Graduation Project

Johnson&johnson

DR/ Mohamed Elkaloubi

Presented by
Dalia Hani
Mohamed Ramzy
Abdelrahman soliman
Sherif Mostafa
Mahmoud

The company
Introduction:

Caring for the world, one person at a time... inspires and unites the people of
Johnson & Johnson. We embrace research and science - bringing innovative ideas,
products and services to advance the health and well-being of people. Employees of the
Johnson & Johnson Family of Companies work with partners in health care to touch the
lives of over a billion people every day, throughout the world.

Our Family of Companies comprises:

The worlds sixth-largest consumer health company

The worlds largest and most diverse medical devices and diagnostics company
The worlds sixth-largest biologics company
And the worlds sixth-largest pharmaceuticals company

We have more than 275 operating companies in more than 60 countries employing
approximately 128,700 people. Our worldwide headquarters is in New Brunswick, New Jersey,
USA.

Business highlight 2013

Johnson & Johnson delivered strong results in 2013 led by the outstanding performance in
our Pharmaceutical business, the re-launch and strength of key brands in our U.S. over-thecounter (OTC) and other Consumer businesses and continued progress in integrating
Synthes, Inc. into our Medical Devices and Diagnostics (MD&D) segment. Results also
included advances in our longer-term growth drivers including bringing innovative solutions
to the global health care market, executing with excellence, and leading with purpose to
advance health and well-being for patients and consumers around the world.

PHARMACEUTICAL
With $28.1 billion in worldwide sales in 2013, we are the seventh-largest pharmaceuticals
business* in the world and the sixth-largest biotech business*. Were the fastest-growing top
10 Pharmaceutical Company in the United States, Europe and Japan and recorded 15
consecutive quarters of operational sales growth in this segment.
Primary contributors to exceptional operational sales growth of 12 percent included
REMICADE (infliximab) and SIMPONI (golimumab), biologics approved for the treatment
of a number of immune-mediated inflammatory diseases; STELARA (ustekinumab), a
biologic approved for the treatment of moderate to severe plaque psoriasis and active
psoriatic arthritis; INVEGA SUSTENNA/XEPLION (paliperidone palmitate), a oncemonthly, long-acting, injectable atypical antipsychotic for the treatment of schizophrenia in
adults; PREZISTA (darunavir), a treatment for HIV; VELCADE (bortezomib), a treatment
for multiple myeloma; and sales of new products.
The strong sales results of new products included ZYTIGA (abiraterone acetate), an oral,
once-daily medication for use in combination with prednisone for the treatment of
metastatic, castration-resistant prostate cancer; XARELTO (rivaroxaban), an oral
anticoagulant; the combined sales of COMPLERA/EVIPLERA (emtricitabine
/rilpivirine/tenofovir disoproxil fumarate) and EDURANT (rilpivirine) for the treatment of
HIV; and INVOKANA (canagliflozin) for the treatment of adults with Type 2 diabetes.
Sales results were negatively impacted by generic competition for ACIPHEX/ PARIET
(rabeprazole), a proton pump inhibitor for gastrointestinal disorders and CONCERTA
(methylphenidate HCI) for the treatment of attention deficit hyperactivity disorder.
During 2013, the company received several regulatory approvals including: U.S. Food and
Drug Administration (FDA) approval of OLYSIO (simeprevir), an NS3/4A protease
inhibitor, for the treatment of chronic hepatitis C infection as part of an antiviral treatment
regimen in combination with pegylated interferon and ribavirin in genotype 1 infected adults
with compensated liver disease, including cirrhosis; FDA approval of IMBRUVICA
(ibrutinib) capsules for the treatment of patients with mantle cell lymphoma who have

received at least one prior therapy; FDA and European Commission (EC) approval of
INVOKANA (canagliflozin), an oral, once-daily, selective sodium glucose co-transporter 2
inhibitor, for the treatment of adults with Type 2 diabetes; FDA approval for the use of
STELARA (ustekinumab) alone or in combination with methotrexate for the treatment of
adult patients with active psoriatic arthritis; EC approval of STELARA (ustekinumab),
alone or in combination with methotrexate for active psoriatic arthritis in adults when the
response to previous non-biological disease-modifying anti-rheumatic drug therapy has
been inadequate; EC approval of an expanded indication for SIMPONI (golimumab) for
the treatment of moderately to severely active ulcerative colitis in adult patients who have
had an inadequate response to conventional therapy including corticosteroids and 6mercaptopurine or azathioprine, or who are intolerant to or have medical contraindications
for such therapies; FDA approval of SIMPONI (golimumab) for the treatment of
moderately to severely active ulcerative col+itis in adult patients who have demonstrated
corticosteroid dependence or who have had an inadequate response to or failed to tolerate
oral aminosalicylates, oral corticosteroids, azathioprine, or 6-mercaptopurine; and FDA
approval of SIMPONI ARIA (golimumab) for infusion for the treatment of adults with
moderately to severely active rheumatoid arthritis in combination with methotrexate. The EC
also approved the use of VELCADE (bortezomib) as induction therapy in combination with
dexamethasone or thalidomide and dexamethasone and applies to adult patients with
previously-untreated multiple myeloma who are eligible for high-dose chemotherapy with
hematological stem cell transplantation.
A Marketing Authorization Application was submitted to the European Medicines Agency
(EMA) for ibrutinib for the treatment of adult patients with relapsed or refractory chronic
lymphocytic leukemia/small lymphocytic lymphoma or relapsed or refractory mantle cell
lymphoma. Also filed with the EMA, was a once-daily single tablet fixed-dose antiretroviral
combination product containing darunavir, a protease inhibitor developed by Janssen-Cilag
International NV and marketed as PREZISTA, with cobicistat, a pharmacokinetic boosting
agent, developed by Gilead Sciences, Inc. for use in combination with other HIV medicines.
Looking to the future, we are pleased with our focused, deep and productive pharmaceutical
pipeline, and expect the growth of our recently launched products to continue. Furthermore,
we will continue investing in R&D thats focused on key unmet needs for patients. As we
announced in May at the Pharmaceutical Business Review, we plan to file more than ten
new molecular entities (NMEs) for approval between 2013 and 2017, and more than 25
additional line extensions of our in-market products.

MEDICAL DEVICES AND DIAGNOSTICS

With $28.5 billion in worldwide Medical Devices and Diagnostics (MD&D) sales for 2013,
our MD&D segment is the largest medical devices and diagnostics business in the world.

Operational sales growth of 6.1 percent included the impact of the acquisition of Synthes,
net of the divestiture of the DePuy Trauma business. Excluding this impact, MD&D
operational sales growth was 0.1 percent.
Primary contributors to operational growth were sales from the acquisition of Synthes and
DePuy Synthes Joint Reconstruction products in the Orthopaedics business, Biosense
Websters electrophysiology products in the Cardiovascular Care business, the Vision Care
business, as well as biosurgicals and international sales of energy products in the Specialty
Surgery business.
Our MD&D business is anchored by 11 billion-dollar-plus-platforms including vision care,
trauma, sutures, endoscopy, and electrophysiology. The FDA approved EVARREST
Fibrin Sealant Patch, a novel product that rapidly and reliably aids in stopping bleeding
during surgery. In orthopaedics, the ATTUNE Knee System, developed with innovative
proprietary technology, is off to a great start with over 23,000 implants worldwide. The
ENSEAL G2 Articulating Tissue Sealer, the worlds first articulating advanced bipolar
product, is making it easier for surgeons around the world to access difficult-to-reach parts
of the anatomy. Finally, our THERMOCOOL SMARTTOUCH Catheter enhances the
safety and efficacy of an ablation procedure by measuring the force of the catheters tip
inside the heart. These are just a few of the innovations that continue to strengthen our
worldwide leadership position in medical devices and diagnostics, where 85 percent of our
key platforms hold the number one or number two position in the market.
Integrating Synthes has been our priority and weve made good progress. DePuy Synthes
Companies is the worlds largest and most comprehensive orthopaedics company within a
$44 billion market with strong fundamentals, and is primed to offer new, value-added
solutions that will help transform health care delivery.
In January 2014, we announced receipt of a binding offer from The Carlyle Group to acquire
the Ortho-Clinical Diagnostics business for approximately $4 billion. We are in an
acceptance period that will end on March 31, 2014 and expect the transaction will close
toward the middle of this year.

CONSUMER
With $14.7 billion in worldwide sales in 2013, our Consumer segment is the sixth-largest
health care consumer business in the world and achieved operational sales growth of 2.8
percent. Our near-term priority is to deliver a reliable supply of OTC products to the U.S.
marketplace. Last year, we met our objective of returning approximately 75 percent of our
planned portfolio to store shelves. We are investing in cross-channel marketing across TV,
print and social media to support their re-launch.

Positive contributors to operational results were U.S. sales of TYLENOL and MOTRIN
analgesics; upper respiratory OTC products; international sales of baby care products;
sales of NEUTROGENA and AVEENO skin care products; and international sales of
LISTERINE oral care products.
In 2013, we took steps to strengthen our focus, divesting in certain areas such as our North
American womens sanitary protection business, and acquiring Shanghai Elsker Mother &
Baby Co., Ltd, a well-regarded baby care company in China known for its position in the
naturals segment.
We also continue to expand globally with the launch of LISTERINE ADVANCED
DEFENCE Gum Treatment in the United Kingdom and Ireland and our new
JOHNSONS Baby TRIPLE BABY PROTECTION product line, which well be taking into
global markets this year.
Current Performance 2014

Analysis of the current Performance

MEDICAL DEVICES & DIAGNOSTICS

J&J Market Share in Spinal & Orthopedic devices: In July 2012, J&J
completed acquisition of Synthes a in cash and stock deal, which has further
expanded its orthopedics franchise (DePuy) and mark the largest deal for
J&J. Synthes is a global manufacturer of orthopedic spine and trauma
products. Synthes' product portfolio consists of five primary product groups
in trauma, spine, knee, bio-materials and power tools. After the deal, DePuy
has become a global leader in the spinal & orthopedic devices market. We
expect Synthes to strengthen J&J's market position significantly. If this leads
to market share within the segment increasing to 20%, it can lead to a
potential upside of more than 5% to our price estimate.

