CASE#31

JOHNSON & JOHNSON

GROUP 7
LOMBOY, JOSEPH
MONTERO, JENNYRISH
PABLO, MARY JOY
Table of contents
• INTRODUCTION
• BUSINESS OVERVIEW
• STRATEGIC PROBLEM
• STRETEGIC ANALYSIS
• RECOMMENDATION
• CONCLUSION
 INTRODUCTION
Johnson & Johnson is an American multinational
corporation founded in 1886 that develops medical
devices, pharmaceuticals, and consumer packaged
goods. The company is primarily known for its wide
range of healthcare products, including Band-Aids,
Tylenol, and Johnson's baby products, as well as its
prescription drugs and medical devices. It operates in
over 60 countries and has more than 250 subsidiary
companies. Johnson & Johnson is considered one of
the world's most reputable companies and has been
included in the Fortune 500 list of the largest United
States corporations by revenue.
 BUSINESS
OVERVIEW
Johnson & Johnson operates in
three main business segments:
1. Consumer segment
2. Pharmaceutical segment
3. Medical Devices segment
 STRATEGIC PROBLEM
One strategic problem facing Johnson & Johnson is opioid crisis. The opioid crisis
refers to the widespread abuse and addiction to opioid drugs, which are prescription
painkillers such as OxyContin, Percocet, and Vicodin. The crisis has led to a
significant increase in overdose deaths and has become a public health emergency in
the United States. Johnson & Johnson, along with other pharmaceutical companies, is
facing legal action from state and local governments, as well as individuals, who
claim that the company played a role in the opioid epidemic by aggressively
marketing and distributing the drugs. The company may also face increased
regulation and scrutiny from the government, which could impact its ability to market
and sell its products. This means that Johnson & Johnson may be held liable for the
harm caused by these drugs and may have to pay large settlements or fines.
Additionally, the company may also have to invest significant resources in order to
defend itself in these legal actions, which could impact its financial performance.
Furthermore, this crisis may also affect the company's reputation and relationship
with its customers, which could lead to a loss of market share and revenue.
STRATEGIC ANALYSIS
A strategic analysis of the opioid crisis for Johnson &
Johnson would involve evaluating the impact on the
company's financial performance, reputation, ability to
operate, and legal and regulatory compliance. The analysis
would include the potential cost of lawsuits, impact on
revenue and market share, damage to reputation and
customer trust, impact on operations and supply chain, and
the company's ability to adapt to the changing legal and
regulatory landscape. The analysis would also identify
potential opportunities for the company to mitigate the
impact of the crisis and protect its long-term success.
 RECOMMENDATIONS
01 Implement stricter protocols for the
distribution of its opioid products to
ensure they are being used safely and
responsibly.
02
Increase transparency in its marketing and
sales tactics to ensure that patients and
healthcare providers have accurate and up-to-
date information about the risks and benefits
of opioid use.
03 Invest in research and development of
non-opioid pain management solutions
to provide alternative options to
patients.
04
Cooperate with government and legal
authorities in their investigations and
participate in settlements to resolve the
opioid-related legal issues.
 CONCLUSION
Johnson & Johnson has a crucial role in the
opioid crisis, and facing multiple lawsuits and
fines as a result. However, the company also has
the opportunity to address the issue and make
changes to ensure that it is operating responsibly
and in the best interests of patients. Implementing
the recommended steps will help J&J to mitigate
the negative impact of its involvement in the
opioid crisis and regain public trust.
THANK YOU!