JOHNSON & JOHNSON COMPANY

Johnson & Johnson Company

Kellie Henderson

Johnson & Johnson Company

J&J is a holding company. Through the company’s many subsidiary firms, it engages in research and development, manufacturing, advertising, and selling various products in the wellbeing and healthcare sector. According to “Johnson & Johnson” (2021), the company operates in three commercial segments. The first sector is consumer, which deals with developing and selling skincare products, baby care products, over-the-counter medical care products, oral care products, wound care, and women’s health care products. The second segment is pharmaceutical which deals with developing and marketing prescription treatments and medications, which span various medical fields. The third segment is medical devices, which deals with developing and marketing specialist healthcare products targeting cardiovascular, oncology, and neuroscience fields.

At the central of J&J’s business model, it offers innovative services and products to its clients, satisfying their various needs through the health device, consumer and pharmaceutical, medical care areas. King (2015) explained that the firm’s enterprise model is mirrored most, especially in their M&A approach and consequent assimilation strategy. After an acquisition, the company lets the acquired firm remain decentralized and separate. Due to this, J&J comprises numerous decentralized operational firms, which allows every company to deliver quality services to their different client base efficiently. From an achievement perspective, Johnson & Johnson’s diverse enterprise model provides for protection against recessions in specific markets. For instance, in 2014, J&J’s income was 74.3 billion dollars, a 4% increase, mainly due to the 15% progression in their pharmaceutical sector, which counterbalance deteriorations in their medical devices and consumer sections in the year.

According to J&J’s Annual Report in 2014, their operating model comprises of four ideas: being largely founded on human health; management of their enterprise for a long duration; adopting a decentralized method for administration; and concentrating on their values and people (King, 2015). I believe the foundation of the firm’s operating model is the decentralized management concept. For instance, the company’s governance and organizational structure comprises of an executive committee which acts as the chief management group in charge of every strategic operation, a group of managers’ operating committee which represents important operations and specified functions, and supervising firms associated with each of J&J’s business sectors, then lastly, within the notion of decentralized administration, the company has senior managers in all their functioning firms, who are accountable for their personal strategic plans, and daily operations. The management approach of decentralization by J&J comes from their trust that leaders who are very close to patients and clients might best recognize and address clients’ specific needs. This strategy helps the independent firms and managers to implement operating models and strategies that adapt best to their clients’ needs, thus letting J&J successfully create and provide quality services and goods to all their clientele.

In a nutshell, J&J’s alignment of their operating and business models has been crucial to the firm’s over 100 successful years. The company’s operating model emphasizes decentralized administration, which lets the firm to efficiently carry through its enterprise model, which focuses on offering value via a diverse range of services and products to its various clients. Decentralization has seen the company successfully expand globally. Through their firmly aligned business and operating models, J&J will continually advance the wellbeing and health of numerous individuals globally with their various services and products.

References

Johnson & Johnson. (2021). Retrieved 14 July 2021, from https://www.cleverism.com/company/johnson-and-johnson/

King, K. (2015). Johnson & Johnson. Retrieved 14 July 2021, from https://digital.hbs.edu/platform-rctom/submission/johnson-johnson/

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