guide the actions of the people of the Johnson Johnson Family of Companies at all levels and in all parts of the world. They have done so for more than 60 years. These Credo values extract to their accounting and financial reporting responsibilities. Their management is responsible for timely, accurate, reliable and ob jective financial statements and related information. As suchThey keep on a well-designed system of internal accounting controls.They encourage strong and effective corporate presidential term from their Board of Directors.They continuously review their business pass ons and strategic choices.They focus on financial stewardship.Synergistic teamsAll of the above of Johnson Johnson s skills, strategy, staff, structure, system, staff and shared value formed together and worked in cohesively to form a synergetic team of workforce that oversee the entire operation from sourcing materials ,production lines ,manufacturing to research and emergence (RD). It is seen as that a synergy is the energy or force created by the working together of respective(a) parts or processes. In Johnson Johnson, the baby care products are the result of synergy and quality reassurance as call in by the company.External EnvironmentEnvironment cannot be controlled therefore we should analyze the environm ent first then indicate the strategy that also reflects the organization structure subsequently.Political Economy AnalysisThe political rescue of a nation defines the forms of interdependence amongst the political, economic, and well-grounded systems, and also reflects they interact and influence each other.Political systemsThe system of presidency in a nation delineate as political system which divided the 200 plus world entities into 2 dimensions that include the degree of collectivism versus individualism and the degree of nation versus undemocraticism. More practically, individuals would be tied together to achieve the common or collective goals in the high context country, like South Korea, Japan, those people focus on the benefits of society and long-term family relationship individualism mean democratic political systems and take over market economies like Americans have free rights to vote in election. Myanmar, North Korea act as the totalitarianism that government absolutely controlled by one person or political party. Whereas, china exist the grey area that it has been a move toward enormouser individual free market economies, but the government is still a totalitarian dictatorship.If the political systems are high stable, the company would be decentralized otherwise, the company would concentrate in the low stable situation. Although the political systems in suppose Japan (i.e. change in 3 prime ministers since 2007) is carnal knowledgely insecure as compared to that of other Asian countries like Singapore, the Japanese government is more open in terms of local anesthetic market entrance of pla profitsary companies.Economic systemsIn market delivery, production is determined by the fundamental interaction of demand and supply besides, the government encourages free and fair competition amongst close producers, the representatives of governments like the Great Britain, US and France. The objective of command economy is the good of society all businesses are state owned in command economy, such as Thailand, South Korea, and Indonesia. India is the typical example of composite economy in which certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have state significant ownership and government planning.The company would decentralize in the consistent economy system or concentrate in the inconsistent economy system.Legal systemsFor a business that operates globally, understanding the different legal systems revivify an important role of the process. Legal aspects help to facilitate business operations so therefore it is very crucial and a necessity for planetaryist business operators to have an understanding of the different legal systems around the world.Companies must(prenominal) take into consideration the legal structures of the country in which they operate in. globalisation breaks down barriers between nations and bring nation together in a global platform. But increasing investment among nations also makes it more effortful for those in different conclusions to understand the rules of other countries. It is important to follow the legal system of the country in which business is conducted or the government has the right to have legal actions taken should laws be not comply.International art LawsBusinesses operate in a world in which the laws of different governments and legal systems might conflict as they originated from different horticultures. It is therefore necessary to have a basic knowledge of the legal system and also understand how does business law impacts commerce in the companys own country and overseas. The impacts of international business on business law facilitate the inclusion body of standards in their company regulations or operations that totress these tricky and complex issues.sociable cultural environmentAccording to Geert Hofstede Cultural Theory, the global social culture roughly classify as 4 dimensions which considered as costs.Individualism versus communismThe individualism and individual achievement is common in the Western Countries, both positive and negative implementation in individualism. The positive side is showed in competition between individuals rather than collective groups and the person get pay-for-performance want to compete within organization especially in the dynamism of US economy that encouraged person to take chances and tried saucy things with queer ideas (i.e. Steve Jobs). However, the individualists just focus task-based, they cannot develop a strong and long-term relationship with others which is the advantage of collectivism. US, Canada Australia is the classical individualist representatives that are different from Asia (i.e. South Korea, China) act as collectivists.Power DistanceThe degree of acceptance of hierarchy or inequality exists among the organization, the higher queen distance (i.e. Japan, Vietnam) reflect in the end making by the seniorities and reward as the status, position and experiences in contrast, the decision making and authority took by the task representative and pay-for-performance reward equal in low power distance culture like Denmark and UK. perplexity AvoidanceThe degree of tolerance for uncertainness and ambiguous situation, the low uncertainty avoidance reflects the high risk taker and adaptability of new things (i.e. Australia, Singapore) the high uncertainty displayed the low tolerance for uncertainty issues like France and Italy, those countries need the structured organization or rules to obey so that French and Italians are difficult to overcome the culture shock when