Download - Economic Environment Of Business Finaleeee
ECONOMIC
ENVIRONMENT OF
BUSINESS
Submitting To:-
Prof. Gitanjali Kapoor
ECONOMIC ENVIRONMENT
OF BUSINESSPresented by:
•Hemangi Bhogwal P03• Prachi Karnik P15• Savita Kundu P18 •Jyoti Pokhare P28•Hemal Shah P33•Sneha Sharma P41
JOHNSON &
JOHNSON•Founded by Robert Wood Johnson in
1886
•In 1887 the Company was incorporated
as Johnson & Johnson
•Johnson & Johnson went public in 1944
on the New York Stock Exchange.
ABOUT J & J…
"It is essential that we have a culture of value based leaders with integrity and passion to set a vision, to inspire
their organizations to align around that vision and to nurture greatness in those around them."— William C.
Weldon, Chairman and CEO
BUSINESS
HIGHLIGHTS• Strengthened core businesses.
•launched new products.
•Advanced their pipelines in their
product.
CURRENT STRATEGIES•Cost Leadership
•Cultural fit in foreign markets
•Decentralized management
MERGERS AND
AQUISITIONS• Life Scan acquired in 1986 for 81 MM with
revenues of 22.8 million, 1999 revenue 1
billion
•Clean & clear: acquired in 1991 for $26 MM
with revenues of $15 million, Revenue
approaching $200MM.
•In 2006, it acquired Pfizer consumer
Healthcare.
AWARDS AND
RECOGNITION…
Marketing
A
DREAM…
Birth of J & J Baby
Products…
Objectives of Drug Policy, 1986
• Abundant availability of medicines.
• Reducing trade barriers in the pharmaceutical
sector.
• Strengthening the system of quality control.
• Encouraging R&D in the pharmaceutical industry.
• Creating an incentive framework.
Changes after 1991 reforms
• Abolishment of industrial licensing
• FDI increased from 51% to 74% and
further to 100%.
• Extension in the life of a patent to 20
years.
• Improving incentives for R&D
Union Budget 2008-09: Impact on
pharma sector
•Rs 16,534 cr Total allocation to the health sector.
•Increase in allocation to the health sector by 15 per cent.
•Customs duty to be reduced from 10 per cent to 5 per cent.
•Excise duty on all goods produced to be reduced from
16% to 8%.
•Excise duty has been fully exempted on anti-AIDS drug.
Impact on sector
•Excise duty reduction is positive for
the sector.
•Weighted deduction of 125 per cent.
FINANCIALS• Earning Per Share $ 4.55
• Sales $ 63.747
Bil
• Profits $ 12.949
Bil
• Assets $ 84.912
Bil
ESTIMATED EARNINGS PER
SHARE:
•In 2009, Avg Estimate is 4.51,High estimate
is 4.65, Low Estimate is 4.44 .
•In 2010,Avg Estimate is 4.91,High estimate
is 5.14, Low Estimate is 4.77 .
OTHER FORECASTSDividend Per Share:
2009 2.03
Total Revenue $ Mil
2009 1.97
2010 61,832
2011 64.819
Net Income $ Mil
2009 12,539
2010 13,551
Corporate governance• Accounting
controls
• Independent
auditors
• Audit committee
of bod
• Business results
Human Resource policy To redefine the standards of leadership
within J&J by creating a new credo set of company values.
The 6 credo values are as follows:
• Integrity• Dignity and respect• Apply the credo values• Use the credo survey • To manage for the future• Balance the interests of all constituents
IMPLEMENTATION of
CREDO• Redefined their management development
• Formal training, • Sub programs • Ethics training • Stretch assignments• Global coordination and
development program
Work environment
Workplace practices• Work/life
effectiveness
• Advancement of women
• Employee assistance
• Equal employment opportunity
• Flexible work arrangements
• Affinity groups
• Health management
• Talent management and training
• Safety management
Product Quality & Safety
•During Production
•After reaching the market place
External environmen
t
Competitors
Name of the Competitors
Symbol
1. Merck & Co Ltd MRK
2. Novartis A G NVS
3. Procter & Gamble Co PG
Other competitorsOTHERS IN THE SAME pool ….
• Glaxo smith kline
• Abbott Laboratories
• Wyeth
Environment policy• Operating beyond compliance.
• Integrating Environmental Goals
• Striving For Zero Waste
• Utilizing Innovative Technologies • Building Relationships
• Enhancing CSR.
• Ozone depleting substances.
• Packaging.
• Pharmaceuticals in the environment.
• PVC packaging.
• Water use.
• Waste reduction.
Key Success Factors
•Ethical practices.
•Growth in developing markets
•Integrate m & A into culture
•Product Innovation.
Future plans•Plans to Improve Overall Cost Structure
•Company will also continue to invest in both its
growing businesses as well as promising
technologies
• The company plans to file applications for seven
to ten new compounds between 2008 and the end
of 2010.
Bibliography &
Webliography• Misra S.K. & Puri V.K., Economic
Environment of Business.
• www.jnjindia.com
• www.jnj.com
• www.google.com
THANK
YOU…