4810 pj

profilealex1911
rework4810-Copy.xlsx
Home>Business & Finance homework help>Financial markets homework help>4810 pj

Cover Sheet

Project Analysis By:
Matthew Pankey
BBA in Finance
2011-2021
MGT 4810 W1-W2 Fall 2022

Executive Summary

Executive Summary
Johnson & Johnson is a multinational American company with headquarters in New Bunswick, New Jersey. Medical devices, pharmaceuticals, and consumer health are the three main business sectors of Johnson & Johnson, which was founded in 1886. J&J is a Fortune 500 firm with about 250 subsidiary businesses that operate in more than 60 countries and sell goods in more than 175 nations. To stand out from rivals, Johnson & Johnson relies on its products and innovation.
With the help of this company analysis, students can examine every facet of Johnson & Johnson's operations as consultants. This pertinent data may be used to shed light on how J&J might enhance internal and external operations while enhancing its financial performance and stockholder value. The Strategic Management textbook and other trustworthy sources, such as Johnson & Johnson's annual reports, investor website, and news releases, were used to compile all of the information for this research. Through this capstone project, students can examine pertinent corporate finances and gain knowledge about the potential pitfalls of their chosen career pathways.
I was able to get substantial Microsoft Excel knowledge with this assignment, which will help me as I begin to improve my career-related skills. Due to the significant study and analysis required to create each tool, I also had to learn good time management techniques. When examining a company's financials and annual reports to estimate its value, I also feel as though I learned knowledge.

Table of Contents

Table of Contents
Tool 1: Historical Analysis Page 4
Tool 2: Mission Statement Analysis Page 5
Tool 3: Remote Environment Analysis Page 7
Tool 4: Competitive Profile Matrix Page 12
Tool 5: Internal Factor Evaluation Page 14
Tool 6: Cohesion Page 17
Tool 7: Generic Strategy Page 20
Tool 8: Perceptual Mapping Page 22
Tool 9: Globalization Page 23
Tool 10: Financial Ratios and Benchmarking Page 25
Tool 11: SWOT Page 30
Tool 12: Financing Recommendations for SWOT Page 35

Tool 1

Historical Analysis
Purpose: Identify which strategies have historically been successful and how they have affected revenue by relating recent strategic events inside the company to consumer health, medicines, medical devices, and overall revenues. Findings from this research will be used in a SWOT analysis to identify strengths and weaknesses. Data was taken from yearly reports by Johnson & Johnson.
Years Gross Revenue Consumer Health Pharmaceutical Medical Devices
2011 $82,584 $14,053 $45,572 $22,959
2012 $82,059 $13,898 $42,198 $25,963
2013 $81,581 $13,853 $40,734 $26,994
2014 $76,450 $13,602 $36,256 $26,592
2015 $71,890 $13,307 $33,464 $25,119
2016 $70,074 $13,507 $31,430 $25,137
2017 $74,331 $14,496 $32,313 $27,522
2018 $71,312 $14,697 $28,125 $28,490
2019 $67,224 $14,447 $25,351 $27,426
2020 $65,030 $14,883 $24,368 $25,779
2021 $93,775 $14,635 $52,080 $27,060
Recent Strategic Events2, 3
March 2011: Acquires Crucell, a biopharmaceutical company specializing in vaccines and antibodies to fight disease. February 2012: Announces Alex Gorsky as the new CEO. June 2012: Acquired Synthes, Inc., a premier global manufacturer of orthopedic devices to create the world’s most innovative and comprehensive orthopedics business March 2013: FDA approved INVOKANA® for the treatment of adults with type 2 diabetes. November 2014: Announced the acquistion of Alios BioPharma, Inc, a privately-held clinical-stage biopharmaceutical company. November 2016: The FDA approves DARZALEX® for the treatment of multiple myeloma. April 2016: Acquires NeoStrata Company Inc., a leader in dermo-cosmetics. February 2017: Acquires Abbott Medical Optics. February 2018: FDA approves ERLEADA® for treatment of patients with prostate cancer. April 2019: Announces completion of acquisiton of Auris Health, Inc to enable and deliver digital surgery. April 2020: FDA approves IMBRUVICA® for treatment of patients with chronic lymphocytic leukemia (CLL). October 2020: Acquired Momenta Pharmaceuticals, Inc to broaden leadership in autoimmune diseases and provide a major catalyst for sustained growth. February 2021: COVID-19 vaccine authorized by U.S. FDA for emergency use. November 2021: Announces split into two publically traded companies. January 2022: Announces partnership with Microsoft to further enable digital surgery solutions.
Sources:
1https://www.jnj.com/about-jnj/corporate-reports
2https://www.jnj.com/media-center
3https://ourstory.jnj.com/timeline

Prepared by Williams, Louis &"System Font,Regular"&10&K000000&P

Revenue Streams1

Gross Revenue 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 82584 82059 81581 76450 71890 70074 74331 71312 67224 65030 93775 Consumer Health 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 14053 13898 13853 13602 13307 13507 14496 14697 14447 14883 14635 Pharmaceutical 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 45572 42198 40734 36256 33464 31430 32313 28125 25351 24368 52080 Medical Devices 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 22959 25963 26994 26592 25119 25137 27522 28490 27426 25779 27060