they sent as expatriate managers.Masculinity versus FemininityWhether the differences of work in gender roles accepted in society, Japan and China should be masculine society the jobs of gender are distinct and form a male dominant society and person more focus on financial and material possessions. On the other h and, gender roles are imbrication in the femininity country, such as Thailand and Finland, people in those countries focus more on quality of life. Therefore, in the femininity countries, the purchasing power of lifestyle is relatively high which point out an appealing way to Johnson Johnson develop.Overall analysisThose external environments provide global risk insights for Johnson Johnson that is beneficial to JJ manage those risks as potential and risk to take advantage of the relative international business strategy to form and adapt organization structure in the long-term.Competitive Advantages Posters Five ForcesDegree of RivalryThe middle-high rivalry is present with less number of competitors on Baby Care product line, like California Baby, Simple but Johnson Johnson is dominant in the Baby Care patience and the economies of scale so that the firm reflects less intense competition. The cost of competitive advantage and promotions are relatively high, like the advertisin g and discounts additionally, JJ has over hundreds history and good image of Corporate Social Responsibility (CSR) result them remain competitive rather than leave the industry. Next, the high rate of growth display the middle-high competitive situation overall in the industry.Threat of new entrantsThe threats of new entrants should be low despite of low barriers of entry in the lights of low costs of set-up. The brand equity of JJ is relatively high and it has great impacts in the industry so that a large number of suppliers prefer to sign contracts with it rather than the new entrants that benefit for enhancing suppliers brand and engaging more profits, Lafes Body Care is an example of new entrant who launch a new baby care product line in new-fangled years.In addition to the basteing costs for customers, customers are keen on the brand with quality guarantee using for baby or not the less discrepancy of prices.Threat of substitutesSome baby care products from hypothecate Pige on Corporation and Drapolene are suggested by doctors (i.e. responsible to babies), but lack in brand awareness recognized by customers as renowned brands and those products are not easier to buy or package of those products are not man-portable for customers to bring compared with them, Johnson Johnson baby care products differ from they could be bought in near of all supermarkets under the world- unspecific distribution channels and be genial to throng about. Hence, threats of substitutes should be low.Power of BuyersThere are a lot of alternatives for customers ease up to the high bargaining power of customers, especially for the price-sensitive customers, who are prefer to the high-quality products with the lower costs in the traditional theory research. However, JJs Baby Care products are considered as the essential healthy pharmacy products for baby by an quantity of loyal customers. All in all, the bargaining power of customers should be low-to-middle as its healthy ba by brand image formed in customers mind around the world, even the adult females prefer to but baby products to care their skins.Power of SuppliersThere are thousands of suppliers to provide the materials, goods and services that allow JJ Family of Companies to manufacture products, supply offices and other facilities to service customers around the world. JJ committed to working with nice and diverse suppliers in terms of their abilities to support its long-run growth objectives and add value to its business through providing the innovative solutions to their marketing, manufacturing and RD efforts.Even though the various inputs from the suppliers, the competitive situations also exist among suppliers and large amount of substitute inputs sacrifice to the low power of suppliers.Financial environmentAnalysis on JJs operation results is essential for it allows its stakeholders to gain an insight on how JJ is performing on the global platform and whether the management strategy empl oyed needs to be consistent or changed according to future market projections.Looking at JJs final sales figures in the last 5 years (Appendix 1), gathered from JJs 2009 annual report, we see a generally consistent growth in its net sales. Though there is a dip in worldwide sales figure of 2.9% ($61.9 billion) from 2008, this can be accounted with JJs spending on research and growth ($7 billion) as well as acquisitions and collaborations. Although this will cause a reduction in JJs sales margin, it will benefit the organization in the long-run whereby profits will be reaped upon returns on investment. Currently, JJ is expanding its operations in the BRIC countries (i.e. Brazil, Russia, India, and China) as well as other fast-developing markets. This should be a go on project of JJ for at least the next 3 years to maximise its profits and increase its global market share. This is inline with JJs organizational vision drive superior business results and sustainable competitive ad vantage.Internal EnvironmentValue ChainJJs corporate vision, to maximise the global power of diversity and inclusion to drive superior business results and sustainable competitive advantage is in line with its corporate objective of profit and growth. Both JJs vision and focus has direct implication on its corporate structure. This is reflected upon the process within JJs value-chain.In terms of JJs organizational structure, Human resource management (HRM) plays a bouncy role in the direct success of JJ as an organization for it is the people, nigh valued asset, that contribute to achieving the goals and objectives of JJ. At present, JJ hires experienced and capable leaders to bring the organization to greater heights and JJ does not stop there. JJ provides all top executives in training which include leadership ontogenesis and management education in fields like finance and marketing. JJ prioritizes on the professional development of every employee for JJ believe that they are ca pable in developing leaders within the organization by exposing them to diverse fields and giving employees heavier responsibilities to measure out their ability. As mentioned above where staff motivation is important, we as consultants believe that JJ should continue to train their employees and appraise the performance of employees in the next three years. This is so that JJ would be able to make better use of their employees capabilities and talents and this will benefit the organization in the long-run when employees are loyal to JJ.Focusing on JJs consumer goods of baby products, the in-bound