JOHNSON & johnson pharmaceuticals.docx

8/9/2019 JOHNSON & johnson pharmaceuticals.docx

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Johnson & Johnson

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Date: 31st

December, 2014


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Index

Particulars Pg.Nos

.

Introduction(about co., credo, histor,

subsidiar holdings, !roduct"

03

#trategic $rame%or

'nironmental

analsis(PESTEL,Porter,#)*+,competit

or, value chain"

usiness leel strateg

-or!orate leel strateg

#trategic acuisitions

-or!orate goernance

/e$erences 12


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Introduction

Johnson & Johnson is an merican multinational !harmaceutical, medical deices, and

consumer !acaged goods manu$acturer $ounded in 1. It is headuartered in Ne%runs%ic, Ne% Jerse and being listed among the ortune 00. +he cor!oration includes

some 20 subsidiar com!anies %ith o!erations in oer 5 countries and !roducts sold in

oer 15 countries. Johnson & Johnson and its subsidiaries (the -om!an" hae

a!!ro6imatel 12,100 em!loees %orld%ide engaged in the research and deelo!ment,

manu$acture and sale o$ a broad range o$ !roducts in the health care $ield. +he -om!an

conducts business in irtuall all countries o$ the %orld %ith the !rimar $ocus on !roducts

related to human health and %ell7being.

Our Credo8

-redo,a dee!l held set o$ alues that hae sered as the strategic and moral com!ass $or

generations o$ Johnson & Johnson leaders.

• )e beliee our $irst res!onsibilit is to the doctors, nurses and !atients, to mothers

and $athers and all others %ho use our !roducts and serices. In meeting their needs

eerthing %e do must be o$ high ualit.• )e are res!onsible $or our em!loees, the men and %omen %ho %or %ith us

throughout the %orld. )e must res!ect their dignit and recogni9e the merit.

• )e are res!onsible to the communities in %hich %e lie and %or and to the %orld

communit as %ell.

• *ur $inal res!onsibilit is to our staeholders b !roiding $air return.

Hitory

Ins!ired b a s!eech b antise!tic adocate Jose!h :ister , /obert )ood Johnson ;oined his

brothers James )ood Johnson and 'd%ard 4,

J&J?s heritage bab business began, b the launch o$ maternit its. +hese its had the aim o$

http://en.wikipedia.org/wiki/New_Brunswick,_New_Jerseyhttp://en.wikipedia.org/wiki/New_Brunswick,_New_Jerseyhttp://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Antiseptichttp://en.wikipedia.org/wiki/Joseph_Lister,_1st_Baron_Listerhttp://en.wikipedia.org/wiki/Robert_Wood_Johnson_Ihttp://en.wikipedia.org/wiki/James_Wood_Johnsonhttp://en.wikipedia.org/wiki/Edward_Mead_Johnsonhttp://en.wikipedia.org/wiki/Dressing_(medical)http://en.wikipedia.org/wiki/Incorporation_(business)http://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Antiseptichttp://en.wikipedia.org/wiki/Joseph_Lister,_1st_Baron_Listerhttp://en.wikipedia.org/wiki/Robert_Wood_Johnson_Ihttp://en.wikipedia.org/wiki/James_Wood_Johnsonhttp://en.wikipedia.org/wiki/Edward_Mead_Johnsonhttp://en.wikipedia.org/wiki/Dressing_(medical)http://en.wikipedia.org/wiki/Incorporation_(business)http://en.wikipedia.org/wiki/New_Brunswick,_New_Jerseyhttp://en.wikipedia.org/wiki/New_Brunswick,_New_Jersey


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maing childbirth sa$er $or mother and babies. J*@N#*N?s ab Po%der also %ent on sale

during this ear and %as e6tremel success$ul. et%een 1> and 1>5, J&J enabled a huge

ste! $or%ard $or %omen?s health %hen it manu$actured the $irst mass7!roduced sanitar

!rotection !roducts.

Johnson & Johnson s!read its roots into India in 1>45 %ith the arrial o$ 4, started mareting JohnsonAs ab Po%der %hich %as manu$actured b a local

com!an, ritish Drug @ouse, in 5, a ne% com!an 7 Johnson &

Johnson :imited %as created and registered %ith 12 em!loees on its roll. +he com!an %as

licensed to manu$acture a broad range o$ consumer and hos!ital !roducts.

