Johnson and Johnson

Strategic Management Research | 7BSM2004

STUDENT ID:

Section A: Word count - 4377

Table of Content

Table of Content 2

Introduction 3

J&J Background 4

J&J Mission and Vision 5

PESTLE Framework Assessment of Johnson and Johnson 7

Political Factors 7

Economic Factors 8

Sociological Factors 9

Technological Factors 10

Legal Factors 11

Environmental factors 12

Porter’s Five Forces Analysis on Johnson and Johnson 13

The Threat of New Entrants 14

Power of Suppliers 15

Power of Buyers 16

Competitive Rivalry 17

Threat of Substitutes 18

VRIO Framework Evaluation of Johnson and Johnson Sustainable Competitive Advantage 18

Value 19

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 Rarity 19

Imitability 20

Organization 20

Identification of Johnson and Johnson Key Stakeholders 21

Power Interest Grid Evaluation of Johnson and Johnson Key Stakeholders 22

Conclusion and Recommendations 25

References 27

Appendices 33

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Introduction

The healthcare sector has continued to stand among the top performing industries in the world.

The advent and persistency of the Covid-19 pandemic and the quest for sustainability have

increased the significance of the healthcare industry (Allen, 2021). Johnson & Johnson is a key

player in the healthcare sector as it’s integral in the manufacture and distribution of healthcare

products, drugs, and medical devices. The company actively participated in the development of

vaccines during the coronavirus outbreak (Investopedia, 2022).

As a result of the exponential rise in globalization, increased competitiveness, speedy rate of

change, and the quest for global market share division, (Kesic, 2009) recommended the

introduction of strategic management of the major industries in the healthcare sector, especially

the pharmaceutical industry. The application of situational analysis to the internal and external

business environment of the industry is required to predict and prepare for the industry’s future.

(Rajan, 2016) describe situational analysis as the realistic assessment of the current state of an

industry to provide evidence-based decisions regarding the strategic direction of the industry in

the future.

In this report, a situational analysis will be conducted on the Johnson & Johnson business

environment using PESTLE and Porter’s five forces for the external environment while the

VRIO framework and the power/interest grid for the internal environment. A recommendation

on how the company can strategically prepare for the future and deal with its current

environment will be used to conclude the report.

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J&J Background

Johnson & Johnson, which is the largest and most diversified healthcare company in the world,

is a brand that focuses on the research and development, sales, and manufacture of several

healthcare products for human health and well-being. The company which was incorporated in

1887 operates through three business segments which include; Consumer health, medical

devices, and pharmaceuticals see Appendix 1 (Johnson & Johnson, 2022). Mark Kolakowsk

(2022) listed J&J among the top 10 biggest players in the healthcare industry with approximately

144,300 employees dispersed across the globe as of 2021.

Appendix 1: Johnson & Johnson Business Segments (Source: (Johnson & Johnson, 2021b))

J&J Mission and Vision

The company’s purpose, mission, and values are established in its Credo which serves as its

inspiration to put the needs and well-being of humans are the priority always (Johnson &

Johnson, 2021b). See Appendix 2 for the J&J’s Credo.

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Appendix 2: Johnson and Johnson Credo (Source: (Johnson & Johnson, 2022))

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PESTLE Framework Assessment of Johnson and Johnson

Johnson et al. (2014) described PESTLE analysis as a framework that provides a wide overview

and a detailed list of macro-environmental influences that can impact the success or failure of a

particular business. The framework is explained using six different factors which include;

Political, Economic, Social, Technological, Legal, and Environmental factors. (Capobianco et

al., 2021) noted the importance of the analysis in recognizing business opportunities and threats

that are critical in making strategic-level decision-making and the development of future

business models. However, the analysis is limited by the rate of change and increasing

unpredictability of its defining factors, and also the wide considerations that must be accounted

for (Henry, 2018).

