Essay about The Decision of Johnson & Johnson Acquires Dabao.

Best Essays
The decision of Johnson & Johnson Acquires Dabao.
Di Wang
MGT 540 MI004
Professor: Arthur Annechino
20th February 2013

Table of Contents

Executive Summary 3
Introduction 4
The reasons of decision 6
Decision making style 7
The problem in decision making process 8
Recommendations 9
Conclusion 11
Reference 12

Executive Summary This paper is talking about the Johnson & Johnson Acquires Dabao. It starts with review the two companies’ history, and then shows the problem of them before acquiring. Further analysis of Johnson & Johnson’s decision with the problems that in their decision making process and also the decision making style that could be found in the acquisition. At last, give some
…show more content…
It seems that Dabao would never enter the high-end market in the industry. In 2004, its brand market share of negative growth, accompanied by declining net profit. Industrial output value and tax sales revenue declined slightly. The total profits and taxes in the decline stage, indicating that there was fierce competition in the market at that time, Dabao brand was facing the increase impact of foreign brands, price wars, increased costs, and many other heavy pressure. On February 27th , 2007, Dabao listing to start the transfer of 100% equity at a price of 2.3 billion yuan in the China Beijing Equity Exchange. Its transfer form is equity overall transfer. Listing period, Johnson & Johnson (China) Investment Co., Ltd., Unilever (China) Investment Co., Ltd., Kao Corporation and other international well-known cosmetics companies to come to counseling and due diligence. Johnson & Johnson and Unilever are interested transferee. The Unilever offer only 1.7 billion yuan, much lower than the listing price. Finally JNJ won at the price of 2.3 billion, the equity transfer agreement signed on April 18, 2008. July 30, Johnson & Johnson completed the acquisition of Dabao transactions from Beijing Sanlu Factory and the Dabao employee stock holding committee. Acquired the 83.42% of state-owned shares and 16.58% of employee shares from both of them. The reasons of decision There are three main
Get Access