*ne o$ J&J?s subsidiaries is 'thicon, a manu$acturer o$ surgical sutures & %ound closure

deice %as incor!orated as a se!arate com!an in 1>4> so as to e6!and and diersi$ the J&J

!roduct line. In 1>>, J&J acuired >072002, Neutrogena -or!oration, Foda?s -linical Diagnostics business,

-ordis -or!oration and -entocor ;oin the amil o$ -om!anies. In 200. Johnson & Johnson

acuires P$i9er -onsumer @ealthcare, %hich brings in heritage consumer brands such as

:I#+'/IN' ntise!tic ($irst $ormulated in 15>", 'NBG & 'ND/G:.

Johnson & Johnson celebrated 12 ears o$ caring in 2011 and loos to the ne6t 12 ears o$

trans$orming care $or !atients, consumers and communities around the %orld.


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#ubsidiar holdings

• danced

#terili9ation Products

• :H

-or!oration

• NI


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• *rtho7-linical

Diagnostics, Inc.

*-D

• *rtho7


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• Inadine

• Imodium

• Johnson?s

ab ( bab sham!oo"

• Jonte6

• :actaid

• :isterine

• :istermint

• :ubriderm

•


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#trategic $rame%or

Johnson & JohnsonAs senior management is $ull committed to the com!anAs dierse !rograms

that contribute to societ in a meaning$ul %a. +he strategic leaders include le6 Bors

(-hairman, oard o$ Directors, and -hie$ '6ecutie *$$icer" and Dominic J. -aruso (Cice

President(inance" and -hie$ inancial *$$icer"

Johnson & Johnson is the !rinci!al management grou! res!onsible $or the strategic o!erations

and allocation o$ the resources o$ the -om!an. +his -ommittee oersees and coordinates the

actiities o$ the -onsumer, Pharmaceutical and


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Driers $or :ong term gro%th o$ Johnson & Johnson co.

'( Creatin" )alue throu"h Innovation

t Johnson & Johnson, eerthing begins %ith innoation. or the !ast ears, theAe

consistentl inested about 11 L o$ sales to su!!ort /&D e$$orts. +hat euated to oer M billion

enter!rise7%ide in 2013, it is increasing the oerall e$$ectieness & e$$icienc in the global

maret!lace. /ecentl it announced the creation o$ the J&J Innoation -enters %ith locations in

:ondon, #hanghai, oston, #an rancisco & #an Diego. +hese customi9ed collaborations are

!art o$ enterprie*&ide trate"y to su!!ort an international net%or o$ scienti$ic entre!reneursthrough access to best7in7class laborator $acilities and scienti$ic e6!ertise.

+( rin"in" to Li-e Our %lobal .each &ith Local !ocu

Johnson & Johnson is trul a global com!an7 )hile it is headuartered in the =nited #tates, the

mindset is globalthe are $ocused on ne% !roducts, ne% technologies and ne% business

models that trul connect %ith the %a their customers lie. +oda, L o$ Johnson &

JohnsonAs business comes $rom outside the =nited #tates, and that number is gro%ingas 22 L

o$ sales come $rom $ast gro%ing emerging marets such as ra9il, /ussia, India and -hina.

/( 0aintainin" a Laer !ocu on Excellent Execution

No%here is the need $or e6cellence in e6ecution more critical than in health care. '6cellence in

e6ecution starts %ith ualit, a to! !riorit at J&J b establishing a single


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reach larger audience. nnounced a $irst7o$7its7ind !ediatric @IC treatment donation !rogram to

im!roe access to the com!anAs a!!roed @IC medicines $or !eo!le $ailing @IC treatment in

sub7#aharan $rica.

P'#+': nalsis

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P*/+'/#


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brands. +he easiest leel o$ entr is in the consumer segment. +his segment relies more on

mareting to%ards the brand recognition rather than a high leel o$ research and deelo!ment $or

cutting edge medical treatment. +here is a high leel o$ com!etition in this segment, %hich is the

most di$$icult as!ect $or a ne% $irm to oercome.