Political Factors

Riston (2008) identified government policies, political stability, and foreign trade regulations,

among others as major political factors that could affect the activities of J&J. (WorldBank Blog,

2022) acknowledges the fact that companies such as J&J require the absence of political unrest

and instability for proper growth and progressive operations. For instance, the ongoing political

uproar between Russia and Ukraine caused Johnson & Johnson to close its operations in Russia,

and this resulted in a big drop in revenue as Russia is one of the biggest marketplaces for J&J

products (Reuters, 2022).

In a bid to make health care inclusive and accessible to all, big players such as the government

and health insurance organizations tend to mount price pressure on healthcare products. Major

economies outside the United States e.g. the U.K., China, etc., impose price controls on

healthcare products and thus, affecting the valuation of the company’s products and intellectual

property (Johnson & Johnson, 2022).

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Economic Factors

Global sales of pharmaceutical products, inflation, currency devaluation, foreign currency

exchange, etc., have been classified as economic risks that can potentially affect the operation,

productivity, and profitability of the company (Johnson & Johnson, 2022). Global inflation in

2022 had a strong impact on the business operations and financial responsibilities of the health

care industry (GEP, 2022; NBER, 2022). Although the consumer health segment of J&J saw a

3% rise in sales in the Q2 of 2022 compared to 2021, the net earnings across all groups declined

by 23.3% as a result of supply constraints and inflationary pressures (Cosmetics design-

europe.com, 2022).

Additionally, the instability and differences in currency across borders are major economic

factors affecting the operating results of businesses operating on a global scale (MBA Skool,

2022a). The fiscal report for 2021 shows that more than 50% of Johnson and Johnson sales

occurred outside the United States (See Appendix 3). The report also showed that the instability

of the U.S. dollar and the relative exchange of non-U.S. currencies to the U.S. dollar affects the

company’s revenues and expenditures (Johnson & Johnson, 2022). The European Union’s single

currency policy has presented the company with a big market opportunity to operate freely in

several European markets.

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Appendix 3: Johnson & Johnson Sales by Geographical Regions in 2021 (Source: (Johnson &

Johnson, 2022))

Sociological Factors

Macmillan and Tampoe (2001); Riston (2008) identified culture, demography, social class and

segments, values, and beliefs, as the social factors affecting the operations and environment of a

business. (Johnson & Johnson, 2021e) described how J&J have adopted and integrated the

concept of diversity, equity, and inclusion (DE&I), robust employee engagement, human right,

ethics, global cultural compliance, etc., into its programs.

Furthermore, the wider range of products offered by Johnson and Johnson has made the

company consider several demographics in establishing the profitability of its offerings in the

market. For instance, (Henry, 2018) described the market target of Johnson and Johnson baby-

care products as the adult female audience while the baby lotion product has been considered to

be a viable product for women’s skin. Thus, countries, where women are religiously restricted

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from going out without a veil, tend to have lesser demand for the company’s beauty product

(Statista, 2022).

Technological Factors

Henry (2018) explained that the advent and advancement in technology have brought about some

of the major disruptions in the macro business environment. The upscale of the internet, rates of

obsolescence, the emergence of newer technologies, nanotechnology, advancement in artificial

intelligence and cloud computing, rate of change in innovations, etc. have been identified as

some of the main factors providing threats and opportunities in the local and global market

environments (Riston, 2008; Johnson et al., 2014; Henry, 2018).

Macmillan and Tampoe (2001) described product innovation and process innovation relative to

technological advancement as one of the important factors driving growth and success in many

business environments today. This claim is acknowledged as a major priority at J&J as an

investment in innovation as being a major part of the company since its incorporation (Johnson

& Johnson, 2022). About $82 billion was invested in R&D in 2020 to outmuscle its competitor

technologically (Investopedia, 2022). The company has learned to leverage the power of digital

technology and data to interact effectively with patients, provide personalized treatments and

efficient diagnostics, etc. Furthermore, Johnson and Johnson have invested in advanced

manufacturing technologies, expanded smart manufacturing (See Appendix 4), etc. (Johnson &

Johnson, 2021f).

