Business Strategies: An Efficiency and Effectiveness Report on J&J

This assignment provides a comprehensive analysis of Johnson & Johnson's business strategies, focusing on efficiency, effectiveness, and global approaches. It evaluates the company's commitment to innovation and customer satisfaction, highlighting the advantages and challenges of its global strategy of product development and mass customization. The essay also explores the impact of the Bahrain-US Free Trade Agreement, emphasizing its benefits for trade, economic growth, and technological advancement. Furthermore, it briefly mentions the Gulf Cooperation Council, setting the stage for further discussion. The assignment concludes by underscoring the importance of strategic management decisions and innovation in maintaining a competitive edge in the global market. Desklib is a valuable resource for students seeking similar solved assignments and study materials.

Running head: EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Efficiency and Effectiveness Business Report
The course code
Name of the Student and ID
Name of the University
Author’s note

1EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Essay 1
Established in 1886, Johnson and Johnson have over the years grown in terms of the
values and principles that were established during the time of inception. The founding idea of the
establishing the company was the use of sterile bandages and dressing items in order to treat the
patients. This was a revolutionary idea during the time the organisation was established. Johnson
and Johnson have developed and ever since have been dedicated to provide the customers with
innovative ideas as well as knowledge regarding healthcare (Jnj.com, 2018). The company has
grown over the years and now it serves the customers all over the world in more than 60
countries today it is the 6th consumer health organisation (Jnj.com, 2018). During the course of
its operations the company has gone through a number of ups and downs and has gathered
goodwill among the stakeholders. The company strives to create products which will help the
consumers lead a better life. The organisation operates in the pharmaceutical, consumer
packaged goods as well as manufactures medical devices (Forbes.com, 2018). The expansion
and development of the company revolves around the innovation and research hence focusing on
global strategy as one of the major strategies of the company. This essay is going to identify and
evaluate the strategies that Johnson and Johnson has adopted over the years to grow and
expand the business and also remain true to the values and principle keeping in mind the
global approach based on which the company was created. The assignment will also describe
the benefits and challenges of the strategy.
The company follows a globalized approach of marketing in implementing its strategies
in the society. The globalized approach to the marketing in comparison to the approaches takes
into consideration the market strategy of the company does not have any variation globally. Any
business organisation operates in two environments: internal and external, where the internal

2EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
factors are under the control of the management, the external factors are the ones the company
should be prepared for. The analysis of the external factors help the management creates and
looks out for opportunities and scope for the business as well as seeks for the threats that are
prevalent in the external environment that might impact the future of the business. The products
that the company has focused on the fact that the customers or the target market may be the same
but they have specific needs and requirements and therefore the company has used the strategy
of mass customization in the process of product development is used as the global strategy.
Johnson and Johnson is an organization that is focused on serving the customers using the
similar strategies globally. The subsidiaries of the company share the organization’s similar
vision. Mass Customization with the help of product development has been used as a strategy to
expand business over the years.
Figure 1: Revenue of Johnson & Johnson from 2006-2017
(Source: Statista.com)

3EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Some of the advantages of the global strategy of product marketing are: firstly the
company with the help of global strategy can keep up with the dynamics of the trends in the
industry of operation by implementation of strategies at once. For example: Johnson and Johnson
created a number of varieties of lotions for kids to keep up with the trends in the industry and the
same product is marketed internationally (Wilkinson & De Angeli 2014). On the other hand the
similar organization Proctor and Gamble has a multinational approach and the organizational
strategy to support the development of the organization in the international market. Contrary to
the global approach this approach takes in to consideration the needs of local national markets to
which the products are marketed. One of the major objectives of the company is to create
valuable customer relationship so that they may have an influence on the market (Wilkinson &
De Angeli 2014). In pursuit to understand the customers the company has to be in continuous
touch with the customers helping in building a relationship of understanding. Global strategy for
a company helps the organisation to grow and create opportunities with the help of the strength.
The Global strategy helps in developing a culture of innovation that furthermore it helps in
creating high value propositions due to its universal outreach. However, there are also some
important challenges to the strategy of product development as well. Companies may find it
difficult to finance their research and development department, it is difficult for SMEs to invest a
large amount of money (Forbes.com, 2018). The management should be prepared for failure and
should be able to bear the cost of these failures (Wei et al., 2014). There are also chances of this
not going as planned, in order to encourage innovation it is important for the management to
keep a far-sighted vision of the process. The local adaptation of the global strategies is because
of the fact that it markets a high quality products related to the healthcare which abides by the
healthcare norms of all the countries. Another challenge is the acceptance of a new idea among

4EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
the target market. If the innovation is effective yet the communication of the company is not
strategic the innovation might fail to comprehend with the dynamics of the requirements of the
customers. It can be said that the process of incorporating innovation in the business strategy
involves considerable risks for the management (Thomas, 2013).
It can be concluded from the above discussion that Johnson and Johnson is an
organization that focuses on the customer’s requirement and strives to provide the customers
with the high quality products at the most affordable prices. In order to keep up the changing
trends in the industry and also to keep an edge over the customers the company uses several
strategic management decisions. One of the most important strategies that Johnson and Johnson
have been using is innovation in global strategy and spreading knowledge among the customers
regarding healthcare. The company has set several benchmarks in the industry with the help of
the strategies of innovation globally.

5EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Essay 2
For a business organisation to operate in a country there are several rules and regulations
that they have to follow. Depending upon the industry of operations rules might change.
Political, economic, societal, legal and technological aspect of a country helps in establishing the
trade and business environment in a country. For example: the political relation in between two
nation states encourages or creates a barrier in international trade and expansion. The
government of a country sets rules and regulations in order to keep a check on the economy as
well as establish some control on the organizations as well. In this essay the Bahrain-US free
trade agreement is going to be analyzed in order to understand the role of government in trade of
a country (Ustr.gov, 2018). The essay will contain an analysis of the measures that are stated in
the agreement as well as analyze the provisions and the benefits that are associated with the
agreement. A free trade agreement is a treaty in between two nation states that would lay down a
framework which would enable the two countries to have trade relations. A free trade agreement
removes several barriers in commerce in between the countries. There are a number of countries
that have established Free Trade Agreements with Bahrain. The (USBFTA) has encouraged trade
in the country and has given a boost to international trade of the country as well. US is one of the
developed economies in the world and maintaining a Free trade agreement has encouraged
traders in Bahrain to invest and distribute products and services in the international market
(Ustr.gov, 2018). On the other hand the agreement is also equally profitable for the business
environment in the US as Bahrain is also one of the economic leaders in the Gulf region. In
Bahrain the Ministry of Foreign Affairs deal with such agreements as the department is
responsible for coordinating and formulating decisions regarding international trade. The
agreement was signed in 2004 and was implemented from 2006 (Mofa.gov.bh, 2018).

6EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
The highlights of the agreements are: Duty free access of 96 percent of the agro-industry
as well as industrial products from Bahrain. Similar freedom is access to the US products as
well; such elimination of the tariff will reduce the cost of the products for the foreign market as
well expanding the target market of the companies. On the other hand the textile industry of both
the countries have received boost from this agreement as the products are declared duty free as
long as the companies adhere to the Yarn-Forward Rule (Sice.oas.org, 2018). Therefore the
fashion and textile industry in the countries expand its opportunities with the help of this treaty.
Apart from these there are also services which have received encouragement in their trade with
US with the help of this treaty (Sice.oas.org, 2018). There is a negative list approach used in the
treaty which means that all the services will enjoy free pass unless it is a service that is
specifically mentioned. Some of the service sectors that will enjoy the perks of the agreement are
the telecommunications, computer and peripherals, transportation, healthcare, education,
advertising, tourism, engineering, construction, audiovisual and express delivery (Mofa.gov.bh,
2018). The free trade will subsidize the prices that the country imports from US thereby reducing
the price of the products in the local market. The engineering construction and healthcare
facilities coming in this purview will lead to the reduction of the cost of innovations in the
infrastructure.
There are also measures of financial services which include Islamic financial services as
well. There are also provisions for liberalizing the Bahrain Stock Exchange and the insurance
industry. The financial services will enjoy free access in both the cases unless the service is
excluded by a Non-Conforming Measure. One of the special highlights of the treaty is the
acceptance of technology in the form of encouraging e-commerce (Customs.gov.bh, 2018). E-
Commerce sector will enjoy a liberalized, non-discriminatory trade environment in the countries

7EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
there will be non-discriminatory actions taken for digital products it also explains that there will
also be no customs duties imposed on digital products. This will help the e-commerce sector of
Bahrain to improve and expand its infrastructure as well as establish the country as the e-
commerce leader in the Arabic Gulf region. Apart from these highlights there are several
regulatory measures of maintenance of transparency, regulations regarding the labor law and
technical assistance and how the treaty shall be enforced (Mofa.gov.bh, 2018).
Therefore it can be concluded that there are several economic benefits from a Free Trade
agreement of both the countries, from the perspective of Bahrain firstly it provides the countries
opportunity of expansion of the business corridor and to showcase the products and services in
the global market, this in turn increases the import as well as export of the country. The treaty
will also boost the manufacturing industry in order to make the products duty-free there has to be
a certain percentage of domestic content in the products; this will encourage the manufactures to
invest in the country. The above discussed factor will give rise to an increase in demand of the
products and services, which in turn will call for employment opportunity rise in the country.
Creating opportunity for the country will boost and encourage the trade and commerce in all the
sectors which will get free access to the US market .

8EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Essay 3
Established in 1981, The Gulf Co-operation Council (GCC) is a union council which was
initially established with six members, the United Arab Emirates, Kingdom of Bahrain, Kingdom
of Saudi Arabia, Sultanate of Oman, State of Qatar and State of Kuwait. Several facts facilitated
the development of the GCC geographical proximity, shared cultural aspects among the
countries, parallel economic assets and activities, similarities political scenario (monarchies).
This council provides a framework for the members to act in a unified fashion in order to
develop their states and provide the citizens with better opportunities. This framework would
enable the members of the corporation to maintain coordination, integration and inter-connection
in politics, economics etc. The corporation would also establish strong relationship bonds in
between the nation states. Some of the departments which are the highlights of the corporation
revolve around: politics, military and security, legal and judicial, economic relations with other
countries, media and communication, human resources and employment, Auditing etc. The
objective of the essay is to understand the benefits that a Bahrain based business would have
from The Gulf Co- operation Council (GCC). One of the most important partners of the GCC is
the World Bank. The two organizations have been in a profitable and healthy partnership for
more than 40 years. The World Bank provides GCC with reimbursable advisory services (RAS).
The framework that is established would help the members in encouraging the trade and
business corridor of their region by improving the trade relations among the member countries.
This would allow the business to have a wider reach in the global market as well. This has
improved the export of Bahrain as the business men in the country have the opportunity of
expanding their business in other gulf region as well. Most of the products and services which
are exported have low restrictions than other countries which are not the members of the GCC.

9EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Bahrain has received technical, knowledge and experience assistance from the institution. On the
other hand the GCC is the 5th largest export market of EU as well as the trading partner which
offers a member nation like Bahrain to have a wide access to the European market as well (Gulf-
insider.com, 2018). Not only this they are also the largest trading partners, GCC represents 4.4%
of the EU's total trade. As an example the construction industry of Bahrain has gained
immensely from the agreements of the GCC. State-owned Aluminum Company in Bahrain
known as Alba received a boost from the trade relations that is established with the corporation
among the Gulf countries. Also there are organizations like the Nass constructions which have
received contracts of project development across the members of the GCC. In the first quarter of
2015, growth of the construction industry of Bahrain was 7.5%, which is the second highest of
any segment of the economy of the country. Another example of an sector that enjoys form the
member ship is the oil and gas industry, Bahrain’s National Oil and Gas Authority (NOGA) have
the back up of the GCC nations when there is a need for funds and the country’s resources does
not only have to be the only option of the fund raiser (Oxfordbusinessgroup.com, 2018).
On the other hand, the membership of GCC has also provided the country with features
which makes it attractive for the investors to put their money in the economy and set up their
business in Bahrain. The government of Bahrain has the vision of making the country the leading
business corridor and commerce hub in the Gulf region (Gulf-insider.com, 2018). The economic
freedom that the country gets from being a part of the GCC encourages a lot of trade and
business in the economy, it not only facilitates the external investors but also encourages the
people of the country to invest in business and grow (Bahrainedb.com, 2018). The government
and the regulations in the country is very lenient when it comes to regulating business and
commerce in the country, there is low taxation even on private organizations. The GCC countries

10EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
have also made arrangements to improve the inter-state connectivity and transportation, which
furthermore inspires the trade in the region. The Saudi-Bahrain Causeway is further being
planned to extend and join the Qatar-Bahrain Causeway (Oxfordbusinessgroup.com, 2018). With
the help of the measures and provision that has been created with this corporation Bahrain has
over the years established the country as a land of opportunity for the investors. The leading
economy, the political support, the technical and physical infrastructure availability as well as
high standard of living among the people has helped in establishing the country as one of the
most attractive investors in the global market. Being a part of the GCC has helped the country to
achieve this position in the international market (Gulf-insider.com, 2018).
It can be concluded form the above discussion is that in the present time Bahrain has
successfully established the opportunities it has to offer in the global market. GCC has helped the
government of the country to develop business opportunities with various regions in the world
like India, EU etc. The economy of the country is booming and the government wants to
establish itself as the economic leaders in the region (Bahrainedb.com, 2018).

11EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Essay 4
The kingdom of Bahrain has in the last two decades attracted the attention of
international investors all over the world. The country has the aim to establish itself as the
economic leader of the region. The country has constitutional monarchy form of government and
has established itself as an investment attraction (Wto.org, 2018). There are certain features of
the country’s external business environment factors that prove the same. The Economic
Development Board of Bahrain, states that human resources, strategic geographic location,
support and far-sightedness of the government, high standard of living among the people and
favorable business factors are some of the features that make the country attractive for trade and
commerce (Wto.org, 2018). The idea of this essay is to determine and evaluate the benefits that
are enjoyed by Bahrain as a part of the World Trade Organisation. World Trade Organisation
is an icon of globalization and international trade. Around 164 countries are a member of the
organisation and have over the years enjoyed the perks of the membership in international trade,
encouraging their internal business. With the help of trade agreements the WTO, helps the
countries to ensure there is hassle free international trade among the countries. WTO establishes
frameworks that have rules and regulations as well as penalties for breaking the same. The
countries are expected to follow the protocol in order to remain a part of the WTO. The kingdom
of Bahrain has been a part of the organisation since 1995 (Wto.org, 2018).
Firstly being a part of the WTO opens the international platform and provides business
opportunities on the global market for organizations of Bahrain. As Bahrain is a member of the
organisation the country enjoys the feature of being in the status of Most Favored Nation. All the
members of the organisation are treated in the same way without biases, thus providing Bahrain
with opportunities like any other country on the list of members. Bahrain also enjoys low rate of

12EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
challenges in terms of trade barriers and tariff in international trade with other members of WTO,
this allows the country to have a better market expansion for the business which in turn indicates
that the country has the opportunity to employee more people, create transaction in the economy
by accelerating the economic growth of the country. Bahrain has been on the rising trend of
economic growth and this growth has been forecasted to be on the rising trend given the
circumstances the country is in (Wto.org, 2018).
With the help of the membership of WTO the country has the opportunity to trade with
several developed countries around the world. Maintaining trade relations with developed
countries provide opportunities for the country to encourage international trade for the domestic
business companies (Wto.org, 2018). Trade relations with US, UK and EU are easy to establish
as a part of WTO, thus the country has the benefits to trade with developed economies
increasing. Bahrain has been one of the founding members from Asia. The government of the
country is always supporting and engaging in the improvement of the trade corridors of the
country as they realize that trade and commerce can drive the country to economic excellence.
Some of the trade benefits that the country gets as a member of WTO are: the prices of the goods
are relatively low which makes products and services available for the people of the country.
There are also benefits for the domestic companies of Bahrain which want to establish a global
footprint as it serves as a major back up. The free structure of trade and reduced barriers enables
the trades in the country to have higher value proposition and competitive opportunity in the
industry. Bahrain has been a forerunner in understanding the opportunity of globalization and
thus with the member ship of WTO the country has continuously strived to provide the best
opportunities of trade. Being a part of the WTO the country has also significantly provided in the
improvement of the global economy (Wto.org, 2018).

13EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Bahrain as a part of WTO helps also in maintaining a harmonious relation with other
countries (Wto.org, 2018). The political as well as economic relations with not only the countries
of the Gulf region but also of the rest of the world is easy to establish owing to the rules and
regulations that the member countries have to abide by. The organisation also creates and
enforces confidence among the countries while formulating agreements. Another benefit that the
country enjoys is that it can provide the citizen of the country with a wider array of products and
services to choose from around the world. This on the other hand also helps in establishing a
better standard of living among the people (Wto.org, 2018).
The government of Bahrain has established as commerce encouraging and focusing on
improving the economy of the country. The membership of WTO has helped the country in
establishing their perspective. All the countries who are a member of WTO share the same
privileges and constraints and thus Bahrain also enjoys privileges in globalization.

14EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Reference List:
Bahrainedb.com (2018). Why Bahrain? - Bahrain Economic Development Board | Invest in
Bahrain. [online] Bahrain Economic Development Board | Invest in Bahrain. Available
at: http://bahrainedb.com/why-bahrain/ [Accessed 24 Jun. 2018].
Customs.gov.bh (2018). Customs Regulations. [online] http://www.customs.gov.bh/fta.php?
SID=WVZkUk9VNUVRVzFpVkRBelNt [Accessed 24 Jun. 2018].
Forbes.com (2018). Johnson & Johnson. [online] Forbes.com. Available at:
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/companies/
johnson-johnson/&refURL=https://www.google.co.in/&referrer=https://
www.google.co.in/ [Accessed 24 Jun. 2018].
Gulf-insider.com (2018). Will Bahrain Become Business Powerhouse. [online] http://www.gulf-
insider.com/will-bahrain-become-business-powerhouse-gcc/ [Accessed 24 Jun. 2018].
jnj.com (2018). About Johnson & Johnson. [online] Content Lab - U.S. Available at:
https://www.jnj.com/about-jnj [Accessed 24 Jun. 2018].
Mofa.gov.bh (2018). Free Trade Agreements. [online]
https://www.mofa.gov.bh/ForeignTradeAgreement/tabid/248/language/en-US/
Default.aspx [Accessed 24 Jun. 2018].
Oxfordbusinessgroup.com (2018). GCC investment brings benefits for Bahrain's construction
sector. [online] Oxford Business Group. Available at:
https://oxfordbusinessgroup.com/overview/stable-outlook-varied-range-projects-
progress-sector-reaps-benefits-gcc-investment [Accessed 24 Jun. 2018].

15EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Sice.oas.org (2018). The Bahrain-United States Free Trade Agreement. [online]
http://www.sice.oas.org/TPD/USA_BHR/Studies/Overview_e.pdf [Accessed 24 Jun.
2018].
Statista.com (2018). Johnson & Johnson revenue by region 2006-2017 | Statistic. [online]
Statista. Available at: https://www.statista.com/statistics/266429/revenue-of-johnson-
und-johnson-since-2006-by-world-region/ [Accessed 25 Jun. 2018].
Thomas, E. (2013). Supplier integration in new product development: Computer mediated
communication, knowledge exchange and buyer performance. Industrial Marketing
Management, 42(6), 890-899.
Ustr.gov (2018). Free Trade Agreements. [online] https://ustr.gov/trade-agreements/free-trade-
agreements/bahrain-fta[Accessed 24 Jun. 2018].
Wei, Z., Yi, Y., & Guo, H. (2014). Organizational learning ambidexterity, strategic flexibility,
and new product development. Journal of Product Innovation Management, 31(4), 832-
847.
Wilkinson, C. R., & De Angeli, A. (2014). Applying user centred and participatory design
approaches to commercial product development. Design Studies, 35(6), 614-631.
Wto.org (2018). THE GENERAL AGREEMENT ON TARIFFS AND TRADE. [online] Wto.org.
Available at: https://www.wto.org/english/docs_e/legal_e/gatt47.pdf [Accessed 24 Jun.
2018].

16EFFICIENCY AND EFFECTIVENESS BUSINESS REPORT
Wto.org (2018). WTO | Bahrain, Kingdom of - Member information. [online] Wto.org. Available
at: https://www.wto.org/english/thewto_e/countries_e/bahrain_e.htm [Accessed 24 Jun.
2018].