Graduation Project Johnson&johnson

DR/ Mohamed Elkaloubi Presented by Dalia Hani Mohamed Ramzy Abdelrahman soliman Sherif Mostafa Mahmoud

The company

Introduction:

 Caring for the world, one person at a time... inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

Our Family of Companies comprises:

 The 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

We have more than 275 operating companies in more than 60 countries employing approximately 128,700 people. Our worldwide headquarters is in New Brunswick, New Jersey, USA.

Business highlight 2013

Johnson & Johnson delivered strong results in 2013 led by the outstanding performance in our Pharmaceutical business, the re-launch and strength of key brands in our U.S. over-the- counter (OTC) and other Consumer businesses and continued progress in integrating Synthes, Inc. into our Medical Devices and Diagnostics (MD&D) segment. Results also included advances in our longer-term growth drivers including bringing innovative solutions to the global health care market, executing with excellence, and leading with purpose to advance health and well-being for patients and consumers around the world.

PHARMACEUTICAL

With $28.1 billion in worldwide sales in 2013, we are the seventh-largest pharmaceuticals business* in the world and the sixth-largest biotech business*. We’re the fastest-growing top 10 Pharmaceutical Company in the United States, Europe and Japan and recorded 15 consecutive quarters of operational sales growth in this segment.

Primary contributors to exceptional operational sales growth of 12 percent included REMICADE® (infliximab) and SIMPONI® (golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases; STELARA® (), a biologic approved for the treatment of moderate to severe plaque psoriasis and active psoriatic arthritis; INVEGA® SUSTENNA®/XEPLION® ( palmitate), a once- monthly, long-acting, injectable atypical antipsychotic for the treatment of schizophrenia in adults; PREZISTA® (darunavir), a treatment for HIV; VELCADE® (bortezomib), a treatment for multiple myeloma; and sales of new products.

The strong sales results of new products included ZYTIGA® (), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer; XARELTO® (rivaroxaban), an oral anticoagulant; the combined sales of COMPLERA®/EVIPLERA® (emtricitabine //tenofovir disoproxil fumarate) and EDURANT® (rilpivirine) for the treatment of HIV; and INVOKANA® (canagliflozin) for the treatment of adults with Type 2 diabetes.

Sales results were negatively impacted by generic competition for ACIPHEX®/ PARIET® (rabeprazole), a proton pump inhibitor for gastrointestinal disorders and CONCERTA® ( HCI) for the treatment of attention deficit hyperactivity disorder.

During 2013, the company received several regulatory approvals including: U.S. Food and Drug Administration (FDA) approval of OLYSIO™ (simeprevir), an NS3/4A protease inhibitor, for the treatment of chronic hepatitis C infection as part of an antiviral treatment regimen in combination with pegylated interferon and ribavirin in genotype 1 infected adults with compensated liver disease, including cirrhosis; FDA approval of IMBRUVICA™ (ibrutinib) capsules for the treatment of patients with mantle cell lymphoma who have received at least one prior therapy; FDA and European Commission (EC) approval of INVOKANA® (canagliflozin), an oral, once-daily, selective sodium glucose co-transporter 2 inhibitor, for the treatment of adults with Type 2 diabetes; FDA approval for the use of STELARA® (ustekinumab) alone or in combination with methotrexate for the treatment of adult patients with active psoriatic arthritis; EC approval of STELARA® (ustekinumab), alone or in combination with methotrexate for active psoriatic arthritis in adults when the response to previous non-biological disease-modifying anti-rheumatic drug therapy has been inadequate; EC approval of an expanded indication for SIMPONI® (golimumab) for the treatment of moderately to severely active ulcerative colitis in adult patients who have had an inadequate response to conventional therapy including corticosteroids and 6- mercaptopurine or azathioprine, or who are intolerant to or have medical contraindications for such therapies; FDA approval of SIMPONI® (golimumab) for the treatment of moderately to severely active ulcerative col+itis in adult patients who have demonstrated corticosteroid dependence or who have had an inadequate response to or failed to tolerate oral aminosalicylates, oral corticosteroids, azathioprine, or 6-mercaptopurine; and FDA approval of SIMPONI® ARIA™ (golimumab) for infusion for the treatment of adults with moderately to severely active rheumatoid arthritis in combination with methotrexate. The EC also approved the use of VELCADE® (bortezomib) as induction therapy in combination with dexamethasone or thalidomide and dexamethasone and applies to adult patients with previously-untreated multiple myeloma who are eligible for high-dose chemotherapy with hematological stem cell transplantation.

