Case Analysis – Team 2

Brandi WadsworthJordan StoneDavina NaylorMichael Davis

BRANDI WADSWORTH

Chapter 1: Strategic Management

Chapter 2: External Environment

Chapter 3: Internal Environment

STRATEGIC MANAGEMENT

Responsibility to doctors, nurses and patients, mothers, fathers and all others

Responsibility to employees

Responsible to the communities

Responsible to stockholders

EXTERNAL ENVIRONMENT

Five Forces –- Threat of new entrants is low due to entry barriers such as regulation - Bargaining power of buyers is high because the low cost generics are increasing as patents expire- Bargaining power of suppliers is low due to strong relationships and wide range of suppliers- Threat of substitute products and services is high due to patent expirations which increases generic rights- Intensity of rivalry among competitors in an industry is low because J&J is a giant in different business segments

INTERNAL ENVIRONMENT

Strengths

- J&J is one of the most admired companies

- One of the Top 100 Companies for Working Mothers every years since initiation

- Strong distribution network in all three market segments in emerging markets

Weaknesses

- Maintaining a global brand with recalls increasing

- Operations are disturbed by market fluctuations

Opportunities

- Acquisitions of other small companies and increasing brand presence

- Increasing middle class and emerging markets in high growth countries

Threats

- Generics for all three market segments

- Substitutions with lower cost

Jordan Stone

Chapter 6: Corporate Strategy

Chapter 7: International Strategy

Chapter 8: Entrepreneurial and Competitive Dynamics

Corporate Strategies

What Strategy?

Growth?

Issues?

Options?

Diversification?

CORPORATE STRATEGIES

CONT.

INTERNATIONAL STRATEGY

WHICH STRATEGY?

WHY EXPAND?

CHALLENGES?

COST REDUCTION OR LOCALIZATION?

ENTREPRENEURSHIP AND COMPETITIVE

DYNAMICS

WHICH ENTREPRENEUR STRATEGY?

WHAT TO CONSIDER WITH THE INNOVATIVE

PROCESS?

HOW DOES J&J PROMOTE THIS

ATMOSPHERE?

Davina NaylorChapter 9: Control Systems, Governance, and Ethics

Chapter 10: Organizational Structure

Chapter 11: Leadership and Ethics

Chapter 12: Innovation

CONTROL SYSTEM, GOVERNANCE, AND ETHICS

• Contemporary, values-driven control system

• Use of SMART goals when measuring strategic control

• Rewards are realistic and given when goals are met

• Success is ultimately dependent upon executive decisions

ORGANIZATIONAL STRUCTURE

ADVANTAGES

• Separate divisions are awarded separate management controls

• Increased manager focus

• Divisions maintain their own resources

• More career opportunities available

DISADVANTAGES

• Divisions may compete with one another

• Increase in barriers to communication and sharing of new concepts/ideas

• Expensive to replicate departments

• Focused too much on short-term performance

LEADERSHIP AND ETHICS• CEO must possess strong leadership qualities

• Awareness of barriers to change in order to achieve success

• Ability to learn from mistakes

• Three major traits

• Purely technical skills

• Cognitive abilities

• Emotional intelligence

• Leadership Challenges

• Quality control issues

• Adherence to good ethical behavior

• Awareness of stakeholders

INNOVATION• What should a company consider when managing

the innovation process?

• Corporate Culture

• Knowledge of past mistakes

• Different types of innovation

• How should a CEO foster innovation?

• Increase in collaboration

• Factors that influence strategy

MICHAEL DAVIS

Chapter 4: Intellectual Assets

Chapter 5: Business Strategy

Human Capital:

- Attracting talented people who possess J&J

DNA

- Continuous development through open

enrollment and functional leadership programs

- Culture, environment, and incentives don’t just

“Attract” the best and brightest, they “Keep”

them

INTELLECTUAL ASSETS

Talent Management

Recruit

DevelopRetain

Business Segments: Consumer, Pharmaceutical, Medical Devices

Broad array of major competitors across all three business segments

Very strong brand recognition based on quality and fulfillment of specific

consumer needs

BUSINESS STRATEGY

Low Cost Leadership Broad Differentiation

Johnson & Johnson

Focused Low Cost Focused Differentiation

Competitive Advantage

Improvements Johnson & Johnson

could adopt to achieve greater

success

1. Knowledge Sharing - Tacit Knowledge,

Interdivisional Collaboration

2. Organizational Structure - Sharing

resources and functional departments

3. Leadership Development - Formal

Mentorships/Cross Training

RECOMMENDATIONS

Conclusion