Johnson & Johnson Attractiveness.docx

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Key Dates: 1886: Johnson brothers begin producing surgical dressings in N ew Brunswick, New Jersey. 1887: Company is incorporated as Johnson & Johnson (J& J). 1893: Johnson's Baby Powder is introduced. 1919: International expansion begins with the establishment of Johnson & Johnson Canada. 1921: Band-Aid brand adhesive bandages make their debut. 1924: Overseas expansion begins with the establishment of John son & Johnson Limited in the United Kingdom. 1932: Robert Johnson, known as "the General," takes over leade rship as president. 1943: Johnson writes the company credo. 1944: Company goes public on the New York Stock Exchange. 1959: McNeil Laboratories, Inc. (McNeil Labs) is acquired. 1960: McNeil Labs introduces Tylenol as an over-the-counter (O TC) pain reliever. 1961: Janssen Pharmaceutica is acquired. 1975: Through a significant price decrease, Tylenol is transfo rmed into a massmarketed product. 1982: Tylenol tampering tragedy occurs. 1988: Acuvue disposable contact lenses are introduced. 1989: J&J and Merck form joint venture to develop OTC vers ions of Merck's prescription medications. 1994: Neutrogena Corporation is acquired. 1995: Merck and J&J launch Pepcid AC; company acquires the clinical diagnostics unit of Eastman Kodak Company. 1996: J&J acquires Cordis Corporation. 1998: DePuy, Inc. is acquired, and a companywide restructuring is launched. 1999: Centocor, Inc. merges with J&J. 2001: ALZA Corporation is purchased for $13.4 billion. 2004: J&J reaches agreement to acquire Guidant Corporation for $25.4 billion

(http://www.referenceforbusiness.com/history2/88/Johnson-Johnson.html)

Employer attractiveness A closely related concept to ‘employer branding’ is the notion of ‘employer attractiveness’. This concept has been broadly discussed in the areas of vocational behaviour (Soutar & Clarke 1983), management (Gatewood et al. 1993), applied psychology (Jurgensen 1978; Collins & Stevens 2002), communication (Bergstrom et al. 2002) and marketing (Ambler & Barrow 1996; Gilly & Wolfinbarger 1998; Ambler 2000; Ewing et al. 2002). It has also become an increasingly ‘hot topic’ in the contemporary business press (see, for example, Sherry 2000; Lloyd 2002; Ritson 2002), and ‘Best Employer’ status is something that more and more organisations are striving for, as attention is drawn to this mantle in both the contemporary electronic3 and print media (e.g. The Economist 2003). Figure 1: DaimlerChrysler advertisement in The Economist 3 See www.greatplacetowork.com and

www.bestemployeraustralia.com Ewing.qxd 04/05/2005 15:24 Page 155 156 INTERNATIONAL JOURNAL OF ADVERTISING, 2005, 24(2) We define ‘employer attractiveness’ as the envisioned benefits that a potential employee sees in working for a specific organisation. The construct may be thought of as an antecedent of the more general concept of employer brand equity. In other words, the more attractive an employer is perceived to be by potential employees, the stronger that particular organisation’s employer brand equity. This study seeks to contribute by identifying and operationalising dimensions of employer attractiveness.

Introduction It's difficult to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies located in some 60 countries. Its Medical Devices division offers surgical equipment, monitoring devices, orthopedic products, and contact lenses, among other things. J&J's Pharmaceuticals division makes drugs for an array of ailments, such as neurological conditions, blood disorders, autoimmune diseases, and pain. Top sellers are psoriasis drug Remicade and cancer medication Velcade. Finally, J&J's Consumer business makes over-the-counter (OTC) drugs and products for baby, skin, and oral care, as well as first-aid and nutritional uses.

Research Methodology Johnson & Johnson

The table below illustrates Johnson & Johnson SWOT analysis template

Strengths 1. High level of brand awareness and a brand value of USD 312.6 billion as of May 2016 according to Forbes[1] 2.

Benefiting from economies of scale due to the global extensive scope of operations

3. Efficient delivery of marketing communication message across a wide range of communication channels in an integrated manner 4.

Broad, yet focused brand portfolio

Weaknesses 1. Damage to the brand image due to series of CSR-related scandals such as the use of formaldehyde the payment of more than £50 million to the family of Jacqueline Fox due to the cancer case[2] 2.

A history of product recalls of more than 40 medicines

3.

Lack of flexibility of the business due to its large size of the company

4. A history of engagement in many litigation cases over the years with negative implications on the brand image Opportunities 1. Avoiding the usage of harmful ingredients in products 2.

Focusing on restoring the image via effective CSR programs and initiatives

3.

Formation of strategic alliances with health companies

4.

Finding and exploiting new sources of competitive advantage

Threats 1. Risks of new scandals caused by negative health implications associated with the use of Johnson & Johnson products 2. Emergence of new spurious companies in developing countries with the brand names similar to Johnson & Johnson 3.

Increasing ranges of substitutes products and competitors with lower prices

4.

Certain products can be banned in certain countries due to health concerns

How to use Johnson & Johnson SWOT Analysis template above

Expand each point above into one or more paragraphs with discussions and analysis. Additional points related to Johnson & Johnson strengths, weaknesses, opportunities and threats not listed above can also be included if you think they are relevant points and add value to the work.

References [1] Forbes (2016) Available at: http://www.forbes.com/companies/johnsonjohnson/ [2] Sheffield, H. (2016) “Johnson & Johnson responds to claims Baby Powder causes ovarian cancer” Independent, Available at: http://www.independent.co.uk/news/business/news/johnson-johnson-babytalcum-powder-ovarian-cancer-deaths-a6895136.html

https://research-methodology.net/johnson-johnson/ Revenues as Reported Johnson & Johnson, Income Statement, Revenues USD $ in millions

Dec 31, 2016

Dec 31, 2015

Dec 28, 2014

Dec 29, 2013

Dec 30, 2012

Consumer

13,307

13,507

14,496

14,697

14,447

Pharmaceutical

33,464

31,430

32,313

28,125

25,351

Medical Devices

25,117

25,137

27,522

28,490

27,426

Sale To Consumers

71,890

70,074

74,331

71,312

67,224

Strategic Framework