You’ve become a trusted resource for Johnson and Johnson and they’ve asked your advice on having a competitive advantage in the field. More specifically, they would like your analysis and recommendations on ways to bring their company culture, demographics, and technologies up to current industry practices and beyond.
Create a 12 to 15 -slide presentation with detailed speaker notes and visuals on every slide that includes the following elements:
- An analysis of the organization’s current culture (e.g., beliefs, expectations, values, and norms). Address how managers influence the organizational culture.
- An evaluation of the impact of demographic forces (e.g., age, gender, ethnic origin, race, sexual orientation, and social class) of your selected organization and what it could be
- Note: This is a good place to use your chart/outline/infographic from Wk 5.
- An examination of the impact of technological forces (e.g., changes in the technology managers use to design, produce, or distribute goods and services) of your selected company
- Consider how this can contribute to innovation within the industry.
- An examination on how the organization has complied with ethics and social responsibility behavior
- Recommendations of ways to innovate based on your analysis
- American based References
You’ve become a trusted resource for Johnson and Johnson and they’ve asked your advice on having a competitive advantage in the field. More specifically, they would like your analysis and recommendati
Organizational Analysis Define your chosen company and its industry. Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being. Mission and Vision Identify the mission and vision of the organization. Mission Bring the science and sense of sight to life through world-class innovation and patient experiences. Vision We help people see better, connect better and live better. Organizational Initiatives Outline 1-2 major initiative for this organization. What are they currently doing to support these initiatives? To improve the vaccine production and research. How, by offering great value to the customers through the store and Internet research experience. The Johnson & Johnson Family of Companies is organized into three business segments— Consumer, Pharmaceuticals, and Medical Devices. It the world’s most broadly based global health care business serving customers, patients and medical professionals through more than 275 companies in over 60 countries. Organizational Plans Describe the plans employed by the organization. Determine which types of managers create each type of plan. Type of Plan Description Type of Manager joint partnership plan To open 10 additional research centers in high-traffic research company and drug supply Top-level managers overseas research plan Provided the company with a platform for developing and the success of other products. Top or corporate managers SWOT Analysis There are various factors within the external environment of an organization that impacts its strategy. Analyze the organization’s SWOT analysis. Identify the internal and external factors. Include a link to the SWOT analysis in the Reference section of this worksheet. Internal Factors Strength: Multiple channels selling Wide geographic presence High liquidity position Weakness: uneven Revenue Distribution, fall in Consumer Health Sales, unethical Practices: External Factors Opportunity: Customer loyalty programs Strategic partnership Growing e- Commerce sales across the globe, Robotic Surgical System, Mergers and Acquisitions, Tele-Health. Threat: Rising labor costs in the US Intensified competition Foreign exchange risks, government Regulations, corporate Espionage. Part 2: Evaluation Evaluate if the mission, vision, planning process, and SWOT analysis meets the current needs of the organization. Include the following in your evaluation: Describe the unmet need, (not limited to product or service, can be new demographic, new mode of delivery, etc.). Analyze your competitive advantages. Based upon the SWOT analysis, is there another business that is doing something similar that can be referred to? Provide examples. If there is not another business, describe how what you’re doing is a unique product or service offering. Propose a competitive business initiative to address the unmet need. Create a high-level timeline and operational steps necessary to implement your solution. Answer and Explanation This SWOT analysis shows that Johnson & Johnson’s revenue stream and global reach are its most important assets. When you examine Johnson & Johnson’s flaws, you’ll discover that the company relies too heavily on a small number of high-margin products. In addition, Johnson & Johnson’s resources are being strained by the costs of lawsuit settlements. Weaknesses like these must be overcome for Johnson & Johnson to move forward. If Johnson & Johnson’s one-dose vaccination passes clinical trials, it will be a game-changer. In conclusion, a pharmaceutical behemoth, Johnson & Johnson, has been summoned to assist the world in its hour of need. Johnson & Johnson has a long history of philanthropy, and it stands to benefit both its reputation and bottom line by responding to the call to service. Reference https://www.comparably.com/companies/johnson-johnson/mission Pharmaphorum. (2021). A history of Johnson & Johnson. Retrieved January 23, 2022, from https://pharmaphorum.com/views-analysis-sales-marketing/a-history-of-johnson-johnson/ Reed, E. (2020). History of Johnson & Johnson: Timeline and Facts. Retrieved January 23, 2022, from https://www.thestreet.com/personal-finance/history-of-johnson-and-johnson https://www.jnj.com/innovation/how-johnson-johnson-is-improving-workplace-wellness-for-healthiest-employees https://www.jnj.com/johnson-johnson-announces-plans-to-accelerate-innovation-serve-patients-and-consumers-and-unlock-value-through-intent-to-separate-consumer-health-business Brief History of Company Three brothers formed Johnson & Johnson in 1886. They include Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson. The inspiration to form the company was based on Lister’s antiseptic methods. The newly founded entity focused on developing methods for sterilization and surgical dressings, hoping to develop an efficient sterilization approach (Reed, 2020). In 1887, the company was officially incorporated as Johnson & Johnson and in the following year produced ready-made first aid kits and published a guide for treating injuries. The first-aid kit was an instant success, especially among industrial workers and general consumers. Afterward, the company would release maternity kits and baby powder products. The aim was to expand the product line to include baby and maternity products. The maternity kits were intended to make childbirth safer, while the baby powder was a success and is still for sale today (Reed, 2020). Johnson & Johnson consistently built the reputation of developing healthcare and sanitation products. In the 1930s through to the 50s, the company developed its modern corporate structure. At the time, CEO Robert Wood Johnson II decentralized the company into smaller units that all report to the Johnson & Johnson corporation. The rationale was that each unit would specialize. The real distinguishing factor in Johnson & Johnson came when the company started to purchase pharmaceutical research companies. The first two are Cilag Chemie AG and McNeil Laboratories. Afterward, Jansenn Pharmaceutica was added under the umbrella leading to the creation of the company’s pharmaceuticals and research division (Pharmaphorum, 2021). These acquisitions enabled the company to develop its drug product lines. The company has steadily developed in research and development, leading to innovations such as drug treatments for schizophrenia and the first coronary stent (Reed, 2020). Milestones from The Company’s History Johnson & Johnson’s first milestone was the creation of commercial first aid kits. The kits improved the condition of railroad workers and workers from other industries. The first-aid kit was an instant success and has become the standard for treating injuries on the scene (Pharmaphorum, 2021). It is a significant contribution and innovation in healthcare that still offers benefits in the 21st century. The invention also propelled the brand name of Johnson & Johnson. It provided the company with a platform for developing and the success of other products such as maternity kits and the baby powder label. The second milestone for Johnson & Johnson is the incorporation of Janssen into the corporation. Janssen provided the company with innovation and vital pharmaceutical research. Janssen’s profile remains high, and the company is still one of the world’s leading companies in pharma research. Within Johnson & Johnson, Janssen is split into Research & Development, Janssen Diagnostics, and Janssen Healthcare Innovation. Janssen has developed successful drugs, including Reminyl for Alzheimer’s and Immodium, a diarrhea treatment. The third Johnson & Johnson milestone is the development of its COVID-19 vaccine. The pandemic’s start in 2020 found the company established and with adequate resources to begin research on a vaccine. Unlike the double dose vaccine from most of its competitors, Johnson & Johnson’s vaccine is a single dose. The development of the COVID vaccine emphasized the dominant role the company plays in the pharmaceutical industry. Information Sources The first source of information is the Johnson & Johnson website. The website contains relevant information regarding the company’s status, its initiatives, and information regarding products and suppliers. The second information source is the Drug Information Database from Drugs.com. The information contained in the database is sourced from independent suppliers of medical information, such as the American Society of Health-System Pharmacists. The website has information regarding drugs produced by Johnson & Johnson and its subsidiaries, such as Janssen. The last source is Statista which contains relevant Johnson & Johnson statistics such as revenue, growth, and sales. Unique Business Opportunity The unique opportunity for Johnson & Johnson is its single-dose COVID vaccine. While vaccines from competitors such as Pfizer and Moderna require two doses, the company has developed a single dose shot, attracting individuals who want to avoid the hassle of seeking two doses. The COVID pandemic is still ongoing, with new variants emerging. Johnson & Johnson should increase vaccine production while researching the new strains. The outcome will increase the company’s competitiveness and appeal. Function of Management Needed for Opportunity The primary managerial support needed for the opportunity is support. An increase in vaccine production and rollout requires efficient planning and organization for efficiency. Moreover, management should ensure