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OverviewCompany OverviewHistoryCurrent Vision Statement & CredoProposed Vision & Mission StatementsExternal AssessmentPositioning MapCPM MatrixOpportunities & ThreatsEFE MatrixInternal AssessmentOrganizational ChartFinancial RatiosTrendsStrength & WeaknessesIFE MatrixStrategic AssessmentSWOT MatrixSpace MatrixGrand Strategy MatrixBCG MatrixIE MatrixMatrix AnalysisQSPMRecommendationsObjectivesStrategic ImplementationEPS/EBITProjected Balance SheetProjected Income StatementEvaluationBalanced ScorecardPossible IssuesSourcesQuestions

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Timeline1886- 3 brothers founded Johnson & Johnson in Brunswick, New Jersey.1888- Pioneered the first commercial First Aid Kit.1894- Launches first maternity kit to make child birth safer1898- First to mass produce dental floss.1921- An employee invents the first BAND-AID1937- Began international expansion with companies in Argentina & Brazil1954- Baby shampoo enter the market1978- The Company begins construction on their new World Headquarters in New Jersey.1990s- Ethicon Endo-Surgery pioneers minimally invasive surgery.2002- Johnson & Johnson acquires Tibotec-Virco BVBA2006- Johnson & Johnson acquires Pfizer Consumer Healthcare2009- Acquisition of Mentor Corporation*

2009 HighlightsStrengthened core business and invested in new launchesAcquired Cougar Biotechnology in JulyContinued to expand globally

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Current VisionTo maximize the global power of diversity and inclusion to drive superior business results and sustainable competitive advantage.*

Johnson & Johnson CredoThis is a statement of our values and responsibilities that was written more than 60 years ago. It articulates our responsibilities to customers, employees, communities and shareholders. It sets the tone for what is expected at J&J. *

Our philosophy and core values are centered on our desire to provide the safest and most reliable products and services to our customers, employees, medical professionals, and stockholders (1, 2, 6, and 9). Our consistent market growth and competitive advantage within the world market will ensure profitability and is a tribute to our trained employees, innovation, technology, and market research (3, 4, and 5). In regards to local and domestic communities, it is our goal to ensure that Johnson and Johnson adhere to policies and procedures to be socially responsible and for the betterment of all members of our value chain (7, 8).*

Johnson and Johnsons vision is to be the most recognized, innovative, and socially responsible name in pharmaceutical, consumer health, medical device, and prescription products in the world. Through this, we will earn our customers respect and enthusiasm with continuous improvement that is driven by innovation, integrity, teamwork, and the desire to provide value for the investment. As a result, J&J will gain market share to increase sales and generate dividends for our shareholders.

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Caring for you from the beginning, to the very end!

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Number of Stores (High)Number of Stores (Low)Wide Price CompetitivenessNarrow Price CompetitivenessPosition Map*

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OpportunitiesAcquisition of Synthes could enhance J&Js Failure of prospective products to deliver leadership position in global orthopedics marketLeveraging therapeutic coverage of non-prescription pharmaceutical segments could provide cross-selling opportunitiesAddition of Crucell to broaden J&Js position in biologics and vaccines marketR&D investment will add to the potential growth rate of the company in surrounding markets.Economic recovery will be a boost in income thus company revenue will increase.Global expansion

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ThreatsNegative Impact of Recent Product RecallsHealthcare regulationsBetter research and development of competitorsLow market growth rate.Strong competition from the generic market.Launch success in that newly launch products are uncertain because of regulatory review, thus making the launch a potential threat if it fails.

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Organizational Chart*

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Sales by Geographic Region*

Chart1

0.5

0.26

0.08

0.16

Sales

Sheet1

Sales

U.S50%

Europe26%

Western Hemispher8%

Asia Pacific, Africa16%

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Sales by Segment*

Chart1

56305894

34673381

21152214

18951911

15691624

11271030

2009

2008

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20092008

OTC Pharmaceuticals56305894

Skin Care34673381

Baby Care21152214

Women's Health18951911

Oral Care15691624

Wound Care/Other11271030

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StrengthsDiverse business offering Forecast growth despite challenges Significant sales and marketing capabilitiesRobust financial positionThey have strong global presence operating in more than 57 countries with 250 subsidiary companiesThey have successfully employed strategies to differentiation that helps it distinguish itself from its competitors.

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WeaknessesGeneric drug's exposurePrivate label exposureQuality issues in OTC products affecting consumer healthcare product salesKey product demand is shrinking.Theft and counterfeiting of drugs from internal staff as much as this is not isolated to J&J.Pressure to reduce prices in accordance with medical budgets and maintain patent expirations to help generic programs.

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SO StrategiesS1, O1: JNJ Should aim to be an industry leader in all its diverse business offerings.S2, O2: With the addition of new products in various departments, JNJ could potentially still predict growth in challenging times.WO StrategiesW1, O1: Although there is a wide variety of generic drugs, JNJ should use this as an opportunity to highlight the value and quality of their products and increase R&D in specific segments to increase market share in surrounding markets.W2, O2: OTC sales should be used as a prime opportunity to highlight the value and worth of JNJ`s products.ST StrategiesS1, T1: JNJ`s diversity should not be a means for its products to be valued as "average", its diversified range should be known for the high quality.S2, T2: The prediction of increased sales in challenging times should be a testament to JNJ`s value and quality of products.WT StrategiesW1, T1: Product recalls can seriously hinder the perceived value and quality of JNJ.W2, T2: Healthcare regulations along with challenging economic times can prove costly to JNJ as a whole.*

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+15-1510.50.00*

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Recommendations

Increase R&D in the pharmaceutical segment by $75 million; will result in 8% projected sales increaseContinue to improve on product recalls; this will give a better quality perception to consumers and medical personal Improve cross-sell techniques of diversified productsTotal cost = $75,000,000

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We are proud of our 2009 accomplishments, but we recognize there is a great deal more to do. In the near future, we continue to assess what more we can do across our business segments, our supply chain and together with partners, including governments, other companies and social and environmental non-governmental organizations.

The people of Johnson & Johnson remain committed to living up to the responsibilities laid out in Our Credo. As our Company approaches our 125-year milestone, improving human health and well-being is still our crucial mission and the ultimate measure of upholding our responsibility now and for generations to come.

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Projected Balance Sheet*

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Possible IssuesAdditional product recalls/ lawsuitsAnother economic downturnCompetitors gaining market shareFederal regulations that affect potential new products and existing processesLitigation from people being hurt through defective productsInternational regulations that limit foreign expansion*

SourcesJohnson & Johnson Annual Report. http://files.shareholder.com/downloads/JNJ/1782599548x0x359541/6EAF4E16-08B2-4AD4-86AC-5BDB928E5320/JNJ_2009AR.PDFJohnson & Johnson. http://www.jnj.com/connect/ The Street. 10 Companies that paid the least in taxes. http://www.thestreet.com/story/11077452/1/10-companies-paying-the-least-in-taxes.html CBS News. J&J layoffs: the jobs that are the safest and those that arent. http://www.cbsnews.com/8301-505123_162-42843383/j038j-layoffs-the-jobs-that-are-safest-and-those-that-arent/ Historical Stock Prices. http://finance.yahoo.com/q/hp?s=JNJ&a=11&b=31&c=2009&d=11&e=31&f=2009&g=dCompetitor Comparisons. http://www.nasdaq.com/symbol/jnj/competitorsCompetitive Profile. https://business.missouri.edu/ifmprogram/reports/2010SP/J%26J%20Report.pdf *

Questions?*