This paper gives an in depth analysis of the Johnson and Johnson, commonly referred to as J&J. Johnson and Johnson is an international, diversified pharmaceutical and medicinal producer. Besides, it is one of the largest health care related service providers and has drastically reformed people’s perception towards health care. It is indeed a top achiever in the health care industry as well as in general human health and happiness. In fact, its success is attributed to a well defined vision, mission, objectives and core strategies. Its existing vision, mission, objectives and core strategies are discussed as under.
Johnson and Johnson services is undertaken in line with its ‘Our Credo’-- a principle which holds that doctors and nurses should embrace and offer high quality services, for instance using hygienic structures, dressings and bandages to therapies wounds (Johnson and Johnson - Our History). It guides the organization to fully put first peoples’ needs and well being. This is the center stage of its vision--to offer high quality service and at all times put the peoples’ needs and well being in the forefront. This short-term outlook has strategically positioned the company in the market full of drugs. Besides, it is committed to ensuring a general reduction in water waste and as well to reduce the level of water usage.
Johnson and Johnson’s strategy is directed towards life saving and the promotion of life enhancing drugs. Since its inception in 1886, it has been undertaking the production, manufacturing and selling of products that are solely linked to human health and well-being. This strategy has enabled it to be a worldwide company specializing in consumer products, medical instruments and patients’ disorder identification and medicinal drugs. Basically, its core strategy is to continuously produce life saving products to the consumers of their products (Johnson and Johnson - Our History).
The mission of the company is to offer products that are consumer health wise related and to see consistent sales growth globally. Besides, it strives to use a varied breadth of problem mitigation approaches with a sole purpose of countering standard practices and take advantage on growth via emerging markets to foster associated growth. Johnson and Johnson has consistently employed this mission in its operations through basic use and adoption of creative and innovative values with a sole agendum of at all times having a better competitive edge in the market (Johnson and Johnson - Our History). For instance, as is the case, it has adopted shared innovative services which have made it more successful.
A vision statement defines an organization’s desires. It is a formal statement that communicates the desires and goals of an organization (De Wit and Meyer, 2008). For Johnson and Johnson pharmaceutical company, the most appropriate vision is to be a global lifelong pharmaceutical producing; manufacturing and selling organization with bias to medicinal devices, women and children and societal well being.
On the other hand, a mission statement is a document that shows the objectives of an organization (De Wit and Meyer, 2008). Due to the fact that since its inception it handles pharmaceutical products, its mission appropriate when it’s as to be the world’s largest and most diverse medical devices and diagnostic company. This can as well be associated with an objective to be the world’s largest pharmaceutical company. Besides, the company should aim at embracing research and development to enable it continuously produce products and services to constantly foster health and well being of the people. This is realized via being a technological leader in the market place by constantly adopting up-to-date pharmaceutical bio-technologies.
Organization's External Opportunities and Threats
Johnson and Johnson pharmaceutical organization is presented with varied external opportunities. The organization is presented with an opportunity to increase the market share of its pharmaceutical products by re-developing fresh uses of medicinal drugs and devices. Product diversification leads to establishment of new markets which guarantees organization’s growth. With the ever changing population patterns, the organization is in a position to maximize on sales returns on the event that it diversifies its mode of pharmaceutical production, manufacturing and selling focus on children, women and the aged in the society.
Also, the organization is presented with an external opportunity to minimize lost profit via producing generic drugs and devices. Based on global trade terms to face out cheap generic drugs, the organization is likely to make more profits if it capitalizes on generic drug production so that it solves patent expiry problems as well. Besides, the organization is in a position to expand its size by acquiring other pharmaceutical producing companies. This acts as an opportunity in that it presents likelihood of growth. Through acquisition, the organization is able to access diverse products distribution options to the market thereby realizing higher returns on the investments.
Nevertheless, the organization is faced with countable threats that emanates outside the company. The ever changing rapid technological advancements with bio-tech models demand the organization to continuously change from the outdated bio-tech methodologies to a more advanced pharmaceutical method. Consequently, low technology produced pharmaceutical drugs are likely to be faced out of the market place in the long run. This makes the company obtain lesser returns in the long run as costs of dumping will be more than revenue realized. Besides, there is stiff competition in the pharmaceutical products market. A lot of companies now produce generic products for the market. There is likelihood of market face out as more competitors penetrate the market in an event that the company attains patent expiry. Sales volume must thus be in the decline.
