JHONSON&JHONSON

BUSINESS ENVIROMENT PROJECT

Submitted to Nityanand Sir

NAME:ABHINANDAN ROY

SEC:B

ROLL:2

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 INTRODUCTION:

Johnson & Johnson is an American multinational corporation founded in 1886 that develops
medical devices, pharmaceutical and consumer packaged goods. Its common stock is a component of
the Dow Jones Industrial Average and the company is ranked No. 37 on the 2018 Fortune 500 list of
the largest United States corporations by total revenue. J&J is one of the world's most valuable
companies.

Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being
located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with
operations in 60 countries and products sold in over 175 countries. Johnson & Johnson had
worldwide sales of $70.1 billion during calendar year 2015.

1. Johnson & Johnson's brands include numerous household names of medications and first
aid supplies. Few of them are as follows:
#Medical devices
#pharmaceutical
#consumer packged goods

 Band-aid
 Line of band-aid
 Tyelon medication
 Jhonson baby product
 Neutrogena skin and beauty product
 Clean & clear face wash
 Acuvue contact lenses

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 CONTENT

RESEARCH METHODLOGY 4

CHAIRMAN HISTORY 5

PRODUCT RANGE 6

CORPORATE GOVERNANCE 7

PESTLE analysis 8

SWOT analysis 11

Timeline of the company 12

Conclusion 15

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Research Methodology:

To understand the factor that a company faces and the investment taken over the
company. Taking the brief idea of all the factor involved in the making the
company successful. Here we have taken some of the small notes taking all the
problem that is faced by the employee of the company.

COVERAGE & SCOPE

The wide range of the company product and the factores affecting the company.
The PESTLE analysis and the SWOT analysis of the company.

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 Chairmen’s HISTORY

 Robert Wood Johnson I (1887–1910)

 James Wood Johnson (1910–1932)

 Robert Wood Johnson II (1932–1963)

 Philip B. Hofmann (1963–1973)

 Richard B. Sellars (1973–1976)

 James E. Burke (1976–1989)

 Ralph S. Larsen (1989–2002)

 William C. Weldon (2002–2012)

 Alex Gorsky (2012–present)

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 Product range :

Medical devices

Sectors in which the company is active include:

 Aesthetics (Ethicon, Mentor)

 Arrhythmias (Biosense Webster)
 Bariatric Surgery for Obesity (Ethicon)
 Cardiovascular Disease (Biosense Webster, Inc.)
 Diabetes Care (LifeScan, Animas Corporation)
 Ear, Nose, and Throat Conditions (Acclarent)
 General Surgery (Ethicon, Codman Neuro)
 Hernia Surgery (Ethicon)
 Insulin Delivery Devices (Animas)
 Neurovascular Disease (Codman Neuro, DePuy Synthes)
 Orthopaedics (DePuy Synthes): Joint Reconstruction, Trauma, Spine, Sports Medicine and Power
Tools
 Self-Measured Blood Glucose Monitors (LifeScan)
 Surgical Instruments and Infection Prevention(Advanced Sterilization Products)
 Urologic Surgery (Ethicon)
 Vision Care (VISTAKON)
Pharmaceutical
Sectors in which the company is active include:

 Baby Care
 Nutritionals
 Oral Health Care
 Over-the-Counter Medicines
 Skin & Hair Care
 Vision Care
 Wound Care & Topicals

Consumer Products
These are one of the best products in J&J. Products under this category are outlined below.
 Baby and Child Care

 Skin Care

 Oral and Wound Care

 Women's Health Care

 Nutritional Products
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 Over-the-counter Medicines

CORPORATE GOVERNANCE

Current members of the board of directors of Johnson & Johnson for 2019 are: Alex Gorsky, Mary C.
Beckerle, D. Scott Davis, Ian E. L. Davis, Jennifer A. Doudna, Mark B. McClellan, Anne M.
Mulcahy, William D. Perez, Charles Prince, A. Eugene Washington, Marillyn A. Hewson and Ronald
A. Williams.
Sandi Peterson has served as Group Worldwide Chairman since 2012.
On top of Alex Gorsky and Sandi Peterson, current members of Executive Committees of Johnson &
Johnson are: Dominic Caruso (the company's chief financial officer), Peter Fasolo, Paul Stoffels, and
Michael Sneed.
On July 2, 2018, Johnson & Johnson's head of pharmaceuticals, Joaquin Duato, became the vice
chairman of the executive committee.

