Stakeholder Analysis of Johnson & Johnson: A Detailed Report

This report presents a comprehensive stakeholder analysis of Johnson & Johnson, a leading healthcare company. It begins with an executive summary, followed by an introduction to the company's history, growth, and marketing operations. The report then delves into the functional areas of Johnson & Johnson, including its organizational structure, marketing strategies, and human resource management. A detailed analysis of both internal and external stakeholders is provided, identifying their roles, interests, and the implications of potential conflicts. The level of influence of each stakeholder group is assessed, culminating in the creation of a stakeholder matrix. Finally, the report includes a discussion forum component, comparing Johnson & Johnson's industry with another company (Shell), highlighting stakeholder dissimilarities and analyzing the differences. The report concludes with a summary of the key findings and a list of references.

Running head: STAKEHOLDER ANALYSIS
Stakeholder Analysis
Name of the Student:
Name of the University:
Author Note:

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STAKEHOLDER ANALYSIS
Executive Summary:
This report will specifically highlight on:
 The history and growth of Johnson and Johnson
 Its marketing operations
 The stakeholder analysis of the company
 Understanding the stakeholder’s conflict of interest and position mapping of each
stakeholder’s
 A comparative stakeholder analysis with another company(Shell)

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STAKEHOLDER ANALYSIS
Table of Contents
Introduction:...................................................................................................................3
Discussion:.....................................................................................................................4
Functional areas of the company:..............................................................................4
Internal and External Stakeholder Analysis:..............................................................5
Identification of nature and degree of stakeholder’s interest.....................................6
Implications of the conflicting interests.....................................................................8
Level of stakeholder’s influence................................................................................8
Stakeholder Matrix.....................................................................................................9
Discussion Forum:.....................................................................................................9
Conclusion:..................................................................................................................11
References:...................................................................................................................12

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STAKEHOLDER ANALYSIS
Introduction:
Johnson & Johnson was founded in 1886 when three brothers Robert Wood Johnson,
James Wood Johnson and Edward Mead Johnson took the initiative of starting their business
primarily for creating a line of easy-to-use surgical dressings. However a year later the
company pioneered in producing commercial first aid kits for the railroad workers and then
become the standardise brand to be involved in treating injuries. From 1896 to 97 Johnson &
Johnson took immense initiatives in improvement of women’s health through the production
of mass sanitary protection products (Team, Directors & Governance, 2020)
In 1961 the Belgium’s Janssen Pharmaceuticals joined Johnson & Johnson family.
Today Johnson & Johnson Corporation manages over 250 subsidiary companies operation
across 57 countries and the company primarily focuses on 3 main production areas which are:
Consumer, Medical devices and diagnostics and Pharmaceuticals ("Personal Stories", 2020).

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STAKEHOLDER ANALYSIS
Discussion:
Functional areas of the company:
As Johnson & Johnson expanded its business operation globally and got involved in
the production of complex products it formed a divisional organisation structure to better
administer its product and coordination. The structure consist of 180 separate units which
includes Mc Neil Consumer products, Ortho Pharmaceuticals, and Johnson & Johnson
consumer range products which has baby shampoos and band aids (Johnson, Johnson &
Shire, 2020) While each section is separately chartered the overall supervision of all the
sections are done by the Johnson & Johnson Family Headquarters. However every sector
under this company ensures the use of technology and innovation to fight back the most
devastating healthcare challenges of all generations
This decentralised structure of the company has been a great boost for the employees
to develop themselves and allow using their skills to help the brand grow. The next is the
marketing department of Johnson & Johnson which is not concerned with promoting the
products but is equally responsible towards enhancing the brand name. The marketing mix
followed by J&J includes the 4P’s approach (Khan, 2014).
While the first p is the product which belongs to the three different segments as
already mentioned, next is the price where the company has quite well cooperated with the
government to develop the differential pricing approach to aid people easily access their
medical products, next is the place of operation and J&J products can be easily found in
varied wholesale companies like Over the Counter Wholesale.com, WUZ Group, and
ShopatHome.com as well as in retail outlets. The next significant aspect of its marketing mix
is the promotion process where the company is extensively engaged in heart winning
advertising campaigns which are completely directed towards improving the lifestyle of the