BUSINESS SUMMARY
Johnson & Johnson (NYSE:JNJ) is an American multinational pharmaceutical,
medical devices and consumer packaged goods manufacturer founded in 1886. The
company (also called "J&J") and its subsidiaries are engaged in the research and
development, manufacture and sale of a range of products in the health care field.
It has more than 250 operating companies conducting business worldwide.
J&J is an industry bellwether and therefore its shares generally reflect the overall
performance in healthcare products at any given point in time. It also reflects
investor appeal for defensive securities, as during periods of economic or market
uncertainty investors have generally sought haven in J&J shares as its earnings are
less cyclical.
Some of its iconic brands include Band-Aid, Listerine, Neutrogena, Tylenol,
Zyrtec, Remicade, Rieperdal and Topamax among many others. The company has
sold ortho-clinical diagnostics to Carlyle group.
SOURCES OF VALUE
Medical devices & diagnostics business is the most valuable segment for J&J,
constituting roughly 60% of its value.
SYNTHES ACQUISITION TO HELP BOOST GROWTH

J&J acquired Synthes in 2012 for $21.3 billion. Synthes is a global manufacturer of
medical devices for orthopedics market including trauma and spine. The combined
DePuy/Synthes orthopedic division has the broadest orthopedic portfolio globally.
The company has a strong market position which can be attributed to its diversified
product offerings, established brand, R&D focus, and strong sales and marketing
capabilities.
EBITDA MARGINS REBOUNDING
Medical devices & diagnostics EBITDA Margin was 45% in 2007, which
increased to around 53% in 2010 due to gain from net litigation settlements,
favorable product mix, manufacturing efficiencies and cost containment initiatives
related to selling, marketing and administrative expenses. The figure, however,
dropped to 44% in 2011 mainly due to product liability, litigation expenses and
recall of DePuy Hip. By 2013, margins rebounded 56.5% primarily due to higher
profits from Synthes' sales, lower litigation expenses and product liability.
KEY TRENDS
PHARMACEUTICAL BUSINESS BECOMING INCREASINGLY IMPORTANT

The results from the last couple of years suggest that J&J has made some great
strides in the pharmaceutical sector. The company, traditionally known for medical
devices and diagnostics, is now becoming more centered around pharmaceutical
business. The segment is witnessing strong growth driven by increasing sales of
Remicade, Olysio and Zytiga. Recently, J&J announced the acquisition of biotech
firm Alios BioPharma to leverage its potent drug pipeline catering to treatment of
viral diseases. Also, given the recent Ebola outbreak in West Africa, the company
has accelerated the development of vaccine which may be available for human
trials by early 2015.
LICENSING AND CO-DEVELOPMENT ARRANGEMENTS
J&J has licensing/co-development/marketing agreements with Bayer for Xarelto
(Rivaroxaban), Elan for Bapineuzumab, Vertex for Telaprevir, and Millennium
Pharmaceuticals for Velcade. J&J has also acquired Cougar Biotech and Crucell to
build out its oncology and vaccines businesses.

LOSS OF PATENTS IMPACTING SALES

Over the last few years, several of J&J's drugs including Levaquin, Concerta,
Invega & Aciphex lost their patent protection. Over the next few years, about 6
major drugs are expected to lose their patent and J&J will need to develop new
drugs to offset these losses.
GROWING THREAT OF GENERIC PRODUCTS
The fast growing pharma market in emerging economies or referred to as the
'Pharmerging' economies have the capability and technical prowess to manufacture
generic versions of blockbuster drugs. These generic drugs are often sold at prices
that substantially cheaper then their branded counterparts, thereby severely
affecting big pharma's ability to generate profits in the long run.
GLOBALIZATION OF HEALTHCARE REFORMS
Governments around the world are trying to rein in fiscal spending in order to
manage their budget deficits Since healthcare costs are one of the biggest
components of any national budget, increased healthcare legislation and reforms
around the world will hurt revenues for the entire pharmaceutical sector.

Vision
To maximize the power of Diversity & Inclusion to drive superior business
results and sustainable competitive advantage in a dynamic global marketplace.

Mission
At Johnson & Johnson there is no mission statement that hangs on the wall.
Instead, for more than 60 years, a simple, one-page document Our Credo has
guided our actions in fulfilling our responsibilities to our customers, our
employees, the community and our stockholders. Our worldwide Family of
Companies shares this value system in 36 languages spreading across Africa,
Asia/Pacific, Eastern Europe, Europe, Latin America, Middle East and North
America.

We believe our rst responsibility is to the doctors, nurses and patients,

to mothers and fathers and all others who use our products and
services. In meeting their needs everything we do must be of high quality.
We must constantly strive to reduce our costs in order to maintain
reasonable prices. Customers orders must be serviced promptly and
accurately. Our suppliers and distributors must have an opportunity to make
a fair prot.
We are responsible to our employees, the men and women who work with
us throughout the world. Everyone must be considered as an individual. We
must respect their dignity and recognize their merit. They must have a sense
of security in their jobs. Compensation must be fair and adequate, and
working conditions clean, orderly and safe. We must be mindful of ways to
help our employees fulll their family responsibilities. Employees must feel
free to make suggestions and complaints. There must be equal opportunity
for employment, development and advancement for those qualied. We
must provide competent management, and their actions must be just and
ethical.

We are responsible to the communities in which we live and work and to

the world community as well. We must be good citizens support good
works and charities and bear our fair share of taxes. We must encourage
civic improvements and better health and education. We must maintain in
good order the property we are privileged to use, protecting the environment
and natural resources.
Our nal responsibility is to our stockholders. Business must make a
sound prot. We must experiment with new ideas. Research must be carried
on, innovative programs developed and mistakes paid for. New equipment
must be purchased, new facilities provided and new products launched.
Reserves must be created to provide for adverse times. When we operate
according to these principles, the stockholders should realize a fair return.

Business environment in Egypt

Egypt, the cradle of the human civilization has a strategic location in the
center of the Middle East, the northern gate to Africa and has the manmade
Suez Canal connecting the Mediterranean Sea , the Red Sea and the Indian
Ocean, thus an important gateway on the trade route between Europe, the
Near East and the Far East.
coastline of 2450 KM along the Mediterranean Sea and the Red Sea.
The Nile river, the longest river in the world: the fabled waterway bisects
Egypt and creates a rich, wide delta on the northern coast of the country, and
a long its banks the population exploits the fertile land of the Nile Valley.
A mild warm and dry climate through-out the year with winter sunny days.
The currency is the Egyptian Pound (the actual rate to the U.S.$ is 5.68
The official language is Arabic, in the big cities people understand English.
Through the countrys strong cultural influence on the region, the colloquial
Egyptian Arabic Aamiya has become familiar throughout most Arabic
countries.
Nearly 71% of Egyptians know how to read and write, the Capital Cairo Le
Carrefour de lOrient has many French, English, German, Italian, Spanish
and Greek schools.

 All Foreign Embassies are located in Cairo and the nearby Giza.
The prevailing religion is Islam and between 10 to 15% are Copts (Christian
Orthodox)
A population nearing the 82 million with a high rate growth of 1.8% is by
itself a considerable market.
The existing economy is divided between the Public sector and the Private
sector and the Government is encouraging the Private sector to
expand and take a bigger share in the economy.
The new PPP (Public Private Partnership) program has started to be
implemented to encourage the private sector.
With GDP growth remaining strong the government is pushing ahead with
the reform program it began 2004. Reducing the budget deficit remains a
key goal, although heavy government spending designed to counteract the
effects of the global recession has resulted in targets being pushed back.
Meanwhile the introduction of a value-added tax should help combat a
shortfall in revenues.

A strong Banking sector:

There are local banks, Joint Venture Banks and Foreign Banks in Egypt.
Many International banks operate in Egypt such as HSBC, Citibank,
Barclays bank and Credit Agricole. Several European and Swiss banks have
representation offices.
Well established local banks such as the National Bank of Egypt, Banque
Misr and the Commercial International Bank proved relatively resistant to
the global downturn.
Micro finance management: Services are increasing for small business and
low-income individuals.
To avert the global crunch the banks encouraged lending in tight times.

An established insurance sector:

Tailoring offerings to a growing middle class that is growing more receptive
to insurance products will ensure continued take-up of products provided
they address specific market needs, such as the Bancassurance.
Regulators merge to create the Egyptian Financial Service Authority.
Many insurance companies operate in the market such as: Misr Insurance,
National Insurance Company, Suez Canal Insurance, Mohandes, Delta, AIG,
Export Guarantee, Allianz Non-life, BUPA Egypt, Saudi Egyptian Insurance
House.
Minimum capital requirement to establish a new insurance company is: LE
60 Million, but the adequate level of capitalization is still a subject of
debate.

A reliable infrastructure:

Three cellular telephone networks operate in Egypt: Mobinil, Vodaphone

and Etisalat. They cover most of the country.

A big network of railways 5,063kmcover and connect all cities of

Egypt, except the Sinai peninsula: it carries passengers and goods.

Most big cities have airports and Cairo has several daily flights to most
of European, North American, the Middle east, African and Asian big cities
through its renewed airport. Alexandria has an international Airport, also
Luxor, Sharm El Sheikh and Hurghada.

Several sea ports are handling the exported and imported goods, as an
example Alexandria, Damietta and Port Said on the Mediterranean sea (5),
Suez, Safaga and Quoseir on the Red Sea (3).

