Johnson & Johnson

Johnson & Johnson

Introduction

Multinational enterprises are now an undeniable reality that affects the whole world. There are positive and negative aspects of these enterprises on a global economy. Multinational enterprises are international companies that are subsidiaries or permanent establishments and subsidiaries present in numerous countries. Their markets are spread over several countries and they control their activities from a central office in the home country. We can define the MNE as a set of means of production dependent on a single decision making centre that controls a number of local units distributed in various countries. It, in essence, is a large corporation or a group of companies that owns the central management (parent company) in a given state and production plants located in various parts of the world. The multinational enterprise which we have selected for our paper is Johnson and Johnson.

Johnson & Johnson is an American company founded in 1886. It is one of the largest manufacturers in the world of products pharmaceuticals, medical supplies, hygiene products, health, and cosmetics and also provides related services to consumers and health professionals. The capital stock of this company in the composition of the Dow Jones and the company is listed in the Fortune 500. Johnson & Johnson is known for its ethical business and its ranking stable head Survey reputation of domestic firms in the United States conducted by the firm Harris Interactive.

The registered office of the company is based in New Brunswick, in the State of New Jersey. The company, which has more than 250 subsidiaries, is present in over 57 countries. Its products are marketed in over 175 countries. Johnson & Johnson has many famous brands of medicines and first aid supplies. Among its consumer products well known, there are plasters and bandages Band-Aid, medication Tylenol, baby products Johnson's Baby, the skin care and beauty products Neutrogena and Roc, gels, facial cleansers Clean & Clear and contact lenses Acuvue. Its main competitors are GlaxoSmithKline, Pfizer, Procter & Gamble and Sanofi-Aventis (Johnson & Johnson, 2012).

Discussion

Challenges Faced by Johnson & Johnson

One of the most essential challenges which are currently being faced by Johnson and Johnson today is the search for a suitable partner for credit management. A complex organization like Johnson and Johnson with subsidiaries and branches throughout the world requires a coordinated credit management solution that provides structural protection and service for the entire group, and thereby ensuring the worldwide success. Whether you do business in existing markets or expand into growth markets: the conclusion and performance of contracts where it comes to high profits pose considerable risks. The danger of default or even the insolvency of the customer you are always exposed. However, in a less stable economic and political environment, this is a lot of additional risk factors added to prevent the fulfillment of a contract: from the abolition of export licenses to currency fluctuations to terrorism, war or natural disasters.

For a huge corporate icon like the Johnson and Johnson there are gold standards in ...