Threat o- Subtitute

or the health care industr, there are $e% substitutes that an aerage consumer %ould hae

access too, es!eciall regarding !harmaceuticals and medicaldiagnostics. -onsumer !roducts

that Johnson and Johnson o$$ers do hae close substitutesO there are generic brands %hich

customers ma !urchase, as %ell as alternatie methods o$ health care, such as auredic tea or

eating sou! to ease headaches rather than taing a +lenol.

ar"ainin" Po&er o- Supplier

Johnson and Johnson relies on a ma;orit o$ their su!!lies to be !roided b uniue and small

su!!liers. +hese include8

#mall and large minorit o%ned businesses

#mall and large %omen7o%ned businesses

#mall disadantaged businesses

#mall eteran7o%ned businesses

#mall @=Hone businesses.

+his allo%s Johnson and Johnson to hae more !o%er %hen bargaining %ith su!!liers because

the !ro!ortion $or %hich and indiidual su!!lier is res!onsible is much lo%er than the !ro!ortion

o$ business that Johnson and Johnson !roides $or that business.

+here$ore, the su!!lier relies more on Johnson and Johnson than the rel on the su!!lier.

@o%eer, because Johnson and Johnson has been using su!!liers $or seeral ears in a ro%, it

can be assumed that both !arties hae an euall bene$icial stae in the success o$ the other.

ar"ainin" Po&er o- Cutomer

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+he amount o$ !o%er that indiidual customers hae %ith regard to Johnson and Johnson is

small. ecause Johnson and Johnson is so diersi$ied, customers rel on a large number o$

Johnson and Johnson !roducts on a dail basis. In addition, the medical and !harmaceutical

segments hae a lo%er leel o$ com!etition and there$ore do not allo% customers to hae man

o!tions. +here$ore, %hen it is necessar $or someone to use these deices, the are reuired to

use one o$ Johnson and JohnsonAs !roducts or one o$ the $e% com!etitors.

#)*+ N:G#I#

Stren"th 1. .'6cellent distribution net%or as the brand is su!!lied to remote illages and

$ara%a !laces.

2. rand !resence in $orm o$ adertising media and !rint media $or a number o$

!roducts.

3. @as an e6cellent !roduct !ort$olio and high ualit o$$erings.

4. Includes 20 subsidiar com!anies %ith o!erations in oer 5 countries and

!roducts sold in oer 15 countries thereb ensuring %ider reach o$ customers.

4ea2ne1. /eliance on #mall


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Threat1. '6cessie !romotion o$ an !roduct (Product /ecall" can hae a negatie

im!act.

2. #!urious brands %ith the name similar to e6isting brand name.

3. ailabilit o$ chea! substitutes and lo%

!riced com!etitors.

-om!etitor analsis

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Calue chain

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usiness :eel strateg (Pharmaceutical segment"

Johnson & JohnsonAs !harmaceuticals business has taen a disci!lined management a!!roach to

increasing its e$$icienc in order to inest in its ne% !roduct launches. +he !harmaceutical

maret is estimated to be M0 billion globall and e6!ected to gro% to more than M1 trillion b

201. +he !harmaceuticals business has seen a signi$icant increase in !roductiit oer the last

t%o ears based on the continues inestment in /&D at higher rates than its com!etitie set. +he

leaders hae $ramed $ollo%ing strategies $or gro%th o$ the com!anAs !harmaceuticals business8

• Deliver di--erentiated medicine In recent ears, the !harmaceuticals business has

trans$ormed its !ort$olio b e6!anding its leadershi! in immunolog, dee!ened its

e6!ertise in oncolog and entered accines. +he com!anAs !harmaceuticals businesses

are in the !rocess o$ launching si6 signi$icant ne% !roducts bet%een 200> and 2011,

some in multi!le geogra!hies. +%o o$ the ne% !roducts are !ending regulator reie% in

the 'uro!ean =nion ('=", and t%o additional e com!ounds are in registration in emarets.


