Essay on Johnson and Johnson Case Analysis

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Johnson and Johnson Case Analysis Introduction: 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…show more content…
If J&J continues to be as decentralized as they are they will have a hard time adapting to change, communicating within the organization and contact within the organization will decrease as well. In the recommendation portion of this case analysis, I will be suggesting that the best way for J&J to become more centralized yet not completely decentralized would be to rely on clusters of companies rather than on continuously spinning off and making more and more decentralized autonomous sub-companies. My "cluster" approach would bunch together companies that are similar in nature, working on similar goals, performing similar functions and have similar customer bases. General Environment and Industry Analysis: Potential Opportunities and Threats The external environment consists of opportunities and threats. J&J can greatly benefit from taking advantage of opportunities. An opportunity that J&J can benefit from is the changes in Medicare insurance that have recently been enacted providing increased medical coverage to seniors with Medicare by covering prescription drugs. An article that I read in the Wall Street Journal stated that the new plan increases prescription drug coverage for senior citizens dramatically. This should increase the amount of prescription drug use in the U.S. Since pharmaceutical sales is J&J's largest segment, increases in prescription drug use can potentially increase sales and profits for
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