Analyzing the Global Impact of Johnson & Johnson's Business Strategies

Johnson & Johnson, a leading multinational corporation in the healthcare industry, utilizes various strategic analyses to maintain its competitive edge globally. This assignment explores how the company employs PESTEL (Political, Economic, Social, Technological, Environmental, Legal) and SWOT (Strengths, Weaknesses, Opportunities, Threats) analyses to navigate challenges and seize opportunities in international markets. Students will investigate the effectiveness of these strategies in adapting to diverse market conditions and regulatory environments. By understanding Johnson & Johnson's strategic approach, students can gain insights into effective business practices within the healthcare sector.

Running head: GLOBAL BUSINESS DEVELOPMENT
Global Business Development
Name of the Student:
Name of the University:
Author Note:

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GLOBAL BUSINESS DEVELOPMENT
Executive Summary
The study would thus provide the insightful ideas about such external factors that have the
significant impact on the organisational activities and economic structure of the country. The
emergence of globalization has brought the drastic changes in the economic structure of the
internationalized organisations. Therefore, the impacts are created on the economic structure of
the country as well. It is notable that Australia, China, and USA have been the countries where
the foreigners establish their entity. The business experts of Johnson and Johnson have focused
to run their business in the soil of America in order to introduce their products and services to the
people of diverse cultural backgrounds and attitudes. New Zealand has been operating within a
small and open economic zone by depending on the free market principles. The sizeable and
structured manufacturing and service sectors are quite effective enough for the country to
achieve the high efficiency. The sizeable and structured manufacturing and service sectors are
quite effective enough for the country to achieve the high efficiency. The PESTLE analysis of
Johnsons and Johnsons provide the knowledge about the external factors that have the significant
impact on business operations. Moreover, the study also provides the ideas about the necessities
of exporting services.

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Table of Contents
Introduction......................................................................................................................................2
Task 1: Key Economic aspects of Australia, China, and USA........................................................2
Task 2: PESTLE Analysis of Johnson and Johnson, US (Pharmaceutical Company)....................8
Task 3: National Differences in Political Economy......................................................................12
Task 4: Contextual Ideas...............................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
The considerable shifts from the manufacturing economy to the service economy have
brought the recognizable changes in the business scenario. It has been observed that the
influences of the environment on the business companies are ensuring the drastic changes on the
business activities as well. In current times, the organisations are venturing beyond national
boundaries (Pieterse, 2015). It is true that the globalization has the significant impact on the
business activities. Moreover, it is a considerable fact that the globalization has brought the
innovations and advancements in business tactics. However, it is also to be accepted that the
different internal and external factors have the considerable influence on the business operations.
In most of the cases, such influences are considered as the potential challenges that the business
marketers usually face in a global scale. For example, the technological advancements turn out to
be disadvantageous since it affects the distribution process (Henderson, 2017). In many cases,
the associates are unable to meet the expectation level of the global customers due to the
changing demands fueled by the advanced technologies. The study would thus provide the
insightful ideas about such external factors that have the significant impact on the organisational
activities and economic structure of the country.
Task 1: Key Economic aspects of Australia, China, and USA
The emergence of globalization has brought the drastic changes in the economic structure
of the internationalized organisations. Therefore, the impacts are created on the economic
structure of the country as well. It is notable that Australia, China, and USA have been the
countries where the foreigners establish their entity (Lin, 2013). The business expansion and
development in these countries accordingly created much impact on the economic structure. In
order to obtain ideas about the economic aspects of these countries, it is necessary to identify the
underlying strengths, weaknesses, opportunities, and threats for the business establishment.
Therefore, in this section of the study, the SWOT analysis would be conducted to identify the
economic aspects in Australia, China, and US.
SWOT analysis of Australia
SWOT Analysis

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Strengths The major strength of the country is the secure
political system, which is favorable for the
internationalization. The foreign businesses receive
the adequate support from the government to get
access to the necessary resources. Moreover, the
business marketers even experience the competitive
advantage in terms of different segments (Smith,
Hadfield & Dunne, 2016). Strengthening the
organisational position by through the competitive
advantage is securing the sustainable future of the
company in country.
Weakness In spite of these effective supports and advantages,
it is sometimes difficult for the business marketers
to apply the policies and rules for the parliament.
On the other hand, the risks associated with the
migration creating issues sometimes become the
reason for the trouble occurs in the country. The
business companies thus may feel insecure in
retaining the competitive position in such situation.
Threats The major threats are coming from the continuous
changes in the rate, which is submitted to
variations.
Opportunities The strengthened relationships with USA are
increasing the business opportunities, which is
beneficial for economic development of the
country. On the other hand, the growing economy
of China is also helpful for establishing the strong
business relationship between two countries.
Table 1: SWOT Analysis of Australia
(Source: Bull et al., 2016)

