Economic Environment Of Business Finaleeee

ECONOMIC

ENVIRONMENT OF

BUSINESS

Submitting To:-

Prof. Gitanjali Kapoor

ECONOMIC ENVIRONMENT

OF BUSINESSPresented by:

•Hemangi Bhogwal P03• Prachi Karnik P15• Savita Kundu P18 •Jyoti Pokhare P28•Hemal Shah P33•Sneha Sharma P41

JOHNSON &

JOHNSON•Founded by Robert Wood Johnson in

1886

•In 1887 the Company was incorporated

as Johnson & Johnson

•Johnson & Johnson went public in 1944

on the New York Stock Exchange.

ABOUT J & J…

"It is essential that we have a culture of value based leaders with integrity and passion to set a vision, to inspire

their organizations to align around that vision and to nurture greatness in those around them."— William C.

Weldon, Chairman and CEO

BUSINESS

HIGHLIGHTS• Strengthened core businesses.

•launched new products.

•Advanced their pipelines in their

product.

CURRENT STRATEGIES•Cost Leadership

•Cultural fit in foreign markets

•Decentralized management

MERGERS AND

AQUISITIONS• Life Scan acquired in 1986 for 81 MM with

revenues of 22.8 million, 1999 revenue 1

billion

•Clean & clear: acquired in 1991 for $26 MM

with revenues of $15 million, Revenue

approaching $200MM.

•In 2006, it acquired Pfizer consumer

Healthcare.

AWARDS AND

RECOGNITION…

Marketing

A

DREAM…

Birth of J & J Baby

Products…

Objectives of Drug Policy, 1986

• Abundant availability of medicines.

• Reducing trade barriers in the pharmaceutical

sector.

• Strengthening the system of quality control.

• Encouraging R&D in the pharmaceutical industry.

• Creating an incentive framework.

Changes after 1991 reforms

• Abolishment of industrial licensing

• FDI increased from 51% to 74% and

further to 100%.

• Extension in the life of a patent to 20

years.

• Improving incentives for R&D

Union Budget 2008-09: Impact on

pharma sector

•Rs 16,534 cr Total allocation to the health sector.

•Increase in allocation to the health sector by 15 per cent.

•Customs duty to be reduced from 10 per cent to 5 per cent.

•Excise duty on all goods produced to be reduced from

16% to 8%.

•Excise duty has been fully exempted on anti-AIDS drug.

Impact on sector

•Excise duty reduction is positive for

the sector.

•Weighted deduction of 125 per cent.

FINANCIALS• Earning Per Share $ 4.55

• Sales $ 63.747

Bil

• Profits $ 12.949

Bil

• Assets $ 84.912

Bil

ESTIMATED EARNINGS PER

SHARE:

•In 2009, Avg Estimate is 4.51,High estimate

is 4.65, Low Estimate is 4.44 .

•In 2010,Avg Estimate is 4.91,High estimate

is 5.14, Low Estimate is 4.77 .

OTHER FORECASTSDividend Per Share:

2009 2.03

Total Revenue $ Mil

2009 1.97

2010 61,832

2011 64.819

Net Income $ Mil

2009 12,539

2010 13,551

Corporate governance• Accounting

controls

• Independent

auditors

• Audit committee

of bod

• Business results

Human Resource policy To redefine the standards of leadership

within J&J by creating a new credo set of company values.

The 6 credo values are as follows:

• Integrity• Dignity and respect• Apply the credo values• Use the credo survey • To manage for the future• Balance the interests of all constituents

IMPLEMENTATION of

CREDO• Redefined their management development

• Formal training, • Sub programs • Ethics training • Stretch assignments• Global coordination and

development program

Work environment

Workplace practices• Work/life

effectiveness

• Advancement of women

• Employee assistance

• Equal employment opportunity

• Flexible work arrangements

• Affinity groups

• Health management

• Talent management and training

• Safety management

Product Quality & Safety

•During Production

•After reaching the market place

External environmen

t

Competitors

Name of the Competitors

Symbol

1. Merck & Co Ltd MRK

2. Novartis A G NVS

3. Procter & Gamble Co PG

Other competitorsOTHERS IN THE SAME pool ….

• Glaxo smith kline

• Abbott Laboratories

• Wyeth

Environment policy• Operating beyond compliance.

• Integrating Environmental Goals

• Striving For Zero Waste

• Utilizing Innovative Technologies • Building Relationships

• Enhancing CSR.

• Ozone depleting substances.

• Packaging.

• Pharmaceuticals in the environment.

• PVC packaging.

• Water use.

• Waste reduction.

Key Success Factors

•Ethical practices.

•Growth in developing markets

•Integrate m & A into culture

•Product Innovation.

Future plans•Plans to Improve Overall Cost Structure

•Company will also continue to invest in both its

growing businesses as well as promising

technologies

• The company plans to file applications for seven

to ten new compounds between 2008 and the end

of 2010.

Bibliography &

Webliography• Misra S.K. & Puri V.K., Economic

Environment of Business.

• www.jnjindia.com

• www.jnj.com

• www.google.com

THANK

YOU…