Executive Summary
The purpose of the paper is to create marketing plan for the new service of existing business division. Johnson & Johnson was selected because it is recognized as one of the most successful and expensive in the world. Producing different devices and products, the company can organize the service care, for example, through the creation of separate service division. The main direction can be at first in the gynecological segment as it manufactures a wide range of products for women, including Gynecare line. Company’s mission, vision and values described in its Credo were analyzed for the new business division. SWOT analysis was used as the most popular framework. Also, J&J’s change management and strategic objectives were examined. The effect of balanced scorecard was researched. Finally, proper conclusions were given.
New Business Division
Today, products of Johnson & Johnson can be found in almost every store of the corresponding direction. From the first years of its existence, it has made enormous changes in health care. The company has won a lot of battles with death, even despite the fact its history was far from cloudless. The brand is officially recognized as one of the most successful and expensive in the world, and it is as an example of successful crisis management it can be found in textbooks on marketing and management, becoming exemplary illustrations of how to deal with difficulties (Johnson & Johnson, 2016).
J&J structure includes such a segment as the Medical Devices and Diagnostics, which role is extremely important in various areas, starting from diagnostics and providing even with surgery tools. However, producing different devices and products, the company can organize the service care, for example, through the creation of separate service division. This division is definitely consumer-oriented. The main direction can be at first in the gynecological segment as it manufactures a wide range of products for women, including Gynecare line. The innovative mission statement will be to ensure good health, full life and confidence in healthy tomorrow for each patient.
The vision of every company is its perfect condition in the future. The vision of gynecological service division of Johnson and Johnson is to take the company to the next level of innovative solutions within gynecological field through the development of the best examples of clinical practice on the basis of continuing medical education (Hollensen 54).
Business model is the way, in which the company creates value for customers and gain profit from it. In case of new J&J division, the business model should focus on providing comfortable services at reasonable prices due to the caring and friendly staff that respects the dignity and the individual needs of patients and tolerance for unsafe and shoddy service and effective and advanced medical and information technology.
As Johnson & Johnson’s mission, vision and values are described in its Credo, which considers several responsibilities with the provision of high quality goods, namely to all users of its products (first of all, medical staff as well as parents), employees, communities and stockholders. The elaborated mission and vision for the Gynecological Service Division are completely aligned with the specified Credo. First of all, new mission is to ensure good health, full life and confidence in healthy tomorrow for each patient, which means Johnson and Johnson will stay responsible towards its customers. Consumers’ orders will be serviced precisely and on time. As for vision, the next level of the company’s development on the basis of continuing medical education supports company’s attitude to its employees. The staff has to be confident in equal chances for employment and competent management (Johnson & Johnson, 2016).
The development of the mission, vision and values of any company is the starting point of any management system improvement, since the definition of the mentioned elements is necessary in order to identify what the main task of the company is, how it sees itself in the upcoming future, what crucial principles it follows in order to be sustainable and what particular measures should be applied. As the new division strategic direction is in the provision of high quality gynecological services, a decent level of service and competent medical professionals, the division receives strict instruction in which way it should move. The appropriate mission, vision and values affect greatly company’s staff, which prefers to be aware of the purpose of their work. When employees just follow company’s instructions, they are not inspired. The mission, vision and values are important tools for motivating employees to new developments, they charge with the enthusiasm, generate teams of like-minded professionals. They are a permanent engine of development and creativity (Keegan and Green 48).
SWOT
Application of SWOT-model in situation analysis has not just turned into broadly recognized as an additional mechanism for solution taking analysis, it has turned into one of the most extensively esteemed analytics frameworks in the modern business world, specifically concerning strategic development – this would contain funding activities, for example, defining optimal rates of dividend payments. SWOT is widespread and currently almost universal tool for top business managers because of its capability to be used to a host of various business-concerned issues (Hollensen 78).
Strategic Plan
Johnson & Johnson has a Credo that includes the company’s guidelines. The first number in it contains the responsibility to the patient, and then – to employees, the community and, finally, to the shareholders. With annual poll, the company determines how it is consistent with the values defined in the Credo. In the summer of 2007, all line managers of the company all over the world took part in the program “The 7 Habits of Highly Effective People” in order to bring the organization to a new level. Such changes were positive for company’s further development.
Johnson & Johnson strategy includes aggressive growth plans in several key areas, which are the so-called growth platforms. Each platform is a single sphere of public health, to which a certain group of products, technologies, pathologies and / or customers relates. Mentioned platforms define the growing needs of the global market, as well as help to identify future opportunities that one or more branches of the company may use. Platforms help companies to achieve synergies of decentralized businesses as a base, on which it accumulates knowledge, skills, marketing and international experience (Johnson & Johnson, 2016).
Systematization of relations and consideration of the interests of all stakeholders, their agreement between themselves and the integration into the system of strategic management of the company can be solved by combining the tools of stakeholder theory and the Balanced Scorecard. Balanced scorecard of Johnson & Johnson includes sales growth by sector and geographic location, increasing dividends per share, ROE and earnings per share from financial perspective, building strong partnerships, increase of brand loyalty and consumer satisfaction from customer’s perspective, increase in the R&D and improvement of cost effectiveness from internal process perspective, and continuance of product development and penetration of new markets from innovation and learning perspective.
Conclusion
Johnson & Johnson combines the companies, which welcome in their ranks bright personalities and believe that diversity and dissimilarity facilitate the exchange of ideas in the workplace, encourage collaboration and inspire employees to innovate. The company’s strategy from the very first days of its existence was based on the principle of growth through innovation. Johnson & Johnson has put a lot of effort to create a corporate environment that encourages innovation. New products, by which the company carries out its mission, i.e. to improve the lives of their customers, in turn, have a huge impact on the growth of Johnson & Johnson. Each year, more than a third of all sales are sales of new products brought to the market five years earlier, or new products launched into new markets. The company has set itself the goal not to miss any opportunity or sphere of innovation (Johnson & Johnson, 2016).
The launch of new Gynecological Service Division will only help the company to attract the new segment of customers through proper targeting and develop in the new direction. The correct definition of mission, vision and values will guide the division within its activity and provide the whole company with the new opportunity of successful strategic development.
Works Cited
“Annual Report 2015.” Johnson & Johnson. Johnson & Johnson, 2016. Web. 16 June 2016.
Hollensen, Svend. Marketing Management: A Relationship Approach, 3rd ed. New York: Pearson. 2014. Print.
Keegan, Warren J. and Green, Marc C. Global Marketing. 8th ed. Upper Saddle River: Prentice Hall. 2014. Print.