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The obtained idea from the above analysis signifies that the rigid policies and parliament
regulations may create the obstacles in establishing foreign business in Australia. However, the
economic growth in other countries creates the significant impact on the establishment of the
foreign relationship. It turns out to be much profitable for the future developments. However, the
legal risks may affect the business environment.
SWOT Analysis of USA
United States of America comprises one federal district and fifty states. The GDP rate of
America is largest in the world, which is contributing to the well-developed economic and
technological scenario. The business market of USA is mostly consumer-driven, which is the
major concern for the foreign business marketers. The following
SWOT Analysis
Strengths USA has the largest economy in the world and the
GDP rate is approximately $14.26 trillion. The
consumer-driven economy is much favorable for
the business. Stability in the decision-making
process influences the stability and growth to the
innovativeness of the business. The flexible grip on
the US economy is opportune for the business
marketer in a global scale.
Weakness The low household saving rate is the drawback of
the country. The greater fiscal deficit increases the
external debts and making it as the greatest debtor
countries. The existence of the wealth disparities is
noticeable. The high prices of energy services are
the reasons for economic struggle.
Threats The lesser rate of growth is unfavorable for the
foreign business marketers. On the other hand, the
recent developments in Asia and growing economy
in Europe are much challenging for the country in
concerning the competition level. The considerable
barriers are also found in the markets due to the

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high rivalries. Rising unemployment is also one of
the most effective and considerable factors.
Opportunities The country has the ability to support different
types of adjustments in both investments and
growth. The taxation process can help in mitigating
the issues with the financial aspects. Inflation rate
is expected to be decreased due to the decreasing
rates of commodities. Increasing funding in the
housing services and other process would be
beneficial in surviving during the crisis scenario.
Table 2: SWOT Analysis of USA
(Source: Dzonzi-Undi & Li, 2015)
The above analysis describes that the largest economy in USA is quite favorable for the
foreign business marketers. However, it is even notable that the poor financial management can
create the considerable effects on the foreign business establishment. The improper management
of the financial aspects may affect the foreign business in a recognizable way. The growing
competition with other countries is also much challenging in terms of establishing business in a
global scale. Hence, it is necessary for the foreign business marketers to consider such
specifications before venturing into US.
SWOT Analysis of China
In current business world, China has been experiencing an unprecedented economic
development, which is the major concern for the rival countries. The spectacular economic take
offs are multiplying the global weight in a remarkable way. It has become the second largest
country in terms of GDP rate and export services (Huggins & Thompson, 2015). Moreover, the
country has the proper set up for the internationally oriented industrial companies, which are
profitable enough in increasing the investments. The underlying strengths and weaknesses of the
country are structured below:
SWOT Analysis

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Strengths The effective growth in the GDP rate has made the
country economically strong. The efficient
economic policies established through the heavy
investments and export businesses are quite
beneficial for the country in establishing the trade
partnerships with the other countries. The rapid
growth in the educational acquisition is also much
beneficial for the international expansion. The huge
amount of natural resources and developed
infrastructure are much favorable for the business
development. In fact, the huge population is
increasing the opportunities for the potential
purchasing power for the future. The political
supports derived from the country are much helpful
for the international business partnerships.
Weakness Disorder in the financial sector is the considerable
weakness for the country. In fact, the slow growth
is transportation and energy services are quite
insignificant and unfavorable for the foreign
business marketers.
Threats The complaints against the poor quality products
are much threatening for the long-term
sustainability. On the other hand, the low service
duration is the major obstacles for establishing the
partnerships with China.
Opportunities The advanced technologies are quite beneficial for
the foreign business marketers in establishing the
effective partnerships. The opportunities for more
innovations are quite necessary for this developed
and globalised business scenario. Financing in the
infrastructure-based project is quite helpful for
determining the increasing growth of the business
in a significant way.