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 PESTLE
P:Politial
E:Economic
S:Social
T:Technology
L:Legal
E:Enviroment
PESTEL analysis provides valuable insight into the operating challenges that any company in the
industry appears to face, and so the company in question may face as well. An understanding of the
overall competitive landscape will prevent investors and entrepreneurs from partaking in any risky
ventures if the risk arises out of, say, an unstable political regime or a sudden economic recession.
This may be best exemplified by the recent exit of the United Kingdom from the European Union.
The sudden fallout was political and caused many investors to pull out of new ventures and halt their
expansions, as the future became uncertain in the wake of this decision.

Political Factors that Impact Johnson Johnson

The political factors that may impact the profitability or chances of survival of the company are quite
diverse. The political risks vary from sudden changes in existing political regimes to civil unrest to
major decisions taken by the government. In cases of possible multinationals, one may also include
political factors that take place/ affect not only the host country but also all countries that contain
business operations, or that may engage in trade with Johnson Johnson
To properly appraise the extent of the overall systematic political risk that Johnson Johnson may be
exposed to, the following factors should be considered before taking part in any investments:

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of corruption, as the resulting
repercussions may lead to possible impeachments or resignations of high level government
employees.

Economic Factors that Impact Johnson Johnson

Economic factors are all those that pertain to the economy of the country that Johnson Johnson, such
as changes in the inflation rate, the foreign exchange rate, the interest rate, the gross domestic
product, and the current stage of the economic cycle. These factors, and their resulting impact on
aggregate demand, aggregate investment and the business climate, in general, have the potential to
make a company highly profitable, or extremely likely to incur a loss. The economic factors in the
PESTEL analysis are macroeconomic.

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 The economic factors that Johnson Johnson may be sensitive to, and in turn should consider before
investing may include the following:

 The economic system that is currently operational in the sector in question- whether it is a monopoly,
an oligopoly, or something similar to a perfect competition economic system.
 The rate of GDP growth in the country will affect how fast Johnson Johnson is expected to grow in
the near future.

Social Factors that Impact Johnson Johnson

The social factors that impact Johnson Johnson are a direct reflection of the society that Johnson
Johnson operates in, and encompasses culture, belief, attitudes and values that the majority of the
population may hold as a community. The impact of social factors is not only important for the
operational aspect of Johnson Johnson, but also on the marketing aspect of the organization. A
thorough understanding of the customers, their lifestyle, level of education and beliefs in a society, or
segment of society, would help design both the products and marketing messages that would lead to a
venture becoming a success.
The social factors that affect Johnson Johnson and should be included in the social aspect of the
PESTEL analysis include the following:

 The demographics of the population, meaning their respective ages and genders, vastly impact
whether or not a certain product may be marketed to them. Makeup is mostly catered to women, so
targeting a majority male population would be less population than targeting a population that is
mostly female.
 The class distribution among the population is of paramount importance: Johnson Johnson would be
unable to promote a premium product to the general public if the majority of the population was a
lower class; rather, they would have to rely on very niche marketing.

Technological Factors that Impact Johnson Johnson

Technology can rapidly dismantle the price structure and competitive landscape of an industry in a
very short amount of time. It thus becomes extremely important to constantly and consistently
innovate, not only for the sake of maximizing possible profits and becoming a market leader, but also
to prevent obsolescence in the near future. There are multiple instances of innovative products
completely redesigning the norm for an entire industry: Uber and Lyft dominate the taxi cab industry;
smartphones have left other phones an unviable option for most et cetera.
The technological factors that may influence Johnson Johnson may include the following:

 The recent technological developments and breakthroughs made by competitors, as mentioned above.
If Johnson Johnson encounters a new technology that is gaining popularity in the industry in
question, it is important to monitor the level of popularity and how quickly it is growing and
disrupting its competitors’ revenues. This would translate to the level of urgency required to
adequately respond to the innovation, either by matching the technology or finding an innovative
alternative.