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Appendix 4: Johnson & Johnson Technological and Digital Core (Source: (Johnson & Johnson,

2021b))

Legal Factors

The significance of legal factors affecting the macro environment of businesses in the

pharmaceutical industry cannot be overemphasized (Martin et al., 2018). Factors such as anti-

discrimination laws, health, and safety regulations, data protection laws, consumer protection

laws, intellectual property regulations, etc., are important determinants in posing legal threats to

a company (Shifrin and Thomas, 2009). Negligence or violation of any legal obligations tends to

result in heavy fines which can affect the company’s profitability and productivity. Several

examples of the company’s lawsuits are outlined in the company’s annual reports (Johnson &

Johnson, 2022).

Since the company is a global brand, it has the responsibility of abiding by the local legal

obligations and human rights in its country of operation. This is backed up by the company’s

commitment to legal compliance, respect for human rights, and intellectual property rights

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(Johnson & Johnson, 2020b). Similarly, Johnson & Johnson has recognized the risks associated

with product reliability, safety and effectiveness concerns, alongside some significant regulatory

scrutiny and compliance costs, exposure to tax liabilities, and intellectual property rights

concerns that pose the danger of legal proceedings, fines, and penalties (Johnson & Johnson,

2022).

Environmental factors

(Capobianco et al., 2021) noted that environmental considerations are the key drivers for

sustainability. Factors such as climate change, increased pollution, renewable technologies,

ethical sourcing, etc., have brought about different concerns to the operation technique in

businesses across the globe (CIPD, 2022). Environmental considerations must be made by

businesses before making decisions (Macmillan and Tampoe, 2001). This justifies one of the

major reasons why protecting the environment and natural resources has been a primary goal for

Johnson & Johnson as stated in the company’s Credo (Johnson & Johnson, 2022). Several efforts

and approaches by the company to advance environmental health and sustainability were

outlined in the company's ESG strategy (Johnson & Johnson, 2021c, 2021d).

In a bid to preserve and protect the planet and the health of the living organisms on it, especially

humans, Johnson & Johnson strongly recognize that the health of the planet is a global health

issue and everyone in it deserves a healthy environment. Thus, the company being a part of the

health sector has an important role to play in making the planet a healthy place (Johnson &

Johnson, 2021g). Recognition, adherence, and participation in environmental issues are critical

in advancing sustainability and maintaining the company’s superiority in the market (James et

al., 2019).

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Porter’s Five Forces Analysis on Johnson and Johnson

The five forces framework is used in identifying the appealing and superior nature of an industry

in the light of five competitive forces (see Appendix 5) which include the threat of substitutes,

competitive rivalry, suppliers’ power, threat of new entrants, and buyers’ power (Johnson et al.,

2014). The five forces are important the profitability and competition that exist in a particular

industry (Porter, 2008). The forces which are structured industrially are based on the structure-

conduct-performance model which is significant in making important market expansion

decisions (Henry, 2018). However, (Henry, 2018) outlined some observations that may limit the

application of the framework, and these include; its static nature, its non-consideration of

emerging industries, its non-recognition of co-opetition, etc. The framework will be used to

analyze Johnson and Johnson's competitive outlook in the global market.

Appendix 5: Five Forces that affect competitiveness in an industry (Source: (Porter, 2008))

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The Threat of New Entrants

(Henry, 2018) describes this force as one that is used to describe how new competitors and

companies (such as Amazon (Associated Press, 2022)) can make their way into an established

industry to partake in the market share and reduce the profitability of existing companies.

However, the threats that will determine the impact of new entrants depend on the availability of

barriers such as economies of scale, supply chain requirements, switching costs, technology,

credibility, brand trust, etc., (Riston, 2008; Henry, 2018).

