Company Analysis Johnson And Johnson Essay Example
Company Analysis Johnson And Johnson Essay Example

Company Analysis Johnson And Johnson Essay Example

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  • Pages: 8 (1952 words)
  • Published: October 22, 2017
  • Type: Analysis
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Established in 1886 by brothers Robert Wood Johnson, Edward Wood Johnson, and Edward Mead Johnson, Johnson & Johnson remains committed to the business philosophy outlined in its founder's Credo. Currently operating in 60 countries with over 275 companies worldwide, the multinational corporation is divided into three main divisions: Consumer Healthcare, Medical Devices & Diagnostics, and Pharmaceuticals. With an asset value of $131.19 billion (, it stands as the largest and most diverse medical devices and diagnostics company, the sixth largest consumer health company, the sixth largest pharmaceuticals company, and the sixth largest biologics company. From its inception, innovation has been a driving force for the company. Their initial offering was a first aid kit accessible to all for treating minor injuries. In 1894, they introduced successful childcare products that continue to thrive today. Expanding into international markets began i


n 1924 with entry into the United Kingdom market, leading to further growth through expansion into British settlements like South Africa (1930), Australia (1931), and neighboring Mexico (1930). Under Robert Wood Johnson II's leadership, a decentralized family of companies emerged as part of their global strategy shift.In 1937, Johnson & Johnson expanded their operations by venturing into Argentina and Brazil. They later established Ortho Research Laboratories Inc. and Ethicon Inc. in New Jersey. In 1957, they entered the Asian market by establishing operations in India. The company underwent multiple acquisitions in 1959, including McNeil Laboratories in Fort Washington, United States, Cilag AG in Switzerland, and Janssen Pharmaceutica.

Throughout the late 70s and 80s, Johnson & Johnson explored new healthcare markets such as diabetes management, vision care, and wound closure mechanisms. This created opportunities for further expansion into Chin

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and Egypt. In the late 90s, they made a series of acquisitions including Centocor, Cordis Corporation, Kodak's Clinical Diagnostics,and Neutrogena Corporation.

Expanding into Eastern Europe and Russia was a significant move for the company.In 2002, they acquired Tibotec-Virco to assist patients with incurable diseases like Tuberculosis and AIDS.Johnson & Johnson has achieved success by following their Credo.

In 2006,pfizer Consumer Healthcare was significantly acquired by them.They implemented an internationalization strategy to adapt to changing global markets while decentralizing their operations.This approach has helped strengthen their presence worldwide.
Most of their international expansion has been through acquiring already established companies ( consistent growth of Johnson & Johnson worldwide is evident. They utilize a segmentation strategy, targeting specific markets and employing different methods of operation for each market. As one of the largest conglomerates globally with over 275 companies, network analysis reveals how these companies are connected within the corporate structure (Fig 1). The provided figure illustrates the connectivity of key subsidiaries. It is important to note that higher centrality nodes may not necessarily be the main subsidiaries. Thus, further network analysis is conducted to identify the main subsidiaries in each diversified area of their business.

In terms of their Consumer Health Segment, it operates independently in over 60 countries under the Johnson & Johnson trade name without any strategic partnerships. However, there are multiple ties between the administration and finance department with internal subgroups and external sources.

The Pharmaceutical segment also forms a large network led by Janssen Pharmaceutica. Under Janssen Pharmaceutica, there are several companies including Cilag and Crucell. Crucell collaborates with Tibotec to manage research and development for the pharmaceutical industry, contributing to Janssen Pharmaceutical's innovations achieved.Galapagos is a

