The world's leading manufacturer of medical equipment, Johnson and Johnson Company, is "the number one leader"= of health care, covering three segments: pharmaceuticals, medical products and equipment and consumer products. The group also owns more than 195 institutions operating in 51 countries and its products are distributed in over 175 countries, with 230 branches in the family which includes Janssan Pharmaceutica, McNeil, Penaten, Alza Corporation and Cilag and ten recognized brands such as Tylenol, Clear and Clear, Aveeno, Neutrogena, or Band-aid. The success of this group is based on sound and effective policy, putting in place the right strategy and managing the internal or external factors.
The success of this group is certainly based on sound policy and effectiveness, establishing the proper strategy (whole operation, intellectual and physical capacity to design, develop and lead all group activity completed in mid-conflict) that it is to manage the factors internal and external factors of the company. This strategy is a whole composed of many interdependent elements grouped in a set of sub-strategies, either on the field of business, financial strategy, competitive strategy or policy of operation.
Strategic planning is a systematic process that determines the positioning of the company, it goes beyond mere planning. It consists, in part, to examine the internal resources and then turn to the outside world, which will help determine how the company should go about achieving its vision.
The SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is an approach to examine the company, it is to discover and specify forces (what we do better than its competitors: tangible as financial capital and the availability funds or intangible as a good reputation, expertise, innovation or technological expertise or managerial) and weaknesses (what we do less well than its competitors as a lack of resources or performance) of the company. This is done by linking them with the external analysis, including the opportunities and threats.
The analysis of strengths and weaknesses is done in five major business functions, we will see in detail later, namely: the mode of organization; staff; marketing; technology; finance.
Johnson and Johnson is a private nature system by shareholders, including institutional shareholders who own 64% of the shares listed on the New York Stock Exchange (NYSE Group) since September 24, 1944.
The control system is a concept of decentralized management. Rather than acting as one company with a turnover of several billion dollars, Johnson & Johnson consists of 195 independent companies worldwide, allowing to evolve "in a more user-friendly environment" within which employees can act directly on the turnover, the organization is through a system of "unit business therapeutic", with a marketing director and product manager responsible for the brand name, development of various strengths, monograph, distribution, promotion and education.
The interest of senior managers for the good of the company is expressed through this policy of decentralization, which allows them to be directly responsible for each project and stay close to their customers, maintain shorter communication networks and accelerate the growth of talented employees.
Standards and policy of what are, in general, standards of leadership, namely: values of the credo; takes action based on survey results to improve the organization; knows a balance between short-term operational results and long-term future of Johnson & Johnson.
Tags: Johnson & Johnson, strategy analysis of Johnson & Johnson
[...] Annexes 1 / The Credo of Johnson & Johnson "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, everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. [...]
[...] days: Dividend : 6 SWOT Model By analyzing all the parameters of strengths and weaknesses, the internal factors of the company "organization, personnel, marketing, technology and finance", the company can also evaluate the opportunities and threats to the enterprise, external factors, which can be diverse: regulations (interest rates), tax/taxation, population (target population increase) which will allow to choose an appropriate strategy and set quantitative targets on sales, market, profit and promotion. The chosen strategy should depend on the demand analysis, which is related to product life cycle phases: 1.Intro 2.Growth, 3.Maturity and possibly decline), for the introductory phase is usually a strategy of product development on the incentives to try the product; the strategy of the second phase is based on production with low prices and strengthening of the brand; strategy of the third phase is based on the marketing and distribution with aggressive promotion and improved productivity; fourth phase strategy is based on finances to get out with minimal losses. [...]
[...] We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens support good works and charities and bear our fair share of taxes. [...]
[...] Marketing also accounts for the dissemination of information regarding the product, increasing sales, and ensuring that the target customers receive the product . I Promotional tactics: a The sales force: The sales force is instrumental to the promotion of the company, and represents a major investment; this group has been tasked with the goal of finding customers, identifying their needs, solving their problems, monitoring sales, maintaining sales momentum. Part of the responsibilities include how to explain to potential customers (physicians, pharmacists, hospitals, heads of chain drug stores, private insurers, employers and hospitals) the new product on the market, how best to use the product, its positive and negative aspects, all in order to increase the number of prescriptions or recommendations for the products. [...]
[...] Johnson & Johnson inc. (baby products, wound care, cosmetics and personal hygiene) in Montreal, Quebec, offering a variety of makes and models, covering a broad spectrum; In order to target multiple segments of the population for the same service or product, such as a moisturizer, the group has: * The trademark or brand Neutrogena Roc for customers who demand nothing less than high-end products * Clean and Clear brand for the average customer * The brand Aveeno for consumers seeking natural ingredients The strategic choice in its line of products is related diversification, it is constantly developing activities that have a common base, albeit pharmaceutical, medical devices or consumer products, using its qualities and transferable skills, and given its aggressive acquirer character, its choice is usually an acquisition of other companies for the benefit of faster market penetration, reducing financial costs and benefits that lie in the choice of a company whose P/E ratio (Price to Earnings Ratio) is low. [...]
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