The threat of new entrants in all three business segments of Johnson and Johnson is generally

low. This is as a result of reasons such as the following:

1. Johnson and Johnson invest massively in staying profitable and innovative with its

products through comprehensive research and development that cost about $14.7

billion in 2021 (see Appendix 6), a 21% improvement over the previous fiscal year's

investment (Johnson & Johnson, 2022).

2. Brand identity is another differential that is enjoyed by the company between 2019 –

2021, the company’s global advertisement expenses were $7 billion (Johnson &

Johnson, 2022) which may be difficult for a new company to match. Similarly, the

extensive promotional effort coupled with the company’s longevity in the industry

has provided J&J with robust customer loyalty and trust that a new company will

struggle with.

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Appendix 6: Johnson & Johnson R&D investment comparison of 2020 and 2021 (Source:

(Johnson & Johnson, 2022))

Power of Suppliers

The tendency of increased prices and the reduced quality of products is a strategy that suppliers

use as bargaining power in an industry (Henry, 2018). Factors such as excess concentration of

suppliers, low concentration of substitutes, the threat of forward integration, and high switching

costs will give suppliers an added advantage over their buyers in many industries (Riston, 2008;

Henry, 2018). Since Johnson and Johnson operate in 3 business segments, the company thus

deals with two categories of suppliers which include raw materials provider and technical

equipment provider for its pharmaceutical, consumer health, and medical device products (MBA

Skool, 2022b). Due to the delicacy and importance of its product offerings, J&J deal with the

best and most standard suppliers. In a bid to avoid delays in manufacturing and product shortages

that might result in sales decline, the company works with more than 45,300 suppliers across the

globe with a $34.8 billion expenditure in 2021, see appendix 8 (Johnson & Johnson, 2021b). The

company also deals with the suppliers on a long-term basis with a contractual agreement towards

longevity, partnership, and compliance. Thus, Johnson & Johnson is the primary customer of

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most of its suppliers (Johnson & Johnson, 2022). Therefore, the bargaining power of the

suppliers toward J&J will be relatively low because it will be difficult for the suppliers to take

the risk of losing their primary buyers. Thus, every supplier will make great efforts in innovating

their products, improving their efficiency, and staying compliant with standards (MBA Skool,

2022b).

Power of Buyers

The bargaining power of buyers was described by (Henry, 2018) as the force that can affect the

profitability of industry through its demand for quality compromise and bargain, reduced price,

etc. According to (Riston, 2008; Henry, 2018), the bargaining power of buyers in an industry is

high when the concentration of the buyers over the suppliers is relatively high, the switching cost

is low, the presence of a backward integration threat, etc.

The company’s major buyers range from individuals, medical patients, retailers, insurance

companies, healthcare professionals, and healthcare centers to pharmacies, etc. The bargaining

power of buyers against Johnson and Johnson is relatively low (Togtokhsuren, 2018) due to

reasons such as the following:

1. (Henry, 2018) pointed out that high switching costs will increase the possibility of higher

buyer power due to the low risk and cost involved. However, the healthcare industry

where J&J operates is a very delicate company where buyers find it hard to switch costs

(Voulgaris and Lemonakis, 2014). The risk involved in purchasing and using the

substandard product has lessened the power of buyers against Johnson and Johnson.

2. The credibility and standard enforcement in Johnson & Johnson have increased the close

relationship between the company and its buyers such that the buyers tend to flow with

whatever the company is offering. This is evident in the company’s $11 billion asset in

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 customer-relationship (Johnson & Johnson, 2022) alongside the low recall of its products,

see Appendix 7 (Johnson & Johnson, 2021a).

Appendix 7: Johnson & Johnson Product Recall 2021-2019 (Johnson & Johnson, 2021b)
Competitive Rivalry

The rivalry among existing competitors within the same industry is probably the most decisive

factor among Porter’s five forces. The presence and high intensity of this force in any industry

tend to decrease the profitability of such an industry but enhance innovation (Henry, 2018).

