BUS 6302 II DBR1

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Global Strategic Management BUS 6320 Unit II Discussion Board Reply 1

Respond to your classmate below. Should be at least 300 words in length, include at least one APA-formatted scholarly, professional, or textbook reference with accompanying in-text citation to support any paraphrased, summarized, or quoted material.

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When discussing global companies, Johnson & Johnson (J&J) is a strong example. It is one of the world’s largest healthcare companies, based in the United States, and operates in many countries. The company mainly focuses on pharmaceuticals and medical devices and is known for its innovation, quality, and long-term commitment to improving health and well-being.

Diversification helps companies grow and stay competitive by using shared resources across different business areas. In contrast, unrelated diversification (UDIV) occurs when a company expands into completely different industries with no clear connection (Vu, 2025). As such, J&J’s global strategy highlights two key ideas. First, it uses diversification by operating in multiple healthcare segments instead of relying on just one. This reduces risk and helps the company remain stable even if one area performs poorly. Second, it follows a localized global strategy. While operating worldwide, it adapts its products and operations to meet local needs, such as different regulations, healthcare systems, and customer preferences.

Globalization and rapid technological change have increased competition across industries (Fang, et al., 2024). As a result, technology now plays a major role in shaping global strategy. In the past, companies relied on physical presence and slower communication. Today, digital transformation allows firms like J&J to operate more efficiently across borders. For example, data analytics helps the company understand global health trends, improve decision-making, and manage supply chains more effectively.

To stay competitive, companies must continue advancing their digital transformation. Many firms are now using digital collaboration to improve how they use data and enhance performance (Fang, et al., 2024). Technology is also essential in research and development, especially in pharmaceuticals, where innovation depends on advanced data systems and collaboration tools. In addition, digital platforms make it easier to manage global teams and respond quickly to market changes.

Johnson & Johnson has several key strengths, including a strong and globally recognized brand, a diversified business portfolio, and significant investment in research and development across a broad range of pharmaceutical and consumer health products. These strengths support its competitiveness and innovation. However, the company also faces challenges. Legal issues and product-related controversies have affected public trust, and its large size can make it slower to react compared to smaller, more flexible companies.

As a result, public opinion about J&J is mixed. Many people see it as a trusted provider of high-quality healthcare products, while others focus on lawsuits and ethical concerns reported in the media and online discussions.

For instance, in 2011, a class action was filed on behalf of about 5,000 people, claiming that DePuy and Johnson & Johnson Medical Pty Ltd (J&JMPL) negligently introduced ASR hip implants into the Australian market. The case alleged that the companies failed to properly test and monitor the implants and did not withdraw them despite safety concerns (Chamberlain & Legg, 2025).

Overall, J&J remains a strong global company. However, like many large organizations, it must continue to build trust and adapt to changing global expectations. Its experience shows how companies can use strategy, diversification, and technology to stay competitive while also managing the challenges of operating on a global scale.

References

Chamberlain, N., & Legg, M. (2025). Do Mass Tort Negligence Class Actions Adequately Compensate Victims and Effectively Deter Tortfeasor Wrongdoing? Laws, 14(5), 71. https://doi.org/10.3390/laws14050071

Fang, Y., Wei, W., & Su, R. (2024). Data element investment strategy: How can leaders and followers innovate in dynamic market environments. PLoS One, 19(8) https://doi.org/10.1371/journal.pone.0309659

Vu, T. H. (2025). Growth as a boundary condition: a threshold model of corporate diversification strategy. Cogent Business & Management, 12(1), 22. https://doi.org/10.1080/23311975.2025.2593077