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Johnson and Johnson are now one of the most captivating firms in the global arena. Not only does the corporation encourage buyers to purchase their goods, but also attracts investors from all over the world who are eager to spend their wealth in a profitable enterprise. The corporation was chosen for this assignment because of its steady success not only in the American industry but also in areas of the global market (Willemsen, 1980). Johnson Company thrives on its prestige on the global level, which underpins its increased and steady market share in the industry. The company is an investment holding type of company that has an interest in healthcare products at heart. It equally performs research and development, manufactures and sells personal care products of hygiene surgical and pharmaceuticals. The organization is functioning through various segments including Pharmaceutical, consumer, and medical devices. The customer segment is concerned with products which are used for skin care, baby care, wound care, oral care and in the healthcare fields of women together with nutritional as well as pharmaceutical products. Under the franchise of child care, the company deals in Johnson's Baby line products. The pharmaceutics segment is concerned with gastrointestinal, immunology, antipsychotic, anti-infective, pain management, neurology, thrombosis, infectious diseases and vaccines (Rankin, 2004). On the other hand, the segment of medical devices include products which are distributed to wholesalers, retailers, and hospitals and used mostly in the professional fields by the nurses, clinics, physicians, and hospitals. The products under the medical device category are those used to treat the cardiovascular diseases, blood glucose levels, Neurological and orthopedic issues, insulin problems and general surgical problems. The organization was established by Robert Wood Johnson I, Edward Mead Johnson and James Wood Johnson in the year 1886. The headquarters of the organization is in New Brunswick, NJ.
Overview of the Company and Management Philosophy
The organization credits its strength as well as endurance to a consistent approach to the character of their stakeholders and managing the business. The group is guided by a Credo, which is a management document that was created by the founders in the year 1963 (Rankin, 2004). The credo is an overarching philosophy which promotes the business administration. It is a set of values which operate as strategic as well as moral direction for the employees and leaders of the company. The credo functions as a challenge to the entire organizational members to have the needs and the well-being of the clients at stake. It describes the responsibilities that the management has to the employees, suppliers, the community that it operates in, and the overall world community. The Credo is considered to be a blueprint for long-term sustainability and growth which is as relevant in the present as the same day it was drafted.
The strategic framework for the organization starts with the Credo as it guides in navigating the management ways through opportunities and challenges. The inspiration of the management comes from the credo. The administration is committed to helping millions of people from various parts of the world to not only live happier but also longer, healthier and longer lives (Friedland, 2015). The organization is built on a unique foundation of strategic principles based in the field of healthcare. The management is concerned about long-term prosperity of the company. The management approach adopted by the organization is the decentralized management. In decentralized management approach, the authority of leadership is transferred from the top level management to the functional management level in sufficient measures. Responsibilities are divided according to the management level. At each level of management, employees have at least a particular degree of authority to make decisions that influence the operations of the company. The organization achieves decentralized control by employing a unique culture which fosters and values the growth and development of all members of the organization.
The organization's growth drivers are the particular areas of focus which help in ensuring that the sound development of the company is safeguarded. In the modern competitive world marketplace, it is critical that the organization focuses on the significant drivers of the future growth of the enterprise. The management is committed to the creation of value by innovation, extending the organization's global reach with both local and international focus as well as executing all its operations with excellence (Rowlinson, 2013). The management team pursues the drivers of growth using the leadership imperatives including Leading and delivering, shaping and connecting.
For purposes of providing value to communities, employees, patients, consumers, shareholders and caregivers, the organization understands and manages its risks throughout the levels of operations. The risk is inherent in the activities that the business takes part in. In eventuality, the risk can translate into business threats and should be treated with care. The risks include issues to do with reporting obligations, operational issues and compliance with the law (Rowlinson, 2013). As such, the management has to execute its ways in a manner that the strengths are exploited to minimize the risks that the business faces.
Organization culture can be considered to be a system of values, assumptions, and beliefs that are shared within an organization and function to govern the behavior of people within the organization. The values tend to have a strong influence on the organizational members and dictate the manner in which they perform their duties, act, and dress. Corporate culture is robustly shaped by incentives provided by the company in question. The best way of predicting things that people are likely to do in an organization is by observing what they are incentivized to do. Incentives imply the full package of motivation including monetary rewards, advancements, recognition, and non-monetary motivation such as status as well as sanctions (Gabriel, 2015). Organizational culture can also be defined as the process of sense-making within the organization. Making sense is the collaborative course of creating understanding and shared awareness of various interests and perspectives. As such, culture goes way beyond behavior patterns into the level of jointly-accepted interpretations and beliefs of the organizational activities.