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STAKEHOLDER ANALYSIS
people. For instance The Campaign for Nursing’s Future, Having a Baby Changes Things,
and Because We Care We Act (China) ("Media Center", 2020)
Another significant functioning area of this company is its human resource
management. J&J completely believes in flexibility of operation and enhances the notion of
balancing work and life. This is the reason that the company owns more than 115000 happy
employees across the globe and the company is constantly engaged in training and
developing their human resource base to strengthen the overall company’s market value
("Employee Benefits", 2020)
Internal and External Stakeholder Analysis:
Name of the stakeholder
groups
Roles
Employees Employees are the core internal group of stakeholder for J& J.
This is due to the reason that the skill sets and expertise of
them will determine the quality of the value propositions. In
addition, the roles of the employees also includes coping up
the change with the change in the external business factors.
Moreover, the employees are also assigned to play the role of
meeting the diverse needs of the market as discussed in the
previous social factor section.
Managers The key role of the managers is to drive the organizational
challenges through the challenging business environment.
For instance, they are responsible to deal with the legal and
political challenge of J& J. Mangers also play the role of
allocation of proper funding in different areas across to the
requirements. Thus, it is the role of the managers to ensure
the effective and ideal usages of the funding in the
organizational development.
Board members The key role and responsibility of the board members is to
ensure the seamless operation and funding in the business.
They act as the support for the company and ensure the
smooth functioning of the same. Board members also take
part in the decision making process in J& J and create
consensus in the process. Assisting the upper level managers
is also considered as a key role of the board members.
Investors In the above section, it is identified that J& J is dependent on
the external investments for their business functioning. Thus,
in this case, the role of the investors is to assist in the proper
business functioning of the company. They act as the
supporting factor by providing the seamless flow of the
capital in the business.

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Customers Customers are the key and core external stakeholders for
J& J. The key role of the customers is to make the business
viable. This is due to the reason that they buy the products of
the company and ensure the cash flow. In addition, the role of
the customers is also providing feedback contributing in the
improvement of the business. This is due to the reason that
the more will be the feedback from the side of the customers,
the more will be the development in the business.
Suppliers The key role of the suppliers is to provide the raw materials
for the business. In the case of J& J suppliers provide varied
raw materials pertaining to three different segment of
production for J& J
Competitors J&J competes with varied local and global companies but the
most significant competition is in the field of research and
development of new drugs with other companies like Teva
Pharmaceuticals Pfizer (PFE), Merck and Co. (MRK),
Boston Scientific (BSX), Stryker (SYK), and Zimmer
Holdings (ZMH) (Bhasin, 2020).
Government Government is also considered as the external stakeholder for
J& J. The key role of this stakeholder is to initiate the
business standards and regulations to control the business
operation of the entities.
Identification of nature and degree of stakeholder’s interest
Each of the stakeholders identified in this report is having interests in the business of
J&J but the extent or degree of their interests is different. In the case of the employees, their
interest is more due to the reason that the job security of them is associated with the
organizational performance. The more positive will be the performance of the organization,
the more will be the probability of job security for the employees and vice versa ("Investor
Information", 2020). In the case of company managers, their interest is more compared to
the employees due to the reason that they are more associated with the organizational affairs.
Thus, their interest extents to the job security along with the success of the organization
because of the fact that with the development in the organizational performance, the job
security of the managers will get increased along with the increase in their value in the
decision making process.

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STAKEHOLDER ANALYSIS
In terms of investors, their interest is also high and extents to the business
profitability of J&J operating in three varied segments. This is due to the reason that the more
will be the profit margin of the business, the more will be the return on investments for them.
They have invested their capital in the business, but are not involved in the daily operations.
Thus, they are only interested with the return on their investments over anything else. In
terms of the board members, their interest is also high as they are bothered with the business
performance. This is due to the reason that the more positive and favourable will be business
performance, the more will be the stability of the board members ("Our Leadership Team",
2020). They are not interested with the job security as not all of the board members are
salaried. Customers are having high interest in the case of business of J& J due to the reason
that the company offers a wide range of products ranging from consumes goods to medicinal
products which are often crucial and an emergency product for the customers. Hence, they
are interested with the quality and utility of the products because they bought the products for
meeting their desired value.
Suppliers are having moderate interest in the business of J&J because there are other
varied other pharmaceutical manufacturers sourcing the same components from them. Thus,
losing out one manufacturer will have fewer implications on the suppliers. However, the
interest of the suppliers in the business of J&J extends to their positive business performance
and profitability. The interest of the government extents to the ethical principles followed in
the business operation of J&J as it deals in health related products and operates globally This
is due to the reason that government is not interested with the profit share of the business
entities but the rules and regulations being followed by them. Thus, the interest of the
government will be limited and moderate for J&J. The competitor’s interest is also
moderate as J&J extends its business operation through three different segments hence the
threat of competition is also marginalised and well distrusted across the three sections