Tool 2

Mission Statement Analysis
Purpose: to assess Johnson & Johnson's mission statement and offer suggestions for strengthening the parts that it is lacking. will, in general, offer insight into the organization's worth, caliber, and business plan to present the mission statement with clarity and succinctness.
Mission Statement1
We consider that our primary duty is to the people who use our goods and services, including patients, physicians, nurses, parents, and everyone else. Everything we do in order to meet their demands must be of the highest caliber. We must continuously work to deliver value, cut expenses, and keep prices fair. Orders from customers must be processed accurately and quickly. Our business partners must be given the chance to profit fairly. Our worldwide team members who work for us are subject to our obligations. We need to create a workplace where everyone is treated with respect and taken as an individual. Their uniqueness, decency, and merit must all be respected. They must feel secure, content, and working there serves a purpose. Workplaces must be tidy, organized, and safe, and pay must be fair and sufficient. We must promote our employees' health and wellbeing and assist them in carrying out their familial and other personal obligations. Employee concerns and recommendations must be welcome. For those who qualify, there must be equal opportunities for employment, development, and advancement. We must produce highly competent leaders, and they must behave justly and morally. We have obligations both to the local communities where we live and work and to the global community. By promoting better access and care in more locations around the world, we must aid in people's health. Being decent citizens means paying our fair amount of taxes, supporting charitable causes, improving health and education, and supporting good works. The property we have the luxury of using must be kept in good condition so as to safeguard the environment and natural resources. Our ultimate duty is to our stockholders. Businesses need to earn a healthy profit. We must test out fresh concepts. Research must be continued, creative initiatives must be created, future investments must be made, and mistakes must be compensated for. It is necessary to buy new machinery, build new facilities, and release new items. In order to prepare for bad times, reserves must be built up. The stockholders should receive a fair return when we do business in accordance with these principles.
10 Components of a Mission Statement
Components will be measured on a scale of 1-5 with 5 being the highest.
1. Customers 1 2 3 4 5
2. Products 1 2 3 4 5
3. Markets 1 2 3 4 5
4. Technology 1 2 3 4 5
5. Survival 1 2 3 4 5
6. Philosophy 1 2 3 4 5
7. Self-concept 1 2 3 4 5
8. Public Image 1 2 3 4 5
9. Consumers 1 2 3 4 5
10. Quality 1 2 3 4 5
Sources:
1https://www.jnj.com/credo/
Strengths/Weaknesses of Likert Scale Rating
1. Customers were given a rating of three since they might be generally classified as patients, physicians, nurses, parents, and caregivers.
2. Because they were not listed, products received a rating of 1.
3. Markets received a 2 since there was only a passing mention of their employing people globally and no information about how many markets, countries, or industries there were.
4. Due to the lack of depth in the technologies used, technology received a 2 rating.
5.Because it was mentioned that the company needed to make money and how it would do so, survival was given a rating of 3.
6. The mission statement as a whole describes the company's general philosophy and principles, hence philosophy is given a rating of 4.
7. Since it wasn't addressed in the mission statement, self-concept received a score of 1.
8. Public image was rated a 2 the company's duty to its communities was mentioned.
9. Consumers were rated a 3 because customers were mentioned as well as the company's worldwide market.
10. Quality scored a 4 because high-quality products were mentioned as well as providing reasonable pricing.
Proposed Mission Statement Changes
As the world’s largest and most broadly-based healthcare company, we believe our first responsibility is to the patients, doctors and nurses, to mothers and fathers and all others across 175+ countries who use our medical devices, consumer health, and/or pharmaceutical products and services. In meeting their needs everything we do must be of high quality by using innovative technology and research strategies. We must constantly strive to provide value, reduce our costs and maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our business partners must have an opportunity to make a fair profit. We are responsible to our employees who work with us throughout 60+ countries. We must provide an inclusive work environment where each person must be considered as an individual. We must respect their diversity and dignity and recognize their merit. They must have a sense of security, fulfillment and purpose in their jobs. Compensation must be fair and adequate and working conditions clean, orderly and safe. We must support the health and well-being of our employees and help them fulfill their family and other personal responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide highly capable leaders and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must help people be healthier by supporting better access and care in more places around the world. We must be good citizens — support good works and charities, better health and education, and bear our fair share of taxes. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed, investments made for the future and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. We must utilize our scale, size, and intellectual property to maintain a competitive advantage. When we operate according to these principles, the stockholders should realize a fair return.

Prepared by Williams, Louis &P

Tool 3

Remote Environment Analysis1, 2, 3, 4
Purpose: To analyze Johnson & Johnson's external environment to display the threats and opportunities of economic, social, political, technological, and ecological factors that may influence the choice of direction and action the company takes.
Economic Factors Weight Highly Unattractive Mildly Unattractive Neutral Mildly Attractive Highly Attractive Present Rating Future Opportunity Threat or Opportunity
1 2 3 4 5
Economic Growth Rate 0.25 1.00 Opportunity
1.25
Foreign Currency 0.30 0.90 Threat
0.60
Inflation 0.10 0.20 Threat
0.10
Voltatility in Economy 0.25 0.75 Threat
0.50
Consumer Spending 0.10 0.30 Opportunity
0.40
Total 1 3.15 2.85 Threat
Explanation of Economic Factors
Since the COVID-19 pandemic, the healthcare sector's economic growth rate has dramatically increased and is predicted to keep rising. The healthcare sector is steady since it is anticipated to expand as population increases and customer interest in their health and wellbeing increases. Due to currency fluctuations and the strength and weakness of the US dollar, the foreign exchange rate has an impact on the company's revenues and costs. Despite efforts to mitigate these alterations, the oscillations could still be a challenge. Maintaining activities' profitability is difficult when there is inflation. The effect is uncertain as long as inflation rates continue to rise. The ability of the corporation to maintain profit margins is also threatened by the economy's volatility. Significant variations could have a detrimental effect on the operating
Political Factors Weight Highly Unattractive Mildly Unattractive Neutral Mildly Attractive Highly Attractive Present Rating Future Opportunity Threat or Opportunity
1 2 3 4 5
Government Regulation 0.25 0.75 Threat
0.50
Customer Function 0.30 1.20 Opportunity
1.50
Tax Policy 0.10 0.30 Threat
0.20
Intellextual Property Law 0.25 0.75 Threat
0.50
Import and Export Regulations 0.10 0.30 Threat
0.20
Total 1 3.30 2.90 Threat
Explanation of Political Factors
The pharmaceutical and medical device parts of the business may be significantly impacted by government regulations as a result of healthcare reforms and mounting price pressure. The client function is given high marks because the company's services and goods will always be in demand as a healthcare provider. Because of the potential susceptibility to extra tax liabilities, changes in tax policy may have a negative impact on profitability. The corporation cannot be convinced that it will be able to secure sufficient patent protection for new products and innovations given that public policy, both in the U.S. and internationally, is becoming increasingly negative toward intellectual property rights. License regulations for import and export could have an impact on product distribution and profitability.
Social Factors Weight Highly Unattractive Mildly Unattractive Neutral Mildly Attractive Highly Attractive Present Rating Future Opportunity Threat or Opportunity
1 2 3 4 5
COVID-19 Pandemic 0.25 0.75 Threat
0.50
Talent/Workforce 0.30 1.20 Opportunity
1.50
Consumer Awareness 0.10 0.30 Opportunity
0.40
Public Perception 0.20 0.60 Threat
0.40
Accessibility 0.15 0.45 Opportunity
0.60
Total 1 3.30 3.40 Opportunity
Explanation of Social Factors
The COVID-19 pandemic has badly affected some parts of the company's business operations, including production and the supply chain. It has also forced changes to other aspects of the company's business operations. There is a chance that businesses will continue to suffer because to COVID-19's continuous proliferation. A diversified workforce, along with the capacity to hire and keep talented, highly skilled workers, are essential components of success in the healthcare industry. Despite the fierce competition in the market for skilled individuals, the organization has been named one of the best places to work in 20223. This offers the chance to draw in creative workers at the top of their fields. As customers become more health-conscious, there is a chance to broaden the client base and sustain industry growth. public opinion Due to recent allegations of bribe, unethical business practices, and other allegations that could negatively impact the company's consumer base, the company received a low score. Opportunities exist for the organization as telemedicine continues to rise and accessibility in healthcare becomes more crucial.
Ecological Factors Weight Highly Unattractive Mildly Unattractive Neutral Mildly Attractive Highly Attractive Present Rating Future Opportunity Threat or Opportunity
1 2 3 4 5
Eco-Efficiency 0.25 1.00 Opportunity
1.25
Business Disruptions 0.30 0.90 Threat
0.60
Environment Regulations 0.10 0.30 Threat
0.20
Sustainability in Manufacturing 0.25 0.75 Threat
0.50
Sustainable Materials 0.10 0.30 Threat
0.20
Total 1 3.25 2.75 Threat
Explanation of Ecological Factors
By 2030, Johnson & Johnson plans to increase its eco-efficiency. The organization has endured minor expenses and interruptions to operations and processes since the COVID-19 epidemic, but has now recovered. The pandemic might still have a negative impact on business if it persists, though. Already committed to enhancing sustainability, any additional environmental regulation could negatively affect Johnson & Johnson's capacity to accomplish this objective in a cost-efficient way. Producing high-quality medical devices with sustainable materials and achieving a more environmentally friendly manufacturing method with fewer emissions both pose risks to profitability.
Technological Factors Weight Highly Unattractive Mildly Unattractive Neutral Mildly Attractive Highly Attractive Present Rating Future Opportunity Threat or Opportunity
1 2 3 4 5
Capacity to Innovate 0.25 0.75 Opportunity
1.00
Cbersecurity/Data Privacy 0.20 0.60 Threat
0.40
Telehealth 0.20 0.60 Opportunity
0.80
Research & Development 0.25 0.75 Opportunity
1.00
Cost of Production 0.10 0.30 Threat
0.20
Total 1 3.00 3.40 Opportunity
Explanation of Technological Factors
Innovation is crucial for the medical sector to stay competitive. With Johnson & Johnson's dedication to innovation and existing initiatives like their supply chain technology, this is a chance to foster innovation in order to stay one step ahead of rivals. Along with technology, cybersecurity and data privacy continue to develop. Security and privacy are essential in the healthcare sector. If rules continue to tighten and grow harder to follow, this could be a threat. Since the COVID-19 pandemic, telehealth has expanded tremendously and has continued to do so. Technology development offers a special chance for research and development to advance innovations. Profit may be negatively impacted by rising production costs.
Sources:
1https://www.investor.jnj.com/annual-meeting-materials/2021-annual-report
2https://pestleanalysis.com/pest-analysis-of-healthcare-industry/
3https://www.medicaldesignandoutsourcing.com/employees-say-intuitive-boston-scientific-jj-medtronic-best-places-to-work-in-2022/#:~:text=2021%20Winners-,Employees%20say%20Intuitive%2C%20Boston%20Scientific%2C%20J%26J%2C%20Medtronic%20are%20among,places%20to%20work%20in%202022&text=Intuitive%20Surgical%2C%20Boston%20Scientific%2C%20Johnson,2022%20based%20on%20employee%20reviews.
4https://pestleanalysis.com/pest-analysis-of-healthcare-industry/