Organization's Internal Strengths and Weaknesses
The organization has successfully achieved its well defined objectives and mission due to its diverse strengths. The major strength for success ranges from adoption of creativity and innovation to a tremendous increase in sales volume which indicates its stronger market positioning. Besides, entrepreneurial values embraced enable it become most competitive organization within the market place. Also, the organization embraces diverse problem solving approaches in order to challenge the standard practice. It as well major on growth via the ever emerging markets thereby able to continuously enhance organization’s associated growth. Lastly, the organization has constantly used independent offices which operate as impartial units which presents it with a prospect to develop models with diverse cultural thoughtfulness. This turns strong when selling products to a world market thereby earning higher returns.
However, organization’s success is vulnerable to certain weaknesses. For instance, the organization faces incessant pressure within the pharmaceutical products’ market. This reduces the sales volume. Consequently, there is general decline in medical financial allocation and lack of finances to maintain the organization’s patents. This has resulted in seasonal loss of generic programs thus failure to bring up to date pharmaceuticals critical path movements. There are as well internal weaknesses cutting internally as theft and counterfeiting of produced drugs basically spearheaded by the organization’s top most workers. This drastically declines sale volume. Lastly, branding and replacement of products with generic plans at the expiry of organization’s patent results in decline in market demand for the organization’s major products.
Advantages and disadvantages of alternative strategies
Embracing up-to-date bio-technology is nonetheless a double edged sword in profit maximization. The ever changing rapid technological advancements with bio-tech models demand that the organization continuously change from the outdated bio-tech methodologies to a more advanced pharmaceutical method. Consequently, low technology produced pharmaceutical drugs are likely to be faced out of the market place in the long run with introduction of new technologies. This may make the company realize lesser returns in the long run as costs of dumping will be more than revenue generated.
Recommended specific strategies and Long-term objectives and anticipated results
It’s thus recommended that the organization should strive to take a forefront position in the generic drug open market. With the endorsement of medical rules and regulations in America, the organization is guaranteed a growth in sales volume in the long run. Besides, concentration on children, women and aged medication will make it go a long way as this proves its capability and reliability in providing all round health related solutions.
The long term objectives however could be to become a more federal organization. This will easily make it get used to the ever changing pharmaceutical industry. Since there are incessant changes in the health sector, the organization needs to change so that it becomes centralized to counter the demands.
How recommendations can be implemented and what results are expected
The proposed recommendations can be effected when the organization centralizes its operations. Centralization of production, manufacturing and selling of the pharmaceutical products is likely to have it positioned strategically in the market and thus have a better competitive edge. Having a better competitive edge presents the organization with an incline in sales volume. Also, to effectively implement the strategy of concentrating on well being and health of children, women and the aged, the organization needs to reengineer its pharmaceutical production bio-technologies so as to meet the created demand. They have to reengineer and redesign their production techniques in order to realize reliable and customized production. This is likely to result in voluminous production. Therefore, with increased productivity, the organization is guaranteed increase in sales volume in the long run hence profitability.
Recommended specific annual objectives and policies
It is thus worth noting that the organization should strive to have at least 50% pharmaceutical market supply share for better return to be realized before the year ends. Taking control of a larger market share presents the organization with higher prospects in sales volume.
Recommended procedures for strategy review and evaluation
Successful strategy review and evaluation begins with in-depth scrutiny and understanding of the pillars on which the organization formulated its strategies. The factors which prompted the strategy formulation need to be reviewed to confirm whether there is variation on the factors or not. The organization should then undertake the analysis of real performance with the budgeted performance. This presents any instance of laxity toward achieving the strategy. For instance, the strategy to be a leader in the provision of pharmaceutical products and to champion for well being of the society as a whole should be measured against the market share held as at the time of comparison. Lastly, the organization should undertake corrective measures to rectify the stated strategy. This way evaluation shall have been accomplished.
References
Armstrong, J. S. (1982). "The Value of Formal Planning for Strategic Decisions". Strategic Management Journal 3 (3): 197–211.
Blaxill, M., and Eckardt, R. (2009). "The Invisible Edge: Taking your Strategy to the Next Level Using Intellectual Property." Portfolio, March 2009.
Company profile. Johnson & Johnson - Health Care Products & Pharmaceuticals. Retrieved at http://www.jnj.com
De Wit and Meyer (2008). Strategy Process, Content and Context. Thomson Learning.
Hammer, M., and Champy, J. (1993). Reengineering the Corporation, Harper Business, New York.
Johnson, G., Scholes, K., and Whittington, R. (2008). Exploring Corporate Strategy, 8th Edition, FT Prentice Hall, Essex.