(Riston, 2008) had earlier identified the slow rate of growth, high exit barriers, high fixed costs,

etc., as factors that tend to influence the increased rivalry of competitors in a particular industry.

Johnson & Johnson's major competitors include CVS Health Corp, UnitedHealth Group Inc.,

McKesson Corp, etc., (Investopedia, 2022). Others include GlaxoSmithKline plc, Pfizer,

Medtronic, Unilever, Procter, and Gamble, etc (MBA Skool, 2022b). Nevertheless, the price

regulation has made J&J stand out in the industry in the sales of its product and increasing profit

margins (Alhosnai et al., 2021). Furthermore, the company’s valuation of innovation and its high

investment in research and development, coupled with its excellent supply chain has

differentiated it over its competitors in the industry (Johnson & Johnson, 2022).

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Threat of Substitutes

(Henry, 2018) explained that the presence of the substitute product tends to impose pressure on

companies to reduce their prices to reduce or eliminate the decline in sales and customers

switching to other products. The standardization of prices in the pharmaceutical industry and the

reliability of Johnson and Johnson pharmaceutical products have lowered the impact of

substitutionary threat in that segment irrespective of the available substitutes (Voulgaris and

Lemonakis, 2014; Togtokhsuren, 2018; Salsabila and Megawati, 2022). Similarly, the medical

device segment of the company experiences the same differentiation (MBA Skool, 2022b).

However, the consumer health product tends to have more substitute products and this has

increased the threat of substitutes in this segment.

VRIO Framework Evaluation of Johnson and Johnson Sustainable Competitive Advantage

The VRIO framework is an internal analysis that is used in determining the strengths and

weaknesses of a company by asking four questions as presented in Appendix 8 (Henry, 2018).

The framework is used in assessing the resources and capabilities that are contributing to the

competitive advantages of the company (Jugdev, 2005). According to (Miethlich and Oldenburg,

2019), the resources that are considered in this framework include all assets, organizational

activities, and processes, human capital resources such as intelligence and culture, marketing and

distribution, etc. In this section, some of the resources and capabilities associated with Johnson

and Johnson will be evaluated based on Value, Rarity, Imitability, and Organization.

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Appendix 8: VRIO Questions (Source: (Henry, 2018))
Value

The question of value is used to assess the responsiveness of a company’s resources and

capabilities to the surrounding environmental threats and opportunities (Jugdev, 2005). Johnson

and Johnson understand the importance of value in staying ahead of competitors and thus, the

company has prioritized helping its customers achieve excellent health outcomes, protecting and

strengthening communities, and providing growth opportunities for investors (Johnson &

Johnson, 2021b). Also, the company’s excellent supply chain system through a robust

relationship with suppliers and a magnificent distribution system has turned out to be a valuable

resource for Johnson and Johnson's global operation (Johnson & Johnson, 2022).

Rarity

Henry (2018) explained that a resource or capability that is valuable but is readily present in

other companies cannot be considered to have a sustainable competitive advantage. J&J’s

Environmental, Social, and Governance (ESG) and Health for Humanity strategies have been

used as an industrial differential in staying competitive (Johnson & Johnson, 2021a, 2021b). The

outcome generated from these strategies is uncommon among its competitors. Some of the

outcomes include 52% power generation from renewable technologies, 65% of suppliers

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included in the suppliers' sustainability program, reaching 700,000+ healthcare workers as of

2021, etc. (Johnson & Johnson, 2021f).

Imitability

Henry (2018) emphasized the fact that it is not enough for companies that are willing to attain

sustainable competitive advantages to just have valuable and rare resources alone. However, the

resources and capabilities must be difficult to imitate or copy by competitors. In the case of

Johnson & Johnson, the prioritization of quality and standard at every stage of the product

lifecycle and the company’s operation is very critical such that it only takes a few companies

with similar or greater capacity to imitate (Johnson & Johnson, 2021b). The company’s

enforcement of patent protection collection for all its products and processes and the sales of

products under trademarks have increased the company’s revenue and made the manufacture of

similar offerings a difficulty for competitors (Johnson & Johnson, 2022).