A Marketing Authorization Application was submitted to the European Medicines Agency (EMA) for ibrutinib for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma or relapsed or refractory mantle cell lymphoma. Also filed with the EMA, was a once-daily single tablet fixed-dose antiretroviral combination product containing darunavir, a protease inhibitor developed by Janssen- International NV and marketed as PREZISTA®, with cobicistat, a pharmacokinetic boosting agent, developed by Gilead Sciences, Inc. for use in combination with other HIV medicines.

Looking to the future, we are pleased with our focused, deep and productive pharmaceutical pipeline, and expect the growth of our recently launched products to continue. Furthermore, we will continue investing in R&D that’s focused on key unmet needs for patients. As we announced in May at the Pharmaceutical Business Review, we plan to file more than ten new molecular entities (NMEs) for approval between 2013 and 2017, and more than 25 additional line extensions of our in-market products.

MEDICAL DEVICES AND DIAGNOSTICS

With $28.5 billion in worldwide Medical Devices and Diagnostics (MD&D) sales for 2013, our MD&D segment is the largest medical devices and diagnostics business in the world. Operational sales growth of 6.1 percent included the impact of the acquisition of Synthes, net of the divestiture of the DePuy Trauma business. Excluding this impact, MD&D operational sales growth was 0.1 percent.

Primary contributors to operational growth were sales from the acquisition of Synthes and DePuy Synthes Joint Reconstruction products in the Orthopaedics business, Biosense Webster’s electrophysiology products in the Cardiovascular Care business, the Vision Care business, as well as biosurgicals and international sales of energy products in the Specialty Surgery business.

Our MD&D business is anchored by 11 “billion-dollar-plus-platforms” including vision care, trauma, sutures, endoscopy, and electrophysiology. The FDA approved EVARREST™ Fibrin Sealant Patch, a novel product that rapidly and reliably aids in stopping bleeding during surgery. In orthopaedics, the ATTUNE® Knee System, developed with innovative proprietary technology, is off to a great start with over 23,000 implants worldwide. The ENSEAL® G2 Articulating Tissue Sealer, the world’s first articulating advanced bipolar product, is making it easier for surgeons around the world to access difficult-to- parts of the anatomy. Finally, our THERMOCOOL® SMARTTOUCH® Catheter enhances the safety and efficacy of an ablation procedure by measuring the force of the catheter’s tip inside the heart. These are just a few of the innovations that continue to strengthen our worldwide leadership position in medical devices and diagnostics, where 85 percent of our key platforms hold the number one or number two position in the market.

Integrating Synthes has been our priority and we’ve made good progress. DePuy Synthes Companies is the world’s largest and most comprehensive orthopaedics company within a $44 billion market with strong fundamentals, and is primed to offer new, value-added solutions that will help transform health care delivery.

In January 2014, we announced receipt of a binding offer from The Carlyle Group to acquire the Ortho-Clinical Diagnostics business for approximately $4 billion. We are in an acceptance period that will end on March 31, 2014 — and expect the transaction will close toward the middle of this year.

CONSUMER

With $14.7 billion in worldwide sales in 2013, our Consumer segment is the sixth-largest health care consumer business in the world and achieved operational sales growth of 2.8 percent. Our near-term priority is to deliver a reliable supply of OTC products to the U.S. marketplace. Last year, we met our objective of returning approximately 75 percent of our planned portfolio to store shelves. We are investing in cross-channel marketing across TV, print and social media to support their re-launch. Positive contributors to operational results were U.S. sales of ® and MOTRIN® analgesics; upper respiratory OTC products; international sales of baby care products; sales of ® and ® skin care products; and international sales of ® oral care products.

In 2013, we took steps to strengthen our focus, divesting in certain areas such as our North American women’s sanitary protection business, and acquiring Shanghai Elsker Mother & Baby Co., Ltd, a well-regarded baby care company in China known for its position in the naturals segment.

We also continue to expand globally with the launch of LISTERINE® ADVANCED DEFENCE® Gum Treatment in the United Kingdom and Ireland and our new JOHNSON’S® Baby TRIPLE BABY PROTECTION™ product line, which we’ll be taking into global markets this year.