joint venture between Crucell and Tibotec. The Medical Devices & Diagnostics segment at Johnson & Johnson is the largest department, encompassing subsidiaries like Animas Corporation, Cordis Corporation, Depuy Synthes companies, Ethicon, Ethicon Endo Surgery, Janssen Diagnostics, Johnson & Johnson Vision Care, Mentor, and Ortho-Clinical Diagnostics. These subsidiaries are directly affiliated with Johnson & Johnson. The text discusses the formation of the parent subordinate web and emphasizes centrality measures such as Degree, Betweenness, Eigenvector, and Closeness. Other analyses mentioned include Density, K-cores, Structural Holes, and subgroup division algorithms like Girvan-Newman Fractions. For the given data set in this study's analysis of the complete web's Density or Average Matrix Value is 0.003 with a Standard Deviation of 0.058 and an average weighted grade of 1.278. Figure 2 depicts the Degree Centrality measure by displaying node size according to its grade. The highest degree belongs to Johnson & Johnson with 119 ties followed by Indaver with 30 ties. Other nodes with significant ties include Indaver BV (18 ties), Cilag Holdings AG (17 ties), Johnson & Johnson management limited (16 ties), Johnson & Johnson International Finance (15 ties), Synthes Holdings AG (14 ties), and Crucell N.V.(12 ties).Although Indaver has higher grades than some of the subordinates of Johnson & Johnson, it is not a subordinate itself. Janssen pharmaceutical, one of the shareholders of Indaver, provides them with waste management solutions, resulting in a reduction of 270 metric tons of CO2 emissions annually according to the Indaver Sustainability Report from 2013. The main subordinates of Johnson & Johnson also have higher degree centrality. These labeled nodes with higher grades can be identified using Eigenvector Centrality measures (Fig 3). This measure

helps identify houses with higher societal importance or higher-level houses like management and operations degrees. It is observed that all nodes representing the main subordinates of Johnson & Johnson have higher eigenvector values because they are connected to nodes with higher grades. Examples include Cilag, Depuy Synthes, Crucell, Janssen Pahrmaceutica, Ethicon, and Apsis.

Betweenness (Fig 4) represents the nodes involved in connecting major nodes to lesser connected ones, promoting strong coordination within the network. These nodes act as bridges between stronger and weaker connected nodes. Analysis from Fig 4 indicates that companies such as Adimmune Corporation, Taiwan Biotech, Indaver, Galapagos Pharmaceuticals NV., Janssen Pahrmaceutica N.V., and Crucell have very high betweenness and play a significant role in coordinating work between houses.Closeness (Fig 5): Closeness refers to the proximity of a following node to the main node within a network. Nodes at the network's fringe are closer to the following node. Communication becomes more difficult for nodes with lower intimacy levels. Fig.5 displays varying levels of intimacy for each node, where higher-grade nodes are not particularly close to any subset of nodes and nodes with higher betweenness exhibit relative remoteness, indicating low intimacy. Lower intimacy nodes mostly serve as major subordinates of Johnson ; Johnson.

To identify well-connected nodes in different parts of the web, K-core analysis is conducted in which three Ks values (1, 2, and 3) are obtained (Fig.6). This analysis helps identify the core web that holds more significance compared to other nodes. In Fig.6, re value nodes have a K value of 1 and are primarily located on the web's fringe with fewer connections to the main web. Connecting nodes possess a degree of

1 (Fig.7). For Fig.2, depicted nodes have a K value of 2 and mainly act as bridges linking the core nucleus with the rest of the web.

The labeled nodes in Fig.8 represent subordinates of Johnson & Johnson within the sub-core region.Finally, above figure showcases organization's core web.
The text discusses various aspects of Johnson & Johnson's network and its subgroups. The nodes that are more closely connected to the main node have higher grades compared to others, making them labeled nodes. Through k-core analysis, it is found that subordinate companies like Cilag, Ethicon, OMJ Pharmaceuticals, and Depuy form the nucleus of the organization. Turnbull Investment Company plays a crucial role in managing investments for company growth. The Girvan-Newman Algorithm is utilized for subgroup analysis within the network to identify cohesive subgroups. Figure 9 clearly illustrates the division of these subgroups with different colors. External companies like Indaver, Adimmune Corporation, Prime Oil Service Corporation, and Taiwan Biotech Co.Ltd., have partnerships or technology sharing arrangements with Johnson & Johnson. Other subgroups within Johnson & Johnson include Janssen Pharmaceutica, Synthes Inc., Crucell N.V., Johnson & Johnson Holding GmbH, Johnson & Johnson Financial Services Company,andJohnson AndJohnsonManagement Limited; they form major subgroups within the network. (Fig 9) Thus,the Girvan Newman Algorithm serves as a method to identify web subgroups effectively.By providing the number of groups to be divided, an estimate of 38 groups can offer an understanding of the main subgroups within the web. The sub grouping is illustrated in Fig 10. The Cabals analysis and web datasets reveal that Johnson & Johnson is identified as the parent Network. Some notable subsidiaries include Janssen Pharmaceutica, Cilag, Depuy Synthes, Animas Corporation, Apsis,