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 How easy, and thus quickly, will the technology be diffused to other firms in the industry, leading to
other firms copying the technological processes/ features of Johnson Johnson

Environmental Factors that Impact Johnson Johnson

Different industries hold different standards of environmental protection in their head as the norm.
This norm then dictates what every company should aim for, in the least, to prevent becoming the
target of pressure groups and boycotts due to a lack of environmental conscientiousness. A company
in the textile industry, for example, is not expected to incur the same level of pollution and
environmental degradation as an oil company. The new consumer, armed with the interest and the
knowledge it carries, prefers to give its business to companies it views as more ethical, particularly
about the environment in the wake of global warming.
The environmental factors that may significantly impact Johnson Johnson include:

 The current weather conditions may significantly impact the ability of Johnson Johnson
 to manage the transportation of both the resources and the finished product. This, in turn, would
affect the delivery dates of the final product in the case of, say, an unexpected monsoon.
 Climate change would also render some products useless. For example, in the case of textiles, in
countries where the winter has become very mild due to Global Warming, warm winter clothes have
much less of a market.

Legal Factors that Impact Johnson Johnson

The government institutions and frameworks in a country while technically also political and thus
subject to whichever political party holds the majority in a government body, are also legal and thus
should be considered in a PESTEL analysis. Often Johnson Johnson policies on their own are not
enough to efficiently protect Johnson Johnson and its workers, making Johnson Johnson appear an
undesirable place of employment that may repel skilled, talented workers.
The legal factors that deserve consideration include the following:

 Intellectual property laws and other data protection laws are, as mentioned earlier, in place to protect
the ideas and patents of companies who are only profiting because of that information. If there is
likelihood that the data is stolen, then Johnson Johnson will lose its competitive edge and have a high
chance of failure.
 Discrimination laws are placed by the government to protect the employees and ensure that everyone
in Johnson Johnson is treated fairly and given the same opportunities, regardless of gender, age,
disability, ethnicity, religion or sexual orientation.

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 SWOT ANALYSIS
Strengths of Johnson & Johnson – Internal Strategic Factors
As one of the leading companies in its industry, Johnson & Johnson has numerous strengths that
enable it to thrive in the market place. These strengths not only help it to protect the market share in
existing markets but also help in penetrating new markets. Based on Fern Fort University extensive
research – some of the strengths of Johnson & Johnson are –
 Good Returns on Capital Expenditure – Johnson & Johnson is relatively successful at execution of
new projects and generated good returns on capital expenditure by building new revenue streams.
 Successful track record of developing new products – product innovation.

Weakness of Johnson & Johnson – Internal Strategic Factors

Weakness are the areas where Johnson & Johnson can improve upon. Strategy is about making
choices and weakness are the areas where a firm can improve using SWOT analysis and build on its
competitive advantage and strategic positioning.

 Investment in Research and Development is below the fastest growing players in the industry. Even
though Johnson & Johnson is spending above the industry average on Research and Development, it
has not been able to compete with the leading players in the industry in terms of innovation. It has
come across as a mature firm looking forward to bring out products based on tested features in the
market.
 The marketing of the products left a lot to be desired. Even though the product is a success in terms
of sale but its positioning and unique selling proposition is not clearly defined which can lead to the
attacks in this segment from the competitors.
Opportunities for Johnson & Johnson – External Strategic Factors
 Opening up of new markets because of government agreement – the adoption of new technology
standard and government free trade agreement has provided Johnson & Johnson an opportunity to
enter a new emerging market.
 New trends in the consumer behavior can open up new market for the Johnson & Johnson . It
provides a great opportunity for the organization to build new revenue streams and diversify into new
product categories too.

Threats Johnson & Johnson Facing - External Strategic Factors

 The demand of the highly profitable products is seasonal in nature and any unlikely event during the
peak season may impact the profitability of the company in short to medium term.
 New environment regulations under Paris agreement (2016) could be a threat to certain existing
product categories .

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 TIMELINE

 1947
Johnson & Johnson Spreads Its Roots to India
In 1947, Johnson & Johnson expands into India, marketing Johnson’s Baby Powder. Today,
Johnson’s remains a trusted brand by mothers and doctors.

