Johnson & Johnson Case

Executive Summary

Johnson & Johnson is a famous multination that creates products catering to the pharmaceutical, consumer, and medical instrument markets. It has over the years increased its market share through acquisitions and is listed in the Forbes top 2000 list (Forbes, 2013). In the middle of the 21st century, Johnson & Johnson's subsidiary, McNeal had a quality deficiency reported by the FDA which produced the largest recall in the market of 136 million bottles of medicine. The discussion illustrates the approaches, the structure, and the choices the company has undertaken to get to where it stands today. In the end, a recommendation is given to hinder to the future outlook of the market.

Johnson & Johnson Case

Pre-Consumer Products Period

Company Strategy

In 1886, Edward Mead Johnson, Robert Wood Johnson, and James Wood Johnson formed Johnson & Johnson (J & J) in New Jersey, United States of America. By 1888, the J & J Company gave the standard literature regarding antiseptic surgery and created the significance of sterile surgery in the world. At the same time, the company created the initial kit of first aid for treating injuries. By 1894, J & J launches their famous Johnson's Baby Powder that created their presence in the baby products industry. It is through this background of history that the company became presence in the health care industry (Bloomberg, 2013).

By 1944, J & J went public and was listed on the New York Stock Exchange. Within the next 20 years, the company increased its product line by acquiring Janssen Pharmaceutica and established its presence in the prescription business. Through the late 1900's, the company continued to expand its product line and expand its market share. Within a decade of 1989 to 1999, the company had gained 45 acquisitions (J & J, 2013).

Johnson & Johnson provides the clear strategic framework that it has been used since its creation. The company has expanded its product line and diversified the industries it targets to expand its market share all around the world. According to Porter's Generic Strategies, J & J was utilizing a cost leadership strategy. It had a broad scope of products in the health industry and was providing minimal costs through a charge of the industry average prices. The market share was also expanding due to low prices, yet the company maintained a profit on revenue obtained (Market Line, 2013).

Company Structure

Corporations usually have a particular structure that they follow for all their operations, performance, and production. The structure that Johnson & Johnson utilizes is a functional strategy. Its primary functions of the business are grouped internally. In this case, R&D, marketing, accounting, and finance are all grouped internally for J & J's product line in the health industry (Dess et. al., 2010).

Corporate Culture

At J & J, the company believes that it has four duties in which it must fulfill. The first is to make sure all its commitments are fulfilled to consumers including patients, nurses, doctors, fathers, and ...