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    Presentation - J&J 2

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    Subika Arsalan
    This document provides an overview and strategic analysis of Johnson & Johnson from 2009. It includes sections on the company's history since 1886, current vision and mission statements, an external and internal assessment, strategic recommendations, and projected financial statements. The external assessment examines opportunities such as potential acquisitions and threats like product recalls. The internal assessment reviews strengths like brand recognition and weaknesses like exposure to generics. Strategic recommendations include increasing R&D spending and improving processes to reduce product recalls.

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    © All Rights Reserved
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    Presentation - J&J 2

    Uploaded by

    Subika Arsalan
    474 views47 pages
    This document provides an overview and strategic analysis of Johnson & Johnson from 2009. It includes sections on the company's history since 1886, current vision and mission statements, an external and internal assessment, strategic recommendations, and projected financial statements. The external assessment examines opportunities such as potential acquisitions and threats like product recalls. The internal assessment reviews strengths like brand recognition and weaknesses like exposure to generics. Strategic recommendations include increasing R&D spending and improving processes to reduce product recalls.

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    johnsons & johnsons

    Original Title

    Presentation- J&J 2

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    This document provides an overview and strategic analysis of Johnson & Johnson from 2009. It includes sections on the company's history since 1886, current vision and mission statements, an external and internal assessment, strategic recommendations, and projected financial statements. The external assessment examines opportunities such as potential acquisitions and threats like product recalls. The internal assessment reviews strengths like brand recognition and weaknesses like exposure to generics. Strategic recommendations include increasing R&D spending and improving processes to reduce product recalls.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    474 views47 pages

    Presentation - J&J 2

    Uploaded by

    Subika Arsalan
    This document provides an overview and strategic analysis of Johnson & Johnson from 2009. It includes sections on the company's history since 1886, current vision and mission statements, an external and internal assessment, strategic recommendations, and projected financial statements. The external assessment examines opportunities such as potential acquisitions and threats like product recalls. The internal assessment reviews strengths like brand recognition and weaknesses like exposure to generics. Strategic recommendations include increasing R&D spending and improving processes to reduce product recalls.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 47
    At a glance
    Powered by AI
    The document provides an overview and analysis of Johnson & Johnson including its history, vision, strategies and recommendations.

    Johnson & Johnson was founded in 1886 by three brothers. Key events in its history and timeline are outlined on pages 3-4.

    Johnson & Johnson's current vision aims to maximize diversity and inclusion. Its credo emphasizes responsibilities to customers, employees, communities and shareholders as outlined on pages 6-7.

    Strategic Analysis Case

    Study 2009
    Jarryd Phillips, Jermaine West, Spencer
    Jacoby,

    Overview
    Company Overview
    History
    Current Vision Statement &
    Credo
    Proposed Vision & Mission
    Statements
    External Assessment
    Positioning Map
    CPM Matrix
    Opportunities & Threats
    EFE Matrix
    Internal Assessment
    Organizational Chart
    Financial Ratios
    Trends
    Strength & Weaknesses
    IFE Matrix

    Strategic Assessment
    SWOT Matrix
    Space Matrix
    Grand Strategy Matrix
    BCG Matrix
    IE Matrix
    Matrix Analysis
    QSPM
    Recommendations
    Objectives
    Strategic Implementation
    EPS/EBIT
    Projected Balance Sheet
    Projected Income Statement
    Evaluation
    Balanced Scorecard
    Possible Issues
    Sources
    Questions

    Timeline
    1886- 3 brothers founded Johnson & Johnson in Brunswick, New Jersey.
    1888- Pioneered the first commercial First Aid Kit.
    1894- Launches first maternity kit to make child birth safer
    1898- First to mass produce dental floss.
    1921- An employee invents the first BAND-AID
    1937- Began international expansion with companies in Argentina &

    Brazil
    1954- Baby shampoo enter the market
    1978- The Company begins construction on their new World
    Headquarters in New Jersey.
    1990s- Ethicon Endo-Surgery pioneers minimally invasive surgery.
    2002- Johnson & Johnson acquires Tibotec-Virco BVBA
    2006- Johnson & Johnson acquires Pfizer Consumer Healthcare
    2009- Acquisition of Mentor Corporation

    2009
    Highlights
    Strengthened core business and invested

    in new launches
    Acquired Cougar Biotechnology in July
    Continued to expand globally

    Current
    Vision
    To maximize the global power of diversity and
    inclusion to drive superior business results and
    sustainable competitive advantage.

    Johnson & Johnson


    Credo
    This is a statement of our values and
    responsibilities that was written more than
    60 years ago. It articulates our
    responsibilities to customers, employees,
    communities and shareholders. It sets the
    tone for what is expected at J&J.

    Our philosophy and core values are centered on our desire


    to provide the safest and most reliable products and
    services to our customers, employees, medical
    professionals, and stockholders (1, 2, 6, and 9). Our
    consistent market growth and competitive advantage
    within the world market will ensure profitability and is a
    tribute to our trained employees, innovation, technology,
    and market research (3, 4, and 5). In regards to local and
    domestic communities, it is our goal to ensure that
    Johnson and Johnson adhere to policies and procedures to
    Customers
    be socially responsible and for the betterment of all 1.
    2. Products or services
    members of our value chain (7, 8).
    3. Markets
    4. Technology.
    5. Concern for survival,
    growth,
    and profitability
    6. Philosophy
    7. Self-concept
    8. Concern for public image
    9. Concern for employees

    Johnson and Johnsons vision is to be the most


    recognized, innovative, and socially responsible name
    in pharmaceutical, consumer health, medical device,
    and prescription products in the world. Through this,
    we will earn our customers respect and enthusiasm
    with continuous improvement that is driven by
    innovation, integrity, teamwork, and the desire to
    provide value for the investment. As a result, J&J will
    gain market share to increase sales and generate
    dividends for our shareholders.