Mcneil Products, Crucell, Ethicon, Ethicon Endo surgery, Cordis Corporation, and Mentor. The structure of the web has implications for innovation activity. Johnson & Johnson has always been driven by innovation and their products are distributed across 175 countries. Subsidiary firms operate independently with decentralized operations. Pharmaceutical companies owned by Johnson & Johnson independently pursue inventions without significant influence from other subsidiaries. Firms like Apsis, Ethicon, Ethicon Endo surgery, and Depuy Synthes engage in their own innovation activities and develop unique products without relying on other Johnson &Johnson-owned firms. These medical device and diagnostics companies have distinct product lines and are dedicated to promoting their brands. Most of these companies have their own research and development facilities without dependence on external investments.
Johnson & Johnson has reaped the benefits of various partnerships in its network, including Depuy Synthes. This collaboration has resulted in the establishment of subsidiaries like Depuy Spine, Depuy Mitek, Depuy Orthopaedics, and Depuy Products. These ventures showcase the strength of Johnson & Johnson as the world's largest and most diverse organization.

In terms of their pharmaceutical division, Janssen Pharmaceutica, they have independent entities such as Crucell, Cilga, and McNeill that actively pursue innovation. However, these entities operate within a collaborative structure and share technologies with external partners outside their network to minimize risks and maximize advantages. For instance, Crucell participates in a technology sharing program with Adimmune Corporation while Janssen Pharmaceutica relies on Indaver for waste management solutions.

Collaborations and technology sharing yield numerous benefits. Johnson & Johnson encourages collaborations among its different companies to ensure self-sustainable resources for forming alliances with external firms. This empowers them to surpass the capabilities of the parent company and

fully realize their potential. The remarkable growth of Johnson & Johnson across multiple markets can be attributed to their unwavering focus on continuous improvement and innovation.

One groundbreaking product that significantly impacted the world was the Band-Aid introduced by Johnson & Johnson. It revolutionized wound treatment practices globally. With an extensive portfolio of innovative products, Johnson & Johnson heavily relies on innovation for achieving success in various domains.
To strengthen partnerships, it is important for Johnson & Johnson to encourage technology sharing among their affiliated companies. Their current position as the sixth largest consumer healthcare company should not be the end goal; instead, they should strive to become the number one company globally. Expanding research and development programs in developing countries would create new opportunities for growth. Additionally, focusing on the development of vaccines for emerging viruses such as HIV, Ebola, Swine Flu, and Bird Flu is essential.

Collaboration between pharmaceutical companies is crucial to enhance Johnson & Johnson's capabilities. Addressing the increasing prevalence of diabetes among younger populations should also be a priority for the company. Therefore, establishing an Innovation Centre in the local market would enable them to bring forth more inventions that meet the demands of the local market. This strategic move could help advance their position and achieve their goal of becoming the leading Consumer Healthcare Company worldwide.

- Borgatti.S., Everett.M., and Johnson.J. (2013). Analyzing social networks.Los Angeles [i.e.Thousand Oaks.Calif.] : Sage Publications.
- Retrieved from: [link]
- Antwerpes + spouse.w.(2015). William claude dukenfields of Activity - Cilag AG.Retrieved from: [link]
- Antwerpes + spouse.w.(2015). History - Cilag AG.Retrieved from: [link]
- Antwerpes + spouse.w.(2015). Portrait - Cilag AG.Retrieved from: [link]
- Global Home | Cordis |

cordis.The sources of the accessed PDF and Crucell's online history can be found in the hyperlinks below:

- Source of PDF: hypertext transfer protocol: // [ Accessed 5 Mar.2015 ].

- Crucell's history: hypertext transfer protocol: // [ Accessed 5 Mar.2015 ].

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