Vertical Integration at Johnson & Johnson

recalls related to product quality problems. Observers felt the company would have lost even more

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.

Managers and leaders do not welcome crises because they don't realize that problems and crisis if handled with intelligence become an opportunity for the company. The purpose of writing this paper to discuss the case of "Johnson & Johnson" that became a hero in the eyes of public (Rehak, 2002) and gained their market share back with the help of their effective public relations plan. They accomplished this by making good relations with public and by proving how much they were concerned about the safety of their consumers.

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

Vertical integration – when you choose to produce raw materials and/or distribute finished goods themselves rather than rely on independent suppliers, factors and agents for these tasks

According to Leiyu Shi and Douglas A. Singh, the integration approaches contains two types of service strategies, which is the vertical and horizontal integrated health systems. The vertical integration strategy links services at different stages in the production process of health care. One of the examples is Cleveland Clinic, for it’s a vertically integrated system that has primary care, acute care, post-acute services, and a hospital. Cleveland Clinic main objective is to increase the comprehensiveness and continuity of care in the health care services. As for horizontal integration strategy, it links organization through ownership or alliances to extend its core product or services. Quest Diagnostics is a good example of horizontal integration, for its services are similar to existing services. Quest Diagnostics main objective is to control the geographic

At present Walgreens appears to be operating in a Horizontal Integration strategy demonstrated through its merger with Boots Alliance and a reported inquiry to purchase Rite-Aid. (Nichols, 2015) Market Penetration is another strategy which Walgreens is presently operating within. Their change in strategy to focus on the customer and improve customer service and relationships is one strategy that is being used to penetrate a market with vast competition that needs a differentiator to remain on top.

In the health care system, various integration strategies involve services to improve the delivery of care. However, these services include a vertical and horizontal integrated health system that will help organizations increase market share, become more diversified, and achieve cost advantages by using existing operation to offer new products or services (Shi & Singh, 2015).

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.

Horizontal integration is the expanding of a company through increasing the service to create a stronger and more enhanced company that provides the same service. Vertical integration is when a company owned individual providers create or operates the distribution themselves. In order to provide the best healthcare service, healthcare facilities needs to offer a network of providers with a wide range of healthcare service. The term integration delivery system (IDC), “is a network of organizations that provides or arranges to provide a coordinated continuum of services to a defined population” (Shi& Singh, pg. 366). The goal for healthcare organization is to provide high quality and efficiency of care with cost reduction for healthcare aimed toward the patient population. This goal is not only a great benefit for an organization but for patient and also for healthcare services providers.

The purpose of this paper is to identify a quality safety issue. I will summarize the impact that this issue has on health care delivery. In addition, I will identify quality improvement strategies. Finally, I will share a plan to effectively implement this quality improvement strategy.

Describe the company and the major initiative(s) they have planned for the next 5 years.

     MGA lawsuit Product Recalls High Dependence on Few Customers Declining Market Share Other litigation and legal

Kirkham’s strategy was to integrate the different systems of each division into an “all-inclusive” product and also to involve all the divisions together with regards to product development, instead of letting each division be responsible for just products within that division. Mr. Donaldson chose Kathleen Quinn, Vice-President of R&D, to be responsible for coordinating the development of new products. This proved to be quite a challenging task considering that each managing director (of each division) still retained responsibility for the turnover and profitability of their respective decisions and also for the strategies to achieve the goals of their divisions. In addition, regardless of the trend of their customers in purchasing integrated systems, the majority of each division’s turnover came from the sale of stand-alone products.

Johnson & Johnson’s operations are categorized into three business divisions: Consumer, Medical Devices and Diagnostics, and Pharmaceutical. The Consumer segment’s products are promoted to the overall public and sold to both retail outlets and distributors all over the world. These products include wound care, skin care, baby care, and wellness and prevention platforms just to name a few. The Medical Devices and Diagnostics segment involves disposable contact lenses, surgical and bio-surgical