the company has adequate financial resources to fund research and support manufacturing efforts. Staffing is also vital; thus, management should ensure they acquire the talent to promote successful outcomes in both research and manufacturing. References Pharmaphorum. (2021). A history of Johnson & Johnson. Retrieved January 23, 2022, from https://pharmaphorum.com/views-analysis-sales-marketing/a-history-of-johnson-johnson/ Reed, E. (2020). History of Johnson & Johnson: Timeline and Facts. Retrieved January 23, 2022, from https://www.thestreet.com/personal-finance/history-of-johnson-and-johnson Johnson & Johnson Five Porter’s Analysis Johnson & Johnson is a multinational holding company engaged in the research, development, manufacture and sale of a broad range of products within the healthcare industry. The company operates within three segments of consumers, pharmaceuticals and medical devices (Johnson and Johnson, 2022). The company’s broad operations expose it to varying threats within its market, as well as various levels of competition. A Five Porter’s Analysis of the company give insight into that kind of threats the company faces within the five elements covered by the Five Porter’s Model, and the impact those threats have on its competitiveness within the market. Threat of New Entrants The threat of new entrants is low for Johnson & Johnson. The health industry within which the company operates has several barriers that are restrictive for the entry of new players. Potential entrants into the health industry, particularly in the field of pharmaceuticals and medical devices, are faced with steep starting costs, a need for costly and hard to find skilled labor, expensive and technology, and the need to compete with well-established brands with a reputation such as Johnson & Johnson. The company therefore, faces minimal risk of competition from new entrants. Bargaining Power of Suppliers The bargaining power of suppliers for Johnson & Johnson is high. The health industry has high demands in terms of quality and cost for suppliers which means there are very few, and for a company like Johnson & Johnson which already has a reputation for quality and works with specific suppliers, the number of suppliers is few for such a large company. The low number of suppliers, the unique products they supply, and the standards they must meet means they have a high bargaining power. To overcome such bargaining power, J&J has to further diversify its supply-chain to different locations and companies, and reduce reliance on suppliers for products that can be sourced easier in-house. Bargaining Power of Buyers J&J operates at varying levels with numerous categories of buyers ranging from consumers, wholesalers, retailers, and manufacturers (Johnson and Johnson, 2022). The variety in terms of category, and overall number of buyers means the company does not face stiff competition for a single buyer category, and has numerous customers at any given time which lowers the bargaining power of the company’s buyers and grants it greater leeway to determine prices and maximize its profits. Threat of Substitutes The company produces both specialized products such as the Johnson & Jonhson Covid-19 vaccine, and general products such as first aid kits (Johnson and Johnson, 2022). While the threat of substitutes for specialized, or proprietary products such as its vaccines is low, it does face stiffer competition for more general products such as its baby powder line. The company however, does have a strong reputation that staves off competition from less reputable brands. The company can focus on unique products to reduce the possibility of substitutes. Industry Rivalry The main competitors for J&J within its market comprise multinational companies such as, Unilever, Merck, Bristol Myers Squibb and Pfizer, all of which like J&J serve a variety of segments within the health industry (Comparably, 2022). These multinationals while few, present the stiffest competition for J&J as they operate at the same level, with similar structures, and are themselves well known companies with popular household brands. To stave off competition from these major players the company has undertaken a series of acquisitions such as buying Pfizer Consumer Healthcare in 2006, and Actelion in 2017 (Pharmaphorum, 2021). Johnson & Johnson Leadership Style Analysis Current Leadership Style The current leadership at J&J is a transactional leadership style centered on rewarding or punishing employees based on their performance with those who perform well receiving bonuses and other rewards, while those that do not perform to expectation either left out or facing increasing pressure to bolster their performance. Effectiveness and Alternatives to Current Leadership Style J&J’s transactional leadership style has been effective given the huge strides the company has made in terms of delivering products to its numerous buyers on time, and with the needed quality. As a multinational the company operates in numerous countries and supplies a variety of products, therefore, a transactional leadership style works best in ensuring continued performance. Additionally, this leadership style has ensured the company has stayed in-line with its mission, vision and corporate objectives. However, an alternative leadership style, a transformational leadership style, is one that suites the company better today than transactional leadership. The modern