Strategicmanagement at Johnson and Johnson
Strategicmanagement at Johnson and Johnson
Johnsonand Johns also abbreviated as JNJ, is a multinational company whosehead office is in the United State. The company was established inthe year 1886. It products range from consumer packaged goods,pharmaceutical and medical devices. JNJ’s headquarter is in NewJersey at a place called New Brunswick. The company has over 230subsidiaries, which operate in more than 57 countries and sells itsproducts in more than 170 countries across the world. The consumersare faced with the task of making a decision before settling on aproduct. Such a decision is affected by many factors and a major oneis the situation in which a purchase is being done (Foster andJohnson & Johnson, 2010). There are different types of situationsand each consumer is has to consider each situation because theydictate how he/she does a purchase. This is the main reason whyJohnson & Johnson needs strategic management in order to tap themarket and build a customer base.
Asthe company expands in to different regions of the world it hascreated a divisional organization structure, which offers it withbetter coordination and control of all its branches. The structurecomprise of 180 different operational units, which include makers ofTylenol, consumer products, pharmaceutical products, Johnson`s BabyShampoo, control pills among many others. However, its headquartershas the duty to oversee all these units and ensure that theactivities of the company are running smoothly.
TheOrganizational Structure provides a frame of reference to help anorganization better understand the internal and external factors thatshape its operating environment, the key requirements for current andfuture business success, and organizational sustainability and theneeds, opportunities, and constraints placed on the organization’sperformance management system. Johnson & Johnson organizationstructure provides the “big picture” of the organization and setsthe context for good strategic decisions. This is a decentralizedform of structure that gives opportunities for staff members todevelop themselves within the company (Dessetal, 2014).
Strategicleadership can be viewed from three levels, similar to the threelevels of quality. At Johnson& Johnsonsenior leaders are involved in vision and strategy formulation,mid-level leaders develop executable action plans and projects thatbest use an organization’s resources, and supervisory leadersensure that these action plans are deployed throughout theorganization so that essential tasks and projects may be accomplishedin support of the strategic vision.
AtJohnson & Johnson, the organization realized that the mainfailure of organization boards came from vested interest of boardmembers and lack of clarity of the input the board members wererequired to put into the company. To tackle this, Johnson &Johnson has eleven board members (Dessetal, 2014).Apart from the chairman and the CEO, the other nine are non-executiveboard members. Each of them has specific departments that they are incharge of. This reduces ambiguity on the roles they should perform.Through the good structure of the board, the company has a high levelof competence from the highest organ to the front line employees.
Inorder to ensure that the company attains balance between rewards,culture, and boundaries it employs traditional approaches tostrategic control. Thispart of the analysis will involve the audience and community, whichis the target community. It will find out its target market and theirneeds so as to provide them with the products that they need. Inaddition, it provides cconsumerbehavior, which reveals how people, groups, and organizations choose,purchase, utilize and dispose of goods, services, thoughts, orexperiences to gratify their needs and wants (Dessetal, 2014).
ForJohnson & Johnson stores to conduct a successful opportunityanalysis it will consider the following aspects, which includeproblem statement, gap analysis and market opportunity analysis(Hackman and Johnson, 2009). Most organizations depend highly onopportunity. Johnson& Johnson has been holding annual general meetings with theshareholders. These are the main economic stakeholders of theorganization. The organization ensures that all its activities arerun transparently and the shareholders are informed of any majordecisions that require their approval (Margolick, 2011).
Thegap analysis will provide an opportunity for Johnson & Johnson toanalyze its current situation and plan for its future. This allowsthe company to look at its current strategies that is using intackling these challenges that are presented in the problemstatement. This is a useful stage in the process of solving themarketing problem that is eminent and ensuring that the innovationsmeet the demands of the market (Hackman and Johnson, 2009).
Inconclusion, Johnson & Johnson understands that what is good todaymay not be viable tomorrow. Therefore, the company ensures that itimplements changes to be ahead of the competition. It employsstrategic management in order to ensure that it stays a head of allthe other competitors in the market.
Foster,L. G., & Johnson & Johnson. (2010). Acompany that cares: One hundred year illustrated history of Johnson &Johnson.New Brunswick, N.J: Johnson & Johnson.
Hackman,M.,& Johnson,C.,(2009). BusinessManagement: OpportunityAnalysis of Organizations (5thEd.).LongGrove,Illinois:WavelandPress,Inc.
Margolick,D. (2011). Undueinfluence: The epic battle for the Johnson & Johnson fortune.New York: Morrow.
Dess,G., Lumpkin, G., Eisner, B., & McNarmara, G. (2014). StrategicManagement: Text and Cases, (7thEd.). New York, McGraw-Hill Education