Prepared by Williams, Louis &P

Tool 4

Competitive Profile Matrix
The Purpose: To compare Johnson & Johnson to rivals using an analysis of the major performance indicators in the healthcare sector, with 1 being the poorest and 4 the best.
Key Performance Indicators1
KPI's Weight Johnson & Johnson3 Pfizer4 Procter & Gamble5
Rank Score Rank Score Rank Score
Employees Worldwide 0.1 4 0.4 2 0.2 3 0.3
Product Quality2 0.2 4 0.8 2 0.4 3 0.6
Customer Satisfaction2 0.15 3 0.45 2 0.3 1 0.15
Revenue 0.1 4 0.4 3 0.3 2 0.2
Pricing2 0.1 4 0.4 2 0.2 3 0.3
Market Share6 0.1 4 0.4 3 0.3 2 0.2
Customer Service2 0.25 4 1 2 0.5 3 0.75
Total 1 3.85 2.2 2.5
Explanation of KPI Ratings
Employees Worldwide: Johnson & Johnson is ranked number one because they have more than 130,000 employees. Procter & Gamble is second with approximately 97,000 employees. Pfizer is last with more than 79,000 employees.
Product Quality2: Johnson & Johnson, Pfizer, and Procter & Gamble all scored a 4.2/5 on product quality. Johnson & Johnson ranked first out of 6 amongst competitors, Procter & Gamble ranked second out of 6, and Pfizer ranked fourth out of six.
Customer Satisfaction2: Johnson & Johnson is ranked first because they scored a 33 on customer satisfaction. Procter & Gamble scored a 30. Pfizer scored a 27.
Revenue: Johnson & Johnson is ranked first because, in 2021, their total revenue was approximately $93.8 billion. Pfizer is second with $81.3 billion in revenue in 2021. Procter & Gamble is third with $19.7 billion in revenue for 2021.
Pricing2: Both Johnson & Johnson and Procter & Gamble both scored 4/5 for pricing. However, Johnson & Johnson was ranked first, so they have come in first over P&G. Pfizer is third with 3.9/5.
Market Share: Johnson & Johnson came in first with an 8.06% market share. Pfizer is second with 6.99%. Procter & Gamble is third with 6.92%.
Customer Service2: Johnson & Johnson is first with a 4.1/5 for customer satisfaction. Procter & Gamble is second with a 4/5. Pfizer is third with a 4/5, and a sixth out of six rankings compared to other competitors.
Sources:
1https://diagnostics.roche.com/nl/en/news-listing/2019/Five-key-performance-indicators-for-healthcare-organisations.html
2https://www.comparably.com/companies/johnson-johnson/competitors
3https://www.jnj.com/about-jnj/corporate-reports
4https://investors.pfizer.com/Investors/Financials/Annual-Reports/default.aspx
5https://www.pginvestor.com/financial-reporting/annual-reports/
6https://csimarket.com/stocks/competitionSEG2.php?code=JNJ

