johnson & johnson organizational research project
TRANSCRIPT
Johnson & JohnsonGroup 8: Sophie Mascari, Josue Munoz, Dom Pascale, Andrea Ratz, Stephanie
Schmieder, Tom Serf
The Credo Values● The Credo is more than just a big cement wall, Robert Wood Johnson, former chairman
from 1932 to 1963 crafted the credo himself as a form of commitment to the organization
and its more than a moral compass, but more like a recipe to business success.
● Every employee in the organization knows the credo and applies it to their daily lives.
● The Credo consists of:
Put the needs and well-being of customers first“Corporate social responsibility”; moral compassBlueprint for long-term growth and sustainability Commitment to diversity and inclusion
People & Diversity ● Differences in values
○ “People and values are the greatest assets”○ Diverse opinions○ Attract the most talented and values-driven people
● Employee Resource Groups○ Employee driven○ Focus on experiences and shared interests○ Offer support and networking skills
● Mentoring Programs○ Formal and informal○ Cultural differences ○ 2010 Mentoring Works!○ Increase development and communication
People & Diversity ● Diversity University: dynamic online program designed to help employees learn and
understand different cultures (formal & informal) ○ Helps build valuable skills for understanding and valuing differences ○ Teaches benefits of collaborating to meet Johnson & Johnson’s “Our Credo” values and
business goals ○ Provides guides, toolkits, and resources for self-learning ○ Curriculum includes:
■ Diversity & Inclusion Fundamentals, Building Trusting Relationships in a Global and Diverse Environment, and Leveraging Diverse Thinking Styles: The Whole Brain Advantage
■ private links to interactive portals (skill building exercises & cultural education)
International Management
Reasons to go International ● Lowers the cost of raw materials● Diversifies the customers and market● Enjoy prefered economic and political conditions
Johnson and Johnson has made an announcement in the Wall Street about their research to expand into Asia. The CEO, Alex Gorsky, foresees this expansion as a benefit to his investment in the biotechnology market. Gorsky admires the innovation that is emerging in Japan and needs the collaboration to expand Johnson and Johnson clinics to a larger scale. As a group we were intrigued by Johnson and Johnson’s opportunity to expand into Japan to benefit health care around the world. The corporation has around 250 subsidiary companies giving them the diversity that goes hand in hand with international management. The risk the corporation has taken with the subsidiaries has turned into a beneficial reward for the company and consumers. Johnson and Johnson builds relationships all around the world to provide quality products to all nations.
Export and Import This organization provides several export plants to allow a quick turnaround when shipping to other countries. Johnson and Johnson’s export department is spread out amongst more than 20 countries around the globe and it is continually growing. Their pharmaceutical products are sold in 175 countries bringing in a revenue of approximately $65.1 billion.
Johnson and Johnson shows great collaboration with their exports and imports. They believe in these strong partnerships to create the best quality of health care globally. Along with the quality of the products the company strives on environmentally friendly transportation for these products. Johnson and Johnson has made improvements by changing as much of their transportation as possible to hybrid vehicles so that they are reducing the emissions they put into the air.
Management Approach Strategic Principles
The Johnson & Johnson approach is focused on managing for the long term. The company operates under a decentralized management approach. They do this through a unique culture that values and fosters the development of their people.
Shape and define health and well-being in everyday live“In serving those who sell our products, we serve ourselves.”Individual and corporate behavior coincideTrust Mark: success and healthy relationships are built on trust
Growth DriversEnsure innovation, research, and executionLeadership is imperative: Connect, Shape, Lead, DeliverCreate value through innovation
Fun FactsEmployees
275 Operating companies in over 60 countriesApproximately 130,000 employees , 30,000 of which are from the US
RankingsThe world’s sixth-largest consumer health company
The world’s largest and most diverse medical devices and diagnostics company
The world’s sixth-largest biologics company
And the world’s sixth-largest pharmaceuticals company
J&J is fifth for recruiting
They are 9th for global diversity
Reasons for InterestHigh rankings for diversity
● J&J believes and encourages diversity, therefore they are full of innovation and creativity while being highly effective
Care for customers and company’s success● J&J believes every stockholder, that includes doctors, pharmacists, and product users are their
highest priorityClear morals and values
● J&J believes the only way to grow is if the morals and values are followed by all levels of management
Successful and respected ● with over 100 years of brand reputation, J&J is one of the most respected companies globally
Strong Culture in changing environment● Diversity makes this culture very rich due to every associate employee having a dynamic
innovative spirit
External Environment AnalysisPfizer and Roche are Johnson & Johnson’s 2 largest competitors
Pfizer has $20 billion less in annual revenue than J&JTheir consumer focus is on Hospitals, Doctors, Communities,and Employees
They produce a wide variety of consumer productsJ&J faces many challenges in an uncertain environment that is the healthcare industry
Obamacare has revolutionized the industry in recent years and has forced health care companies to make many changes
2014● Johnson & Johnson’s ethicon unit had to recall power morcellators (surgical devices)
○ believed products may be causing cancer in women being treated for uterine growths called fibroids
○ worldwide market withdrawal
2013 - Products Liability ● Campaign for Safe Cosmetics filed report called No More Toxic Tub
○ this reported said that Johnson & Johnson used chemicals (dioxane & quaternium) in baby products like baby shampoo
○ asked the company to reformulate products○ argued that the company had access to alternatives but deliberately chose to make
products with unsafe chemicals ○ accused company of misleading consumers by claiming products were safe, gentle,
and natural Tylenol
What are any Controversies