A big network of highways and roads 64,000km being actually upgraded is

covering all of Egypt and connecting all the countrys regions.
Investment zones: 5
Industrial zones in new cities: 15
Total industrial zones: 47

A big market access through memberships in

international regional economic bodies:
Attractive economic relations with the Middle Eastern countries: Egypt is a main
member in the Arab League and its economic union with privileged custom
treatments with member countries. GAFTA (great arab free trade area )
Attractive economic relations with the African countries: Egypt is a main
member in the C.O.M.E.S.A. (common market of eastern and southern
Africa )with privileged custom treatments with member countries.
Egypt-EU Association Agreement
European Free Association (Switzerland-Norway-Liechtenstein)
Egypt-Turkey Free Trade Agreement
QIZ (qualifying industrial zone)
Agadir Agreement

Porters five forces for competitor analysis

Porters 5 forces model is help to evaluate the business plans of a company.
Followings are Porters five forces model:

Threat
of new
entrants

Degree

Threat

of

of

PORTERs
substitutes

Rivalry
5

FORCES

Bargaining

Bargaining

power of

power of

suppliers

buyers

Porters Five Forces

1) Threats of New Entrance:

The market is full of competitors. It is very difficult to enter in market for a
new company. On the other hand, entry of new company makes the path
very tough for existing companies. So, the existing companies treat the new
entrance as threats for their company. Porter (2010) mentioned that when a
new company tries to enter in the market, sometimes it reduces the price of
their product to attract the customer or may give some other benefits.
Especially, a new company identifies and concentrates on the weaknesses of
existing companies. It helps the company to meet customer requirement and
get developed slowly. The new company tends to maintain the availability to
beat the existing one.
2) Threats of substitute products:
Reinhardt and Stavins (2010) commented that substitute product sometimes
creates loss for the company. There have ample substitute of almost all
products. So, whenever a company have problem with supply or availability
of their product, another companies takes place. People ask for quality and it
should be convenient to buy. They might buy substitute product if they could
not find the product what they used to buy. Bingham and Eisenhardt (2011)
opined that the various promotional activities make confuse the customer
about substitute. For example: Coke and Pepsi. Both use tap water to
produce same category products but they promote in different ways. So
people might get confuse as it is almost same.
3) Customers bargaining power:
Sometimes a situation might come that there is a single buyer and market is
full of suppliers. In that situation the customers bargaining power impacts on
the industry in terms of price and all. Buyers have the option to choose the
best one. So, companies have to reduce their prices of the product to get the
customer. Otherwise other competitor will have the customer (Analoui and
Karami 2009).

4) Suppliers Bargaining Power:

Every industry needs various components, raw materials, human resource
etc to produce final goods. It brings a relationship between the supplier and
buyer. If there is scarcity of supplier than the bargaining power of supplier
take decision over buyer. Supplier may change the price of inputs to get
intention of buyers. If it happens then the suppliers decisions takes place
instead of buyers decision (Brusoni and Prencipe 2009).
5) Competitive Rivalry within companies:
The rivalry of existing competitors indicates about new product launce,
advertisement campaign, discounts, the price deduction etc. To some extent
rivalry can creates profit but in high rivalry situation it minimizes the profit of
the company. If a company having low market share in that situation rivalry
can be effective for the company. The company is considered to be closely
controlled if rivalry of a company is low rather than other companies. This
discipline may result from the companies history of competition.
Implementation of Porters 5 forces model in Johnston and Johnston
Company:
Analoui and Karami (2009) have mentioned that the threat of new competitors
affects all existing competitors. For example, a new company Mini Baby has come
with variety of baby care products. It having good quality product to compete
Johnston and Johnston Company. This company will try to concentrate on the
weakness of the Johnston and Johnston Company as it is the main competitor for
Mini Baby. Johnston and Johnston Company is a global brand because of which
the market fluctuates. The Mini Baby having no trouble of that as it is a new
company. Secondly, it has to be maintaining the quality and availability of products.
Johnston and Johnston Company has lacking behind in terms of availability of skin
care products. The marketing strategy of that category product is not properly
implemented to attract customer. On the other hand, Bingham and Eisenhardt
(2011) opined that scarcity of these products makes customer to choose substitute

products. Another problem is that the availability of these items is not like the
customer expectation. In that situation there is good chance for mini baby to grab
the market.
Once it grip in the market it can produce other products with good quality which
can be compete with Johnston and Johnston Company. By evaluating the market
share and market growth through BCG Matrix this can be understood that Johnston
and Johnston Company has lacking behind in terms of skin care products. So a new
company like Mini Baby has a very good chance to expand the market Brusoni and
Prencipe (2009).
On the other hand, Goksoy and Ozsoy (2010) illustrated that medicine producing
industry is more of capital intensive industry. It is a form of barriers to a new
company. There need to be invest a big amount of capital to produce final outcome.
Mini Baby has not that influence in medical or diagnosis products like Johnston
and Johnston Company but it has the potentiality to fulfill customer requirement.
The product has to be promoted in such a way that people will choose instead of
Johnston and Johnston Company products.
In terms of buyers perspective, buyers have the power to make decisions (Brusoni
and Prencipe 2009). There have lots of companies who manufacture drugs and
other medical products, so the buyer has lots of option to choose. It creates
competition among companies. In that situation Mini Baby can prepare their
marketing strategy keeping in mind the customers bargaining power. On the other
hand, Goksoy and Ozsoy (2010) commented that in that category product the
supplier has no influence over buyer as the number of buyer is less than number of
supplier. Being as a new company in the market Mini Baby has to maintain brand
loyalty. Because the existing company is having brand loyalty (Dobson 2009).

Corporate Governance
Our Board of Directors is a diverse group of individuals who are elected by our
shareholders each year. We currently have 12 Board members, 11 of whom are
independent under the rules of the New York Stock Exchange. Alex Gorsky,
current Chief Executive Officer (CEO) of Johnson & Johnson, also serves as the
Chairman of the Board of Directors. Our independent Directors determined that for
effective Board governance, it was appropriate to have an independent Lead
Director and have selected Anne M. Mulcahy to serve as the designated Lead
Director for 2013.
Our Board holds the ultimate authority of our Company, except to the extent that
our shareholders are granted certain powers under the Companys Certificate of
Incorporation and By-Laws. Qualifications for the Board of Directors and standards
of independence are laid out in our Principles of Corporate Governance and
additional guidelines are outlined in our Code of Business Conduct & Ethics for
Members of the Board of Directors and Executive Officers. We believe good
corporate governance results from sound processes that ensure our directors are
well supported by accurate and timely information, sufficient time and resources,
and unrestricted access to management. Additionally, we believe the business
judgment of the Board must be exercised independently and in the long-term
interests of our shareholders. The Board of Directors:

Appoints senior management of the Company, who are responsible for

conducting business and operations;
Provides oversight of management and offers strategic direction to the
Company; and
Forms standing Board Committees to assist in fulfilling its obligations.

The Board of Directors has six standing committees

Audit Committee:
composed of non-employee Directors, determined to be "independent" under the
listing standards of the New York Stock Exchange:

Assists the Board in oversight of the Company's accounting and financial reporting
process and practices.
Appoints the independent public auditor and reviews its performance.
Oversees the Company's Internal Audit department and reviews its annual plan.
Monitors adequacy of internal accounting procedures and controls.
Assists the Board in oversight of the Company's financial reporting compliance and
disclosure procedures.

Compensation & Benefits Committee:

composed of non-employee Directors, determined to be "independent" under the

listing standards of the New York Stock Exchange:

Establishes the Company's executive compensation philosophy and principles, reviews

and recommends for approval by the Board the compensation for the Chief Executive
Officer and non-employee directors, and approves the compensation for the
Company's other executive officers.
Reviews the philosophy and policies of the non-Board Management Compensation
Committee with respect to management compensation, perquisites and other
compensation policies for non-executive employees.
Oversees the management of the various retirement, pension, long-term incentive,
savings, and health and welfare plans that cover the Company's employees.
Finance Committee:

composed of the Chairman and Lead Director of the Board, exercises the authority
of the Board during the intervals between Board meetings.
Nominating & Corporate Governance Committee:

composed of non-employee Directors, determined to be "independent" under the

listing standards of the New York Stock Exchange:

Oversees corporate governance matters.

Reviews possible candidates for Board membership and recommends nominees for
election.
Oversees the process for performance evaluations of the Board and its committees.
Reviews the Company's executive succession plans and executive resources.
Regulatory, Compliance & Government Affairs Committee:

composed of non-employee Directors, determined to be "independent" under the

listing standards of the New York Stock Exchange:

Oversees the Company's non-financial compliance programs and systems with

respect to legal and regulatory requirements.
Oversees compliance with any ongoing Corporate Integrity Agreements or any similar
undertakings by the Company with a government agency.
Reviews the organization, implementation and effectiveness of the Company's health
care compliance & ethics and quality & compliance programs.
Oversees the Company's Policy on Business Conduct and Code of Business Conduct &
Ethics for Members of the Board of Directors and Executive Officers.
Reviews the Company's governmental affairs policies and priorities and other public
policy issues facing the Company.
Reviews the policies, practices and priorities for the Company's political expenditure
and lobbying activities.
Science, Technology & Sustainability Committee:

composed of non-employee Directors, determined to be "independent" under the

listing standards of the New York Stock Exchange.
Monitors and reviews the overall strategy, direction and effectiveness of the
Company's research and development.
Serves as a resource and provides input, as needed, regarding the scientific and
technological aspects of product safety matters.
Reviews the Company's policies, programs and practices on environment, health,
safety and sustainability.
Assists the Board in identifying and comprehending significant emerging science and
technology policy and public health issues and trends that may impact the Company's
overall business strategy.
Assists the Board in its oversight of the Company's major acquisitions and business
development activities as they relate to the acquisition or development of new
science or technology.