Current Performance 2014

Analysis of the current Performance

MEDICAL DEVICES & DIAGNOSTICS

 J&J Market Share in Spinal & Orthopedic devices: In July 2012, J&J completed acquisition of Synthes a in cash and stock deal, which has further expanded its orthopedics franchise (DePuy) and mark the largest deal for J&J. Synthes is a global manufacturer of orthopedic spine and trauma products. Synthes' product portfolio consists of five primary product groups in trauma, spine, knee, bio-materials and power tools. After the deal, DePuy has become a global leader in the spinal & orthopedic devices market. We expect Synthes to strengthen J&J's market position significantly. If this leads to market share within the segment increasing to 20%, it can lead to a potential upside of more than 5% to our price estimate.

BUSINESS SUMMARY

Johnson & Johnson (NYSE:JNJ) is an American multinational pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. The company (also called "J&J") and its subsidiaries are engaged in the research and development, manufacture and sale of a range of products in the health care field. It has more than 250 operating companies conducting business worldwide.

J&J is an industry bellwether and therefore its shares generally reflect the overall performance in healthcare products at any given point in time. It also reflects investor appeal for ―defensive‖ securities, as during periods of economic or market uncertainty investors have generally sought haven in J&J shares as its earnings are less cyclical.

Some of its iconic brands include Band-Aid, Listerine, Neutrogena, Tylenol, Zyrtec, Remicade, Rieperdal and Topamax among many others. The company has sold ortho-clinical diagnostics to Carlyle group.

SOURCES OF VALUE

Medical devices & diagnostics business is the most valuable segment for J&J, constituting roughly 60% of its value.

SYNTHES ACQUISITION TO HELP BOOST GROWTH J&J acquired Synthes in 2012 for $21.3 billion. Synthes is a global manufacturer of medical devices for orthopedics market including trauma and spine. The combined DePuy/Synthes orthopedic division has the broadest orthopedic portfolio globally. The company has a strong market position which can be attributed to its diversified product offerings, established brand, R&D focus, and strong sales and marketing capabilities.

EBITDA MARGINS REBOUNDING Medical devices & diagnostics EBITDA Margin was 45% in 2007, which increased to around 53% in 2010 due to gain from net litigation settlements, favorable product mix, manufacturing efficiencies and cost containment initiatives related to selling, marketing and administrative expenses. The figure, however, dropped to 44% in 2011 mainly due to product liability, litigation expenses and recall of DePuy Hip. By 2013, margins rebounded 56.5% primarily due to higher profits from Synthes' sales, lower litigation expenses and product liability.

KEY TRENDS

PHARMACEUTICAL BUSINESS BECOMING INCREASINGLY IMPORTANT

The results from the last couple of years suggest that J&J has made some great strides in the pharmaceutical sector. The company, traditionally known for medical devices and diagnostics, is now becoming more centered around pharmaceutical business. The segment is witnessing strong growth driven by increasing sales of Remicade, Olysio and Zytiga. Recently, J&J announced the acquisition of biotech firm Alios BioPharma to leverage its potent drug pipeline catering to treatment of viral diseases. Also, given the recent Ebola outbreak in West Africa, the company has accelerated the development of vaccine which may be available for human trials by early 2015.

LICENSING AND CO-DEVELOPMENT ARRANGEMENTS J&J has licensing/co-development/marketing agreements with Bayer for Xarelto (Rivaroxaban), Elan for Bapineuzumab, Vertex for Telaprevir, and Millennium Pharmaceuticals for Velcade. J&J has also acquired Cougar Biotech and Crucell to build out its oncology and vaccines businesses.

LOSS OF PATENTS IMPACTING SALES Over the last few years, several of J&J's drugs including Levaquin, Concerta, Invega & Aciphex lost their patent protection. Over the next few years, about 6 major drugs are expected to lose their patent and J&J will need to develop new drugs to offset these losses.

GROWING THREAT OF GENERIC PRODUCTS The fast growing pharma market in emerging economies or referred to as the 'Pharmerging' economies have the capability and technical prowess to manufacture generic versions of blockbuster drugs. These generic drugs are often sold at prices that substantially cheaper then their branded counterparts, thereby severely affecting big pharma's ability to generate profits in the long run.

GLOBALIZATION OF HEALTHCARE REFORMS Governments around the world are trying to rein in fiscal spending in order to manage their budget deficits Since healthcare costs are one of the biggest components of any national budget, increased healthcare legislation and reforms around the world will hurt revenues for the entire pharmaceutical sector.