Johnson and Johnson is an example of a company that has a robust and inclusive culture. It not only espouses values but also lives in the same values. The company has a credo that functions as a guide to the management as well as a behavior of everyone in the institution. Activities are thus guided by a common denominator which is the quality assurance checklist described in the credo. Members of the organization are required to dress smartly and to deal with customers as if they are the actual bosses of the employees (Gabriel, 2015). Respect is given the utmost priority in the organization.
The culture of the organization is guided by care for the entire world by dealing with one person at a time. The principle characterizes the work of the people since they are bound together by the passion for fellow humans, customers, patients and society as a whole. The members of the organization appreciate the contribution of everybody. The organization is always committed to searching for new talents which cannot only think ahead of time but also break new grounds (Keresztes & Pirger, 2014). Employees are required to assume responsibilities as well as to contribute creative ideas to the teams that they perform in. In exchange, the company promotes personal development and offers a broad variety of current career opportunities as well as the flexible environment of work.
The culture of the organization is entirely about collaboration and creativity. The management provides a pleasing as well as a comfortable workplace for the teams to work as a unit. The employees come from various backgrounds hence calling for a standard professional set of ethical and moral behaviors required in the institution. Communication is one of the issues that are greatly appreciated in Johnson and Johnson Company. The management ensures that there is a seamless flow of information from the top level to the task force. Various communication channels are put in place in the organization to facilitate the transfer of information from one point to another. The channels of communication recommended for employees include face to face, report writing, emails and phone calls among others (Keresztes & Pirger, 2014). Managers and team leaders engage their teams for purposes of understanding issues that arise in the line of duty. Additionally, the employees contribute to the decision-making process by providing various suggestions in matters that affect them as a workforce.
The company has different strengths that it enjoys in the market. The strengths contribute a great deal to the establishment of competitive advantage of the company in the global arena (Steele, 1995).
i. Largest healthcare provider
The organization is the largest healthcare provider in the United States. It offers a range of products: right from customer healthcare products to pharmaceuticals and equally operates in three segments. The segments are pharmaceuticals, consumer products diagnostic and medical devices. The organization is a family of companies that has existed for more than 125 years and is committed to caring for the entire world population. Its structure is designed by a decentralized management philosophy hence resulting into minimized internal conflicts in management.
ii. Broad brand portfolio
The organization enjoys a robust presence within its product categories. The categories have dark assortments as well as several numbers of brands that customers can choose from hence enabling the products to occupy a broad shelf space in the stores. Eventually, visibility is raised in the market at large. Majority of customers prefer obtaining products from the company due to limited chances of missing whatever they want.
iii. Trusted Brand
Johnson and Johnson have a brand that most clients in the global market trust. Medical practitioners, as well as parents from the world stage, equally trust the brand. The increased focus of the organization in tailoring its operations to the local marketplaces assisted them to become relevant to the demands of the consumers not only in the United States of America but also in the global arena.
iv. Strategic acquisition and merger
Through acquisitions and mergers with different healthcare and pharmaceutical companies such as Alza, Neutrogena, and Pfizer consumer health care, the organization has established a pool of technological and operational development that is assisting the company in furthering its growth.
v. Supply chain
Johnson and Johnson have a robust and extensive distribution system which aims at making the products available to the supermarkets, outlets as well as medical stores all over, including the remote rural areas.
vi. Brand Equity
The name of the organization was ranked at number 79 in the 2016 world ranking.
The organization was engaged in litigation over an extended period for instance, in 2010, the board was sued by the shareholders for managerial issues. The lawsuits affect the brand image of the company in the long run and spread negative word of mouth.
ii. Conflicts between the enterprise and its partners
Managing the broad portfolio of products as well as the partner companies could create a mess in organizational operations. The company should as such engage in various considerations before getting into mergers and acquisitions.
iii. Too much dependence on the achievements of launch products.