Corporate Culture

What Sets Us Apart

Meet our people and youll get a real sense of how our culture enables dynamic and

impactful careers. We share a kind of DNA where were each

Committed to Caring
Responsible to our communities
Ready to apply our knowledge and know-how
Unique in our background and experiences
The drivers of our own success
Passionate about doing whats right
If you share these qualities, chances are youve got that same J&J DNA. And when

you join our team, were prepared to help you

Be seen for the value you bring
Drive your careers forward
Be part of something bigger

People Aligned By Values

We each bring a unique set of experiences from dozens of cultural backgrounds.Our
shared values unify our direction and decisions, helping us touch the lives of more
than a billion people every day.
We collaborate in teams and continuously share and refine critical skills and
methods. We value the unique perspective and approach that each person brings.

We foster an environment that celebrates and leverages diversity. We welcome

everyone to be authentic about who they are and the perspective they offer. We
ensure that every member of the team has a chance to make their mark and drive
their career growth.

Marketing
Marketing Mix

Over the years Johnson & Johnson has grown substantially in part due to strategic
acquisitions ranging from large ones such as Neutrogena in 1994 and DePuy in 1998, to
many smaller ones. From 1989 to 1999, the company made 45 such acquisitions of
companies and product lines. Today the firm can boast of revenues exceeding $61,897
million during the financial year (FY) ended December 2009.

Product

Johnson and Johnson products are basically in three main categories: Pharmaceuticals,
Medical Devices & Diagnostics, and Consumer Health care.

The following are examples of the Johnson & Johnson product inventory: Feminine hygiene,
Denture care, Contraceptives, Immunology, First aid, Family planning, Oncology,
Nutritionals, Diabetes care, Neurology, Vision care, Allergy cold and flu treatment, Womens
Health, Medical devices and diagnostics.

Price

In the United States, Johnson and Johnson strives to keep their net price increases for health
care products within the Consumer Price Index (CPI).

Johnson and Johnson works with governments to develop differential pricing approaches to
help more people access their medical products. Johnson & Johnson companies have
agreements with the United Kingdom for VELCADE (bortezomib), a treatment for multiple
myeloma, and with France for RISPERDAL CONSTA (risperidone long-acting injection)
a medication for the symptoms of schizophrenia. Companies and government agencies are also
entering other types of risk-sharing agreements in order to help people gain access to new
therapies sooner.

The following are examples of Johnson and Johnson consumer product prices: Bengay Pain
Relief $12.99, (at Amazon), Listerine Oral Care $7.49 (Next Tag), Splenda Sweetener $7
(Drusstore.com).Tylenol Rapid Release $12.95 ( Allegro Medical.com ).

Place

These are some companies that sell Johnson and Johnson products wholesale: Over the
Counter Wholesale.com, WUZ Group, ShopatHome.com

Johnson and Johnson products can be found at the following retail outlets: Target, Walgreens,
WalMart, Vons and Eversave, to name but a few.

Promotion

Johnson and Johnson offers special discount coupons on products such as baby care, and
contact lens.

Johnson and Johnson has run a Beauty for All Ages rebate promotion on Coupons.com and
some of the campaign products are available at Walgreens and may also include buy one get
one half off discount as well.

Johnson & Johnson is involved with many causes and advertising campaigns that encourage
healthy lifestyles. Key initiatives include: The Campaign for Nursings Future, Having a Baby
Changes Things, and Because We Care We Act (China).

Process

Johnson and Johnson employs what they call a decentralized management approach.
Employees are encouraged to be entrepreneurial with the understanding that they will
benefit from focusing on customer needs and providing solutions.

Johnson and Johnson seeks to turn insights into innovative new products and sometimes whole
new businesses. Their goal is to capitalize on scientific breakthroughs, marketing insights and
manufacturing expertise easily across the full range their businesses. With more than 250
operating companies have a local window into emerging customer needs, scientific
developments, and technologies throughout the world.

The Executive Committee of Johnson & Johnson is the principal management group
responsible for the operations and allocation of the resources of the Company. This Committee
oversees and coordinates the activities of the Consumer, Pharmaceuticals and Medical Devices
and Diagnostics business segments. Each subsidiary within the business segments is, with
some exceptions, managed by citizens of the country where it is located.

Physical Evidence

The Johnson & Johnson Headquarters is located at One Johnson & Johnson Plaza, New
Brunswick, New Jersey.

The Johnson& Johnson Consumer Division is located at 199 Grandview Road, Skillman New
Jersey.

The Ortho-Biotech Division is located at 700 Route 202 Raritan, New Jersey.

The Lifescan Division is located at 1000 Gibralta Drive, Milpitas, California.

The VistaKon Division is located at 7500 Centurion Pkwy, Jacksonville, Florida.

The Endo Surgery Division is located at 4545 Creek Road Cincinnati, Ohio.

The Independence Technology Division is located at 40 technology Drive, Warren New

Jersey.

Company Subsidiaries, Codman and Shurlett as well as De Puy Acromed are located at 325
Paramount Drive Raynham Massachusetts.

The Johnson and Johnson logo is based on the signature of James Wood Johnson, one of the
two brothers originally who founded the company.

Johnson

&

Johnson

maintains

presence

online

via

number

of

websites

http://www.jnj.com/connect/others/sitemap/ which provide information on company values,

and management approach.

Another Johnson and Johnson website http://www.jnj.com , provides detailed information on

various consumer products such as Listerine or Tylenol.

People

William C Weldon is Chairman & Chief Executive Officer of Johnson & Johnson.

Dominic J. Caruso is the Chief Financial Officer and Vice President of Finance.

Johnson and Johnson has a Global Diversity and Inclusion program with a goal of achieving a
skilled, high performance workforce that is reflective of the diverse global marketplace
(workforce).

Johnson & Johnson was ranked #2 among Diversity Inc. Magazines Top 50 Companies for
Diversity.

The company has ranked high Working Mother Magazines Top One Hundred Companies for
Working
or 24 years.

Mothers

Market Presence
As the world has changed, so has the geographical distribution of our business, employees,
products and sales. In 2012, 56 percent of the revenues of Johnson & Johnson come from
outside the U.S., compared to about 40 percent a decade ago.
The BRIC markets (Brazil, Russia, India and China) comprise nearly 10 percent of our total
revenues for 2012. The broader emerging markets represent more than 20 percent of our
sales, reflecting double-digit growth in 2012 on an operational basis, inclusive of Synthes.
The broad base of product offerings and global critical mass of Johnson & Johnson
positions us well with customers and governments, and gives us a unique ability to meet the
needs of the emerging markets. As we have established and expanded our presence in
global markets, we have leveraged our global portfolio and selectively acquired products
tailored to meet the needs of specific populations. For example, in 2012 we acquired
Spectrum Vision, LLC, a full-service distributor of contact lenses serving Russia with
facilities in the Ukraine and Kazakhstan.
Our regional companies have optimized their infrastructure and are continuing to invest to
support dozens of institutes around the world designed to train health care providers on the
effective use of our products. For instance, our So Paulo Institute in Brazil trains nearly
3,000 health care providers annually.
An example of our commitment to offer localized health care solutions is evident in India,
where we have opened a DePuy Institute. Approximately 1,000 physicians a year are
trained there in the latest orthopaedics techniques and technologies to help ensure that
patients can get the quality care they need.
Model of Emerging Market Strategy
The work we are doing in China illustrates how we are building our business in important
emerging markets. There are 1.4 billion people in China, the majority of whom are covered
by some form of health insurance. Increases in health care expenditures are estimated to
run at a 20-plus percent annual growth rate through 2016. As Chinas national economy
grows, and more people enter the middle class, there is a rising demand for a broader array
of health care solutions.
Johnson & Johnson has had businesses in China for 27 years, employing close to 9,000
people. Our China business generated nearly $2.5 billion in sales last year driven by a
diverse and expanding portfolio of brands that Johnson & Johnson is known for globally, as
well as those we have acquired to meet specific local needs and demand.
We have eight major manufacturing facilities in China. Our Xian plant is equipped with
world-class capabilities and produces over 240 million packaging units of high-quality
pharmaceutical products that supply 26 countries with benchmark cost- efficiency. Our

sutures plant in Shanghai provides raw materials and semi-finished silk to the U.S., Europe
and South America, where we then complete production.
We have a major new Innovation Center in Suzhou that supplies medical device and
diagnostics products specifically for the emerging consumer markets in China and India.
These products are targeted at specific disease states that are more prevalent in the region,
and they include simplified or smaller devices that are better suited for use outside the
major cities and top-tier hospitals, as well as multi-use or even disposable products that are
more economical. We already have a number of these products on the market, including
staplers, sutures, a blood glucose meter and an artificial knee. Yet there is much more to be
done as we seek to bring the promise of good health to as many people as possible.
Our portfolio of offerings in China is diverse and expanding, and it includes iconic brands
from our JOHNSONS Baby and NEUTROGENA franchises. Important pharmaceutical
products such as REMICADE (infliximab) and INVEGA SUSTENNA (paliperidone
palmitate) have strongly grown in the market. RESOLOR (prucalopride) and EDURANT
(rilpivirine) were approved there in late December. Meanwhile, SIMPONI (golimumab) and
STELARA (ustekinumab) are under review by the Chinese Ministry of Health.
We are also conducting research and development into new medicines that will address
specific needs in China and across Asia. In May 2012, we acquired Guangzhou Bioseal
Biotech, which has the only approved porcine plasma-derived fibrin sealant on the market in
China. This acquisition will expand our biosurgery business there.
We know the model in China works, and we are applying it in other countries as well.

BCG Matrix:
Here BCG Matrix will be evaluated in terms of Johnston and Johnston Company.
MacMillan and Venkataraman (2009) opined that this will help the company to
identify and understand the mistakes done at the time of strategic planning. This
analysis is based on the product life cycle of Johnston and Johnston Company.

