Case Study

1. 1

2. 2
GROUP NAME”UNITY”
Section: B
Name ID
1. Md. Ashikur Rahman 14102383
2. Md. Shahadat Hossain 13102357
3. Rimi Shaha 14102166
4. Afruja Akter Asha 14102331
5. Anjuman Bushra Prome 15102034

3. Proposed Slogan
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“Caring for you from the
beginning, to the very end!”

4. History
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 1886- 3 brothers founded Johnson & Johnson in Brunswick, New Jersey.
 1888- Pioneered the first commercial First Aid Kit.
 1894- Launches first maternity kit to make child birth safer
 1898- First to mass produce dental floss.
 1921- An employee invents the first BAND-AID
 1937- Began international expansion with companies in Argentina & Brazil
 1954- Baby shampoo enter the market
 1978- The Company begins construction on their new World Headquarters in New
Jersey.
 1990’s- Ethicon Endo-Surgery pioneers minimally invasive surgery.
 2002- Johnson & Johnson acquires Tibotec-Virco BVBA
 2006- Johnson & Johnson acquires Pfizer Consumer Healthcare
 2009- Acquisition of Mentor Corporation

5. 5
Vision Statement
To continue on the path set forth by the founders of Johnson's
Enterprises, by committing ourselves to our clients and employees and
also contributing to the community.
Mission Statement
To provide our clients with the best possible service and product, which meet
our demands on quality and safety regulations, by assuring that our
employees have all the necessary tools, training and expertise to accomplish
their given tasks?
Objective:
To provide the high quality services and products in cure disease.
To improve the quality of life.
To be the leaders in the customer satisfaction.
To motivating peoples for using or attracting their product.

6. Organizational Chart
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7. Current situation
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Worldwide sales for the full-year 2016 were $71.9 billion, an increase of 2.6%
versus 2015.
Operational results increased 3.9% and the negative impact of currency was
1.3%.
Domestic sales increased 6.0%. International sales decreased 0.9%, reflecting
operational growth of 1.8% and a negative currency impact of 2.7%.
The additional shipping days in 2015 negatively impacted the current year by
130 basis points.
worldwide sales increased 7.4%, domestic sales increased 8.9% and
international sales increased 5.7%.

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External Environment:
General Environment
Political Environment
Economic Environment
Social Environment
Internal Environment
Corporate structure
Corporate culture

9. 9
Organizational activities analysis of Johnson
and Johnson
Marketing of Johnson and Johnson
Products
Place
Price
Promotion

10. 10
Market Analysis:
J&J COV P & G NVS UN
Market Cap: US$ 253.06B 28.41B 217.48B 184.02B 111.80B
Employees: 127,600 43,400 121,000 131,000 173,000
Qtrly Rev Growth
(yoy):
0.09 0.02 0.02 0.01 0.00
Revenue (ttm): 69.99B 12.14B 84.17B 57.96B 66.58B
Gross Margin (ttm): 0.69 0.57 0.50 0.68 0.40
EBITDA (ttm): 22.74B 3.33B 18.73B 17.10B 10.75B
Operating Margin
(ttm):
0.27 0.22 0.19 0.21 0.14
Net Income (ttm): 12.86B 1.90B 11.07B 9.52B 6.19B
EPS (ttm): 4.51 3.77 3.86 3.86 2.12
P/E (ttm): 19.93 16.40 20.57 19.47 18.56
PEG (5 yr expected): 2.71 1.92 2.21 3.15 9.59
P/S (ttm): 3.62 2.34 2.58 3.17 1.68

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Competitive advantage
Product
Brand
Innovation
Extensive collaboration
Research & Development
Porter’s Five Forces

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Value Chain

13. 13
SWOT Matrix
Strengths Weaknesses
•A Substantial Marketing Arsenal
•Strategic Acquisitions
•Product Diversification
•Positive Revenue Growth Projections
•Significant sales and marketing capability.
•Forecast growth despite challenges.
•Dependence upon the Success of Launch Products
•Reliance on Small Molecule Drugs
•Theft and countering drugs from internal staff as much
as this is not isolated.
•Key product demand is shrinking.
Opportunities Threats
•Wide Range of Potential Cross-selling Opportunities
•Potential to Exploit Biologics Market
•Global Expansion
•Economic recovery will be a boost in income thus
company revenue will increase.
•R & D investment will add to the potential growth rate of
the company in surrounding markets.
•Dependence on the Success of Launch Products
•Negative Impact of Recent Product Recalls
•Healthcare regulations
•Better research and development of competitors
•Low market growth rate.

