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Case Analysis – Team 2
Brandi WadsworthJordan StoneDavina NaylorMichael Davis
BRANDI WADSWORTH
Chapter 1: Strategic Management
Chapter 2: External Environment
Chapter 3: Internal Environment
STRATEGIC MANAGEMENT
Responsibility to doctors, nurses and patients, mothers, fathers and all others
Responsibility to employees
Responsible to the communities
Responsible to stockholders
EXTERNAL ENVIRONMENT
Five Forces –- Threat of new entrants is low due to entry barriers such as regulation - Bargaining power of buyers is high because the low cost generics are increasing as patents expire- Bargaining power of suppliers is low due to strong relationships and wide range of suppliers- Threat of substitute products and services is high due to patent expirations which increases generic rights- Intensity of rivalry among competitors in an industry is low because J&J is a giant in different business segments
INTERNAL ENVIRONMENT
Strengths
- J&J is one of the most admired companies
- One of the Top 100 Companies for Working Mothers every years since initiation
- Strong distribution network in all three market segments in emerging markets
Weaknesses
- Maintaining a global brand with recalls increasing
- Operations are disturbed by market fluctuations
Opportunities
- Acquisitions of other small companies and increasing brand presence
- Increasing middle class and emerging markets in high growth countries
Threats
- Generics for all three market segments
- Substitutions with lower cost
Jordan Stone
Chapter 6: Corporate Strategy
Chapter 7: International Strategy
Chapter 8: Entrepreneurial and Competitive Dynamics
Corporate Strategies
What Strategy?
Growth?
Issues?
Options?
Diversification?
CORPORATE STRATEGIES
CONT.
INTERNATIONAL STRATEGY
WHICH STRATEGY?
WHY EXPAND?
CHALLENGES?
COST REDUCTION OR LOCALIZATION?
ENTREPRENEURSHIP AND COMPETITIVE
DYNAMICS
WHICH ENTREPRENEUR STRATEGY?
WHAT TO CONSIDER WITH THE INNOVATIVE
PROCESS?
HOW DOES J&J PROMOTE THIS
ATMOSPHERE?
Davina NaylorChapter 9: Control Systems, Governance, and Ethics
Chapter 10: Organizational Structure
Chapter 11: Leadership and Ethics
Chapter 12: Innovation
CONTROL SYSTEM, GOVERNANCE, AND ETHICS
• Contemporary, values-driven control system
• Use of SMART goals when measuring strategic control
• Rewards are realistic and given when goals are met
• Success is ultimately dependent upon executive decisions
ORGANIZATIONAL STRUCTURE
ADVANTAGES
• Separate divisions are awarded separate management controls
• Increased manager focus
• Divisions maintain their own resources
• More career opportunities available
DISADVANTAGES
• Divisions may compete with one another
• Increase in barriers to communication and sharing of new concepts/ideas
• Expensive to replicate departments
• Focused too much on short-term performance
LEADERSHIP AND ETHICS• CEO must possess strong leadership qualities
• Awareness of barriers to change in order to achieve success
• Ability to learn from mistakes
• Three major traits
• Purely technical skills
• Cognitive abilities
• Emotional intelligence
• Leadership Challenges
• Quality control issues
• Adherence to good ethical behavior
• Awareness of stakeholders
INNOVATION• What should a company consider when managing
the innovation process?
• Corporate Culture
• Knowledge of past mistakes
• Different types of innovation
• How should a CEO foster innovation?
• Increase in collaboration
• Factors that influence strategy
MICHAEL DAVIS
Chapter 4: Intellectual Assets
Chapter 5: Business Strategy
Human Capital:
- Attracting talented people who possess J&J
DNA
- Continuous development through open
enrollment and functional leadership programs
- Culture, environment, and incentives don’t just
“Attract” the best and brightest, they “Keep”
them
INTELLECTUAL ASSETS
Talent Management
Recruit
DevelopRetain
Business Segments: Consumer, Pharmaceutical, Medical Devices
Broad array of major competitors across all three business segments
Very strong brand recognition based on quality and fulfillment of specific
consumer needs
BUSINESS STRATEGY
Low Cost Leadership Broad Differentiation
Johnson & Johnson
Focused Low Cost Focused Differentiation
Competitive Advantage
Improvements Johnson & Johnson
could adopt to achieve greater
success
1. Knowledge Sharing - Tacit Knowledge,
Interdivisional Collaboration
2. Organizational Structure - Sharing
resources and functional departments
3. Leadership Development - Formal
Mentorships/Cross Training
RECOMMENDATIONS
Conclusion