Stars

Question Marks

All kind of baby products:

Baby Oils
Baby Shampoos

Medical & Diagnostics

Contact Lenses

Cash cows

Dogs

Women Health care Products

Skincare Products

Tampons / Sanitary Napkins

All baby care products of Johnston and Johnston Company are growing
worldwide with high market share and high growth. The company is
generating cash because of its massive investment on baby care products.
On the other hand, Robinson and Pearce (2010), demonstrate that Women
Health Care product of Johnston and Johnston Company takes place as in
Cash cow. It has the large market share in this sector. Investing lower
amount in this sector, the company can make more cash which can be again
invest in other sector of the company. It will be beneficial for the company to

improve that sector which is lacking behind. In terms of Johnston and

Johnston Company this cash could be invested in Medical & Diagnostics
sector. Unlike the other sector Medical & Diagnostics sector is not growing so
much. There is an opportunity to make Medical & Diagnostics sector to
generate more case, strategic planning should be needed. Tarplett et.al.
(2009) opined that all skin care products are mentioned as dog because they
are unable to generate cash due to low market share and low growth. Here,
the company invests a lower amount in this sector. For this company, the
skin care products either have to be minimized or invest more in that sector.
Johnston and Johnston Company have very much influence in international
market, so there is a possibility of growth in this sector in future, agreed by
Zott and Amit (2008).

Balance Sheet
Assets
Current assets
Cash
Inventory
Account
Receivables
Total
Current
Assets
Fixed Assets

Total Assets

Liabilities and Owners Equity

2011

2012

2013

35,253,783
15,711,586
47,536,606

49,531,712
17,526,836
64,777,950

58,962,772
29,532,547
76,747,990

98,501,975

131,836,498

165,243,309

6,419,028

8,521,178

11,528,991

104,921,003

140,357,676

176,772,300

2011
Current liabilities
Account
46,462,123
Payable

2012

2013

68,295,011

112,499,508

Total
Current
Liabilities
Long
Term
liabilities
Total
Liabilities
Equity
Total
liabilities
and
Equity

46,462,123

68,295,011

112,499,508

4,054,394

4,316,065

5,467,835

50,516,517

72,611,076

117,967,343

54,404,486

67,746,600

58,804,957

104,921,003

140,357,676

176,772,300

Income Statement
Sales
Cost of goods sold
Gross Profit
Marketing
expenses
Administrative
expenses
Other operating
revenues
Other operating
expenses
Operating
loss/profit
Investment profit
EBIT
Taxes
Net income

2011

2012

2013

141,269,528
(80,798,862)
60,470,666
(38,018,964)

192,259,443
(99,304,061)
92,955,382
(52,704,602)

194,566,628
(108,071,416)
86,495,212
(57,596,926)

(8,335,397)

(10,994,265)

(6,502,626)

2,268,250

1,085,679

1,231,957

(3,684,881)

(5,941,931)

(5,114,269)

12,699,674

24,400,263

18,513,348

449,930
13,149,604
(3,011,334)
10,138,270

1,207,800
25,608,063
(5,982,189)
19,625,874

1,167,865
19,681,213
(1,622,856)
18,058,357

2011
Current ratio
Quick ratio

2.12
1.78

Inventory
Turnover
Total Asset
Turnover
Average
collection
Period
Average
Payment
period

5.1

2012
Liquidity Ratio
1.93
1.67
Activity Ratio
5.66

2013

1.34

1.36

1.1

122.8

122.9

55.4

209.8

251.1

379.9

1.47
1.2
3.66

Debt Ratio
Debt ratio

0.48

0.51

0.66

Profitability Ratio
Return on
Assets ROA
Return on
Equity
Net profit
margin

9%

14%

10%

18%

28%

30%

9.3%

13.3%

10%

Comments

Human Resources
Benefits
Johnson & Johnson offers a comprehensive and competitive benefits program to
attract and retain talented employees. In the U.S., the Choices Benefits Program is
designed to meet the needs of employees and their families by providing a wide
range of health, survivor, disability and retirement options. Choices Benefits are
provided annually to active salaried and non-union hourly employees, as well as
regular and casual part-time employees who are scheduled to work 19 or more
hours per week. The Choices Benefits Program lets employees create a personalized
benefit package for themselves and their eligible dependents. Benefits include:

Medical
Dental
Vision
Tobacco Cessation
HealthAccount (Flexible Spending Account)
CareAccount (Flexible Spending Account)
Life Insurance
Accident Insurance
Disability Coverage
Long-Term Care Insurance
Group Legal Insurance
Auto and Home Insurance
Commuter Benefits Program

The Company provides a basic level of life insurance and business travel accident
coverage for eligible employees at no cost. In addition to Choices benefits, the
Company provides a noncontributory pension plan and offers employees the
opportunity to participate in a savings plan with a company match. Employees may
also be eligible for retiree medical coverage and company-provided retiree term life
insurance. Plan provisions may differ for certain part-time employees and by
country. Benefits are provided to union employees through collective bargaining
agreements. Additional information is available in Note 10 and Note 11 of our 2012
Annual Report and in the economic performance section of this report.
As the largest health care company in the world, enhancing the health and wellness
of our employees is a logical extension of our corporate mission. It is our belief that
promoting employee health and wellness makes good business sense because it
increases productivity and engagement, while decreasing health care costs and
providing personal benefits to our workforce. Our Healthy People program provides
Employee Assistance, as well as Occupational Health and Wellness and Health
Promotion services, all of which have expanded globally since 2005. Additionally,
we now offer a full suite of online resources through HEALTH MEDIA and a unique
approach to increasing physical and emotional capacity through the HUMAN

PERFORMANCE INSTITUTE and Our Energy in Performance for Life programs. See
our 2012 Executive Summary Report feature story for more information.
Johnson & Johnson provides a range of benefits to employees impacted by
reorganizations. The benefits can include severance payments and access to
outplacement support, as well as Employee Assistance programs. The benefits
employees receive
will depend on a number of factors, including local practices, size and scale of the
restructuring, etc., and if the employees are represented by a third party with
whom we would negotiate such benefits.

Hiring Practices
In a global, decentralized business, hiring locally helps us best meet customer
needs. Our operating companies hire from the communities in which we do
business and follow all applicable labor laws and requirements. In most cases, the
Johnson & Johnson Family of Companies does not offer visas or work permits.
Candidates must be authorized to work in the country to which they are applying.
Applicants must be fluent in the language of the country where a job is based.
Each subsidiary within our business segments is, with some exceptions, managed
by citizens of the country where it is located. Among our Executive Committee,
based at our headquarters in New Brunswick, New Jersey, two-thirds of members
are from the U.S.

Employee & Labor Relations Practices

Our employees are our most valuable asset.

We are committed to respecting human rights as embodied in the Universal

Declaration of Human Rights and its two corresponding covenants, The
International Covenant on Civil and Political Rights and The International Covenant
on Economic, Social, and Cultural Rights. In addition to the universal statements of
human rights noted above, we follow the principles in the International Labor
Organizations Declaration on Fundamental Principles and Rights at Work, including
nondiscrimination, freedom of association and collective bargaining, and freedom
from forced and child labor.
Global Labor and Employment Guidelines

In keeping with these and other internationally recognized expectations for

business ethics, product quality, labor and employment, health, safety and the
environment, and to ensure that Johnson & Johnson and each of its subsidiaries
throughout the world follow consistent labor and employment policies, our Global

Labor and Employment Guidelines clearly set forth our expectations. These
Guidelines require, first, that our policies and actions are in full compliance with the
laws and regulations of the respective countries in which we operate. In addition:
We communicate regularly with our employees and, whenever possible, partner
with them to achieve desirable competitive outcomes
We require our operating companies to respect each employees right to decide if
they wish to join or not join associations and/or labor unions, and to respect the
ability to make an informed decision, free of coercion
We operate so that support of, or opposition to, associations, does not impact an
employees employment or an individuals application for employment
Employees have the right to organize, join associations and bargain collectively, if
they so choose. The company and its operating companies are required to bargain
in good faith with these associations
It is not permitted to accept or condone any aspect of forced labor
The Company and its subsidiaries may not discriminate against any employee
based on their ideological views, race, color, religion, gender, sexual orientation,
national origin, age, disability, or any other status protected by law
While the Company may counsel, and if necessary, discipline employees in
connection with unacceptable behavior, physical punishment is not permitted
Employees choose to work for us at their own discretion. It is not permitted to force
them to remain in our employ
We support, adhere to and must strictly enforce child labor laws
Johnson & Johnson has additional guidelines that work to assure our employees are
treated fairly and equally. These include:
Equal Employment Opportunity Policy;
Policy on the Employment of Young Persons;
Guide for Resolving Employee Disagreements; and
Harassment Policy
Several global functions support and share responsibility for various aspects of
labor practices. These include Global Diversity & Inclusion, which reports to the
Chairman and Board of Directors through its Vice President and Chief Diversity
Officer, and to Human Resources, whose Vice President is a Corporate Officer and a
member of the Executive Committee. Human Resources responsibilities include
Global Talent Management, Global Benefits, Health Resources and Worldwide
Compensation Resources. The Supply Chain Vice President of Human Resources for

Johnson & Johnson is responsible for the oversight and/or implementation of the
labor relations policy. Employee representatives are included in formalizing labor
relations policy in certain regions of the world, such as Asia Pacific.
Johnson & Johnson completes labor and employee relations assessments and audits
through local Human Resources and our Global Employee & Labor Relations
Function. Currently, three regional leaders are assigned to various
countries/regions throughout the world. These leaders interact with employees,
trade unions and other employee representatives (works councils), and government
officials. They have broad oversight and responsibility for monitoring compliance
and maintaining relationships with labor unions and works councils.