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Internal Factors Evaluation (IFE)
Matrix
Key Internal Factors Weight Rating Weighted
Score
Internal Strengths
1. Diverse business offering 0.09 3 0.27
2. Forecast growth despite challenges. 0.08 3 0.24
3. Significant sales and marketing capability. 0.1 3 0.3
4. Robust financial position. 0.1 4 0.4
5. They gave strong global prescience operating in more than 57 countries with 250
subsidiaries companies.
0.08 4 0.32
6. They have successfully employed strategies to differentiation that helps it distinguish its
self competitors.
0.08 4 0.32
Internal Weakness
1. Generic drug’s exposure. 0.08 2 0.16
2. Private label exposure. 0.08 2 0.16
3. Quality issues in OTC products affecting consumer healthcare product. 0.07 2 0.14
4. Key product demand is shrinking. 0.07 1 0.07
5. Theft and countering drugs from internal staff as much as this is not isolated. 0.09 2 0.18
6. Pressure to reduce prices in accordance with medical budgets and maintain patent
expirations to help generic programs.
0.08 2 0.16
Total 1.00 2.72

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External Factor Evaluation (EFE) Matrix:
Key External Factors Weight Rating Weighted
Score
External Opportunities
1. Acquisition of Synthesis could chance J & J failure of prospective products to deliver leadership
position in global orthopedics market.
0.07 2 0.14
2. Leveraging therapeutic coverage of non-prescription pharmaceutical segments could provide cross
selling opportunities.
0.09 2 0.18
3. Addition of Crucell to broden J & J position in biologics and vaccines market. 0.11 3 0.33
4. R & D investment will add to the potential growth rate of the company in surrounding markets. 0.07 2 0.14
5. Economic recovery will be a boost in income thus company revenue will increase. 0.10 3 0.3
6. Global Expansion 0.06 4 0.24
External Threats
1. Negative impact of recent product recalls 0.09 3 0.27
2. Healthcare regulations 0.09 2 0.18
3. Better research and development of competitors 0.08 2 0.16
4. Low market growth rate. 0.06 2 0.12
5. Strong competition from generic market. 0.10 3 0.3
6. Launch success in that newly launch products are uncertain because of regulatory review, thus making
the launch a potential threat if it fails.
0.08 3 0.24
Total 1.00 2.60

16. TWOS Matrix
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SO Strategies
•S1, O1: JNJ Should aim to be an industry
leader in all its diverse business offerings.
•S2, O2: With the addition of new products
in various departments, JNJ could potentially
still predict growth in challenging times.
WO Strategies
•W1, O1: Although there is a wide variety of generic
drugs, JNJ should use this as an opportunity to highlight
the value and quality of their products and increase
R&D in specific segments to increase market share in
surrounding markets.
•W2, O2: OTC sales should be used as a prime
opportunity to highlight the value and worth of JNJ`s
products.
ST Strategies
•S1, T1: JNJ`s diversity should not be a means
for its products to be valued as "average", its
diversified range should be known for the high
quality.
•S2, T2: The prediction of increased sales in
challenging times should be a testament to JNJ`s
value and quality of products.
WT Strategies
•W1, T1: Product recalls can seriously hinder
the perceived value and quality of JNJ.
•W2, T2: Healthcare regulations along with
challenging economic times can prove costly to
JNJ as a whole.

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Strategic Decision
Alternative Strategy 1
Alternative Strategy 2
Alternative Strategy 3
Alternative Strategy 4

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Advantages of Alternative Strategy 1:
Addition of new products in various departments
High quality
Disadvantages of Alternative Strategy 1:
 Very challenging
High cost
Advantages of Alternative Strategy 2:
increasing R&D
increasing market share
Disadvantages of Alternative Strategy 2:
challenging economic
Maintain rules and regulation

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Recommendation
J&J should take alternative strategy 1 and 2.If they take this
strategy than they can merge With the addition of new
products in various departments, J&J could potentially still
predict growth in challenging times. And if they take alternative
2 than increase R&D in specific segments to increase market
share in surrounding markets.OTC sales should be used as a
prime opportunity to highlight the value and worth of J&J`s
products.

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Evaluation & Control:
Area of objective Short Term Responsibility
Customers
1. Image Well-recognized in their pharmaceuticals division and process from there. Marketing
2. Customer relation Customer should feel they have more of an influence and say over the
J&J products and expectation.
Public Relations
3. Increase OTC sales Will help boost sales Sales
Learning & growth
1. System maintenance upgrades Important to maintain and continuously be running the latest and up to
date technology.
IT department
2.Training & development Train new employees and update experienced workers. Managers
3. Funding allocation Important to wisely select division which need more funding than others. Managers
Operation/Internal process
1. Controlling and managing
materials
Should be controlled and well organized for distribution Managers/Employees
2. Procurement of materials Manager should make sure they are getting materials and equipment for
best possible cost.
Management
3. Distribution of materials Delivery time-frame should be met within specified days. Management
Financial
1.Decrease R&D expense Decrease R&D expense as a whole but fund certain division more than
others for the time being.
Management
2. Increase net sales Conservative approach, yet avoid defensive strategy Management/Sales Department

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Possible Issues
•Additional product recalls/ lawsuits.
•Another economic downturn.
•Competitor’s gaining market share.
•Federal regulations that affect potential new products and existing processes.
•Litigation from people being hurt through defective products.
•International regulations that limit foreign expansion.

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CONCLUSION
The “Johnson & Johnson” company is so omnipresent in the market that
without it even the world of the baby products and health care product
sounds incomplete. They believe their first responsibility is to the doctors,
nurses and patients, to mothers and fathers and all others who use
Johnson and Johnson products and services. In meeting their needs
everything they do are in high quality. When we talk about baby products
Johnson and Johnson products is what comes first in our mind. Everything
related to the brand, be its advertisements, products, after sale services are
all example of perfect excellence.

23. Questions?
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