Organization

Jugdev (2005) refers to the organizational factor affecting the sustainability of a company's

competitive advantage as the series of policies, cultures, procedures, and practices that support

the company’s exploitation of value, rarity, and imitability. Johnson and Johnson’s investment

and prioritization of growth and development, diversity, equity, and inclusion, attraction,

retention, and empowerment of talents, safety, and wellness, and the implementation of robust

compensation and benefits for its employees have helped the company to have highly motivated

workers who are focused on promoting the company’s goals and vision (Johnson & Johnson,

2022).

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Identification of Johnson and Johnson Key Stakeholders

Johnson & Johnson deals with a very wide category of stakeholders due to its intentionality in

maintaining a sustainable business (Johnson & Johnson, 2020a). Appendix 9 and Appendix 10

give a detailed description of the key stakeholders in the company.

Appendix 9: A breakdown of the key stakeholders in Johnson & Johnson (Source: (Johnson &

Johnson, 2022))

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Appendix 10: Continuation of the breakdown of the key stakeholders in Johnson & Johnson

(Source: (Johnson & Johnson, 2022))

Power Interest Grid Evaluation of Johnson and Johnson Key Stakeholders

(Ackermann and Eden, 2011) acknowledges the significance of stakeholder analysis through

strategic management of the different stakeholders in an organization during the strategic

decision-making phase. The power-interest grid or matrix is a framework that is used to

effectively map and assess the stakeholders in a company (Johnson, Scholes and Whittington,

2006). (Henry, 2018) refers to the Power in this framework as the stakeholder’s ability to make

impacts and affect the objectives of a company, while Interest was referred to as the willingness

of the stakeholders to impact the objectives. Stakeholders with high interest and power have the

highest influence on the company and they are integral to decision-making. According to

(Johnson, Scholes and Whittington, 2011), stakeholders in the different sections of the power-

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grid matrix must be handled differently by company managers as seen in Appendix 11 and

outlined in table 1.

Appendix 11: Power-Interest Matrix (Source: (Johnson, Scholes and Whittington, 2011))

Stakeholders with high power and high interest are the key players in any company and they

must be consulted before any strategic decision is made due to their significance in determining

the profitability and growth of the company (Henry, 2018). At Johnson and Johnson, investors,

patients and consumers, customers, and healthcare providers are the key stakeholders with high

power and high interest.

Stakeholders with high power but low interests are stakeholders that can influence the objectives

of a company but the willingness to execute is relatively low. These stakeholders are forced to

activate their willingness when a certain policy or change needs to be ensured or enforced

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(Henry, 2018). At Johnson & Johnson, suppliers, policymakers, and governments are the

stakeholders in this category due to the influence of compliances, policies, standards, etc.

Low-power but high-interest stakeholders are members who have a high willingness to impact a

company but they have minimal power (Johnson, Scholes and Whittington, 2011). At Johnson &

Johnson, employees of the company are the only member of the stakeholders that mostly fit into

this category.

The final category involves stakeholders with low power and low interest in which managers

require minimal effort in handling and managing (Johnson, Scholes and Whittington, 2011). The

local communities and non-governmental organizations are the stakeholders in this category at

Johnson & Johnson.

Table 1: Johnson & Johnson Power-Interest Matrix Analysis

High Power – Low Interest (Keep Satisfied) High Power – High Interest (Key Players)

 Suppliers  Investors

Government and Policy Makers  Patients and Consumers

 Customers

Healthcare Providers

Low Power – Low Interest (Minimal Efforts) Low Power – High Interest (Keep Informed)

 Local Communities Employees

Non-Governmental Organizations (NGOs)

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Conclusion and Recommendations

This report has helped to identify the main internal and external factors responsible for the

success of Johnson & Johnson in the healthcare industry. As a result of the company’s operation

in a critical and intensive business environment, alongside its global coverage, some strategic

frameworks were applied in critically examining the company’s strengths, weaknesses,

opportunities, and possible threats. PESTLE framework and Porter’s Five Forces analysis were

used in analyzing and assessing the opportunities and threats in the external macro-environment

of Johnson & Johnson while VRIO framework and Power/Interest matrix were used to analyze

the internal environment.