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Table 3: SWOT Analysis
(Source: Lu et al., 2013)
The in-depth analysis of economic aspects of China is stating the fact that the country has
been facing the recognizable challenges due to the aggressive marketing and improper political
model. It is necessary to shed lights on the core issues before understanding the ways of
economic development. The inappropriate economic model is also much challenging for the
country since it depends on the export market. The equality in the geographical and social
aspects is persisting and it affects the business market in a global scale.

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Task 2: PESTLE Analysis of Johnson and Johnson, US (Pharmaceutical Company)
United States of America is the third most popular countries in the World with the
population of 318 million of people. As per the ethnic belief this particular country is constituted
with the people of diverse cultural backgrounds and attitudes. Therefore, the business experts of
Johnson and Johnson have focused to run their business in the soil of America in order to
introduce their products and services to the people of diverse cultural backgrounds and attitudes.
However, Johnson and Johnson has captured the leading market position in America in terms
of manufacturing the woman healthcare, children healthcare, and skin care products
(www.jnj.com, 2017). After running their business in the market of US this particular
organization has occupied predominant place in terms of maintaining product quality as well as
service process.
However, people belonging to different geographical boundaries and attitudes tend to
show their level of interest in purchasing the products and services only when the service
providers would be able to deliver the service process within time (Yüksel, 2012). However,
before forming the business strategy and policy in the market of America the business experts of
Johnson and Johnson have focused to get an in-depth overview about the political, economic,
social, technological, environmental and legal factors. Behind the success of any kind of business
these six factors leave a major negative impact. Thus, the business experts of Johnson and
Johnson have focused to evaluate an effective PESTEL analysis while running their wings in the
market of America.
Political  Government health and safety law
 Government regulation
 Discrimination law
 Tax policies
 Freedom of press
 Government’s role in trade union
Economic  Rate of labor cost
 Monetary policies

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 Level of price fluctuation
 Rate of interest
 Rate of inflation
 Growth rate
Social  Buyers’ socio-cultural behavior
 Religion and beliefs
 Emphasis on safety
 Cultural influence towards products and services
Technological  Rate of technological advancement
 Infrastructure of internet and new media policies
 Legislations related to technology
 Impact of new media
Environmental  Weather status
 Change of climate
 Air and water pollution rate
 Regulations and legislations related to environment pollution
Legal  Rate of anti-discrimination law
 Data protection act
 Health and safety act
 Regulations related to consumer protection as well as e-
commerce
Table 1: PESTEL Analysis
(Source: Chassain et al., 2012)
Analysis of PESTEL:
 Political:
USA is constituted with strong democratic set up with effective rule of law with
transparent and fair election policy. After receiving the international criticism, War on
Terror, the entire business process of different business industries had faced a drastic
consequence (Andrei & Prisecaru, 2014). The business experts of Johnson and Johnson as

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well were facing difficulties in running their business wings smoothly in the Soil of America.
However, due to the fair government regulations followed by American government such as
Government health and safety law, Government regulation, Discrimination law, Tax
policies, Freedom of press, Government’s role in trade union, the business experts of
Johnson and Johnson have received enough cooperation from American government for
running their business.
 Economic:
With the GDP of over $16.760 trillion US has been considered as the largest economic
World. The recession happened in 2009 has highly affected the entire business growth of
different industries. Johnson and Johnson is not exceptional to that. The company had to suffer
in unemployment status effectively. As a result, the customers at that very specific time failed to
receive the services within stipulated time. However, due to the economic strength of America
this particular organization did not have to face major difficulties in get back their level of
performance (Rahman, Saharuddin and Rasdi, 2014). At the time of recession, the economic
growth rate became decreased due to the increased rate of product and services. Inflation has left
a major negative impact in maintaining organizational image and reputation for Johnson and
Johnson.
However, after few years from 2009 Johnson and Johnson could again catch the trade
flow due to recovered economic structure faced by America. On the other hand, belonging to the
pharmaceutical industry Johnson and Johnson was primarily famous for woman healthcare,
children healthcare, and skin care products. At the same time, the demographic background
implies that target customers belong to high level of income status (Hamdam et al., 2013). As a
result, the organization did not have to face any kind of difficulty in selling their products and
services. On the other hand, the target customers as well were successful enough in purchasing
the products and services of Johnson and Johnson. America being out an out an economically
developed country has focused to draw the attention of large number of target customers. The
business experts of Johnson and Johnson have targeted to sell their product to the people of
diverse cultural backgrounds and attitudes (Sohel, Rahman and Uddin, 2014). As a result, the
revenue growth of this specific organization has become high automatically.
 Social: