Management Analysis of Johnson and Johnson

Running Head: MANAGEMENT
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Management
1/24/2019

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Contents
Introduction...........................................................................................................................................2
Company overview................................................................................................................................2
External environment analysis of company...........................................................................................2
Pestle analysis of J&J........................................................................................................................2
Porter’s five forces analysis of Johnson and Johnson............................................................................5
Recommendations.................................................................................................................................7
Conclusion.............................................................................................................................................7
References.............................................................................................................................................9

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Introduction
The report brings about the discussion on the various aspects of management
applicable in the contemporary organisations. Different models of analysis will be used in the
report i.e. pestle analysis, and porter’s five forces analysis to help understand the
organisational environment. To gain an understanding about these concepts of management
or strategic models, ‘Johnson and Johnson’ has been taken as the company. Thus, the report
will pay particular attention on the business activities of the company, explaining the scenario
of competitiveness with the help of models/forces, and the considerable recommendations to
enhance performance in the future years.
Company overview
Johnson and Johnson founded on November 10, 1887 is an American multinational
company is headquartered in New Brunswick, New Jersey, United States. The company deals
in medical devices, pharmaceutical and the consumer packaged goods. To state more
specifically, it operates as research & development, manufacture and sale of the products in
the field of healthcare. Therefore, the primary goal or focus of Johnson and Johnson is to
market products leading to consumer’s health and wellbeing. The corporation is found with
around 250 subsidiaries operating in 60 countries, where the products are sold within 175
countries around the globe. Thus, the company is involved in maintaining and leading the
health of their consumers, selling a range of healthcare products worldwide (Johnson and
Johnson, 2018).
External environment analysis of company
To analyse the external environment of ‘Johnson and Johnson’ it has been found that
the company has been able to anticipate the external factors, which influences their
performance in international business. Thus, Pestle analysis, will be done to derive an
understanding of the strategic business environment.
Pestle analysis of J&J
Pestle analysis refers to the strategic framework, which is used to determine, monitor,
or analyse the external environmental factors or forces influencing the organisation. Thus, it
is tool, which critically identifies the factors that may improve or harm the business activities

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of any organisation. Thus, the tool will identify the political, social, technological, legal, and
environmental forces acting upon the business organisation, leading to the determination of
competitive position of the organisation. Johnson and Johnson’s pestle analysis will mention
about the operating challenges that the company faces in the prevalent macro environment,
other than the competitive forces (Bell & Rochford, 2016).
Factors/forces Influences/Benefits/
Political Political environmental factors consist of political stability,
influence of drug manufacturers, anti-trust laws, trade regulations,
and tariffs related to healthcare. The political environment of
Singapore’s Johnson and Johnson it has been found that political
risk is quite low in the country. It is considered a democratic
country, and the government has most powers in the
pharmaceutical industry. Each country has their own system of
preventing and assuring the carefulness and safety of the drugs,
which affects the people’s health and wellbeing (Miller & Pessoa,
2016).
Thus, these different rules establish barriers for the company to
operate successful in different countries. The country has stable
environment, which determines about better standard of living.
Thus, stating the operations of J&J in US, it has been found that the
company has a political action committee, which is consistent to
the state and federal laws of United States. As per these laws, any
citizen of the country is allowed to change public policy, with
respect to any health issue (Barr, 2016).
Moreover, the company is involved in making donations to support
the candidates in election campaigns, who work towards attaining
the health standards.
Economic To state about the economic factors, it has been found that J&J
feels satisfaction over the introduction of European union, because
it has emerged as a single currency market. Moreover, it has
increased the market for selling the healthcare products to the
customers. The rate of inflation, and exchange rates are quite stable
which does not influence the price of products of the company. The