Grievance Resolution
Johnson & Johnson maintains a variety of mechanisms for collecting and addressing
employee grievances and complaints to ensure that workers can raise concerns
confidentially. These mechanisms include an employee hotline through which
employees can confidentially and anonymously raise their questions and concerns.
The Company also has an Open Door policy; employees are encouraged to air their
grievances to any manager, regardless of level, within the Company, and those
grievances will be addressed.
Additionally, anyone can report allegations through other methods within the
operating companies or to Internal Audit, the Law Department, Global Security or
Human Resources. Hotline access is communicated broadly, and visibility of this
access and Hotline functionality are in-scope for financial audits. Regional Labor and
Employee Relations staffs independently investigate noncompliance in employee
relations matters, and verified non-compliant situations are addressed at the
respective business unit. Of the approximately 690 employee relations hotline
matters received in 2013, all were addressed. Of these, approximately 90 percent
were closed, along with approximately 130 matters pending from 2012. Although
additional grievance data is not tracked at the enterprise level, a global system to
gather this enterprise data is under development and being implemented in 2014.
In addition, the Common Ground program in the U.S. is a three-step process (Open
Door, Facilitation and Mediation) through which employees are afforded the ability
to have their grievances and complaints confidentially aired and addressed. The
program has been recognized both internally and externally as a leading resource in
encouraging employees to raise and resolve disputes. The Company also maintains
a non-retaliation policy

Collective Bargaining
Employee representation structures vary throughout the world, and Johnson &
Johnson is assessing the status of sites with employee representation by region.
The regions are North America, Latin America, Asia-Pacific and Europe/Middle
East/Africa (EMEA). In the EMEA region, up to 100 percent of Company sites have

the ability to establish an employee representation structure or framework. Where

employees choose to establish these structures, management provides support.
However, employees at some of the Companys sites have chosen not to establish
these employee representation structures. In the Latin American region,
approximately 55 percent of employees have employee representation structures in
place. In the North American region, less than 10 percent of employees have
employee representation structures in place. We do not currently have information
for the Asia-Pacific region.

Working conditions at Johnson & Johnson operating companies have been

collectively bargained in many different ways throughout the world. Subjects
covered by collective bargaining agreements with trade unions over the past year
include, but are not limited to: wages, hours of work, terms and conditions of
employment, work rules, health and safety, grievance processes, organization
structures, holidays, vacation, training, active and retired employee benefits, drug
testing, seniority, travel expenses, leaves of absence, shift premium pay, overtime
pay, overtime administration, bonuses, rest periods, job bidding procedures,
severance pay, equal employment opportunity, union dues payments, trade union
representation, restructurings/reorganizations, layoffs and recalls. We estimate that
greater than 95 percent of employees of Johnson & Johnson companies covered by
collective agreements have working conditions included in their agreements.
Minimum Notice Periods

Johnson & Johnson is a highly decentralized corporation comprised of many distinct

and relatively autonomous operating units around the world. We do not have a
formal enterprise-wide policy mandating a minimum notice period regarding
significant operational changes. However, local operating unit leaders endeavor to
communicate significant plans of operational changes to employees and their
representatives, where they are present, in a timely and practical manner in
advance of actions being taken. Feedback and suggestions from employees and
their representatives, where they are present, are always taken into consideration
before any final decisions are made. In regions/countries where involvement of
employees representatives in decision-making processes is legally required, we
have established rigorous formal consultation processes to ensure compliance.
Where minimum notice periods for layoffs are required by local law or incorporated
into collective bargaining agreements, the operating units are always in compliance.
For example, in the U.S., where a minimum of 150 employees or one-third of a
units workforce is scheduled for layoff, the WARN Act requires that the affected
employees, their representatives (where present) and local government officials be
provided 60 days notice. If employees are negatively impacted by any changes, we
have measures in place to help and support them appropriately. Where there is no
legal minimum notice period, Johnson & Johnson companies attempt to provide
notice at the earliest possible time, often ranging from 30 days to 180 days.

Talent Attraction, Management & Retention

Skill and Talent Management and Training

In the Johnson & Johnson Family of Companies, every leader believes that our
people are a competitive advantage and, therefore, every leader takes full
ownership for talent management. Human resource leaders and business leaders
jointly own talent management on behalf of the enterprise. Our leaders are
accountable for attracting and recruiting talent, managing performance and
development, building a pipeline of global and diverse leaders, and creating an
environment that embraces diversity and inclusion.
Our employees are active participants in their development. Employees are given
the opportunity to develop and grow, and have access to the tools and resources
needed to do so. More importantly, they are empowered to navigate their own
career development and to be accountable for knowing what is expected from them
in terms of performance and development. This talent philosophy ensures a robust
and diverse pipeline of global leaders, high performing and highly engaged
employees and culture, and continued business continuity and growth.
Development is an interconnected series of experiences that strengthen our
workforce and advance our organization. We provide enterprise-wide training that
is business-aligned and accessible to all employees within Johnson & Johnson
companies globally. The training encompasses a vast array of topics, from
leadership development and management education to training in disciplines such
as finance, marketing, business practices and compliance requirements. We offer
on-the-job training, plus extensive, globally accessible training and development at
the individual, team and organizational levels. These are available online to all fulland part-time employees globally and include independent study courses, webbased courses, interviewing simulations, assessments, intensive workshops and
action planning courses. Temporary workers do not participate in Johnson &
Johnson learning or leadership development offerings.
In 2012, the curriculum was streamlined and reorganized, with over 400 courses
offered. Training is provided, tracked and documented by the operating companies.
Training programs are accessible in every region and, in some cases, in several
languages. These programs are open to all employees and are designed to address
the different stages of their growth. Programs are part of an integrated global
curriculum that establishes a global standard of leadership development experience
available throughout each employees career.
Training is provided, tracked and documented by the operating companies.
Employees receive an average of eight hours or more of training per year, although
many receive much more. Senior management, high potential employees (below
vice president) and other critical positions receive six to seven days of education
per year; middle management and front line management receive four to five days
of education a year; and vice presidents and above receive eight to 19 days of
education per year. Because training records are maintained at a local or

operational level, we are not able to provide a detailed report on this information on
a global level for all employees.
Transition assistance programs offered to support employees who are retiring or
who have been terminated from employment comply with regulatory or collective
bargaining agreement requirements, with many locations providing more than what
is required. Offerings may include pre-retirement planning for those contemplating
retirement, retraining for those who will continue working, severance pay, job
placement services and assistance (e.g. training, counseling) for those transitioning
to a non-working life.
Talent Attraction and Retention

The opportunities for development and career advancement are strong components
of Global Talent Management. Our recruiting organization continues to implement
recruiting models in countries around the worldnow in all countries in which we
operate except two, which are coming on line this yearto focus on university
recruiting, invest in social media and implement U.S. diversity recruiting strategy.
The Global Job Posting program promotes our commitment to the advancement and
development of our employees, and helps to create a strong foundation for ongoing
development discussions between employees and managers.
The Total Rewards program is another important part of Global Talent Management
and includes compensation, benefits and health resources services across the
Johnson & Johnson Family of Companies. To ensure positive employee experiences,
we offer competitive compensation programs as well as costeffective and countryfocused services related to health and wellness, pension, disability and leave of
absence. These offerings meet the needs of our diverse workforces and align with
Our Credo values.
The Johnson & Johnson Family of Companies provides a portfolio of leadership
development offerings that include training and leadership development programs.
The learning strategy provides opportunities in foundational, advanced and
continuing development for the individual contributor, first line leader, leader of
leader and business unit leader. Core Training is available to support transitions
into new roles, advanced development within roles, and development of skills to
meet current and future business and leadership capabilities through six-month
development programs, instructor-led courses, eLearning and online resources. In
addition to these open enrollment programs, functional leadership teams design
and provide for development at significant levels, from entry level to senior
leadership.
Multiple Pathways for Career Advancement

The diversity of businesses among our family of companies offers employees a

broad range of career path options. Employees can advance within their functional
discipline, or progress along a path that provides experience across a range of
functions. Based on performance, business needs and personal interest, employees
can cross job functions, operating companies, business segments and geographic
boundaries as they advance within our companies.

Optimizing Work, Family & Personal Life

Our comprehensive programs and services for employees reflect a holistic view of
work, family and personal life to help support individual effectiveness at work and
at home. Specific programs, including those for flexible work arrangements,
education, adoption, child care and elder care may vary around the world based on
local circumstances and business needs. In all cases, however, they reflect our
fundamental goal of helping employees live well, work well and be well.
Examples of programs that may be offered within our companies include:
Employee Assistance and Work/Life Resource & Referral Services to help employees
address personal issues and achieve a balance between their work and personal
lives;
Proactive Health Assessments & Health Counseling to help employees assess their
risk for certain health problems through counseling with a registered nurse;
Workplace Health Programs to help ensure the health and safety of employees
through on-site, online, self-paced and group programs; and
Wellness and Fitness Services to address employees health and wellness needs;
some companies offer on-site fitness centers, personal training and exercise
classes.

Workforce Statistics
Johnson & Johnson companies have approximately 128,700 employees working in
more than 275 operating companies located in 60 countries. Previously, due to the
complex nature of the Companys various employee databases and payroll systems,
and differences in how employees are compensated in different countries, the
Company was not able to calculate the total workforce breakdown by employees
and supervised workers, employment contract, employment type and region, nor
were we able to report on turnover on a enterprise-wide basis. A new employee
data management system now allows us to capture and report some of this
information. The table below shows our workforce by region.

Information regarding employment type, turnover and diversity indicators is

available for our North America region: 98 percent of our workforce is made up of
full-time employees; 2 percent is considered to be part time. In 2012, our total
turnover rate was just under 11 percent; the voluntary turnover rate was 7.5
percent. Options are being explored that would enable this data to be provided in a
reliable manner on a global scale.
At year-end 2012, key workforce statistics for our Board of Directors were as
follows: three women (23 percent female), ten men; ethnic minorities equaled four
(31 percent).

