Johnson and Johnson was founded by Robert Wood Johnson and two other brothers who name was James Wood Johnson and Edward Mead Johnson in 1855 who created a line of ready to use surgical dressing. The company produced its first products in 1886 and was incorporated 1887. The products that Johnson and Johnson produced were items such as bandages, lotions, shampoos, and many other products. Robert Wood Johnson served as the first president of the company. He worked to improve sanitation practices in the nineteenth century, and gave his name to a hospital in New Jersey.
In 1910, Robert Wood Johnson died, and upon his death, he was succeeded in the presidency by his brother James Wood Johnson until 1932, and then by his son, Robert Wood Johnson II. Johnson and Johnson are a global American pharmaceutical, medical devices and consumer packaged goods manufacturer. Johnson and Johnson are committed to innovative healthcare products that have been resulted in financial performance. Johnson and Johnson are organized on the principles of decentralized management.
Johnson and Johnson is known for its corporate reputation, consistently ranking at the top of Harris Interactive National Corporate Reputation Survey, ranking as the world’s most respected company by Barron’s Magazine, and was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U. S. State Department for its funding of international education programs. Johnson and Johnson also were founded more than 120 years ago on an idea that says, “Doctors and nurses should use sterile sutures (stitches), dressings and bandages to treat people wounds.
During that time, Johnson and Johnson brought the world new ideas and products that changed human health and their well being. Johnson and Johnson company has experienced surprising growth over more than a century. It has grown through innovative ideas, products and services that make a difference in people lives. The mission statement and the credo values of Johnson and Johnson are to maximize the global power of diversity and inclusion to drive superior business, results and sustainable competitive advantage.
They believe first responsibility is to the doctors, nurses, patients, mothers, fathers, and all others who use Johnson and Johnson products and services. In meeting their needs everything they do must be of high quality. Johnson and Johnson must constantly strive to reduce the costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. The suppliers and distributors of Johnson and Johnson must have the opportunity to make a fair profit. Johnson and Johnson are responsible for employees, the men and the women who work with the company throughout the world.
Everyone must be considerate as an individual. They must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair adequate and working condition, orderly and safe. They must be mindful of ways to help the 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. They must provide competent management, and their actions must be just and ethical.
They are responsible to the communities in which we live and work and to the world community as well. They must be good citizens which support good works and charities and bear out fair share of taxes. They must encourage civic improvement and better health and education. They must maintain in good order, the property they are privileged to use, protecting the environment and natural resources. The final responsibility of Johnson and Johnson is to the stockholders. Business must make a sound profit. They must experiment with new ideas.
The research must be carried on, innovative programs developed and mistakes paid for and new equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When Johnson and Johnson operate according to these principles, the stockholders should realize a fair return. The Credo outlines the values that provide the foundation of how we act as a corporation and as individual employees so that we continue to put the needs of the people we serve first.
The culture of Johnson and Johnson is they are the world largest pharmaceutical respected employers. Johnson and Johnson know that the people are the greatest asset. Every product, every invention, every breakthrough that Johnson and Johnson had introduced has been powered by the people. In Canada, as in all of the Johnson ; Johnson Family of Companies around the world, Johnson and Johnson believe that success only matters when employees are valued, respected and treated fairly. As such, they foster and reward.
The diversity is that they recognize strength and value that comes when collaborative relationships are built between people of different ages, race, gender, religion, nationality, sexual orientation, physical ability, thinking style, personal backgrounds and all other attributes that make each person unique. Johnson and Johnson believe that attracting, developing and retaining a base of employees that reflects the diversity of our customers is essential to our success. They also believe success hinges on relationships with diverse professional and patient organizations, civic groups and suppliers.
The innovation of Johnson and Johnson is that they encourage and reward innovative thinking, innovative solutions and an innovative approach in all that we do. Johnson and Johnson companies offers support that helps increase access to care in medically underserved communities around the world. Johnson and Johnson also provide assistance to individuals and families in the United States who may not have access to prescription medicines and medical products. In the past 24 months and over, the Johnson and Johnson companies provided more than 1. 7 million units of medicine to over 300,000 U. S. patients.
SWOTT TABLE FOR JOHNSON AND JOHNSON Strengths Internal forces and trends considerations: StrategyGrowth and contribution to human health around the world Committed to building on knowledge and experience in order to take the lead in a rapidly evolving health care marketplace. StructuresJohnson and Johnson has more than 250 companies located in 57 countries around the world Organized in several business segments comprised franchises and therapeutic categories. CulturePeople and values are the greatest assets. Diversity is a central part of the cultures across the Johnson and Johnson Family of Companies.
Recognizes the differences in age, race, gender, nationality, sexual orientation, physical ability, thinking style and background and bring the richness to work environments. Helps connect better with the health needs of people in communities around the world. Believe that attracting, developing and retaining a base of employees that reflects the diversity of the customers is essential to success. They also believe success hinges on relationships with diverse professional and patient organizations, civic groups and suppliers. Weakness
GoalsIncreasing pressure within pharmaceutical markets to reduce prices in line with medical budgets and maintain patent expirations to ensure generic programs are updated within critical path movements. Strategic capabilitiesChallenges have been faced within Johnson and Johnson where a reduction in the market demand for key products has been identified; some of these products were branded and have been replaced by generic programs at the end of patent time lines. LeadershipInternal weakness across the industry and not isolated to Johnson and Johnson would be the level of theft and counterfeiting of drugs managed through internal personnel.
