Johnson & Johnson : The United States Based Multinational Company

New medical devices entering the market affect prices. As such, analyzing the price elasticity of supply 〖(E〗_s) and demand (E_p) is imperative. Measures in elasticity are chiefly valued because they center on the comparative degrees of changes rather than the absolute (Ringel et al, n.d.). Depending on geographic region, total hip replacements in 2013 tallied from $4,400 to $17,301 (i.e. average of $10,850.50) (BCBS, 2015). In 2010, a total of 2.5 million Americans underwent total hip replacement (Kremers et al, 2015). If J&J markets a new artificial hip that lowers the overall average cost by five percent (e.g. $10,307.98) while increasing overall supply by ten percent (e.g. 2.75 million), the price elasticity of supply is two. Because the supply is

Johnson & Johnson, a 130 years old famous multinational healthcare company through its family of companies is involved in the research and development, manufacture and sale of a wide range of products in the healthcare. Product that related to human health and well-being has always been their main interest over the years and also presently. Johnson & Johnson was incorporated in the State of New Jersey in 1887 by three brothers; Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson.

Johnson and Johnson, commonly called J&J for short, is one of the world's well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company's most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical equipment

The cost of healthcare is on the rise and the demand for services has increased of required and

According to the elasticity of demand law, a change in the quantity demanded leads to a change in price of the product. As such, if there were an increase in demand for pharmaceutical products, there would be an increase in the prices, while a decrease in these prices leads to a decrease in prices of pharmaceutical products. However, goods such as Geffen and Veblen do not obey the law of supply and demand, as

Price elasticity of demand measures the responsiveness of demand after a change in a product's own price. () healthcare insurance is in a high demand, ever since, President Obama’s pass the Affordable Care Act. Meanwhile, the price of healthcare insurance has increase in quantity with high response to changes in price. President Obama’s healthcare (Affordable Care Act) was design to accommodate every citizens with some form of healthcare

The purpose of this report is to provide analysis of SEC 10K for Johnson & Johnson (JNJ). JNJ was incorporated in the State of New Jersey in 1887. JNJ and its subsidiaries have approximately 117,900 employees worldwide engaged in the research and development, manufacture and sale of a broad range of 250 operating companies conduction business in all countries of the world. JNJ’s primary focus has been on products related to human health and well-being.

Johnson & Johnson was founded in 1886 by three brothers in America. It is a company that sells consumer packaged goods, medical devices and pharmaceuticals and has been one of the most trusted and well-respected brands around the world. Many families use their household products, from shampoos to drugs. The worldwide company should handle all business deals and services ethically. This report will look into how well Johnson & Johnson makes decisions in terms of the health and safety of consumers, honesty and its marketing strategies.

Therefore, the cost continued to rise due to the severe care diagnostics diseases associated with a person's lifestyle had been known as one of the major causes of unnecessary illness. Diseases associated with a person's lifestyle had been known as one of the major causes of unnecessary illness, another problem had a rising shortage of health care professionals, primarily nurses, creating price increases in health care. With less nursing to staff the hospital you dealt with overworked sometimes underpaid nurses who were more likely to make mistakes due to their environmental conditions. This had always up for debate new treatments/medical technology tended to amplify costs by increasing the total amount of care given. A technology supplied the health care division with new tools to deliver improved care as to manage health care more proficiently successfully technology had the solution to improved productivity in the health care division that will boost the supply of health care in the fact of increasing demand lower its

Currently Brazil is the largest market for products and services for health in Latin America, with annual expenditures of approximately U.S. $ 107 billion. This figure is comparatively higher than other countries to which Genicon can expand its operations. In addition, the health expenditure showed an average annual growth of 15.6%, while GDP growth has averaged 2.4% per year for Brazil which implies a sustained growth in demand for endoscopy instruments. The figures for the healthcare market in Brazil, shows that the profile of the healthcare market of the country is comparable to the healthcare market in the United States around 1965, in terms of growth rate and a proportion of total spending. Thus, Genicon can reasonably expect to grow with the rising wave of the healthcare market.

For Johnson and Johnson to continue being an industry leader, change is needed. An overhaul of the company’s

Johnson & Johnson is a global American health care manufacturer founded in 1886. The Family of Companies – as they call themselves – consists of more than 250 operating companies in 60 countries employing about 118,000 people worldwide. (J&J)

Supply, Demand, & Market Equilibrium: Appraising the price elasticity of supply* 〖(E〗_s) and demand* (E_p) of a medical device is vital. Based on geographical region, a consumer in 2013 paid from $4,400 to $17,301 for a total hip replacement (BCBS, 2015). To add scope, 2.5 million Americans undertook a total hip replacement in 2010 (Kremers et al, 2015). If J&J’s new artificial hip cuts overall cost by five percent, while increasing overall supply by 10 percent, the price elasticity of supply is two, and hence elastic (E_s > 1). Or, if quantity demanded rises 15 percent while prices decline by five percent, the price elasticity of demand is 2.72, and therefore elastic (E_p > 1). As such, the artificial hip is an elastic good. When a good is elastic, a price alteration swiftly results in a quantity demanded change (Investopedia, n.d.), and this important to any

Elasticity of demand represented as “Ed” is defined as a “measure of the response of a consumer to a change in price on the quantity demanded of a good” (McConnell, 2012). Determinants for elasticity of demand would include the substitutability of a good, proportion of a consumer 's income spent on a good, the nature of the necessity of a good and the time a purchase is under consideration by the consumer. Furthermore, elasticity of demand is calculated with this formula:

Health Care in United States is more expensive because the demand is high. Health care facility in United States is provided by many organizations where private sectors are mostly involved. According to WHO, United States spends more on health care services than any other country, exceeding $2.6 trillion, or about 18 percent of gross domestic product. The healthcare demand elasticity varies as the demand for health insurance and health services product varies. We can see that when the health care services like regular doctor visit, general checkup is too costly then the demand decreases as people are less interested in preventive care but the people are forced to hospital in emergency situation by which the emergency services of the hospital have high demand. Some health-care suppliers have significant market power which will help to compare the health cost throughout the country. Delivery system and market environment also influence the demand and supply response to a change in price. There is increased demand on public health system and on medical and social system. Higher prices in the product will reduce the quantity supplied or simply there is decrease in supply. The healthcare price elasticity doesn’t change drastically as other industry does but the price changes as the elasticity of demand and supply increases or decreases (Hicks, L.L. (2014). Health care demand was increased drastically in 20th century as compared to earlier period. The main forces that influenced health care demand were scientific basis of medicine, specialization in medicine, urbanization and emergence of modern hospital. Heath care demand nowadays is influenced by several forces like globalization, information revolution and involvement of private company in healthcare delivery (Liu Su & Chollet Deborah. (2006).