PESTLE framework identified political and legal factors such as lawsuits, compliance issues,

political instability, and unfavorable foreign trade regulations as threats to the success of J&J.

Furthermore, advancement in technology and the adoption of social values were identified as

great opportunity media for the company. Strategic management of the environmental and

economic factors in the industry was identified to present Johnson & Johnson with the chance of

outpowering its competitors when dealt with properly but improper management will have

adverse impacts. The Porter’s Five Forces analysis showed that substitute products, buyers,

suppliers, and new entrants have a relatively low impact on Johnson & Johnson’s operations.

However, the highly competitive index from rivals poses a threat to the company.

The VRIO framework showed that the company possesses valuable resources and capabilities

that are rare and difficult to imitate, giving it a competitive edge over its competitors. The

excellent leadership structure and its defining principles as established in its Credo are important

in managing the resources efficiently. Furthermore, the key stakeholders in the company were

properly identified and evaluated using the power/interest grid. The analysis identified patients,

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consumers, customers, and investors as stakeholders with the highest influence while local

communities and NGOs have the least influence on Johnson & Johnson.

Having assessed the internal and external environmental factors surrounding Johnson & Johnson,

the following recommendations are made to ensure strategic success for the company in the

future:

1. The company is advised to invest in and integrate more emerging technologies such as

artificial intelligence and 5G network in its operations as a means of improving

productivity and profitability while maintaining relevance.

2. The company is advised to strengthen its partnership and merger & acquisition strategy in

a bid to expand its operations and improve its processes. Partnership or acquisition of

companies in the tech field, along the supply chain, and quality management is critical in

improving the company’s revenue.

3. More efforts should be taken into enforcing quality and standards on the company’s

product offerings to reduce losses and fines as seen in the recent cases of the covid

vaccines, talc-based powder, and the recall of medical devices. Increased investment in

R&D can help in this aspect.

4. The company should learn and apply strategic options such as open innovation and

scorecard implementation in its operations. Similarly, J&J is advised to work with top

strategic management teams across the globe in a bid to improve the experience and

satisfaction of its stakeholders.

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Appendices

Appendix 1: Johnson & Johnson Business Segments (Source: (Johnson & Johnson, 2021b)) 4

Appendix 2: Johnson and Johnson Credo (Source: (Johnson & Johnson, 2022)) 5

Appendix 3: Johnson & Johnson Sales by Geographical Regions in 2021 (Source: (Johnson &

Johnson, 2022)) 8

Appendix 4: Johnson & Johnson Technological and Digital Core (Source: (Johnson & Johnson,

2021b)) 10

Appendix 5: Five Forces that affect competitiveness in an industry (Source: (Porter, 2008)) 12

Appendix 6: Johnson & Johnson R&D investment comparison of 2020 and 2021 (Source:

(Johnson & Johnson, 2022)) 14

Appendix 7: Johnson & Johnson Product Recall 2021-2019 (Johnson & Johnson, 2021b) 16

Appendix 8: VRIO Questions (Source: (Henry, 2018)) 18

Appendix 9: A breakdown of the key stakeholders in Johnson & Johnson (Source: (Johnson &

Johnson, 2022)) 21

Appendix 10: Continuation of the breakdown of the key stakeholders in Johnson & Johnson

(Source: (Johnson & Johnson, 2022)) 22

Appendix 11: Power-Interest Matrix (Source: (Johnson, Scholes and Whittington, 2011)) 23

Table 1: Johnson & Johnson Power-Interest Matrix Analysis 24

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