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• Invet in talented people and or"ani#ational capabilitie +he com!anAs

!harmaceuticals business is strengthening leadershi! ca!abilities locall, regionall and

globall. e com!onent inoles rotating e talent into im!ortant roles to uicl

accelerate sills deelo!ment to address a gro%ing and com!le6 business enironment.

+he !harmaceuticals business is also building /&D ca!abilities in ne% technolog areas

and emerging marets

-or!orate leel strateg (Diersi$ication"

Johnson and JohnsonAs cor!orate structure is based on a decentrali9ed management !hiloso!h.

+he com!an %ors on .elated diveri-ication trate"y (Inoles diersi$ing into businesses

%hose value chains !ossess com!etitiel aluable “strategic fits” %ith the alue chain(s" o$ the

!resent business" b o!erating in three segments8 -onsumer Products, Pharmaceuticals, and


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!rescri!tion use .Drien b the commitment to its !atients, the deelo! sustainable, integrated

healthcare solutions b %oring side7b7side %ith healthcare staeholders, based on !artnershi!s

o$ trust and trans!arenc. )ith M2.1 billion in %orld%ide sales in 2013, it is the seenth7largest

!harmaceuticals business in the %orld and the si6th7largest biotech business. lso it is the$astest7gro%ing to! 10 Pharmaceutical -om!an in the =nited #tates, 'uro!e and Ja!an and

recorded 1 consecutie uarters o$ o!erational sales gro%th in this segment.

Conumer Healthcare

+he -onsumer segment includes a broad range o$ !roducts used in the bab care, sin care, oral

care, %ound care and %omenAs health care $ields, as %ell as nutritional and oer7the7counter

!harmaceutical !roducts, and %ellness and !reention !lat$orms. +hese !roducts are mareted to

the general !ublic and sold both to retail outlets and distributors throughout the %orld. )ith

M14.5 billion in %orld%ide sales in 2013, -onsumer segment is the si6th7largest health care

consumerbusiness in the %orld and achieed o!erational sales gro%th o$ 2. !ercent.

0edical Device 5 Dia"notic

+he


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6ohnon 5 6ohnon ue both Operational and Corporate relatedne:

J&J as!ired to not onl hae relatedness %ithin the ma;or business, but also to hae cor!orate

relatedness across all o$ its business units. +he integrated a!!roach aims to harness e6!ertise

$rom arious units and o!erate more e$$ectiel than other com!etitors in the maret. esides

innoation %here the e6!ertise o$ !reiousl decentrali9ed business is combined, J&J is seeing

to !ursue cor!orate relatedness in regard to mareting b com!leting a massie consolidation o$

its contracted media and adertising agencies. +he !ur!ose $or this strategic change is to create a

more uni$ied brand and decrease the high costs that are associated %ith each business units

handling its o%n media and adertising conce!ts. !art $rom this it %ould also hel! in the

$ollo%ing %as8

1" #haring o$ #ills +echnolog o$ acuired com!anies %ould enhance e$$icienc.

2" =sing e6isting brandsA distribution net%or %ould increase sales.

3" #haring o$ $acilities and resources %ould reduce cost

4" -ollaboration and no%ledge sharing %ould create com!etitie adantage oer other

!harmaceuticals com!anies.

+hus, J&J has stried to achiee better coordination, innoation and management o$ regulator

!rocess across all its business.

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+o! #trategic acuisitions

'( 6ohnon 5 6ohnon 7c$uired 6anen Pharmaceutical, Inc

Janssen Pharmaceuticals, Inc., a !harmaceutical com!an !roides medicines $or an arra o$

health concerns in seeral thera!eutic areas, including8 attention de$icit h!eractiit disorder (D@D", general medicine mental health, neurologic, !ain management, and %omenAs health.

@eaduartered in +itusille, Ne% Jerse, Janssen is named a$ter Dr. Paul Janssen, a leading

elgian researcher, !harmacologist, and general !ractitioner. Janssen Pharmaceutica, ;oined

the Johnson & Johnson $amil o$ com!anies in 1>1.

=nited under the common name o$ J&J, Janssen is no% s!lit into three di$$erent businesses

Janssen /esearch & Deelo!ment, Janssen @ealthcare Innoation and Janssen Diagnostics. +he

s!irit o$ innoation, and the belie$ that science done %ell can bene$it humanit, has been an

integral !art o$ the last 0 ears o$ !harmaceuticals %ithin the Johnson & Johnson $amil o$

com!anies and continues to lie on at the Janssen com!anies.