    Caring for you from the


    beginning, to the very end!

    10

    11

    Position
    Map

    Number of
    Stores
    (High)

    Narrow Price
    Competitivene
    ss

    Wide Price
    Competitivene
    ss

    Number of
    Stores
    (Low)

    12

    13

    Opportuniti
    es

    Acquisition of Synthes could enhance J&Js Failure of prospective

    products to deliver leadership position in global orthopedics market


    Leveraging therapeutic coverage of non-prescription
    pharmaceutical segments could provide cross-selling opportunities
    Addition of Crucell to broaden J&Js position in biologics and
    vaccines market
    R&D investment will add to the potential growth rate of the
    company in surrounding markets.
    Economic recovery will be a boost in income thus company revenue
    will increase.
    Global expansion

    14

    Threat
    s

    Negative Impact of Recent Product Recalls


    Healthcare regulations
    Better research and development of competitors
    Low market growth rate.
    Strong competition from the generic market.
    Launch success in that newly launch products are uncertain

    because of regulatory review, thus making the launch a


    potential threat if it fails.

    15

    16

    17

    Organizational
    Chart

    18

    19

    20

    21

    Sales by Geographic
    Region

    22

    Sales by
    Segment

    23

    24

    Strengths
    Diverse business offering
    Forecast growth despite challenges
    Significant sales and marketing capabilities
    Robust financial position
    They have strong global presence operating in more than 57

    countries with 250 subsidiary companies


    They have successfully employed strategies to
    differentiation that helps it distinguish itself from its
    competitors.

    25

    Weaknesse
    s

    Generic drug's exposure


    Private label exposure

    Quality issues in OTC products affecting consumer

    healthcare product sales


    Key product demand is shrinking.
    Theft and counterfeiting of drugs from internal staff as much
    as this is not isolated to J&J.
    Pressure to reduce prices in accordance with medical
    budgets and maintain patent expirations to help generic
    programs.

    26

    27

    28

    SO Strategies
    S1, O1: JNJ Should aim to be an
    industry leader in all its diverse
    business offerings.
    S2, O2: With the addition of new
    products in various departments,
    JNJ could potentially still predict
    growth in challenging times.
    ST Strategies
    S1, T1: JNJ`s diversity should not
    be a means for its products to be
    valued as "average", its diversified
    range should be known for the
    high quality.
    S2, T2: The prediction of
    increased sales in challenging
    times should be a testament to
    JNJ`s value and quality of products.

    WO Strategies
    W1, O1: Although there is a wide
    variety of generic drugs, JNJ should use
    this as an opportunity to highlight the
    value and quality of their products and
    increase R&D in specific segments to
    increase market share in surrounding
    markets.
    W2, O2: OTC sales should be used as a
    prime opportunity to highlight the value
    and worth of JNJ`s products.

    WT Strategies
    W1, T1: Product recalls can
    seriously hinder the perceived
    value and quality of JNJ.
    W2, T2: Healthcare regulations
    along with challenging economic
    times can prove costly to JNJ as a
    whole.

    29

    30

    31

    1
    +1
    5

    0.
    5

    0.
    0

    -15

    32

    33

    34

    35

    Recommendatio
    ns
    Increase R&D in the pharmaceutical segment by

    $75 million; will result in 8% projected sales


    increase
    Continue to improve on product recalls; this will
    give a better quality perception to consumers and
    medical personal
    Improve cross-sell techniques of diversified
    products
    Total cost = $75,000,000

    36

    We are proud of our 2009 accomplishments, but we recognize there is a


    great deal more to do. In the near future, we continue to assess what
    more we can do across our business segments, our supply chain and
    together with partners, including governments, other companies and
    social and environmental non-governmental organizations.
    The people of Johnson & Johnson remain committed to living up to the
    responsibilities laid out in Our Credo. As our Company approaches our
    125-year milestone, improving human health and well-being is still our
    crucial mission and the ultimate measure of upholding our
    responsibility now and for generations to come.

    37

    38

    39

    Projected Balance
    Sheet

    40

    41

    42

    43

    44

    Possible Issues
    Additional product recalls/ lawsuits
    Another economic downturn
    Competitors gaining market share
    Federal regulations that affect potential new products

    and existing processes


    Litigation from people being hurt through defective
    products
    International regulations that limit foreign expansion

    45

    Sources
    Johnson & Johnson Annual Report.

    http://files.shareholder.com/downloads/JNJ/1782599548x0x359541/6EAF4E16-08B2-4AD4-86AC5BDB928E5320/JNJ_2009AR.PDF
    Johnson & Johnson. http://www.jnj.com/connect/
    The Street. 10 Companies that paid the least in taxes.
    http://www.thestreet.com/story/11077452/1/10-companies-paying-the-least-in-taxes.html
    CBS News. J&J layoffs: the jobs that are the safest and those that arent.
    http://www.cbsnews.com/8301-505123_162-42843383/j038j-layoffs-the-jobs-that-are-safest-andthose-that-arent/
    Historical Stock Prices. http://finance.yahoo.com/q/hp?
    s=JNJ&a=11&b=31&c=2009&d=11&e=31&f=2009&g=d
    Competitor Comparisons. http://www.nasdaq.com/symbol/jnj/competitors
    Competitive Profile. https://business.missouri.edu/ifmprogram/reports/2010SP/J%26J%20Report.pdf

    46

    Question
    s?

    47

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