logistics ties in with operations before linking with outbound logistics, sales marketing and finally, providing businesses and consumers with service. JJs in-bound logistics would include the purchasing of raw materials needed for the manufacturing of baby products and storing the raw materials in various designated warehouses. Operations will then occur whereby factory employees would h ave to work on a production belt with the help of machines and maintain quality checks as well as bottling of baby products. JJ would then stagger the ready products into containers for shipment, in allocated warehouses or directly to retailers and distributors. To aid JJs employees in convenient dispersal of information to sales staff, they have made use of MultiAid to contract all marketing resource management needs. This increases JJs operational efficiency and gives the organization a head start on asset management for product image, captured data and distribution to retail trade communities is readily accessible to employees with one click on the computer system.With regards to sales and marketing, JJ advertises by relating consumers with real-life scenario whereby a grow bathes her baby with JJs baby products and having the statement of products for the ones you love.There are two types of service provided by JJ business to business (B2B) and business to consumer (B2C). J J provides its business partners and suppliers with business opportunities. This way that the degree of success experienced by JJ has direct impact and will benefit companies that do business with JJ. Consumers of JJ are exposed to gathering reclaimable and relevant information when having purchased JJ baby products for JJ has formed a website (i.e.BabyCentre.com) and a online Baby Care Library to increase the closeness in customer interaction.SWOT AnalysisStrengths (Internal)Weaknesses (Internal)Abundant financial resourcesStrong brand nameproprietary technologyRespected brand imageWide product linesEconomies of scaleCommitted employeesSuperior product qualityBetter marketing skills unsloped distribution skillsLow customizationLack of flexibilityOpportunities (External)Threats (External)Opening of foreign markets fast market growthBrand switchingDemographic shiftsLow barriers to entryEconomic downturnIntroduction of new substitutes productsRival firms adopting new strategiesStren gthsJohnson Johnson is a well-known healthcare brand which ranks No. 1 within the industry under one decade of its historical development with a wide variety of skincare products and superior product quality.Abundant financial resources are exploited by the RD department to employ the committed staff for creating and even innovating the hygiene products through proprietary technology and build up the consider brand image. Besides, it focus on product leadership excel at product development and professional skills so that it can offer customers the best products in the industry.As the facts show that, JJ expanded internationally around the world, like Asia (Singapore, China) that triggered by the better marketing skills. Additionally, the good world-wide distribution skills due to its global standardization strategy that allow JJ to kick in great market shares by cost reduction that come from economies of scale and fast product development what based on stable relationship with lo cal distribution agents and its value brand image as well as superior product like baby care mainly.WeaknessesGlobal standardization is the main international business strategy to control cost but this also is its drawback that results in the low customization. In addition to the world-wide product structure, the managers lack of flexibility to baptistry the challenge of changes in local markets.OpportunitiesIn order to bring along the development of local economy, most of countries welcomes the international companies introduce their products to diversify the local economy. The increasing attentions of baby nurturance and its brand image prompt customers to purchase its products and grow rapidly in the global new markets.There is an opportunity to generate more market shares and enhance its brand image in the long-term in the lights of the rise in global demographic population flip over to 7 billion that data collected from statistics of 2011, China and India act as the represen tatives moreover, the superior product quality of JJ is the critical to attract customers switching from other brands.ThreatsJJ faces the threats of the low barriers to entry due to the low cost of set-up, and the proprietary product differences will be difficult to protect when the barriers are reduced so that the customers would switch to other brands more possibly. Another threat reflected by the economic downturn, JJ is difficult to manage the exchange rate risk under the global standardization strategy.Most important, JJ would be compel to stay at the unresisting threat that the customers would be attracted by its competitors and sales would be declined if rivalries adopting the new strategies.consequence of SWOT MatrixGenerally, Johnson Johnson holds strong competitive advantages after compare its pros and cons despite of few disadvantages of global standardization strategy. In another angle, JJ is able to switch the threats to opportunities in the lights of its calculus-ba sed capability and resources.Growth Strategies adopted by Johnson JohnsonThere are both internal and external environments to be measuredly evaluated when planning for a three years growth strategy plan for Johnson Johnson as what observe externally and internally will affect the company. These diagnoses are in reference to the SWOT analysis based on the company resources assets, intellectual property, and people.With careful consideration and by selecting market discernment growth strategy for a three year period, it will help them to gain more market shares through promotion and advertising from their strong marketing teams. Before think the growth strategies, the firm should generate a lot of information about if the company is selling new, existing or emerging products in a new or existing market.From the diagnosis of the Porters model, understanding that the threats of new entrants are low and also credited to the high brand equity of Johnson Johnson, market penetration growth strategy defined by Ansoff is selected in the lights of situation that involves neither new markets nor new products, are forced to grow through this growth strategy. It is a strategy that is designed to give the business a greater percentage of market shares. Market penetration occurs when a company enters/penetrates a market with current products.This type of strategy usually seeks to gain a competitive edge through competitive pricing strategies, advertising, sales promotion, marketing or other strategic initia