Prepared by Williams, Louis &P

Tool 5

Internal Factor Evaluation1, 2, 3, 4
Purpose: To evaluate Johnson & Johnson's future oriented goals, SMART objectives, and policies in order to determine if they align with their mission statement. Strengths and weaknesses are assigned a ranking of 1-5 (5 being the highest).
Strengths Weight Highly Unattractive Mildly Unattractive Neutral Mildly Attractive Highly Attractive Present Rating Future Rating
1 2 3 4 5
Large Product & Services 0.10 0.40 0.50
Revenue 0.30 1.20 1.50
Research & Development 0.10 0.30 0.40
Global Operations 0.05 0.20 0.25
Customer Satisfaction 0.03 0.09 0.12
Customer Service 0.02 0.06 0.08
Product Quality 0.05 0.20 0.2
Consumer Recognition 0.05 0.20 0.25
Innovation 0.06 0.24 0.30
Skilled Employees 0.02 0.06 0.08
Strategic Partners 0.02 0.06 0.08
Profit Margin 0.10 0.30 0.40
Market Performance 0.10 0.30 0.40
Total 1.00 3.61 4.56
Weaknesses Weight Highly Unattractive Mildly Unattractive Neutral Mildly Attractive Highly Attractive Present Rating Future Rating
1 2 3 4 5
Intellectual Property Laws 0.01 0.02 0.01
Uneven Revenue Distribution 0.30 0.90 1.20
Pricing Pressures 0.10 0.30 0.40
Product Regulations 0.10 0.20 0.10
Kickback Allegations 0.05 0.10 0.05
Supply Chain Issues 0.05 0.15 0.10
Labor & Employment Practices 0.03 0.09 0.12
Competition 0.04 0.12 0.08
Public Perception 0.20 0.40 0.60
Cyber Security 0.05 0.10 0.15
Economic Instability 0.02 0.06 0.04
Kickback Allegations 0.03 0.06 0.09
Government Regulations 0.02 0.06 0.04
Total 1.00 2.56 2.98
Johnson & Johnson Strengths Summary
Johnson & Johnson is one of the largest healthcare companies worth billions of dollars with a global consumer base in 150+ countries. The company is easily recognized by consumers and trusted in the industry. With 2021 revenue of over $90 billion, and a 22.26% profit margin, J&J has had continued growth and steady market performance as well as high scores for product quality and customer satisfaction. They are dedicated to innovation and R&D. Johnson & Johnson seeks highly sought employees and is consistently pursuing strategic partnerships, mergers, and acquisitions to grow the organization.
Johnson & Johnson Weaknesses Summary
Due to kickback (bribery) allegations and other legal battles over the last few years, further government restrictions and product regulations pose a threat to the organizations' ability to do business, and public perception has been negatively affected. Additionally, allegations of poor employment practices can impact adversely impact the organization as well. With competition increasing and pricing pressures mounting, the organization is challenged to find ways to decrease costs while still maintaining competitive product pricing and quality. With the U.S. and global economies in unpredictable states, business and supply chain interruptions may occur, including cybersecurity issues. Though J&J has high revenue and profit margins, the majority of its revenue comes from the pharmaceutical sector, with consumer health sales down. The company has announced plans to separate its consumer health sector into a separate company.
Sources:
1https://pestleanalysis.com/johnson-and-johnson-swot-analysis/
2https://swothub.com/johnson-and-johnson-swot-analysis/#Strengths_of_Johnson_and_Johnson_in_SWOT_Analysis
3https://www.comparably.com/companies/johnson-johnson/competitors
4https://www.investor.jnj.com/annual-meeting-materials/2021-annual-report

Prepared by Williams, Louis &P

Tool 6

Cohesion
Purpose: To evaluate Johnson & Johnson's future oriented goals, SMART objectives, and policies in order to determine if they align with their mission statement.
Mission Statement1
We believe our first responsibility is to the patients, doctors and nurses, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to provide value, reduce our costs and maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our business partners must have an opportunity to make a fair profit. We are responsible to our employees who work with us throughout the world. We must provide an inclusive work environment where each person must be considered as an individual. We must respect their diversity and dignity and recognize their merit. They must have a sense of security, fulfillment and purpose in their jobs. Compensation must be fair and adequate and working conditions clean, orderly and safe. We must support the health and well-being of our employees and help them fulfill their family and other personal responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide highly capable leaders and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must help people be healthier by supporting better access and care in more places around the world. We must be good citizens — support good works and charities, better health and education, and bear our fair share of taxes. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed, investments made for the future and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.
Future Oriented Goals2
1) A world where the current and future healthcare workforce has the necessary competencies to deliver high-quality healthcare.
2) A world where all people have healthy places to live, work and play.
3) A world where every woman and child survives and has the opportunity for a healthy future.
4) A world where safe, essential and timely surgical care can be accessed by all to save lives, prevent disability, promote economic growth, and reduce social marginalization.
5) A world where innovations and holistic health solutions prevent, control, and eliminate global disease challenges and epidemics.
Analysis of Future Oriented Goals
Johnson & Johnson's future goals are mostly aligned with the mission statement. The first goal regarding the training and competency of the healthcare workforce was briefly mentioned in the mission statement as the development and advancement of employees. The eco-friendliness goal aligns with the mission statement as protecting the environment and natural resources were mentioned. Controlling global disease and women's health were not included in the mission statement but innovative solutions were. The goal for safe surgical care aligns with the mission statement due to the mention of customers deserving prompt and accurate care.
SMART Objectives2
1) By 2030, 650,000 health workers will have received training to better deliver quality healthcare.
2) By 2030, 60 million citizens living across 30 cities will have benefited from climate and air quality actions that have the potential to positively impact public health.
3) 60 million women and children will have received support and tools to enable a healthy future by 2030.
4) By 2030, 50 million people will have had access to safe, essential, and timely surgical care.
5) 175 million individuals will have benefited from Johnson & Johnson solutions that prevent, control, and eliminate global diseases by 2030.
Analysis of SMART Objectives
Johnson & Johnson's SMART goals are partially aligned with its mission statement. The first objective regarding workforce education and quality is aligned with the commitment in the mission statement to the development and advancement of those qualified. The third objective is not mentioned in the mission statement. however, the fourth and fifth objectives are mentioned in the mission statement as needs to provide accessible healthcare and to continue innovations.
Policies3, 4
1) There must be equal opportunity for employment, development, and advancement for those qualified. We must provide highly capable leaders and their actions must be just and ethical.
2) Employees are required to adhere to Company-wide programs, and to be familiar with and comply with environmental laws and regulations that relate to our specific work responsibilities. This includes complying with regulations related to the reporting, approval, and registration of chemical ingredients used in our production and products.
3) We strive to provide an equal opportunity for women and their children to access quality care, information, and education to ensure the continued health, happiness, and prosperity throughout the course of their lives.
4) We must help people be healthier by supporting better access and care in more places around the world.
5) At Johnson & Johnson, we believe strengthening health systems is essential to achieve a much-needed transformation in healthcare, particularly in resource-limited settings. We believe a holistic, strategic, inclusive approach is necessary, involving all those with the power to influence healthcare access, delivery, and outcomes from the public and private sectors and civil society.
Analysis of Policies
The policies related to the development and advancement of employees, environmental preservation, innovative healthcare solutions, and access to healthcare are all addressed in the mission statement. Women's health is included on their policies and positions page but is not addressed in the mission statement. Sustainability is also included in their Code of Conduct, which provides general guidelines for internal rules and regulations as well as how J&J conducts business. Johnson & Johnson's policies and Code of Conduct address diversity, human rights, and innovation.
Sources:
1https://www.jnj.com/credo/
2https://www.jnj.com/sustainable-development-goals
3https://www.jnj.com/about-jnj/policies-and-positions
4https://www.jnj.com/code-of-business-conduct/english

Prepared by Williams, Louis &P

Tool 7

Generic Strategy1
Purpose: To discover what generic strategy is used by Johnson & Johnson and if it is implemented well
Low Cost Leadership Requirements Yes No Differentiation Requirements Yes No
Sustained Capital Investment X Strong Marketing Capabilities X
Ready Access to Capital X Strong Product Engineering X
Strong Process Engineering Skills X Corporate Creative Flair X
Intense Supervision of Labor X Strong R&D X
Products designed for ease of Manufacture X Strong Distribution Channels X
Low Cost Distribution System X Corporate Reputation in Quality Technological Leadership X
Tight Cost Controls X Long Industry Tradition or Unique Skill Set X
Frequent, Detailed Control Reports X Strong Internal Cohesiveness among Departments X
Highly Structured Organization Structure X Subjective measurement of personnel for incentive purposes as opposed to quantitative measures X
Incentives based on Strict Quantitative Targets X Ability to attract Talented Labor and Management X
Overall Assessment No Overall Assessment Yes
Focused (Product Leadership) Yes No
1.) Does the subject company have a core competency or distinctive advantage in at least one functional area? X
2.) Does the subject company have a strong position in at least one segment of their defined market? X
Overall Assessment X
Strengths: Johnson & Johnson uses differentation as their primary strength. Low cost leadership is their second strength.
Summary
Johnson & Johnson uses the generic strategy focusing on differentiation by providing a wide variety of products, medications, medical devices, and services. By being a leading global healthcare & pharmaceutical organization, Johnson & Johnson displays differentiation. Due to the increase in competition and pricing pressure within the industry, it is difficult for J&J to focus on low-cost leadership as a strategy. The company must balance between being cost-effective, well priced for consumers, and still providing quality products and services while making a profit. Johnson & Johnson continues to be innovative and remains focused on providing quality to its customers.
Sources:
1https://www.investor.jnj.com/

Prepared by Williams, Louis &P

Tool 8

Perceptual Mapping
Purpose: To display the product diversity vs. the profitability of Johnson & Johnson compared to its biggest competitors in the healthcare industry.
Product Quality
Profitability
Sources:
https://www.investor.jnj.com/
https://www.comparably.com/companies/johnson-johnson/competitors
https://www.macrotrends.net/stocks/charts/UL/unilever/revenue#:~:text=Unilever%20revenue%20for%20the%20twelve,a%200.47%25%20decline%20from%202019.
https://www.statista.com/statistics/272350/revenue-of-merck-and-co/#:~:text=Merck%20%26%20Co%20%2D%20total%20revenue%202006%2D2021&text=The%20revenue%20of%20Merck%20%26%20Co,U.S.%20dollars%20over%20the%20year.

Prepared by Williams, Louis &P

https://www.investor.jnj.com/

Tool 9

Globalization
Purpose: To assess if Johnson & Johnson is a global company and to map the countries in which J&J operates. This analysis will display domestic and foreign revenue the company produces. It will also describe where Johnson & Johnson should expand their next global operation.
Johnson & Johnson's Operations Map1
Johnson & Johnson is an international organization that operates in 91 countries and has products sold in over 175 countries. J&J is headquartered in New Brunswick, New Jersey, U.S.A., but has 66 offices spread across 53 countries including Australia, Argentina, Brazil, China, India, Japan, Poland, and more. The red areas in the graphic above represent the countries in which Johnson & Johnson operates.
51% of Johnson & Johnson's 2021 revenue came from international and non-U.S. sales. Therefore, J&J is an international company.2
($ In Millions)
Total Non-U.S. $12,641
United States $12,163
Total $24,804
Percentage
International Revenue 51%
Domestic Revenue 49%
Johnson & Johnson should expand operations into Bogota, Columbia to increase the company's presence in Latin America.3, 4
Johnson & Johnson should expand operations into Bogota, Columbia because of the opportunities for growth and expansion in Latin America. The pharmaceutical market in Columbia was worth $4.795 billion in 2019 and has a projected value of $2.944 billion. Bogota, Columbia is one of the main pharmaceutical companies in Latin America being home to 66% of the medicine manufacturers and 65% of the pharmaceutical wholesalers. Columbia ranks third for highest public spending on healthcare in the region and is predicted to continue to grow. In this market, J&J can expand its reach in Latin America and grow its worldwide brand. This also presents a unique opportunity to begin developing generic brands of their popular medications and expand the J&J customer base while becoming more competitive in all markets.
Johnson & Johnson should enter the Colombian market through a partnership with leading pharmaceutical company Tecnoquimicas. Entering into a joint venture or possibly acquiring Tecnoquimicas would provide a strategic entrance into the Columbian market, and remove a major competitor as well. J&J used a similar strategy when entering the German market in 1961 with the acquisition of Jassen Pharmaceutica which eventually led to Johnson & Johnson ranking among the 20 largest research-based pharmaceutical companies in the world. Based on past success, this strategy could yield similar results in the Colombian market.
Sources:
1https://www.careers.jnj.com/careers/one-career-global-reach
2https://johnsonandjohnson.gcs-web.com/news-releases/news-release-details/johnson-johnson-reports-q4-and-full-year-2021-results
3https://investincolombia.com.co/en/sectors/healthcare-services-and-life-sciences/pharmaceutical-sector#:~:text=In%202019%2C%20the%20pharmaceutical%20market,for%20this%20market%20by%202022.
4https://www.janssen.com/emea/our-company/our-heritage

