The main products of the Company
Johnson & Johnson’s main products are numerous household medicines and first aid supplies. However, other famous products of the Company include Johnson’s baby products, beauty products, bandages, Acuvue contact lenses and facial washes.
The organizational assessment of the Company
In the year 1944, Johnson & Johnson made a crucial decision, which marked its identity in the pharmaceutical industry. It converted from a private entity to a public corporation. This conversion provided more visibility to the public and the shareholders on the firm’s operations. Many researchers say that by converting into a publicly-traded entity, it became “a sword with two edges”. This implied that the Company had put itself at risk by exposing itself to the public. In any case, its operations fail to go as planned, the Company’s annual report could have been affected negatively, thus giving its close competitors an advantage. Usually, the disclosing of private information- which private entities are not required to, has both its advantages and disadvantages. Shareholders are the ones who benefit more when a firm has become a public corporation as they can assess the firm’s daily returns and appreciate them if they are escalating. However, if the returns plummet, they can be forced to remove their shares, thus affecting the Company negatively. Fortunately, Johnson & Johnson’s dividend growth has been consistent for over 50 years. This has helped it to convince its shareholders, who are 2,419 in number and whose value is approximately $ 237 billion that its growth is constant. Everything that the Company does is guided by its Credo- which is a document that guides the Company. The Credo was authored over 59 years ago by Robert Wood Johnson, J&J’s first president.
The Company’s Credo
The comprehensive philosophy that guides J&J is the Company’s Credo. A credo can be defined as a set of values that are deeply held by the J&J, which has served as the Company’s strategic he Credo the people working in the Company to put the customer’s needs first in everything that they do. It also reminds the top officers of the Company of the responsibilities that they have towards their employees, the surrounding communities, the shareholders and their customers. The J&J believes that its Credo whose relevancy today was as when it was written, is the blueprint for its growth and sustainability.
Framework for the Company.
As the Company has currently made a substantial geographical widening to operating units that exceed 240, J&J must assign more freedom to each unit’s employees and managers. As the Company is a decentralized structure, the top managers aren’t responsible for its daily operations in the various units but the middle and low-level managers. This, in turn, frees up the top managers as it gives them room to focus on most critical decisions. Also, the decentralized structure enables the operating units in various locations to adapt to the customer’s needs. By having employees that exceed 130, 000, it means that Johnson & Johnson is massive.
For this reason, it means it has a tall pyramidal structure. Usually, when a company has a tall pyramidal structure, it means its levels of management are numerous. Thus, the level of efficiency of such Company’s is exceptionally high as communication across of its segments is difficult. However, one of the few tall decentralized structures in the world is Johnson & Johnson. It has used this structure to its benefit by ensuring that the needs of the local customers whose proximity to the operating units is close have been met accordingly. The diversified organizational structure of the Company is strongly affiliated with the principles of its strategic framework.
Recently, Johnson & Johnson’s Company base was extended to include management that was to focus on the supply chain. In less than two years ago, Buffalo Grove’s supply chain team for Walgreens Co. – the primary retailer of the Company, had started with only two people. Within just a year, the number of members in the team had increased to ten. Now the supply chain makes 46% of Johnson & Johnson’s employees. This implies that the Supply Chain is now a crucial element of the Company’s strategic framework in the Credo’s foundation. It is essential for a firm to not only do the efficient allocation of its resources but also allocate the funds in an environmentally friendly manner. Because of its competitive atmosphere, Johnson & Johnson is looking to use eco-friendly sustainability in advancing itself as this will provide help to the Credo’s community aspect.