Essay about Codman & Shurtleff

Decent Essays
Analysis of Codman & Shurtleff

Codman & Shurtleff is an autonomous subsidiary of Johnson and Johnson (J&J). J&J is a decentralized company which has 3 basic doctrines to achieve success – decentralized management, sense of responsibility and long term management. J&J has 155 autonomous subsidiaries in 46 countries and it employs 75,000 people worldwide. These 155 units are divided into sectors based primarily on products. Codman & Shurtleff employs 800 people in 3 manufacturing locations and competes in 12 major medical product groups.

Codman & Shurtleff ‘s mission is similar to the building strategy, the company is focus mainly on innovation and differentiation, and its strategy is based on investing in R&D and developing new
…show more content…
Although there is not punishment it is clearly stated that "the profit plan and the second year forecast are used to run the business and evaluate managers on planning, forecast and achievements'.
4. Force busy managers to review their strategy: this planning and control system force managers to abstract themselves from the every day activities and revise the company strategy, its results, its potential threats, the projects scope, the market needs, etc. By doing this exercise, the company managers have to sit and think about the company's mission and strategy more than once a year. This also permits management realizes what is going good and what is going wrong early and take some action. In Codman case this allows management to reformulate their strategy if it is necessary.
5. Three revisions: this tend to be seen in many cases as a weakness but, since Codman & Shurtleff market environment is very uncertain and unpredictable this kind of practice actually results beneficial because managers develop planning and budgeting skill in a variable environment.
6. Multi step approval: this make more difficult at certain point to approve a plan with flaws or with weak back up strategy.

Weaknesses of the System:

1. No changes are suggested: the committee that reviews and approves every subsidiary of Johnson and Johnson
Get Access