Prepared by Williams, Louis &P

Johnson & Johnson's Domestic v. International 2021 Revenues

International Revenue Domestic Revenue 0.50963554265441058 0.49036445734558942

Tool 10

Financial Ratios & Benchmarking
Purpose: To show Johnson & Johnson's financial ratios compared to the 2021 industry average and competitor, Procter & Gamble. Through this, I will be able to get quick analysis on the health of the company.
Johnson & Johnson's Five Year Ratio Analysis1, 2
Ratios and Working Capital 2017 2018 2019 2020 2021 Trend 2021 Industry Average3 P&G 2021
Liquidity Ratios
Current Ratio 1.41 1.48 1.26 1.21 1.35 Increasing 2.86 0.70
Quick Ratio 1.12 1.20 1.01 0.99 0.99 Neutral 0.96 0.50
Leverage Ratios
Debt to Total Assets 0.19 0.17 0.20 0.19 Decreasing 0.34 0.26
Debt to Equity 0.57 0.51 0.47 0.56 0.46 Decreasing 0.72 0.69
Long-Term Debt to Capitalization 0.34 0.32 0.31 0.34 0.29 Decreasing 0.36 0.33
Activity Ratios
Receiveables Turnover 5.67 5.79 5.67 6.08 6.14 Increasing 5.07 16.11
Total Assets Turnover 0.49 0.53 0.52 0.47 0.52 Increasing 0.45 0.64
Inventory Turnover 2.9 3.15 3.06 3.04 2.87 Dereasing 3.79 6.20
Profitability Ratios
Operating Margin 23.12 22.06 21.12 19.98 24.29 Increasing 17.59 23.63
Net Profit Margin 1.70 18.75 18.42 17.82 22.26 Increasing 17.57 18.43
ROE 2.16 25.6 25.42 23.25 28.20 Increasing 20.9 31.35
ROI 1.43 17.50 17.59 15.34 20.07 Increasing 14.99 20.57
Pre-Tax Profit Margin 23.12 22.06 21.12 19.98 24.29 Increasing 19.71 23.14
Johnson & Johnson Pharmaceutical Industry P&G
Liquidity Ratios
Current Ratio 1.35 2.86 0.70
Quick Ratio 0.99 0.96 0.50
Johnson & Johnson Pharmaceutical Industry P&G
Debt to Total Assets 0.19 0.34 0.26
Debt to Equity 0.46 0.72 0.69
Long-Term Debt to Capitalization 0.29 0.36 0.33
Johnson & Johnson Pharmaceutical Industry P&G
Receiveables Turnover 6.14 5.07 16.11
Total Assets Turnover 0.52 0.45 0.64
Inventory Turnover 2.87 3.79 6.20
Johnson & Johnson Pharmaceutical Industry P&G
Operating Margin 24.29 17.59 23.63
Net Profit Margin 22.26 17.57 18.43
ROE 28.20 20.9 31.35
ROI 20.07 14.99 20.57
Pre-Tax Profit Margin 24.29 19.71 23.14
Sources:
1https://www.macrotrends.net/stocks/charts/JNJ/johnson-johnson/financial-ratios
2https://www.macrotrends.net/stocks/charts/PG/procter-gamble/financial-ratios
3https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=803

Prepared by Williams, Louis &P

2021 Liquidity Ratios

Johnson & Johnson Current Ratio Quick Ratio 1.3483000000000001 0.99 Pharmaceutical Industry Current Ratio Quick Ratio 2.86 0.96 P & G Current Ratio Quick Ratio 0.7 0.5

2021 Leverage Ratios

Johnson & Johnson Debt to Total Assets Debt to Equity Long-Term Debt to Capitalization 0.19 0.46 0.28999999999999998 Pharmaceutical Industry Debt to Total Assets Debt to Equity Long-Term Debt to Capitalization 0.34 0.72 0.36 P & G Debt to Total Assets Debt to Equity Long-Term Debt to Capitalization 0.26 0.69 0.33

2021 Activity Ratios

Johnson & Johnson Receiveables Turnover Total Assets Turnover Inventory Turnover 6.14 0.52 2.87 Pharmaceutical Industry Receiveables Turnover Total Assets Turnover Inventory Turnover 5.07 0.45 3.79 P & G Receiveables Turnover Total Assets Turnover Inventory Turnover 16.11 0.64 6.2

2021 Profitability Ratios

Johnson & Johnson Operating Margin Net Profit Margin ROE ROI Pre-Tax Profit Margin 24.29 22.26 28.2 20.07 24.29 Pharmaceutical Industry Operating Margin Net Profit Margin ROE ROI Pre-Tax Profit Margin 17.59 17.57 20.9 14.99 19.71 P & G Operating Margin Net Profit Margin ROE ROI Pre-Tax Profit Margin 23.63 18.43 31.35 20.57 23.14

Tool 10b

JOHNSON & JOHNSON (JNJ) BALANCE SHEET
Fiscal year ends in Dec. 31 Pfizer Proctor & Gamble
2021 % 2020 % 2021 % 2021 %
Assets
Current assets
Total cash 14,487 5% 13,985 5% 31,069 20% 10,288 9%
Receivables 15,283 6% 13,576 5% 15,745 10% 4,725 4%
Inventories 10,387 4% 9,344 4% 9,059 6% 5,983 5%
Other current assets 20,822 8% 14,322 6% 3,820 2% 2,095 2%
Total current assets 60,979 22% 51,227 20% 59,693 39% 23,091 19%
Non-current assets
Gross property, plant and equipment 46,804 17% 47,679 19% 29,956 19% - 0%%
Accumulated Depreciation (28,717) -10% (28,038) -11% (15,074) -10% (2,735) -2%
Net property, plant and equipment 18,962 7% 18,766 7% 14,882 10% 21,686 18%
Equity and other investments 74,023 27% 63,278 25% 16,472 11% (2,834) -2%
Goodwill 36,246 13% 35,393 14% 49,208 32% 40,924 34%
Intangible assets 46,392 17% 53,402 21% 25,146 16% 23,642 20%
Deferred income taxes 10,223 4% 8,534 3% 3,341 2% (258) -0%
Other long-term assets 10,216 4% 6,562 3% 4,569 3% 9,964 8%
Total non-current assets 214,149 78% 205,576 80% 119,162 77% 96,216 81%
Total assets $275,128 100% $256,803 100% $154,229 100% $119,307 100%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 3,766 2% 2,631 2% 2,241 2% 8,889 12%
Accounts payable 11,055 6% 9,505 6% 5,578 5% 13,720 19%
Taxes payable 1,112 0.6% 1,392 0.8% 1,266 1% 397 1%
Accrued liabilities 13,612 8% 13,968 8% 3,332 3% 10,523 14%
Deferred revenues - 0%% 0% 3,067 3% - 0%%
Other current liabilities 10,686 6% 11,944 7% 24,939 24% 0 0%
Total current liabilities 40,231 23% 39,440 23% 42,671 41% 33,132 46%
Non-current liabilities
Long-term debt 29,985 18% 32,635 19% 36,195 35% 23,099 32%
Deferred taxes liabilities 7,487 4% 7,214 4% 3,341 3% -258 -0%
Pensions and other benefits 8,898 5% 10,771 6% 3,724 4% 6,761 9%
Minority interest 74,023 43.2% 63,278 37.1% 262 0.3% -15 -0%
Other long-term liabilities 10,686 6% 11,944 7% 9,744 9% 10,269 14%
Total non-current liabilities 131,079 77% 83,172 74% 61,343 59% 39,521 54%
Total liabilities $171,310 100% $170,452 97% $104,013 100% $72,653 100%
Stockholders' equity
Common stock 3,120 -36% 3,120 2% 279 5% 4,009 9%
Additional paid-in-capital - 0%% - 0%% (111,361) -1851% (64,848)
Retained earnings 123,060 -1428% 113,890 75% 21,636 360% 106,374 228%
Treasury stock (39,099) 454% (38,490) -25% 0 0% (114,973) -246%
Accum. other comprehensive income (13,058) 152% (15,242) -10% (16,121) -268% (13,744) -29%
Total stockholders' equity (8,617) 100% (18,316) -12% 6,015 100% 46,654 100%
Total liabilities & stockholders' equity 65,406 100% 152136 100% $50,710 100% $119,307 100%
Johnson &Johnson (JNJ) INCOME STATEMENT
Fiscal year ends in Dec. 31 Pfizer Procter & Gamble
2021 % 2020 % 2021 % 2021 %
Revenue 93,775 100% 82,584 100% 81,288 100% 76,118 100%
Cost of revenue 29,855 32% 28,427 34% 30,821 38% 3,718 5%
Gross profit 63,920 68% 54,157 66% 50,467 62% 39,010 51%
Operating expenses 0%
Research and development 14,714 16% 12,159 15% 13,829 17% - 0%
Sales, General and admin. 24,659 26% 22,084 27% 12,703 16% 21,024 28%
Other 0 0% 0 0% 0 0% 0 0%
Total operating expenses 39,373 42% 34,243 41% 30,232 37.2% 58,132 76%
Operating income 24,547 26% 19,914 24% 20,235 25% 17,986 24%
Interest Expense 183 0% 201 0% 1,291 2% -502 -1%
Other income (expense) 1,641 2% 3,327 4% 5,331 7% 590 1%
Income before taxes 22,776 24% 16,497 20% 24,311 30% 17,715 23%
Provision for income taxes 1,898 2% 1,783 2% 1,852 2% 3,190 4%
Net income from continuing op. 20,878 22% 14,714 18% 22,459 28% 14,525 19%
Other 0 0% 0 0% 0 0.0% 0 0%
Net income $20,878 22% $14,714 18% 21,979 27% $14,510 19%
Productivity Analysis
Johnson & Johnson 20211
Net Sales $93,800,000,000 $661,961.89
Employees 141,700
Pfizer 20212
Net Sales $638,000,000 $8,075.95
Employees 79,000
Procter & Gamble 20213
Net Sales $76,118,000 $753.64
Employees 101,000
Productivity Analysis Summary
Based on this analysis, Johnson & Johnson has the highest revenue per employee, indicating that they are more productive than Pfizer and Procter & Gamble, which results in better profit for the company.
Sources:
1https://www.investor.jnj.com/annual-meeting-materials/2021-annual-report
2https://s28.q4cdn.com/781576035/files/doc_financials/2021/ar/PFE-2021-Form-10K-FINAL.pdf
3https://assets.ctfassets.net/oggad6svuzkv/3qbxcfyzN04dDEn0YM7Pzj/6c7ae1393e16a9f182fec90d6478ed15/2021_form_10k.pdf

