Johnson and Johnson Analysis

Topics: Generic drug, Pharmacology, Pharmaceutical industry Pages: 18 (3767 words) Published: June 24, 2014
Executive Summary

This report was carried out in order to show the scenario planning of Johnson and Johnson .The report provides information about the history of the company, countries of operations and the sectors of operations .The company sales have seen significant growth in recent years and US have the highest percentage of sales of about 44% .The report also draws attention to the PESTEL framework of the pharmaceutical industry showing how Political ,Economical, Social ,Technological, Environmental ,and Legal factors affects companies operating in this industry .Johnson and Johnson have contributed to the environment and also helps in improving living in the society through providing of valuable drugs to cure several diseases and having good cooperate social responsibility. The SWOT Analysis of Johnson and Johnson shows that the company is one of the top players in the industry and has a lot of potential for further growth due to financial strength and experiences .The company sales has increased worldwide allowing for its expansion in more countries and they carry out further research and development on new products. Johnson and Johnson research and development is helping to identify new opportunities which in turns help in complimenting company strength .Several ranges of opportunities are available for the company and the breakthrough in technology and innovations has allowed for new products and services to be available for consumers. Further investigations shows the Porter five forces where threat of new entrant for the pharmaceutical industry is low and posses low threat to Johnson and Johnson as the company is already established and have a good number of customers around the world .The bargaining powers of buyers and suppliers , rivalry among competitors and threats of substitute are also discussed . The company is recognized as the 6th largest in the world for consumer health and the world largest providers of diverse medical diagnostic devices, It is recommended that Johnson and Johnson reach out to more people around the world and focus on the rural areas to be able to help solve more deadly diseases in the world hence improving their cooperate social responsibilities.

Table of Contents

1.0 Introduction

Johnson and Johnson founded in 1886 is a United States multinational company which specializes in medical devices and diagnostics, Pharmaceuticals and consumer products. The companies headquartered in New Brunswick, New Jersey have around 250 subsidiaries companies and operations in over 59 countries.

Johnson and Johnson balance their short time and long time goals in their strategic planning by focusing on the important sector and fundamentals of the pharmaceutical business. They invest heavily in research and development and unveils new business opportunities .The company also focus on environment ,employees wellbeing and safety precautions to ensure they conduct business in an ethical manner. The company is included in the Fortune 500 companies and they help in improving quality of life in the world by researching on health care products which will help cure several dangerous diseases in the world. Their researchers are also committed with working with mothers to ensure they provide product that best meet the healthcare needs of mothers. The report include information about the history of Johnson and Johnson ,the PESTEL analysis of the pharmaceutical sector ,the SWOT analysis of the Johnson and Johnson and the Porter five forces which affects the level of competition in the pharmaceutical industry . A conclusion and recommendation was also provided in the report.

2.0 Background of Johnson and Johnson

The history of Johnson and Johnson dates back to 1886 which was founded by three brothers on the idea of using sterile suture alongside bandages to treat wounds. Since its inception it has grown to be one the most comprehensive manufacturer of health care products and also...
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