Johnson & Johnson

Johnson & Johnson

Introduction

This reports deals with the financial and accounting analysis of Johnson and Johnson's company. In this report we will go through the financial statements of the company in order to analyze the strategies that they have adopted in order to meet their routine operations and also long term projects. It is common for people to think that the strategies are only made for creating a product line or to manage the financial and treasury side of the company, however it is not only limited to this region only. In the field of accounting, decision are made in accordance with the overall objectives of the organization and with the help of managerial accounting, cost cutting measures and efficiency improvement strategies are adopted in order to make the company sustainable and achieve its long term goals and objectives. It does not only help the company in achieving its goals, but it also help the company to gain a competitive advantage over other firms in the same industry, as the company with more efficient costing and management unit would eventually have efficient operations and higher profits. In this report, we will first analyze the overall company overview along with its product lines and rhen financial part will be discussed in detail

Company overview

Johnson & Johnson (J&J) was founded by three brothers, Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson, in New Brunswick, New Jersey, in 1886. In the following year, J&J was incorporated. The company introduced the first commercial first aid kits in 1888, and manufactured first mass produced sanitary protection products for women in 1896-1897. In 1898, the company developed an improved sterilizing technique for catgut sutures. International growth was initiated in 1919, with the establishment of an affiliate in Canada. J&J launched Band-Aid adhesive bandages, the first commercial dressings for small wounds, in 1921. The company entered Great Britain in 1924. The company went public and its shares were listed on the New York Stock Exchange in 1944. In 1961, J&J diversified into prescription pharmaceutical business through the purchase of Janssen Pharmaceutica, a Belgium-based company with a focus on pharmacological research and mental health.

J&J acquired Dr Carl Hahn Company, a Germany-based manufacturer of sanitary protection products for women, in 1974. The company later acquired Penaten, a baby toiletries company, and LifeScan in 1986. Three years later, Greiter International, a manufacturer of the PIZ BUIN line of sunscreen and after-sun products, was added to the J&J family of companies in 1989. J&J purchased Cordis, a US-based medical devices company, in 1996. Three years later, Centocor, a biopharmaceutical company, became a wholly-owned subsidiary of J&J. During 2008, the company launched AMBI Soft & Even product for hydrate skin and visibly improve tone and texture; Clean & Clear soft products, including moisturizing skincare products; Sleek and Savvy long PTA balloon dilatation catheters; and Tibotec Therapeutics launched Prezista for HIV The sector 

The drug maker today is an industry leader in technology, which requires large investments in R & ...