Prepared by Williams, Louis &P

Tool 11

SWOT Analysis
Purpose: To show the linkages and connections between various SWOT elements for Johnson & Johnson. This enables the company to craft exploitive, alliance, defensive, and covert strategies to improve the company.
Strengths Weaknesses
S1 Johnson & Johnson offers a large, diverse product line and services including medical devices, pharmaceuticals, and consumer health products W1 J&J has had several lawsuits against the negative effects of several of its products. This causes a loss of trust and taints the company's reputation.
S2 Due to having one of the highest revenue streams in the market, J&J is an industry leader. W2 Uneven revenue distribution as the majority of J&J's revenue depends on a few key products.
S3 Invested around $14.7 billion USD for research and development costs to remain competitive. W3 Accusations of unethical practices in using misleading marketing campaigns threaten the trust and brand reliability J&J has built over the years.
S4 With a presence in over 90 countries, Johnson & Johnson has a strong global reach. W4 Kickback allegations stain the company's reputation and can result in costly fines and legal consequences.
S5 Has consistent, stable market performance. W5 Gender discrimination allegations could adversely affect the company's ability to recruit top talent as well as tarnish its public image.
S6 With over 130 of existence, J&J is highly experienced and knows what it takes to fulfill the needs of the market. W6 A decline in consumer health sales results in lower revenue and contributes to the uneven distribution of revenue.
S7 Johnson & Johnson has several robust initiatives to give back to global communities, resulting in strong community engagement. W7 Low current and quick ratios suggest that J&J is not as efficient with financial planning.
S8 Very adept at completing strategic acquisitions and mergers to enter new markets. W8 Lack of diverse products.
S9 Being the leading healthcare company on a global scale, J&J is highly influential and has great brand recognition. W9 Product quality has been called into question due to lawsuits and can affect public opinion and profit.
S10 Has skilled employees and a strong, global workforce. W10 Public opinion is negatively impacted by lawsuits and allegations.
Opportunities Threats
O1 J&J's robotic surgery system provides the opportunity to make innovative changes in surgery as well as an advantage over the competition. T1 Government regulations place restrictions on profit, and operations, and can be challenging to remain in compliance globally.
O2 The capacity to innovate and the strong investment in R&D make Johnson & Johnson a leader in the market. T2 With heavy investments in R&D, relaxed laws around intellectual property put some of J&J's most valuable assets at risk.
O3 The growth of bio-implants is an opportunity to invest in R&D in this area, and get ahead of the competition. T3 Inflation could make it difficult to provide competitive pricing and impact profits.
O4 J&J is popular for its ability to make strategic mergers and acquisitions. Continuing to use this method is an opportunity to enter new markets and increase market share. T4 Rising pay demands threaten profitability and resources to acquire top talent.
O5 Since the COVID-19 pandemic, the telehealth industry has had tremendous growth and is predicted to continue to grow. If adequately invested in, this could lead to increased profits and an expanded customer base. T5 New environment regulations can make it more difficult for J&J to carry out green initiatives, and can affect profitability.
O6 J&J has developed one-dose COVID-19 immunizations that earn twice the profit as the two-dose drugs of their competitors. T6 The threat of a recession can make it difficult to keep the company financially profitable.
O7 Consumers are becoming increasingly invested in their health providing an opportunity for the health industry to grow. T7 Cyber security poses a threat as it becomes increasingly challenging and important to keep patient information secure.
O8 Further market development will lead to the dilution of competitors' advantages and can enable J&J to increase its competitiveness. T8 An increase in the production of generic versions of medication could affect the company's profitability.
O9 Stable profit and free cash flow present the opportunity for J&J to invest and expand products and the company. T9 The pharmaceutical market is becoming increasingly competitive, and it's difficult to maintain profit margins while still offering the best prices on the market.
O10 J&J has announced plans to separate into two companies providing the opportunity to expand and grow. T10 Lawsuits threaten the company's reputation as well as profit.
Sources:
https://swothub.com/pharmaceutical-industry-swot-analysis/
https://pestleanalysis.com/johnson-and-johnson-swot-analysis/
https://bstrategyhub.com/johnson-johnson-swot-analysis/
Exploitive Strategies
E1 Johnson & Johnson can continue to provide a more diverse product line by innovating bio-implant to remain competitive within the healthcare industry.
Match S3 with O3
E2 Partner with other organizations through mergers or acquisitions to increase profit margin and market share.
Match S8 with O4
E3 High revenue streams allow J&J to further invest in robotic surgery and gain a competitive advantage over competitors.
Match S2 with O1
Defensive Strategies
D1 Increased pay requirements could make it increasingly difficult to hire top talent, but J&J has had strong revenue which could be utilized to prevent an impact on profitability.
Match S2 with T4
D2 Utilizing the company's influence and reach, J&J could lobby and campaign for more relaxed government regulations and industry restrictions.
Match S9 with T1
D3 Can differentiate itself in the market from new companies with their experience and established presence in the market.
Match S6 with T9
Alliance Strategies W & O
A1 J&J's products lack diversification, however, if the company focuses on R&D and innovation it can create diverse products and increase competitiveness.
Match with W8 and O2
A2 An uneven distribution of revenue between J&J's three segments: consumer health, pharmaceutical, and medical devices, will be eradicated with the company's split into two companies.
Match with W2 and O10
A3 Public opinion has been adversely affected by lawsuits and allegations against the company, but consumers' increased interest in their health is an opportunity to gain lost and new customers by providing for their needs.
Match with W10 and O7
Covert Strategies
C1 As a major pharmaceutical company, the many allegations against J&J's unethical proceedings have contributed to the government being stricter on regulations, but J&J is lobbying in the hopes of changing these regulations.
Match W3 with T1
C2 With the production of generic medications, it will be difficult to compete. However, Johnson & Johnson is investing a lot in R&D to produce innovative products.
Match W8 with T8
C3 Several lawsuits caused public opinion to falter, but J&J is investing in community engagement initiatives to continue to give back to the global community.
Match W10 with T10
General Strategies
G1 With R&D incredibly important to remain competitive, Johnson & Johnson should continue to invest significantly in innovation.
Match S3 with O2
G2 Strategic partnerships and acquisitions can broaden J&J's global reach and increase revenue.
Match S8 with O4
G3 As J&J separates into two separate companies, its global reach will provide the new company with an established customer base.
Match with S4 and O10
Predictions
E1 Johnson & Johnson will be able to increase profits by continuously innovating its products in the competitive healthcare market.
E2 Market share will increase as Johnson & Johnson expands their global operations and increases its global reach.
E3 Profits will increase as Johnson & Johnson invests in surgical technologies and becomes a leader in robotic surgery.
D1 The hiring market has become increasingly competitive and pay requirements have increased, however, J&J has the revenue and brand recognition to attract and hire top talent that will increase efficiency and contribute to innovation.
D2 J&J will be able to unite companies with their reach and partnership capabilities to ignite change in the government regulations on the industry.
D3 The market is becoming increasingly competitive, however, with J&J's experience and seniority in the market, they will still remain competitive and will maintain their customer base.
Predictions Cont.
A1 Profits and product quality will increase with emphasized focus on research and development.
A2 Johnson & Johnson will increase global reach and overall profitability.
A3 J&J will continue to invest in marketing to create more positive brand recognition and will increase reach.
C1 Investments in lobbing will increase and J&J will partner with other companies in the industry to influence regulation reform.
C2 R&D investments will increase as well as product innovation and diversification. This will differentiate J&J products from generic brands.
C3 The settlement of lawsuits continued improvement in company operations, and investments in the global community will positively affect public opinion.
G1 Innovating new and current products will give J&Ja a competitive edge and result in increased revenue.
G2 Broadening global reach will increase brand recognition and profits.
G3 Separating into two companies will result in additional strategic acquisitions as well as a broadened global reach and increased profits.

