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afrench_globalexpansionproject_05292016.pptx

Company Analysis

Johnson baby oil company

Rasmussen College

Annette L. French

May 29, 2016

Company Overview

Johnson & Johnson was incorporated in 1887 in New Jersey.

It operates a group of companies that are engaged in research and development.

The Company conducts it’s operations in the healthcare field and manufactures and sell it’s broad range of products globally.

The main concern of the Company has been to provide category of products that meets consumer’s health and wellbeing needs.

The firm embraces decentralized management principle in it’s organization.

Thus, the executive committee is the chief management group that oversees strategic operations as well as allocation of the company resources.

http://www.jnj.com/about-jnj

The company overview covers the commencement of operations, mode of operations, product categories and the management composition.

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Johnson’s Baby Oil - Features

Johnson baby oil is in the field of baby care and skin care.

The product is manufactured from the mineral oil products.

Its main ingredient is mineral oil and perfume.

This product assists in moisturizing delicate skin as well as protecting the skin from dryness.

It forms a silky barriers on the skin hampering loss of moisture.

The product enhances glowing and softness of the skin.

It enhances parent and baby bonding.

The product passes dermatological test and it is allergy free.

Once applied, it soothes and relieve dry and rough patches.

It is in the field of baby care and skin oil which is manufactured from mineral oil products. It usually forms a silky barriers on the skin hampering loss of moisture. It usually enhances the bonding between the parent and the baby. It usually soothes and removes the rough patches

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Benefits of Johnson’s Baby Oil

The products contains myriad of benefits discussed as below.

It’s ingredients is 98% mineral oil, 2% fragrance.

If the customer is sensitive to the fragrance, he is free to choose the category that contains 100% mineral oil.

The product does not clog pores because its non-comedogenic.

It is non-reactive. This means that if the skin contains any other product, Johnson baby oil won’t react.

It contains large molecules which creates a barrier on the skin maintaining the smoothness.

The product does not penetrate the skin.

It’s emollient feature leaves the skin soft (Rawlings & Lombard, 2012).

Benefits of the products in a summarized form; composition of ingredients, flexibility, reaction and on the skin features.

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Limitations of Johnson’s Baby Oil

One of the major limitation of this product is the high cost associated with it.

The fact that the oil creates a barrier on the skin means that the skin does not breathe normally .

Mineral oil contains a cancer element known as Polycyclic Aromatic hydrocarbon. The element can curtail proper functioning of the skin making it to age prematurely.

The product can cause damage of vital organs of humans if inhaled or drunk (Harper, 2013).

The cons of using the product is featured. Cost is the major limiting factor. Other factors includes skin breathing system, mineral elements and human body response.

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Macro-environmental Analysis of China

Johnson and Johnson intends to expand in China

China emerge as the most attractive business locations globally.

It growth capacity is propelling the country as one of the strongest business powers globally, making it ideal for business.

The country is rapidly expanding awareness of environmental protection.

The government of China has developed rules to govern the overall economic activities. This means that businessmen has to abide to the rules.

In the recent past, China’s GDP has reported an upward growth. This is boosting the consumers’ purchasing power.

China is experiencing a constant change of its demographics. According to research, the country has experienced fluctuation of its population in the last decade.

However, China does not have a stable system related to online payment (Peng & Nunes, 2007).

PEST Analysis has been used to analyze environmental factors of China. In this case, PEST focus on location, suitability, environmental factors, government role, the GDP, Demographics and the payment system.

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References

http://www.jnj.com/healthcare-products/consumer

http://www.jnj.com/about-jnj

Rawlings, A. V., & Lombard, K. J. (2012). A review on the extensive skin benefits of mineral oil. International journal of cosmetic science, 34(6), 511-518.

Harper, D. L. (2013). J&J Baby Products Company. Surfactants in Solution, 10, 381.

Peng, G. C. A., & Nunes, M. B. (2007, July). Using PEST analysis as a tool for refining and focusing contexts for information systems research. In 6th European conference on research methodology for business and management studies, Lisbon, Portugal (pp. 229-236).