 1959

The First Manufacturing Facility for Consumer Products Is Established in Mumbai

Production began in 1959 at the Johnson & Johnson India plant in Mulled, Mumbai, for Johnson’s
Baby Powder, BAND-AID® and specialized products.

 1962

The First Medical Devices (Sutures) Manufacturing Facility Is Established

In 1962, the first Ethicon suture manufacturing facility was set up in Mumbai for catgut sutures.
Suture manufacturing was expanded with full-fledged state-of-the-art plants in Aurangabad (1991)
and Baddi (2007), respectively.

 1975

A Pharmaceutical and Ethical Products Manufacturing Facility Is Established

Ethnor Ltd (merged with Johnson & Johnson in 1994) set up a plant for manufacturing
pharmaceutical and ethical products of Ortho McNeil Laboratories and Cilag Chemie (members of
the Johnson & Johnson family of companies).

 1989

The Ethicon Plant Receives the President’s Safety Award

The Ethicon catgut manufacturing facility was awarded the prestigious President's Safety Award in
1989, recognition of the company’s high manufacturing safety and quality standards.

 1993

The First Professional Education Institute for Healthcare Professionals Is Established

To help improve access to quality healthcare and accelerate the building of a skilled India, Johnson &
Johnson India took a pioneering step in 1993 by establishing its first professional education institute–
the Ethicon Institute of Surgical Education (EISE) in Mumbai. Since then, the company has trained
more than 250,000 healthcare professionals through its owned institutes and via partnerships with
government and educational institutions.

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 1998

DePuy Joins the Johnson & Johnson Family of Companies

In 1998, Johnson & Johnson acquired DePuy followed by Synthes in 2012 to tackle some of the
toughest problems in the orthopaedics industry. Today, their joint reconstruction, sports medicine and
facial fracture repair technologies can be found in hospitals, clinics, and sports arenas across the
world.

 2009

The Company Begins Partnering With the Indian Academy of Pediatrics to Support Child
Survival

Johnson & Johnson India’s Neonatal Resuscitation Program was founded in 2009 and is the largest
child survival project to be implemented in India. Over seven years, Johnson & Johnson India, along
with the Indian Academy of Pediatrics, has trained more than 180,000 healthcare professionals and
infant caregivers on resuscitation skills to reduce infant mortality in India.

 2013

Construction Begins on a New Manufacturing Facility for Consumer Products

The foundation laid stone for Johnson & Johnson India’s largest consumer products Greenfield
facility in Telangana to manufacture personal hygiene and skincare products.

 2015

The Company Launches a New Class of Type 2 Diabetes Medicine in India

In 2015, Janssen India, the pharmaceutical division of Johnson & Johnson India, introduced
canagliflozin, a new class of medication called sodium glucose co-transporter 2 (SGLT2) inhibitors,
for the treatment of type 2 diabetes.

 2016

The Company Establishes an Innovative Partnership with the Government of India on MDR-
TB

In 2016, Janssen India donated 600 courses of bed aquiline to the Revised National Tuberculosis
Control Program (RNTCP) of India for use as part of a conditional access program for multidrug-
resistant tuberculosis (MDR-TB). Discovered by Janssen researchers, bed aquiline is a therapy with a
novel mechanism of action against TB, and addresses a significant unmet need for patients with
MDR-TB.

Since then, the program is due to be expanded, with an additional 10,000 courses of treatment to be
received by RNTCP through the Johnson & Johnson USAID donation program.

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 2018

Johnson & Johnson India Joins Forces with the Government of Maharashtra to Boost Public
Health in the State

Johnson & Johnson India announced a strategic partnership with the Government of Maharashtra to
implement focused disease interventions that have the potential to significantly improve the health of
people and strengthen health are in the state

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 CONCLUSION

The company has to go through many problems what other wont

understand sticking to the demand of the consumer making the
profit and lot more.
Staying on the track to stay on the lead. Doing new experiments
over the products so that it will have new commencement in the
market.
Always have to stay smarter then the other the company in the
market JHONSON & JHONSON have really made it through all
and is now worlds top 10 company over the consumer product.

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