world is ever-changing, information driven, and with a more conscious workforce, and consumer market. The modern world therefore, has a higher demand for innovation, and readiness to adapt to changes as evidenced by the emergence of Covid-19, and the growth of such technologies as AI. Transformational leadership which inspires innovation, and adaptability is therefore the most suitable. Effective Leadership Effective leadership is centered on whether a leader both achieves the goals set out for them, and inspires their followers to buy into, support, and strive to achieve those goals while keeping them motivated, and fulfilled. To measure effective leadership, one must look at whether the leadership supports and meets the mission, vision, and objectives set out, and how it impacts the employees and company as whole, specifically its positive impact. Leadership Changes A shift towards a transformational leadership style, is one that suites the company better today than transactional leadership. The modern world is ever-changing, information driven, and with a more conscious workforce, and consumer market. Therefore, the company needs a leadership style that will facilitate innovation and adaptability. Two actions that the company can take to align its operational needs with its business strategies are to enhance its performance and competitiveness are, reduce internal inefficiencies to enhance effectiveness, reduce waste and maximize resources, and fine-tuning departmental goals, team and employee objectives to align with the organizations business strategy so that all actions at all levels are geared towards meeting those objectives. References Comparably. (2022). Johnson & Johnson Competitors. Retrieved from Comparably: https://www.comparably.com/companies/johnson-johnson/competitors Johnson and Johnson. (2022). About Johnson & Johnson. Retrieved from Johnson & Johnson: https://www.jnj.com/about-jnj Pharmaphorum. (2021, February 26). A history of Johnson & Johnson. Retrieved from Pharmaphorum: https://pharmaphorum.com/views-analysis-sales-marketing/a-history-of-johnson-johnson/#:~:text=In%201886%2C%20three%20brothers%20%E2%80%93%20Robert,Jersey%20in%20the%20United%20States.&text=Between%201896%20and%201897%2C%20J%26J,mass%2Dproduced%20sanitary% Part 1: Organizational Chart CEO; Joaquin Duato EVP & Chief Global Supply Chain Officer EVP & Worldwide Chairman, Consumer Health Co-EVP, Global Corporate Affairs EVP & Worldwide Chairman, Medical Devices EVP & General Counsel EVP & CFO EVP & CHRO Vice President EVP & Worldwide Chairman, Pharmaceuticals EVP, Chief External Innovation, Medical Safety & Global Public Health Officer EVP & Enterprise CIO EVP, Pharmaceuticals R&D Figure 1; J&J Organizational Chart, Retrieved from The Org (2022) Part 2 At the top of J&Js organizational chart is the CEO Joaquin Duato. The primary function of the CEO is to provide overall direction and manage the company’s operation. He is also responsible for communicating with the board and delegating the agenda. Because J&J is an international company with thousands of employees, the CEO has to delegate functions for efficiency. Within J&J, departmental units report to the CEO to facilitate his agenda. The total number of these departments is twelve, each with a specific leader and a specific purpose. For instance, the top financial position in J&J is the CFO Joseph J. Wolk, while the Chief Global Supply Chain Officer, headed by Kathy Wengel, is responsible for executive leadership of the entire supply chain management operation. Johnson and Johnson has a global operation and thus delegates most decisions to managers and employees. The facilities under J&J employ a decentralized structure that requires employees to take responsibility under various levels of management. Because J&J operates in varied geographical locations, a decentralized structure enables individual operating units to adjust to the requirements of specific areas. J&J is a massive company employing approximately 130,000 employees, meaning that the hierarchal structure of command can be very tall. However, combining decentralized elements and a tall structure has enabled J&J to meet the specific needs of each operating unit. Decentralization is part of J&Js strategic principles and long-term vision. Apart from adapting to specific operational needs, decentralization also offers other advantages. If J&J implemented a purely hierarchical chain of command, it would be challenging for low-level managers to get their concerns addressed at the highest level. Increasing the autonomy of low-level employees increases their morale and satisfaction and leads to efficiency in time management. Moreover, morale is boosted because operating units are closer and more integrated. Low-level employees are also able to form close relationships with customers. However, because decentralization heavily depends on the abilities of low-level employees, the company has to ensure that the hiring process selects the best qualified and competent managers and employees. A disadvantage of decentralization is that the CEO cedes control of certain operations meaning they are entirely dependent on subordinates. References The Org. (2022). Johnson & Johnson – Org chart. Retrieved February 12, 2022, from https://theorg.com/org/johnson-johnson/org-chart. Johnson and Johnson Demographics and Technology Outline Demographics Employee demographics imply different sexuality, race, and