Johnson & Johnson: A Global Company with Decentralized Management and Diverse Subsidiaries

Introduction

Operating in over 50 countries with more than 100,000 people, Johnson & Johnson USA has been ranked 4 times in the “Fortune Top 10” list of the most admired companies in the US. Johnson & Johnson (J&J) India, a subsidiary of Johnson & Johnson USA, is one of the leading players in the Indian pharmaceutical and consumer products business. It has employee strength of over 1,800. It started business in India in 1947 in Bombay with Johnson’s Baby Powder, and, over time, introduced other products like toothbrushes, Johnson’s Baby Cream and Prickly Heat Powder.

Briefing about this world class company, we can have a glimpse on the following points:

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1. Global Manufacturer of Pharmaceuticals,
2. Consumer Products and Medical Devices.

Company Structure

Based on the principle of Decentralized Management.

Executive Committee is the principal management group. Committee is responsible for the operations and allocation of the resources. Oversees and coordinates the activities of the three segments. Each subsidiary within the business segments is, with some exceptions, managed by citizens of the country where it is located.

Subsidiary Holdings

Johnson & Johnson is a highly diversified company with at least 230 subsidiaries, which it refers to as the "Johnson & Johnson Family of Companies". Some of these subsidiaries include:

ALZA Corporation Baby Center, L. L. C. Johnson & Johnson, Group of Consumer Companies, Inc. Johnson & Johnson Health Care Systems Inc. Johnson & Johnson - Merck Consumer Pharmaceuticals Co. Johnson & Johnson Pharmaceutical Research & Development, L. L. C. Pfizer Consumer

J in INDIA  Spreadts roots in India during 1947. It was Mr. Patrick Whaley who set the foundation. Launched Johnson’s Baby cream and Prickly Powder. Product like bellodomma, pharmaceutical tapes were imported from the parent company. In Sep. 957, a new company Johnson & Johnson India Ltd. was created and registered. Recently this company celebrated its 50 years in India.

Segments Of Business

Johnson & Johnson is organized into three business segments:

Consumer Pharmaceutical Medical Devices and Diagnostics Consumer J manufactures and markets a broad range of products used in the fields like:

Baby and Child Care Skin Care Oral and Wound Care Women’s Health Care Nutritional and Over-the-counter Pharmaceutical Products MAJOR BRANDS Some of the major Brands of J are:

1. Aveeno (Skin Care Products) Band-Aid (Brand Adhesive Bandages)
2. Clean & Clear (Teen Skin Care Products)
3. Johnson’s Baby (Baby Products)
4. Neutrogena (Skin And Hair Care Products)
5. Rembrandt (Brand Of Oral Care Products)
6. Splenda (No Calorie Sweetener)
7. Product Portfolio Product Mix

J is known not only for the quality service & types of products but also for the variety & range of products. It has a huge list of Product Lines with enormous depth in each line. It also has a tremendous width & depth in its Product Mix. Its Product Lines are in the following segments:?

Baby & Child Care ? Skin Care ? Oral and Wound Care ? Women’s Health Care ? Nutritional and Over-the-counter ? Pharmaceutical Products ? Medical Devices and Equipment. Some of the Products in the Product Line of Baby & Child Care are as:0 Baby Hair Oil 0 Baby Soap 0 Baby Cream 0 Baby Body Lotion 0 Baby Massage Oil 0 Baby Powder 0 Baby Nappy Pads 0 Baby Shampoo J has done the Brand Line extension in the products like Hair Oil, Soap, Cream, Massage Oil, Powder & Shampoo by launching these products in various fragrance & colours.

In today’s changing times, where people have become more conscious towards their health & thus moving towards natural products, they prefer using J products over other Brands. J has captured the customers by Positioning itself as a Company providing Natural products devoid of chemicals. Thus its graph of Customer Confidence Index is high as compared to other Brands. Not only the Kids & New Born, but also the teenagers & upper age group customers have been the Target of J. It has its products flowing for every age group & in every segment. Some of the products in the product line of Skin Care are:0 0

Aveeno (Brand for Skin Care Products) Clean & Clear face wash 0 Clean & Clear Cream 0 Clean & Clear Cleansing Milk 0 Neutrogena (Brand for Skin & Hair Care products) 0 Body Lotion etc. J also has its Oral Care products by the name Rembrandt. It also has its No Calorie Sweetener by the name Splenda. Product Line Length of J in Pharmaceuticals is huge. The products are for various Therapeutic uses such as:0 Anti Fungal 0 Anti-Infective 0 Cardiovascular 0 Contraceptive 0 Dermatology 0 Gastrointestinal and many more… Band-Aid is one of the most popular pharmaceutical products of J.

Product Line of J in Medical Devices & Equipments is also quiet impressive. 0 0 It includes a broad range of products distributed to Wholesalers, Hospitals & Retailers. Used principally in the professional fields by Physicians, Nurses, Therapists, Hospitals, Diagnostic Laboratories and Clinics. Products include Cordis’ circulatory disease management products, DePuy’s orthopedic joint reconstruction and spinal care products. Vistakon's ACUVUE Disposable Contact Lens. One Touch Brand Blood Glucose Meters from LifeScan, Inc. P. F. C. Sigma Knee System from DePuy, Inc. 0 0 0 0

J&J also has several women’s Health Care products. Thus J&J has segmented the market in a way so as to target Kids, Teenagers, Women & also people those are conscious about Natural products. It has strongly covered the market by diversifying itself into Pharmaceuticals & Manufacturer of Medical Equipments & devices.

Milestones

• 1989: Introduced the first test kit for the detection of antibodies to hepatitis C.
• 1996: Introduced the first test kit to screen blood for antigens to HIV-1, the virus that is responsible for the vast majority of AIDS cases in the U. S.
• 1997: Introduced the first fully automated blood banking system in Europe.
• 1999: Introduced the first fully automated blood and plasma screening system. 2000: Introduced the first blood screening kit for HCV antigen.

Awards & Recognisation

In the year 2005 J&J was recognized by National Safety Council for the excellence in environmental, health and safety management. In the year 2006 Working Mother Magazine named J&J in best 100 places to work for mother. Fortune magazine ranked J&J in 9th position in over all industry and also listed it in the America most admired companies in 2006.

In the year 2007 J&J receive the Spark Award for the new packing and advertising campaign.

Corporate Social Responsibility

Centre of Health, Environment and Justice AND J&J launched PVC consumer campaigns. Developed a PVC phase out policy in June 2007 Signed the Compact for Safe Cosmetics. A pledge to make safe products. Eco-Friendly Endeavour’s 0 0 Reached a settlement with the U. S. govt. in December 2006. Installed a “ZERO” discharge cooling tower water treatment system.

Environmental Ethics. Credo

Our first responsibility - doctors, nurses, mothers, fathers, consumers. Everything of high quality. Constantly strive to reduce costs. Customers’ orders -serviced properly. Suppliers & distributors - make profit.

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