Operation and logistics

Supply Chain Management
Taking responsibility for the environmental and social impacts of our products
begins with product design and development, and then extends to the sourcing,
manufacturing and delivery of our products to our customers. For many years, we
have been implementing and improving environmental and social measures in our
own organization. As a natural progression, we are focusing on promoting
sustainability throughout the supply chain.By doing so, we can improve our own
performance, as well as influence the performance of our supply chain partners. We
give preference to purchasing products or services that demonstrate the following
attributes:
Use of renewable resources
Use of sustainable practices
Energy efficiency
Packaging efficiency
Transport efficiency
Made from recycled materials and/or can be recycled or reused at end of life
Products that do not contain or use in their production materials listed on the
Johnson & Johnson Watch List (a compilation of lists of banned and/or restricted
materials, according to country and regional legislation).
With annual spending of approximately $30 billion, we are able to leverage our
purchasing power to set sustainability expectations beyond our own operations. Our
Procurement Sustainability Initiative, developed in 2008, aligns our procurement
processes with our sustainability efforts and provides guidance for Johnson &
Johnson operating company managers who purchase goods or services.
We set a Healthy Future 2015 goal for all strategic suppliers to publicly report on
two or more sustainability goals in one of the following goal categories: energy
reduction, waste reduction, water use reduction, workforce injury/illness reduction,
workforce wellness, and community and human rights investment. At the end of
2012, 41 percent of our strategic suppliers had met this goal. Of the suppliers that
have publicly reported goals, the percentage reporting in each of the goal areas is
shown in the table below. We are particularly gratified that our efforts have helped
a few suppliers to report sustainability goals publicly for the first time. Our
challenge going forward will be to continue with our assessments and partnerships
to assist all remaining strategic suppliers in meeting this goal. Companies require
significant internal review and support before many of them can share this
information publicly, although many have programs and goals in place.

Additionally, as a participant in the Carbon Disclosure Projects (CDP) Supply Chain

program, we encourage suppliers to measure their energy use and greenhouse gas
emissions, and to develop and publicly report on their emissions. In 2012, 139 of
the 156 suppliers we approached have chosen to participate in the program. We
also work with our peer companies in the Pharmaceutical Supply Chain Initiative, an
effort to drive consistent expectations and supply chain improvements through
collaboration.

Procurement Practices
Our Procurement Sustainability Initiative (PSI) provides a foundation to guide our
procurement professionals in their purchasing decisions and gives them a
framework to provide guidance to influence our suppliers. Through PSI, we
evaluate several non-financial performance factors when contracting with suppliers,
seeking to partner with those that are aligned with our Citizenship & Sustainability
commitments. Across the 14 broad categories of goods and services we purchase,
we look for suppliers that are transparent about their sustainability programs, can
assure us that they are sustainably producing the goods and/or services we are
buying, and can verify the legal and regulatory compliance of their supply chain.
We developed a tool, known as the Sustainability Toolkit for Suppliers, to assist our
suppliers in understanding our sustainability commitments and to improve their
sustainability
processes.

In 2013, using a standardized enterprise segmentation and alignment process,

Johnson & Johnson identified approximately 120 suppliers considered to be
Segment 1, representing approximately $8 billion in spend, and approximately 220
considered to be Segment 2. Supplier management processes applied vary by
Segment, with more targeted management effort directed at the Segment 1
suppliers, followed by the Segment 2 suppliers.

Supplier Standards
Our commitment to human rights extends to our business partners around the
world. OurResponsibility Standards for Suppliers outline compliance expectations
for suppliers and external manufacturers. Our external manufacturing partners are
subject to assessments that may include an on-site audit or periodic inspections
and must maintain records to demonstrate conformance to our supplier
standards.Going forward, we will continue to monitor these suppliers to verify that
they conform to our human rights standards, with a strong focus placed on about
20 percent of the total that are located in high-risk countries. All external
manufacturing, active pharmaceutical ingredient supplier, re-packer and
sterilizer site locations (numbering approximately 900) have been confirmed, and
approximately 130 were identified as being located in high-risk countries, including
Algeria, Brazil, China, India, Indonesia, Kenya, Mexico, Nigeria, Pakistan, Panama,
Paraguay, Romania, Russian Federation, Thailand, Ukraine and Vietnam. Of those,
88 percent have been confirmed to conform to the human rights provisions of our
standards, and none were identified as non-conformant.
In 2012, we began implementing our Responsibility Standards for Suppliers.
Implementation across our supply chain will take time, due to the sheer number of
suppliers. These standards, which previously applied only to our external
manufacturing partners, have been extended to all of our suppliers, totaling tens of
thousands. The standards were revised to be more inclusive, including some
revisions on human rights, such as the requirement to implement policies and/or
procedures to evaluate the risk of human trafficking. The revised standards are
available
on
our
responsibility
website
at http://www.jnj.com/responsibility/ESG/social/Supply_Chain/Standards.
Related to human rights, these standards state that external manufacturers must:
Not use forced, bonded, indentured or involuntary prison labor
Not discriminate against or harass an individual on the basis of race, color, religion,
gender, pregnancy, HIV status, sexual orientation, national origin, age, disability,
veterans status, marital status, or political affiliation
Not treat or threaten to treat an individual harshly or inhumanely. Harsh or
inhumane treatment includes sexual harassment or abuse, corporal punishment,
coercion or verbal abuse

Avoid unsafe working conditions by providing sufficient rest periods during the
workday and honor agreed upon days off from work and maximum working hours
Pay wages for all hours worked and clearly communicate the wages that employees
are to be paid to them in advance of commencing work and communicate to all
employees if overtime is required and the wages to be paid for such overtime
Comply with the Johnson & Johnson Policy on the Employment of Young Persons
and not employ anyone under the age of 16 and not employ anyone under the age
of 18 to perform hazardous work
Respect workers rights to make informed decisions free of coercion, threat of
reprisal or unlawful interference regarding their desire to join or not join
organizations
Respect workers' rights to bargain collectively without unlawful interference
External manufacturers for Johnson & Johnson operating companies enter into an
enforceable written agreement to comply with these standards. External
manufacturers are also subject to periodic inspections and must maintain records to
demonstrate conformance to these standards.
Our Healthy Future 2015 goal requires that all suppliers in high-risk countries
confirm awareness of and conformance with the human rights provisions of our
Responsibility Standards for Suppliers. For the purpose of identifying high-risk
countries, we have used regulatory requirements within the country pertaining to
product safety, application of good manufacturing practices and quality
management systems, protection of intellectual property, the enforcement of
regulations and the ranking of the country in the Corruption Perception Index
produced by Transparency International and the Johnson & Johnson Export
Compliance Policy. In 2012, tools to evaluate and verify if a supplier conformed to
the human rights provisions of our policies and standards were developed and
provided to Johnson & Johnson businesses.
Although we have the tools (both internally developed and third-party solutions) to
evaluate suppliers and verify that they conform, our efforts continue to be limited
due to difficulty in identifying which suppliers make or sell a service from any highrisk country. Sector strategies have been developed and are being implemented. A
working group has been initiated and will meet regularly to review overall efforts to
ensure progress throughout 2013 and beyond.
To meet this goal across our supply chain, we have classified our suppliers by type
and volume of business conducted. Of our approximately 200 strategic suppliers,
51 percent have been evaluated to see if they make or sell a service from a highrisk country. Approximately 40 percent of these suppliers confirmed that they do,
and slightly less than half of these have been confirmed to conform to the human
rights provisions of our standards. To date, none have been identified as nonconformant.

Distribution and logistics strategy

Johnson & Johnson is a global American pharmaceutical, medical devices and
consumer packaged goods manufacturer founded in 1886. Its common stock is a
component of the Dow Jones Industrial Average and the company is listed among
the Fortune 500.
Johnson & Johnson consistently ranks at the top of Harris Interactive's National
Corporate Reputation Survey, ranking as the world's most respected company by
Barron's Magazine, and was the first corporation awarded the Benjamin Franklin
Award for Public Diplomacy by the U.S. State Department for its funding of
international education programs. A suit brought by the United States Department
of Justice in 2010, however, alleges that the company from 1999 to 2004 illegally
marketed drugs to Omnicare, a pharmacy that dispenses the drugs in nursing
homes. Johnson & Johnson has responded that the payments were lawful and
appropriate.
The corporation's headquarters is located in New Brunswick, New Jersey, United
States. Its consumer division is located in Skillman, New Jersey. The corporation
includes some 250 subsidiary companies with operations in over 57 countries. Its
products are sold in over 175 countries. Johnson & Johnson had worldwide
pharmaceutical sales of $24.6 billion for the full-year 2008.
Johnson & Johnson's brands include numerous household names of medications and
first aid supplies. Among its well-known consumer products are the Band-Aid Brand
line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin
and beauty products, Clean & Clear facial wash and Acuvue contact lenses.
This measure of the market relates to the different distribution channels to market
for each product. The distribution can include the following channels
Consumer Goods example:
Supermarket
Hypermarket
Discount Store
Corner shop
Internet
Johnson & Johnson's new fundraiser strategy just doesn't seem appropriate to me.
Earlier this week J&J announced it will launch a newpromotion this month enabling

fundraising groups to sell J&J's over-the-counter medicines and products in

exchange for an 8% donation to the community group sponsoring the fundraiser.
J&J is positioning this new distribution channel as a great alternative to door-todoor
sales
of
cookies,
wrapping
paper
or
candy.
Johnson & Johnson(JNJ) is requiring all of its medical products distributors to agree
to not source any JNJ products from any entity other than JNJ. It appears that the
aim of this mandate is to reduce the risk of counterfeit medical products reaching
end customers by forcing distributors to agree not to participate in the secondary
market and to purchase only from JNJ. If a distributor involved in the sale of JNJ
products fails to agree with the terms, the company's status as an authorized
distributor of JNJ products will be revoked and shipments of the company's
products
will
cease
effective
March
5,
2004.
While over 100 distributors have signed the agreement none of the publicly traded
medical distributors (as of January 9th) are on JNJ's list of those who have agreed
with the company's terms and signed its agreement. This includes Cardinal Health
(Allegiance division), Henry Schein (via its Medical segment), McKesson (Medical
products
division),
Owens
&
Minor,
and
PSS
World
Medical.
This decision by the company is important because of the clear mandate made in its
trading partners. Goldman Sachs believes that JNJ products may account for as
much as 14% of the hospital distribution market. Owens & Minor indicates that JNJ
products represent approximately 16% of total company sales. The impact is likely
to be somewhat less in Cardinal's Allegiance division and McKesson's medical
products. However, that JNJ remains an extremely important supplier for any
medical products distributor is an axiom. It is probable that distributor
managements are under significant pressure to come to agreement with company
demands and to remain as authorized distributors.

