J&J Brazil Analysis Essay

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Case: “Johnson & Johnson Consumer Products Brazil: Corporate Transformation (A)”

We will discuss the situation facing Justino. There is not much financial information in the case. However, the implementation issues are worthy of our consideration.

1. Why is J&J Brazil in the situation they are?

Some of the reasons I have observed are as follows:

• Economy plays a role in the situation that they are in now. Rapidly decaying economy and constantly changing economical and regulatory landscape prepares the necessary grounds for J&J Brazil’s downfall. For example, the fact that they were technologically ill-prepared to keep up with the new entrants’ and other competitors’ pace of technological/machine upgrades,
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Marketing seems to be running the show when it comes to sales. Per the executive, marketing is not interested in input from sales, which tells me that there is a lack of feedback and planning happens without feedback from the field. This would blindside any company.

2. What are the priorities for Justino? What areas require immediate attention? What areas can he deal with later?

• #1 priority for Justino is establishing a vision and turnaround plan (which includes a strategy based on the vision and specific action items for financial and operational house of the business). • Justino must change the organizations structure as part of his plan. There are many operational overlaps and inefficiencies in the current structure. • Roles and responsibilities need to be clarified as part of the plan. Marketing and sales organizations need to do what they are meant to do and not play project manager or peon roles in the company. • Getting ahead of the game, namely R&D and brand positioning need to come back to the heart of the operations again. They became too risk-averse and at this point, it is costing them an arm and a leg. • Marketing practices need to change based on the decided-upon vision. Only getting through the day is not an option for J&J Brazil at this point. They must focus on upgrading their machines as well as researching new products that have unique
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