&P

Tool 12

Financing Recommendations for SWOT1
Purpose: To make financing recommendations for Johnson & Johnson based off its SWOT analysis and company knowledge to implement the recommendations and how to get the funding for the proposals.
Exploitive Strategies
E1 Johnson & Johnson can continue to provide a more diverse product line by innovating bio-implant to remain competitive within the healthcare industry.
This recommendation gathers funds through its $14.7 billion R&D investment.
E2 Partner with other organizations through mergers or acquisitions to increase profit margin and market share.
Partner with other organizations through mergers or acquisitions to increase profit margin and market share.
E3 High revenue streams allow J&J to further invest in robotic surgery and gain a competitive advantage over competitors.
This recommendation can be paid for by cash, equity, revenue, or a combination of all.
Defensive Strategies
D1 Increased pay requirements could make it increasingly difficult to hire top talent, but J&J has had strong revenue which could be utilized to prevent an impact on profitability.
The company should ensure that all employees are compensated according to the standard of their living country, as well as consider increasing investments in benefits.
D2 Utilizing the company's influence and reach, J&J could lobby and campaign for more relaxed government regulations and industry restrictions.
In 2021, Johnson & Johnson spent $6.08 million on federal lobbying expenses. This investment should remain around the same as well as seek partnerships with other companies in the market.
D3 Can differentiate themselves in the market from new companies with their experience and established presence in the market.
Johnson & Johnson has spent over $100 million on advertising in digital, print, and TV. This investment should remain the same and should differentiate J&J from newer companies by emphasizing their experience and resources.
Alliance Strategies
A1 J&J's products lack diversification, however, if the company focuses on R&D and innovation it can create diverse products and increase competitiveness.
This recommendation gathers funds through its $14.7 billion R&D investment.
A2 Uneven distribution of revenue between J&J's three segments: consumer health, pharmaceutical, and medical devices, will be eradicated with the company's split into two companies.
J&J should draw funds from investors, stocks, and shares to fund the splitting into two publically traded companies.
A3 Public opinion has been adversely affected by lawsuits and allegations against the company, but consumers' increased interest in their health is an opportunity to gain lost and new customers by providing for their needs.
J&J should invest over $100 million towards their marketing budget as well as continue to invest in global community initiatives which will increase brand recognition.
Covert Strategies
C1 As a major pharmaceutical company, the many allegations against J&J's unethical proceedings have contributed to the government being stricter on regulations, but J&J is lobbying in the hopes of changing these regulations.
J&J should continue its previous investment of $6.08 million in lobbying.
C2 With the production of generic medications, it will be difficult to compete. However, Johnson & Johnson is investing a lot in R&D to produce innovative products.
This recommendation gathers funds through its $14.7 billion R&D investment.
C3 Several lawsuits caused public opinion to falter, but J&J is investing in community engagement initiatives to continue to give back to the global community.
The company should utilize its $100 million marketing budget as well as part of its $800 million commitment to community initiatives.
General Strategies
G1 With R&D incredibly important to remain competitive, Johnson & Johnson should continue to invest significantly in innovation.
This recommendation draws from the $14.7 billion R&D investment. This investment should increase as revenue increases and should be about one-quarter of revenue.
G2 Strategic partnerships and acquisitions can broaden J&J's global reach and increase revenue.
The company should allocate an equivalent budget of $86.47 billion like the previous years to acquire companies.
G3 As J&J separates into two separate companies, its global reach will provide the new company with an established customer base.
The company should allocate shares and investor funds to their split into two companies.
Overall, the financing for the recommended proposals should not be detrimental to Johnson & Johnson because it focuses on the betterment of the company through expansion, growth, and research and development.
Sources:
1https://www.jnj.com/about-jnj/corporate-reports

Prepared by Williams, Louis &P

image1.png

image2.png

image3.png

image4.png

image5.png

image6.png

image7.png