Strategic Management
ASSIGNMENT 1
CompanyName: Johnson and Johnson
BHAVANA WATWANI
DIV: A
ROLL NO 9
Introduction
One of the strongest names in the world for Baby products and as a pharmaceutical company is
Johnson and Johnson.
Johnson & Johnson is the American company, engaged in the research and development,
manufacture and sale of a broad range of health care products. Being a public company, Johnson
& Johnson (J&J) is listed on the NYSE and its common stock is a part of the Dow Jones
Industrial Average. The list of the products varies, however its main attention is concentrated
mainly on H&S goods. Johnson & Johnson has been recognized by its amazing products and
commitment towards employees.
Mission and Vision
Vision
Our vision at Johnson & Johnson, is for every person to use their unique experiences and
backgrounds, together – to spark solutions that create a better, healthier world. Make diversity &
inclusion how we work every day.
Mission
Our mission is to make diversity & inclusion our way of doing business.
SWOT Analysis
S- Strengths
Largest Healthcare provider:
Johnson & Johnson s largest health care provider from pharmaceutical products to Consumer
healthcare products. J & J is operating in three segments: Consumer Products, Pharmaceuticals,
and Medical Devices and Diagnostics.
Trusted brand:
Johnson & Johnson is a brand trusted by many medical practitioners & parents around the world.
Johnson & Johnson’s increased focus on tailoring business to local markets had helped them in
being relevant to consumer demand.
W-Weakness
Protest:
There have been recent protests against some of Johnson and Johnson's products, including its
pelvic mesh implants, which have led to a damaged reputation.
Stolen company secrets:
Recent reports that employees of the company have stolen company secrets and information, which has
undermined its efforts to create an ethical and responsible workplace.
O- Opportunities
Diverse portfolio:
With a diverse portfolio of solutions, there are many untapped opportunities for cross-selling
products. This includes cross-selling between medical devices, pharmaceuticals, and diagnostics
related to care-giving and specific therapies for oncology, diabetes, and other health issues.
Acquisitions:
There are opportunities for further acquisitions to strengthen its position, further diversify its
product portfolio, expand its territories, add to its resource and research capabilities and grow
revenue streams.
T-Threats
Fight against harmful ingredients:
Many times, Johnson and Johnson products have been found to have harmful ingredients
Repeatedly, these fight against harmful ingredients has affected the brand image of Johnson and
Johnson.
Intense Rivalry:
Due to the presence of strong global competitors who provide alternative & substitute products J
& J is facing stiff competition.
Government regulatory norms:
Government regulatory norms over the contents & export and import tariffs play a critical role
in the success of companies in these industries to which J & J is not an exception.
PESTEL Analysis
P-Political Factors
Political factors play a significant role in determining the factors that can impact Johnson &
Johnson's long term profitability in a certain country or market. Johnson & Johnson can closely
analyze the following factors before entering or investing in a certain market:
Political stability
Level of corruption
Anti-trust laws related to Drug Manufacturers
Pricing regulations – Are there any pricing regulatory mechanism for Healthcare
Taxation - tax rates and incentives
E- Economic Factors
Johnson & Johnson can use country’s economic factor such as growth rate, inflation & industry’s
economic indicators such as Drug Manufacturers - Major industry growth rate, consumer
spending etc to forecast the growth. Economic factors that Johnson & Johnson should consider
while conducting PESTEL analysis are -
Type of economic system in countries of operation
Government intervention in the free market and related Healthcare
Exchange rates & stability of host country currency.
Education level in the economy
S-Social Factors
Shared beliefs and attitudes of the population play a great role in how marketers at Johnson &
Johnson will understand the customers of a given market and how they design the marketing
message for Drug Manufacturers - Major industry consumers. Social factors that leadership of
Johnson & Johnson should analyze for PESTEL analysis are -
Demographics and skill level of the population
Class structure, hierarchy and power structure in the society.
Attitudes (health, environmental consciousness, etc.)
T- Technological Factors
A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology
analysis involves understanding the following impacts –
Recent technological developments by Johnson & Johnson competitors
Technology's impact on product offering
Impact on cost structure in Drug Manufacturers - Major industry
Impact on value chain structure in Healthcare sector
Rate of technological diffusion
E-Environmental Factors
Before entering new markets or starting a new business in existing market the firm should
carefully evaluate the environmental standards that are required to operate in those markets.
Some of the environmental factors that a firm should consider beforehand are –
Weather
Climate change
Laws regulating environment pollution
Air and water pollution regulations in Drug Manufacturers - Major industry
Recycling
L-Legal Factors
In number of countries, the legal framework and institutions are not robust enough to protect the
intellectual property rights of an organization. A firm should carefully evaluate before entering
such markets as it can lead to theft of organization’s secret sauce thus the overall competitive
edge. Some of the legal factors that Johnson & Johnson leadership should consider while
entering a new market are –
Discrimination law.
Copyright, patents / Intellectual property law
Consumer protection and e-commerce
Employment law
Health and safety law