In earl 2014, Johnson & Johnson announced, through its subsidiar Janssen /esearch &

Deelo!ment ::-, a clinical trial data sharing agreement %ith Gale #chool o$


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Data ccess (G*D" Pro;ect to e6tend its commitment to sharing clinical trials data to enhance

!ublic health and adance science and medicine. +his is the $irst time an com!an has

collaborated %ith a com!letel inde!endent third !art to reie% and mae decisions regarding

eer reuest $or !harmaceutical clinical dat

+( 6ohnon 5 6ohnon 7c$uired Synthe : Combination Create the 4orld8 Leadin"

Orthopedic uine

Johnson & Johnson announced the com!letion o$ the acuisition o$ #nthes, Inc. $or a total

!urchase !rice o$ M1>.5 billion in cash and stoc on June 14,2012. Synthe Holdin" 7% is

a multinational medical deice manu$acturer based in #olothurn. It is the %orld?s largest maer

o$ im!lants to mend bone $ractures,2Q and also !roduces surgical !o%er tools and

adanced biomaterials. #nthes got integrated %ith the DePu $ranchise to establish the DePu

#nthes -om!anies o$ Johnson & Johnson. +he com!letion o$ the #nthes acuisition creates the

%orld?s most innoatie and com!rehensie ortho!edics business and re$lects its long7standing

strateg o$ leadershi! %ithin attractie health care marets. +he combination o$ these t%o

res!ected leaders 77 #nthes and DePu 77 %ill enable to better sere clinicians and !atients

%orld%ide, bring ne% innoations to the maret!lace in ortho!edics and neurologic, and

strengthen its abilit to com!ete in deelo!ing marets. *!erational sales gro%th in medical

deices segment o$ .1 !ercent included the im!act o$ the acuisition o$ #nthes, net o$ the

diestiture o$ the DePu +rauma business since it is !rimed to o$$er ne%, alue7added solutions

that %ill hel! trans$orm health care delier.

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http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Medical_devicehttp://en.wikipedia.org/wiki/Solothurnhttp://en.wikipedia.org/wiki/Implant_(medicine)http://en.wikipedia.org/wiki/Bone_fracturehttp://en.wikipedia.org/wiki/Synthes#cite_note-2http://en.wikipedia.org/wiki/Synthes#cite_note-2http://en.wikipedia.org/wiki/Surgeryhttp://en.wikipedia.org/wiki/Power_toolhttp://en.wikipedia.org/wiki/Biomaterialhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Medical_devicehttp://en.wikipedia.org/wiki/Solothurnhttp://en.wikipedia.org/wiki/Implant_(medicine)http://en.wikipedia.org/wiki/Bone_fracturehttp://en.wikipedia.org/wiki/Synthes#cite_note-2http://en.wikipedia.org/wiki/Surgeryhttp://en.wikipedia.org/wiki/Power_toolhttp://en.wikipedia.org/wiki/Biomaterial


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-or!orate Boernance8

Johnson & JohnsonAs management is res!onsible $or timel, accurate, reliable and ob;ectie

$inancial statements and related in$ormation. s such8

• ccounting controls8


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.e-erence:

htt!8%%%.2013annualre!ort.;n;.com

htt!8%%%.;n;india.com

htt!8%%%.;anssen!harmaceuticalsinc.com

https://www.depuysynthes.com

Michael A.Hitt, R.Duane Ielan!, R"#et $. H"%&i%%"n,'. Mani&utt()2012*. Strategic

Management. +engage eaning In!ia )P* t!.

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http://www.2013annualreport.jnj.com/http://www.jnjindia.com/http://www.janssenpharmaceuticalsinc.com/https://www.depuysynthes.com/https://www.depuysynthes.com/https://www.depuysynthes.com/http://www.2013annualreport.jnj.com/http://www.jnjindia.com/http://www.janssenpharmaceuticalsinc.com/https://www.depuysynthes.com/

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JOHNSON & johnson pharmaceuticals.docx