Johnson & Johnson: Strategic Management and Strategic Competitiveness Assignment

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Table of Contents

Globalization
Technology
Industrial Organization Model
Resource-Based Model
Vision
Mission
Stakeholders
Sources

Strategic management and competitiveness are two crucial concepts for the company’s success. In this regard, Johnson & Johnson is an example of a corporation whose effective use of innovation and technological advances has contributed to its leading position in the healthcare industry. This paper aims to discuss the influence of globalization, technology, strategic models, stakeholders, as well as mission and vision statements on the success of Johnson & Johnson company.

Globalization

Johnson & Johnson is one of the leading companies in terms of global business expansion. According to Day Translations, this corporation runs 250 subsidiaries, operates in 60 countries, involves approximately 134,000 employees in its operations, and provides its products to over 175 countries (1). The positive effects of such globalization processes on Johnson & Johnson include its access to various markets, diversified workforce, and improved flow of capital, trade, and information. In this regard, expanded operations provide the company with revenue from non-American consumers (2).

Furthermore, Johnson & Johnson’s research and innovation centers are located throughout the world, allowing the corporation to collect valuable data to enhance its products and services. Diversified teams in different countries contribute to the corporation’s ability to improve its cultural awareness and meet various customer needs. At the same time, globalization has increased competition from other companies, stimulating Johnson & Johnson to maintain and enhance its competitive advantage.

Technology

Technology is another essential characteristic of the success of Johnson & Johnson. The use of digitalization and artificial intelligence in the company’s products enhances their quality, reliability, and value for clients, which results in increased demand and sales (1).

For instance, Shapiro reports that the Advance Case Management platform reduces surgery costs and focuses on patient care rather than logistics (3). Another disruptive digital technology of Johnson & Johnson has enhanced customer experience by utilizing the intelligence-based system for contact lens consumers (3). As noted by Shapiro, this innovation has made Johnson & Johnson the top second company in terms of customer satisfaction in 2020 (3). Furthermore, the company’s DePuy Synthes factory implements innovative technologies that protect the environment, broaden supply chain capabilities, and increase efficiency and business performance (3). As can be seen, technology is central to enhancing Johnson & Johnson’s customer experience and optimizing processes.

Industrial Organization Model

The industrial organization (I/O) model is based on the idea that the external environment impacts the company’s operations more than internal factors. According to Hitt, the implementation of this framework can help companies establish ways to achieve above-average revenue (4). In this regard, a highly promising industry for Johnson & Johnson is MedTech, while the proposed strategy for increased revenue is exponential innovation of products and services and digital DNA (4). This approach can help reduce operating costs and increase the competitive advantage of the corporation, resulting in above-average returns. The strategic actions should include creating a future-focused development plan, utilizing analytics to measure and interpret customer and product data, and providing leadership training.

Resource-Based Model

Johnson & Johnson is characterized by such core resources as technology, employees, manufacturing facilities, research centers, supply chains, partnerships, and distribution channels. The firm’s capabilities are mergers and acquisitions, leadership performance, and innovation. As noted by Hitt, the resource-based model highlights the importance of the company’s unique resources and capabilities for its profits (4). In this regard, the corporation can create superior value for its clients by combining its technology, research findings, and manufacturing facilities with innovation capabilities and collaborations. The pharmaceutical sector would be an attractive industry for Johnson & Johnson to exploit its resources effectively. Strategic actions for above-average returns include implementing evidence-based technological advancements to all operations and manufacturing processes, as well as ensuring appropriate training to promote valuable resources and competencies.

Vision

The selected corporation’s vision and mission statements determine its core aspirations and objectives. According to Johnson & Johnson, its vision is to “help people see better, connect better, live better” (2). This statement is fundamental to the firm’s success as it defines connectivity, accessibility, and enhancement as the core values that define the overall strategy for the corporation. The vision statement of Johnson & Johnson promotes improved quality of life for everyone, contributing to the healthcare industry.

Mission

The corporation values the role of continuous improvement and evidence-based approaches, which is reflected in its main statement. Johnson & Johnson’s mission is “bringing science and sense of sight to life through world-class innovation and customer experience” (2). In this regard, the firm emphasizes improved health, technology development, customer satisfaction, and inclusivity as the core principles of all operations. As a result, the overall impact of the company on the healthcare industry is significant.

Stakeholders

The main categories of stakeholders for Johnson & Johnson include capital market stakeholders (shareholders), product marker stakeholders (patients, pharmaceutical firms, communities, and the government), and organizational stakeholders (employees and managers). In this regard, the first category impacts the overall success of the company by providing investments required to maintain and improve operations. The second category has a direct impact on Johnson & Johnson products by defining customer needs, implementing legal regulations, and influencing the price-making process (5). Finally, the third category of stakeholders plays a pivotal role in stimulating the firm to optimize its operations and policies to achieve positive outcomes.

Sources

Day Translations. 2019. How Johnson & Johnson Globalized Its Medical Devices Line. Web.
Johnson & Johnson. 2022. About Us. Web.
Michele Shapiro. 2021. How Johnson & Johnson’s Innovative Supply Chain Technology is Helping Transform How We Work—and Live. Web.
Michael A. Hitt. 2020. Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th ed. Cengage Learning.
Hiroo Takahashi. 2022. Practice of Business Ethics: Case Study of Johnson & Johnson. World Scientific.

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