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Johnson & Johnson Written Case Analysis.

1441 words - 6 pages

Johnson & Johnson is currently and has consistently been atop the health care industry for decades. They have been deliberate, thorough, and innovative in establishing an incredible market share nationwide within segments for consumer, pharmaceutical, and professional products. Although they have virtually conquered the United States, they had been struggling overseas and were in need of a change. The international market is very lucrative in the health care industry and J&J needs to attack that market before their competition beats them to it. They have taken many of the necessary steps to develop a successful global platform, and still have many opportunities to explore. J&J also has a few things that are holding them back which need to be fixed before entering the global market.In 1997 Johnson & Johnson recorded $22.6 billion in revenues from more than 175 countries, making them the most comprehensive manufacturer in the health care industry. Their use of centralized research within the pharmaceutical business segment made them cost effective and continuously innovative. They may not have been exclusive in their research, but they were always cutting-edge and they had the reputation within the industry to sell their pharmaceuticals first.In 1998, they began to implement a strategy for a global platform. The new global platform included franchise groups in wound care, skin care, women's health, and urology. The new global platform was heavily rooted in efficiency for the value chain. J&J were able to gain efficiency through shared market functions, consolidated production, and streamlining product offerings. Such changes in operation, production, and marketing allowed them to improve their value chain and standardize operations to better compete on a global level. Other advantages of their consolidated production allowed for them to produce, for example, all the shampoos for a European market within one single plant; whereas they were scattered about many plants before the formation of a global strategy. J&J was also able to increase efficiency by maximizing plant capacity.The Standards of Leadership, which were originally drafted in 1996, became instrumental in their campaign for a global platform. These standards were extremely useful in creating a corporate focus of behavior that would yield positive business results. Specifically, the Standards of Leadership identified 60 positive behaviors that contributed to business results, and coincided with the J&J Credo. Together with the well-known credo, the Standards of Leadership guided all aspects of the company's human resource functions.Another aspect of J&J's perennial success has been their recruitment process. They take pride in hiring the best of the best from the country's top MBA schools. Their global strategy called for the cream of the crop, and that's whom they went after. By measuring a potential employee against the Standards of Leadership, the human...

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