Majority of the newly launched products are considered vulnerable because of the uncertainty of the regulatory reviews.
iv. Over-reliance on the small molecule drugs
The small molecules are majorly affected by the generic competition in the market. The organization's sale of the small molecule drugs reduced in the year 2008 and 2012. The need to find replacements for the highly valued products while they mature represents a real daunting task.
i. Broad range of possibilities of cross-selling
The organization is in a good position to strategically create a myriad of opportunities for cross-selling. It can maximize the balance between its diagnostics, pharmaceuticals and medical devices that could result in increased revenues.
ii. Chances of exploiting the biologics markets
The inclusion of additional biologics such as antibodies and therapeutic proteins could assist in serving as the cover for the small patent of molecules that drives the future of the company's growth.
iii. Changing lifestyle
With the rising rate of literacy in the world, there is a rise in concern about health as well as medical issues hence resulting in increased demand for the drugs. As such, Johnson and Johnson Company can most benefit from the change of lifestyle not only in the USA but the world as a whole.
i. War against the harmful ingredients
In most cases, the products of the company have been found to possess elements that can turn out to be carcinogens. Similarly, the ingredients are banned in the United States of America and the other Countries. The war against the harmful products has mostly tarnished the brand image of the organization.
ii. Adverse effect of recalls of product
The company has experienced the misfortune of recalling at least 40 medicines. Recalling the drugs puts the company in a position of losing its reputation, integrity, and competence.
iii. Intense rivalry
As a result of the existence enthusiastic global competitors who offer a substitute and alternative products in the world market, Johnson and Johnson face stiff competition that could lead to a reduction of market share. The local market players who provide generic products equally affect the business.
iv. Government regulations
The norms of government regulations over exports and contents as well as import tariffs play important roles in the success of companies. Some of the rules infringe the ability of the company to reach its full potential of making profits.
Managerial decision making
Decision making is the thought course for selecting logical choices from a range of available alternatives. When attempting to make right decisions, people have the responsibility of weighing the negatives and the positives of all available alternatives as well as considering all options (Chendroyaperumal, 2010). For purposes of effective decision making, people must forecast the potential outcomes of all the possibilities. Based on the considerations, they should determine the best options for specific situations.
At Johnson and Johnson Company, authority is decentralized. Managerial decisions are as such the responsibility of the entire organizational teams. Decisions are made at all levels beginning from the task force all the way to the board. The board is however responsible for approval of the various strategic decisions which define the operations of the company in the present and drives their growth potential in the future.
The major managerial decisions that are made at Johnson and Johnson Company are financing decisions, expansion decision, marketing and sales decisions and employee development decisions. Financing decisions are those that involve identification of the sources of funding for running the operations of the company (Chendroyaperumal, 2010). The management team in close contact with the budget and accounting officers make such decisions by considering the various variables to ensure that the company does not resort to financing measures that would leave the organization worse off than it was initially found. Expansion decisions involve making decisions regarding mergers and acquisitions of small companies. The management must evaluate the potential benefits against the challenges that they are likely to meet when it comes acquiring or merging with new partners bore making decisions on the way forward (Gigalová, 2017). Additionally, expansion decisions involve selecting best options concerning the establishment of new outlets in the United States or in other parts depending on availability of market as forecasted.
The marketing function of decision-making is a managerial responsibility particularly in the marketing department that guides the organization into selecting best options of reaching out to their customers as well as target customers. The managers weigh the best marketing activities such as promotion and advertisement strategies and come up with decisions that function in favor of the company by increasing the market share in the long run. Finally, employee development decisions involve those that are in line with promotion, training, and motivation of the employees (Gigalová, 2017). The human resource manager and the other departmental managers work hand in hand to come up with decisions that enhance quality improvement regarding skills and experience. The decisions are based on those who deserve promotions, the ones that need to attend workshops and seminars as well as those who should be rewarded for exhibiting desired behaviors that the organization would like to continue. The better part of decision-making lies with the departmental managers of the organization. The board, however, considers reports that are presented to them and approves or cancels the legitimacy of the decisions that are examined by the managerial officers (Bazerman, 2016). The success of Johns and Johns is based on the right managerial decisions that have been made in the company since its inception.
Planning and Strategy
Johnson and Johnson Company remains a widely based care company that is a unique position capture as well as developing opportunities which will assist the people from various parts of the world. In planning and strategizing, the company seeks to come up with the best ways of bringing the solutions for consumer needs into the market (Laszlo & Laugel, 2000). The primary strategic direction for the organization is established by the management team with the support and advice of the board. Implementation of the strategy and plans are done locally in all the more than two hundred and seventy-five companies which are located in sixty nations in various parts of the world (Grünig & Kühn, n.d.). Except for a few exceptions, most of the outlets of the companies are managed by people from the respective countries in which the stores are located. The management of the company is based on the management principle of decentralization. The top management groups at the various operating companies are responsible for making the strategic plans. When developing the plans, the organizational members are united and guided in observing the responsibilities and as outlined in the Credo. The team of managers meets on an annual basis with the organization's board of directors to discuss the strategic direction as well as the significant achievements of the business. The interactive sessions and dialogues between the managers and the board offer knowledge of the leadership and activities of the company.