ages of the staff that constitute an organization’s management and frontline team. Organizations work towards achieving diversity in the workplace due to the diverse customer base who purchase products and services from these companies. The high-tech industry in the United States is famous for being dominated mainly by white males (Jones, 2020). However, companies are striving to have more diverse workgroups by hiring minorities and more women in the contemporary world. Johnson and Johnson’s comprises a diverse and inclusive workforce that includes individuals from various demographic segments. Current Demographics of Johnson and Johnson Company Johnson and Johnson have had a steady increase in their staff since 2004. At this time, the company had approximately 109,900 members of staff (Mikulic, 2021). As of 2020, the company had almost 134,500 employees, with 51.9% of the employees being men and 48.1% being female (Johnson & Johnson, 2022). Recent Change in Johnson and Johnson Company Johnson and Johnson is facing numerous lawsuits how their products contributed to the opioid epidemic and innumerable claims concerning the talc that is contained in their baby powders causing cancer in their people that use their powders. The organization’s COVID-19 vaccine has failed to meet its promise due to production problems and concerns about its potential side effects (Robbins & de la Merced, 2021). How Johnson and Johnson Handled the Change The company recently announced its intention to split into two. It plans to spin off its consumer products into an independent company (Robbins & de la Merced, 2021). Johnson and Johnson discontinued the production and sale of baby powders containing talc in North America. Johnson and Johnson plan to keep its more fast-growing and profitable medical devices and pharmaceuticals businesses. Was the Change Handled Ethically? The changes that Johnson and Johnson made in their business segments were handled ethically. Johnson and Johnson acknowledged the consumers’ concerns regarding their talc-based baby powders and eradicated them from their production lines. Even though the company believed that their products were safe, the decision to stop the sales of these products in several parts of the United States, including North America (Robbins & de la Merced, 2021). Technology The use of modern and developed technology in organizations helps their management team make effective decisions, which would make a company more saucerful through the utilization of robotics (Jones, 2020). The company features another segment known as Johnson & Johnson Technology, which designs, delivers, and develops quality services, software solutions, and business applications in meeting the company’s technological requirements. How Johnson and Johnson Utilize Technology in Day-to-day Business and What Types of Technology is Used The company utilizes testing and improvement, continuous integration, and LEAN and AGILE methodologies to accelerate compliance and business value delivery. Besides, the pandemic changed how the customers of this organization shop for their products. Therefore, Johnson & Johnson has adopted several technological changes that help provide quicker responses and offer personalized experiences to their customers. To enable accurate, interactive, and real-time manufacturing processes, the organization’s employees improved and transformed siloed technologies through the leverage of digital analytics to make Johnson & Johnson’s supply chain more agile, enhance the accurate prediction of consumer demand, and optimize productivity. Johnson & Johnson introduced a new system that makes sure that return clients never get the “sold-out” message as they log in to purchase the organization’s contact lenses. This is attributed to the organization’s use of a developed technology that anticipates when their return clients will reorder these contact lenses, thus allowing the company to reserve these products for them (Shapiro, 2022). How a Change of Technology Affects the Organization A positive technological change has helped Johnson & Johnson to become one of the leading distributors of the COVID-19 vaccines. The improvement and transformation of siloed technologies at Johnson & Johnson have been essential in increasing productivity at the company. The enhancement of siloed technologies has played a significant role in upgrading end-to-end supply chain strengths and manufacturing, maximizing competitiveness and efficiency at scale, and improving the organization’s business performance. References Johnson and Johnson (2022). Diversity, Equity & Inclusion. https://healthforhumanityreport.jnj.com/responsible-business-practices/our-people/diversity-equity-inclusion Jones, G. R., (2020). Contemporary management (11th ed). New York, NY: McGraw-Hill Education Mikulic, M. (2021). Johnson & Johnson’s number of employees 2004-2020. https://www.statista.com/statistics/281388/number-of-employees-at-johnson-und-johnson/ Robbins, R. & de la Merced, M. J. (2021). Johnson & Johnson, Iconic Company Under Pressure, Plans to Split in Two. The New York Times. https://www.nytimes.com/2021/11/12/business/johnson-johnson-split.html Shapiro, M. (2021). How Johnson & Johnson’s Innovative Supply Chain Technology is Helping Transform How We Work and Live. Johnson & Johnson. https://www.jnj.com/innovation/how-johnson-johnsons-innovative-supply-chain-technology-is-helping-transform-how-we-work-and-live