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STAKEHOLDER ANALYSIS
Implications of the conflicting interests
Each of the interest of the stakeholders discussed above can be contradicting in nature
due to the reason that different interests of the stakeholders cannot be met at the same time
(Hörisch, Freeman & Schaltegger, 2014). For instance, the interests of the employees are
earning more from their jobs while the interest of the board members is with reducing the
cost of employee management. Thus, these types of conflicting interests between the
stakeholders will have negative implications on the business of J&J. Johnson and Johnson is
constantly trying to improve on its technology and innovation to reduce manual labour cost
which is again a threat to the employees associated with the organisation. With the cost
cutting approach of the board members, employees will be demoralized in their workplace
and their productivity might get affected. On the other hand, incurring more cost in the
employee management will reduce the average profitability of the business. Hence the board
of directors are trying their best to manage the three units of J&J by equally distributing its
labour load to ensure uniform performance across all sectors with minimum interference from
interest-groups and local communities
Level of stakeholder’s influence
Stakeholders High Moderate Low
Employees
Managers
Board members
Investors
Customers
Suppliers
Government
Competitors

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STAKEHOLDER ANALYSIS
Keep satisfied
Employees
Government
Monitor
Suppliers
Competitors
Keep informed
Customers
Government
Manage curiosity
Investors
Managers
Board members
Influence
Power
From the above matrix, it is identified that different stakeholders are having different
level of influence. Managers, board members and investors are all having high influence on
the business operation because they hold the maximum value in the decision making process.
Moreover, these three stakeholder groups are the key strategic making and investing groups
and bear the maximum risks in the business. Thus, they enjoy the highest influence in the
business. Employees, customers and government are having moderate level of influence due
to the reason that they are not having the direct decision making power but having influences.
Hence, they are the second most influential stakeholder groups for J&J. Lastly, suppliers and
competitors are the least influential in the business operation of J&J due to the reason that
they are not directly associated with the business operation of company.
Stakeholder Matrix

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STAKEHOLDER ANALYSIS
Discussion Forum:
The company which has been chosen for comparison of its internal and external
operations with Johnson and Johnson is Royal Dutch Shell, which is an international energy
company with its expertise in production, refining and marketing of oil and natural gas as
well as manufacturing and marketing of chemicals. It started its operation back in 1907 and
has its headquarters in The Hague, Netherlands ("Who we are", 2020). Now concentrating on
its internal and external stake holder analysis it is been found that the most important internal
stakeholders, the list comprises of employees and the suppliers. The worldwide staffs of Shell
is over 100,000 people and they are expertise in varied fields like geology, industry experts
field mechanics and form an indispensible part of the organisation’s operation. Now in
comparison with J&J it is of no doubt the staff of every organisation is crucial for the
organisation’s existence but in case of Shell it is very much evident. Now coming to the
suppliers, the dependency of Shell is very much high for carrying the oil deep into the gas
pumps (Shell: Stockholders Case Study,2014). Talking about its external stake holders like
J&J no doubt Shells as well equally values its customers and abides by the notion of
sustainable business development but it has more dependency on local communities and
interest groups like the government and the media to functioning smoothly as construction of
oil refiners in different places often require local support and maintaining sustainability
norms which is not exactly the case with J&J (Shell: Stockholders Case Study, 2014).

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Conclusion:
According to the IMS health statistics the total global pharmacy market is quite
expected to witness a growth of approximately 4.5% in the forth coming years. In such a
situation Johnson and Johnson is quite expected to witness steep growth particularly in its
pharmacy segment along with its operation in two other sections of business ("IMS Health:
using big data to improve healthcare outcomes – Digital Innovation and Transformation",
2020). This report specifically highlights on the functioning of J&J, considering the impacts
of both its internal an external stakeholders on its operation. Finally the report also compares
the stakeholder framework of J&J with Shell to understand the underlying similarities and
differences between the two organisations belonging to two different sectors.