Considering the objective of maximizing profits, market growth and responsibility to the shareholders, Johnson and Johnson decided to adopt the global standardization strategy. The selection of the strategy of global standardization is because the focus channeled on reducing the costs as well as limited demand for product customization in the market (Grünig & Kühn, n.d.).
The company's organizational structure is guided by the corporate strategy. Johnson and Johnson adopted a centralized management approach. However, it changed it to a standardized approach in the 1990s after the senior managers noticed that the subsidiaries were not positioned correctly in the global arena to efficiently serve the customers on a daily basis (Puranam & Maciejovsky, 2017). The change allowed the company to control some of the challenges that were caused by the decentralized form of management. For example, the company categorized its subsidiaries into three classes. The chairman of every category is provided with the responsibilities of citing opportunities for levering expertise and services across the businesses in all markets. The franchise managers were equally given the responsibility of coordinating the sales of products in the same category.
The centralized form of management is beneficial to the company because it gives the senior management team a good view of the global operations of the organization (Puranam & Maciejovsky, 2017). The team is thus able to integrate and manage the global operations effectively. As such, the company has been efficient globally about operations because of reduced production costs. The costs have been reduced through minimization of redundancies as well as duplications during manufacturing and processing of products. The various companies under the umbrella of Johnson and Johnson in different countries are coordinated by locals in the various countries since they understand the needs of people in the relevant markets as well as utilizing themselves in the same markets (Jassowski, 2013).
Entrepreneurship is the act running a business and assuming the rewards and risks of the particular business venture. In most cases, the enterprise is considered to facilitate as business leadership and innovation of business processes and ideas. Johnson and Johnson is a publicly going concern that attracts investment from people with interest and resources to do so. The company is concerned about impacting the human health positively through innovation. The effect is achieved through assisting entrepreneurs to realize their major dreams of establishing healthcare solutions which improve the lives of people from different parts of the world (Gartner, Stam, Thompson & Verduyn, 2016). The organization is committed to working side by side with various innovators from different parts of the world through their business journeys hence offering a secure platform for exchanging resources and ideas to support people's success in entrepreneurship.
People with ideas on solutions to health problems of the public are invited at Johnson and Johnson to share their thoughts with the organization. Entrepreneurs invest in the company by contributing their solutions, ideas, and products to the business and get returns in the long run. On the side of stockholders, investors employ their resources in the company and appoint a board of directors that oversees the management of the business to ensure that it stays within the course of its mission and vision. The company has a dedicated team that is focused on investing at different stages of innovation across the various segments of the organization. It also seeks changes with the potential of making a transformational effect on the lives of people as well as their health across the globe. As such, there are lots of open chances for development and improvement of organizational status as well as lives of the people.
Human Resource Management
The human resource personnel in the company are partnering with the leaders from all levels to provide talent solutions which respond to the various strategic demands of the businesses. They use the business acumen, insights, and analytics of workforce as well as functional expertise to assist in engaging and empowering the potential of people in the organization (Hoch & Dulebohn, 2013). Whether people are working in groups like the talent management, talent acquisition, benefits, compensation or even the business based human resource generalists, the people are considered to be prominent members of the management team. The work of citizens contributes to the significant acquisition of talents, high-value learning, innovative organizational design and competitive compensation plans. Due to the size of the decentralized business, the members of human resources team are exposed to a lot of opportunities for developing and advancing their careers across business segments, companies, functional roles and world regions (DeCenzo, Robbins & Verhulst, 2013).
Johnson and Johnson Company have more than 275 outlets in more than 60 countries in the world. The organization employs a management system in which each of the outlets is managed by operated by people from the local communities in the respective countries. The assumption is that people in the countries are familiar with the needs of the target markets and serve them to their best of interest. Other than having the majority of employees from the local domain, there are senior managers from the headquarters who are accountable for all operations at the particular outlets (Vanany & Shaharoun, 2011). The directors from the various international businesses under the umbrella of Johnson and Johnson meet at least once a year and discuss issues that affect the company or those that they recommend being improved or maintained in the organization. It is important that such meetings are held for purposes of uniformity, updating the board of directors and evaluating the progress made by the company in its principal objective of making lives of people better.
The international management of the organization focuses on decentralization of power but with caution. Not all employees are fully given authority to make vital decisions since some of the decisions are too sensitive to be carelessly handled. The top-level managers are responsible for approving the various decisions that majorly recommended by the task force or by the assistant management teams (Vanany & Shaharoun, 2011). The strategy of the directorate makes it easy for the organization to reduce time wastage but at the same time to reduce the challenges that are entirely associated with full decentralization of authority or centralization of the power thus improving the efficiency of the organization.
Responsibility and leadership are highly prioritized at Johnson and Johnson Company. Responsibilities are not accepted just for the society, customers, and partners, but also for the employees (Tracy, 2014). As such, the organization is committed to appreciating the employment team through good leadership. The appreciation is achieved by providing attractive salaries, personal opportunities of development and attractive salaries provision.
The leaders in the organization emphasize on communication. It is believed that seamless communication is the best way of achieving the organization goals without hesitation. It is vital to promote a standard communication between the leaders and the employees to understand the issues within the organization. There is a great diversity in the structure due to the cross-cultural establishment of the businesses in different countries. The leadership styles applicable to the various companies are commensurate to the cultural activities in the particular countries. The leaders oversee the production processes as well as ensuring the employees achieve the various tasks that are given to them in the most appropriate time and according to the laid checklist (Tracy, 2014). The leaders solve the various conflicts that may arise within the organization which could otherwise harm the achievement of the objectives in the long run. Employees' contribution in the decision-making processes is allowed in the organizations hence reducing the rate of resistance in the events of change. The leaders always interact with workers and report their issues to the senior management and the board of directors in the due times. As a company in the healthcare sector, it is important that the leaders of the organization pay much attention to balancing work and life of the employees. They offer health and sports programs as well as flexibility in work, sabbaticals, and opportunities to work at home. Motivation is highly regarded as a way of promoting desired behaviors at in the organization.
Motivation at Johnson and Johnson Company implies that rewarding the staff members is a sure way of improving the performance of the employees. The organization takes in consultants to advice on the most effective ways of appraising and motivating the employees from time to time with the intention of improving performance in the modern work environments. Motivation at Johnson and Johnson aims to make the capabilities and talents of employees better as well as to benefit the company in the long run by obtaining the employee loyalty (Mikkelsen, Jacobsen & Andersen, 2015).
Various forms of motivation are used at Johnson and Johnson Company. The employees are motivated by taking them for training and seminars in line with the roles that they play in the organization. Periodic training, workshops, and seminars are a sure way of indirectly informing the employees that the company and its management have their welfare at heart. The training and workshops help in keeping the employees updated with the current environmental changes hence improving their readiness to adapt to the same. Employees in the organization are also rewarded by monetary incentives. All staff has the objective of improving their income status as they work for a particular organization. Monetary tokens, as well as increased salaries and wages, is a sure way of boosting the performance of the employees, especially when they exhibit desired behaviors (Mikkelsen, Jacobsen & Andersen, 2015). The period increment of payments in the organization increases the employee loyalty hence putting the company in a better position to keep the best talents, skills, and knowledge within their organization. Non-monetary motivation strategies are equally used by the organization and improve the performance as well as the loyalty of the employees. The non-monetary motivation strategies in the organization include promotions, gifts, leaves, status and tiles within the organization. Some employees are primarily motivated by the non-monetary policies hence the continued need to apply them at Johnson and Johnson Company.
Teams at Johnson and Johnson Company are composed of more than two persons who are working together with the aim of achieving a common goal. Organizing the employees into teams enables the company to benefit from perspectives and skills of employees from the various parts of the organization. The teams provide alternatives to the vertical chain of command. They are considered to be a more inclusive strategy of organizing the company. Active teams lead to an increment of the motivation of the employees as well as business productivity in the long run.
One may wonder how the teams are different from the regular workgroups. Whereas work groups are majorly meant for the members to share information as well as to make decisions to ensure that every member achieves their goals, the members of teams do not just share information but equally share responsibilities at the work crews (Mikkelsen, Jacobsen & Andersen, 2015). The primary reason why Johnson and Johnson's company considers the establishment of teams is to exploit synergy. It is believed by the management that the members of the organization are likely to achieve more as a team rather than as individuals.
Across the various business of the company in the different countries, there is an ideal membership and size of groups. The teams are of minimum sizes required for the achievement of goals. They are composed of members who have the right talent and skills' mix to make the job properly done. All organizational employees are obligated to accept and understand the goals of the teams as well as the roles that they play within the groups.
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