Opportunities External forces and trends considerations: GlobalThe recent acquisition of Pfizer Consumer Healthcare will act as an opportunity in for the organization through alternative routes there is the added value capitalized through the return on investment which will be realized 12 months before plan releasing funds back into the bottom line. Legal and regulatory Johnson and Johnson have highlighted new developments in pharma products with five undergoing review which provides the opportunity to grow the existing product portfolio.
EconomicThe development of WTO rules to prevent the availability of cheap generic drugs the level of lost profit due to generic introduction as patents run out. Whilst this will aid Johnson and Johnson where they own the brand where they are looking to capitalized on introducing generic drugs to market this ruling will become a hinderance. Threats TechnologicalDevelopments with bio-tech concepts will move the traditional pharmaceutical methods out of the market place in the long term although there is an economical argument that this form of development can be egregated to run alongside traditional methods and complement as opposed to replace. Competitive analysisGenerally within the main pharmaceutical companies there is a high level of competition for the generics markets where patents finish and it is the first to entry where success will generally be determined. The major issues and opportunities that Johnson and Johnson face are the company’s pharmaceutical segment faces many of the challenges that face all pharmaceutical companies, including issues surrounding patent expiration and FDA approval.
Johnson and Johnson’s pharmaceutical segment had the largest decline in sales in 2009, 8. 9%. This decline was large due to the entry of generic competition to compete with blockbuster Topamax and Risperdal. In addition, there are constant threats of litigation and a growing pressure in the US and abroad to lower the price of medication. The hypothesis is lower the price of medication. The considerable interest has focused recently on the effects that authorized generic prescription drugs have on competition among generic and brand name drugs and on consumers’ benefit.
Authorized generics are prescription drugs whose U. S. marketing approval receive from the brand manufacturer’s new drug application (NDA) yet are marketed and sold as generic versions of the brand. Authorized generics can benefit consumers if they increase competition and lower prices. However, some argue that the increased short run competition they created might undermine incentives created by the 1984 Hatch Waxman Act for generic manufacturers to challenge patents.
Although authorized generics likely reduce these incentives to generic manufacturers, the impact on consumers through drug prices and the timing of generic entry I unclear. Here the outline issues and review data on generic entry between January 1999 and December 2003 as the authorized generic entry began to increase. FDA inspected the Johnson and Johnson plant in April 2010 and found that McNeil didn’t properly test its products, didn’t properly train their employees, failed to maintain equipment and lacked other important quality controls.
The FDA also found that McNeil failed to satisfactorily investigate problems in its manufacturing and drugs. The most shocking findings were that McNeil products had the possible to be effective, and to be contaminated with bacteria and particulate matter. According to the FDA, 775 adverse events were reported for the recalled products, including 30 deaths, from January 1, 2008 through April 30, 2010 and have been several hundred additional adverse events, including seven deaths, since then. During this, FDA says, none shows a spike or a pattern.
The Chairman and other members of the committee have gone through internal documents of Johnson and Johnson and the FDA and will no doubt interrogate the witnesses. Meanwhile, Senator Torn Harkin, chairman of the U. S. Senate’s health committee, sent a letter to the FDA late Monday, asking the agency’s commissioner for more information on the nationwide recall. The FDA is now getting tougher as well, calling for further inspections and an outside audit of McNeil Consumer Healthcare. The FDA fined Genzyme $175 million for manufacturing defaults.
So while Johnson and Johnson shares haven’t reached much to the recall, the recent fines to Genzyme as well as the investigations by Congress mark a time of uncertainty for Johnson and Johnson. On September 29, 1982, a Tylenol scare began when the first of seven individuals died in metropolitan Chicago, after ingesting Extra Strength Tylenol that had been deliberately laced with cyanide. Within a week, the company pulled 31 million bottles of capsules back from retailers, making it one of the first major recalls in American history.
The incident led to reforms in the packaging of over the counter substances and to federal anti-tampering laws. The case remains unsolved and no suspects have been charged. Johnson ; Johnson’s quick response, including a nationwide recall, was widely praised by public relations experts and the media and has since become the gold standard for corporate crisis management. In conclusion, Johnson and Johnson plan to make the world a better and healthier place hroughthe products that Johnson and Johnson has discovered and developed. The responsibilities that Johnson and Johnson take on are public policy issues, the way they run the business daily, the programs, the alliances they build and join. Johnson and Johnson are geared to satisfying the citizens of the world. The approach to corporate citizenship defines who they are and how they aspire to act in the world. Johnson and Johnson has set several goals to keep their company environmental friendly.
Johnson and Johnson agreed to change their packaging of plastic bottles, due to harmful chemicals used in the manufacturing process, switching their packaging of liquids, to safe container. Balanced Scorecard Of Johnson and Johnson Mission Statement Credo| Financial PerspectiveRevenue and Cost“To improve cost structure”| | Customers Values“Gurantee 100% Satisfaction”| | Learning and Growth PerspectiveTechnological InnovationProvide resource s to related research and application Development |
Process PerspectiveProvide programs and Service. | References: Pearce, J. A. II, & Robinson, R. B (2009) Strategic management: Formulation, implementation and control (11th ed. ) New York: McGraw-Hill Thompson, A. A. , Gamble. J. E. , & Strickland, A. J (2006) Strategy: Winning in the marketplace: Core Concepts, analytical tools cases (2nd ed. ) New York: McGraw-Hill http://www. jnj. com