Information technology

Johnson & Johnson - Intranet Approvals System

Project information
Business Problem

Johnson & Johnson companies in the United States use an integrated

Purchasing/Accounts Payable application for electronic requisitioning and
approval. This system, called Intranet Approvals, connects a DB2/CICS
application on a mainframe to a client machine through Java technology.
A user on this system needing budget approval creates a requisition that will
go through one to many layers of authorization, and therefore management,
depending upon the dollar amount involved. As the request is created directly
on the mainframe, a 3270 screen was the interface that was sent through the
pipeline to the appropriate personnel for approval. Many of the managers
involved in the approval process found the 3270 screens difficult to work with.
Data was scattered across different screens; one could not run multiple
transactions, but had to go through each requisition separately. The screen
scraper they had been using varied in performance across platforms and had
to be installed on each client machine at fifteen different sites separately. This
in itself was a maintenance and distribution nightmare. What J&J needed was
a centralized, streamlined approval system whose front end was more useful,
intuitive, and interactive. Moreover, they wanted a Java solution, which is
what they found in Red Oaks Stingray product.
Early in their quest for a solution, developers at J&J commissioned Delta
Corporate Services (DCS), a consulting firm based in Richardson, TX, to help
them build an updated and versatile requisitioning system. DCS decided to
utilize the Stingray 3270 SDK as their ultimate solution. One of the main
reasons DCS chose Stingray was that competitive products offered only HTML
solutions, while Stingray offered among other things Java code generation. The
developers built an Intranet Approvals applet using this feature of the SDK; the
system could now be deployed from one location across many platforms.
A manager using the Intranet Approvals system will first run the Intranet
Approvals applet on their client machine. The applet is a front-end to CICS: it
sends information to and gathers information from the mainframe screens
throughStingrays runtime components. The Stingray Runtime handles actual
communications to and from the mainframe, and is bundled with the applet so
that anyone running Intranet Approvals will automatically have navigation and

3270 capabilities built-in.

The first panel of the applet displays logon fields and buttons giving the user
the option to either approve/reject requisitions or to designate other
personnel for the task. When the user enters their data, the applet sends
logon and navigation information to CICS, which returns 3270 screens
appropriate to the users choice. These screens are dynamically translated
by the applet into a GUI that resembles a Windows Explorer interface.
A manager choosing to authorize requisitions will next receive the
approvals/rejections panel. On the left side of the interface are folders that
represent different queue, or document types. (A queue comprises all the
requisition documents awaiting action. These reside on the mainframe in DB2
tables, which contain the documents specific to each user). On the right is a list
view displaying various details of the documents in queue: date created,
author, etc. A manager will choose one or more documents from this list view
and from there can either get the full details of the requisition (via a details
button), or approve or reject the requisition. If approved, the requisition goes
to the appropriate supplier. If rejected, it is sent back to the requisitioner.
A manager may alternatively choose to designate his or her authority to
approve requisitions to other personnel of their choosing. This is done from the
logon screen. After logon, the user sees a panel displaying a list of employees
to whom they have designated authority in the past. They can choose from this
list or search for someone entirely different. When the designee is chosen, all
requisitions awaiting action will show up in the designees queue when they log
on to the Intranet Approvals system.
A few notes about the role of Stingray 3270 SDK in the Intranet Approvals
project. As stated above, Stingray Runtime handles communications to and
from the mainframe. But that is not the only capacity in which the SDK was
integral to this projects success.
When a user logs on through the Intranet Approvals applet, automatic
navigation to his or her 3270 screens on the mainframe was made possible
using code generated from Stingray Recorder. Developers from DCS opened
3270 connections to all manager accounts in one terminal session using
Stingray. The Stingray Recorder then generated pure Java code from this
session that implements these connections (or a subset thereof) when a user
logs on through
the Intranet Approvals applet. In this way the terminal session is reduced to
one logon panel; Stingray takes care of the detailed underlying complexity of
the legacy application connection.
Requisitions, however, are still created directly on the mainframe through a
3270 screen. Only the approval portion of the requisitioning process has been

updated using Stingray.

Development of Intranet Approvals at DCS was completed; the Intranet
Approvals system was pilot tested and the application rolled out to the
entire company and its subsidiaries.
The project was targeted for those J&J managers who approve a requisition at
any stage in the process, and who were using the screen scraper previously in
place. In most cases, this was usually team or department managers. This
application solution is but one example of how Stingray can be used to update
and increase the usability of legacy applications. The majority of J&J US
companies are using this application today.

How Stingray has benefited Johnson & Johnson

Stingray provided Johnson & Johnson with an intranet requisition approval
system that saves managers time, money, and headaches. First, the initial
investment required was minimal. Developers simply needed Stingray 3270
SDK: no other software was necessary. And the applet created with Stingray
runs in a web browser, an environment that is already in place on each
desktop.
The new approval system also consolidates dispersed pieces of data in two key
areas:
themselves, are now contained in one Windows Explorer-like graphical
interface. Previously a manager had to use character-based 3270 screens
and could access only one requisition document at a time. Information on
any given document was scattered throughout several 3270 screens.
Now, the user has one familiar interface through which he or she can not
only access multiple data sets stored on the mainframe, but also take
action on that information.
encapsulates the behind-the-scenes code, and is deployed on many client
machines at many different sites from one location an NT/Web server on
site at J&J. Any maintenance or modifications are performed just once. In
the non-web based, pre-Stingray architecture, the screen scraper utilized
had to be loaded on the desktops of all clients involved in the approval
process, which made maintenance and upgrades a time-consuming,
expensive undertaking for IT managers at the various sites. Performance
varied based on what version of terminal emulator the client used (there
were 14 different versions of emulator) and on platform. DCS and Blue
Lobster Softwares efforts removed these obstacles to efficiency, saving the
company time and money.

Finally, the new Intranet Approvals system satisfies the need for a visually
appealing, easy to use front-end. Stingray helped breathe new life into J&Js
existing legacy systems.

Research and development

Johnson & Johnson engages in the research and development, manufacture, and sale
of various products in the health care field worldwide. The company operates in three
segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The
Consumer segment provides products used in baby care, skin care, oral care, wound
care, and womens health care fields, as well as nutritional, over-the-counter
pharmaceutical products, and wellness and prevention platforms under the names
JOHNSONS.
For JNJ, India is a base for manufacturing and launching many products. It has a R&D
center called Johnson and Johnson Technical Laboratory. JNJs focus on their
customers instead of their revenue has allowed customers to develop a strong trust in
JNJ. Their focus on their product development, their customers, a decentralized
organization, and Ethical practices has led to JNJs success.

Johnson & Johnson has also entered into pharmaceutical research partnerships that
connect biotech, medical and academic communities to its global research centers.
In 2009, Johnson & Johnson established a first-of-its-kind late-phase chemical entity
facility, Analytical and Pharmaceutical Development Center, in Mumbai, India. The
center will play a key role in addressing major global health care challenges, many of
which also face Mumbai and the region.

SWOT Analysis of Johnston and Johnston Company:

According to Jeannet and Hennessey (2010), SWOT analysis helps a company to
plan accordingly their need and to focus on the strength to beat the competitor. By
evaluating the market situation of Johnston and Johnston Company, the SWOT
analysis has done as following.
Lee (2009) stated that Johnston and Johnston Company has listed among one of
the leading companies. It has been awarded for baby care and women health care
initiatives. It always maintains quality, because of which it creates a brand image
on consumers mind. It manufactures variety of products which fulfills customer
requirement by going through a proper distribution channel. The products have a
competitive price to grab the market. It always tries to promote the products in an
effective and unique way.

Strength

Weakness

It is listed as one of the worlds best

company.

might sell the expired product.

It maintains quality performance,

Strategic acquisition makes Johnson and

Johnson even more powerful.

cash

reservation

to

invest

Being a global brand leads to Market

fluctuation.

It has a good economic position through

its

Because of its popularity the retailer

Some category products are not available

everywhere.

on

acquisition.

All products have a competitive and fair

price.

It provides variety of choice to customers.

Product diversification leads Johnson and

Johnson

better

position

than

its

competitors.

Brand loyalty.

It is the sixth biggest health care across

the globe.

It has the product category for every

segment of people.

It has a huge market internationally

which includes more than 250 subsidiary
companies and

products sold

in 175

countries.

It is in the list of top 100 companies for

taking initiative on working mothers.
Opportunities

Getting hold of other smaller companies

Threats

can help the company to expand its

business.

Manufacture products for lower economic

class might lead to get enter in rural
areas.

Expand the business internationally.

Research and development investment.

There have competitors which provides

same product at lower price.

Tough opposition from generic market.