Vision

To maximize the power of Diversity & Inclusion to drive superior business results and sustainable competitive advantage in a dynamic global marketplace.

Mission

At Johnson & Johnson there is no mission statement that hangs on the wall. Instead, for more than 60 years, a simple, one-page document – Our Credo – has guided our actions in fulfilling our responsibilities to our customers, our employees, the community and our stockholders. Our worldwide Family of Companies shares this value system in 36 languages spreading across Africa, Asia/Pacific, Eastern Europe, Europe, Latin America, Middle East and North America.

 We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.  We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical.  We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens — support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.  Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.

Business environment in Egypt

 Egypt, the cradle of the human civilization has a strategic location in the center of the Middle East, the northern gate to Africa and has the manmade Suez Canal connecting the Mediterranean Sea , the Red Sea and the Indian Ocean, thus an important gateway on the trade route between Europe, the Near East and the Far East.

 coastline of 2450 KM along the Mediterranean Sea and the Red Sea.

 The Nile river, the longest river in the world: the fabled waterway bisects Egypt and creates a rich, wide delta on the northern coast of the country, and a long it’s banks the population exploits the fertile land of the Nile Valley.

 A mild warm and dry climate through-out the year with winter sunny days.

 The currency is the Egyptian Pound (the actual rate to the U.S.$ is 5.68  The official language is Arabic, in the big cities people understand English.  Through the country’s strong cultural influence on the region, the colloquial Egyptian Arabic ―Aamiya‖ has become familiar throughout most Arabic countries.  Nearly 71% of Egyptians know how to read and write, the Capital Cairo ―Le Carrefour de l’Orient‖ has many French, English, German, Italian, Spanish and Greek schools.

 All Foreign Embassies are located in Cairo and the nearby Giza.  The prevailing religion is Islam and between 10 to 15% are Copts (Christian Orthodox)  A population nearing the 82 million with a high rate growth of 1.8% is by itself a considerable market.  The existing economy is divided between the Public sector and the Private sector and the Government is encouraging the Private sector to  expand and take a bigger share in the economy.  The new PPP (Public Private Partnership) program has started to be implemented to encourage the private sector.  With GDP growth remaining strong the government is pushing ahead with the reform program it began 2004. Reducing the budget deficit remains a key goal, although heavy government spending designed to counteract the effects of the global recession has resulted in targets being pushed back.  Meanwhile the introduction of a value-added tax should help combat a shortfall in revenues.

A strong Banking sector:

 There are local banks, Joint Venture Banks and Foreign Banks in Egypt.  Many International banks operate in Egypt such as HSBC, Citibank, Barclays bank and Credit Agricole. Several European and Swiss banks have representation offices.  Well established local banks such as the National Bank of Egypt, Banque Misr and the Commercial International Bank proved relatively resistant to the global downturn.  Micro finance management: Services are increasing for small business and low-income individuals.  To avert the global crunch the banks encouraged lending in tight times.

An established insurance sector:

 Tailoring offerings to a growing middle class that is growing more receptive to insurance products will ensure continued take-up of products provided they address specific market needs, such as the Bancassurance.  Regulators merge to create the Egyptian Financial Service Authority.  Many insurance companies operate in the market such as: Misr Insurance, National Insurance Company, Suez Canal Insurance, Mohandes, Delta, AIG, Export Guarantee, Allianz Non-life, BUPA Egypt, Saudi Egyptian Insurance House.  Minimum capital requirement to establish a new insurance company is: LE 60 Million, but the adequate level of capitalization is still a subject of debate.

A reliable infrastructure:

 Three cellular telephone networks operate in Egypt: Mobinil, Vodaphone and Etisalat. They cover most of the country.  A big network of railways 5,063kmcover and connect all cities of Egypt, except the Sinai peninsula: it carries passengers and goods.  Most big cities have airports and Cairo has several daily flights to most of European, North American, the Middle east, African and Asian big cities through it’s renewed airport. Alexandria has an international Airport, also Luxor, Sharm El Sheikh and Hurghada.  Several sea ports are handling the exported and imported goods, as an example Alexandria, Damietta and Port Said on the Mediterranean sea (5), Suez, Safaga and Quoseir on the Red Sea (3).  A big network of highways and roads 64,000km being actually upgraded is covering all of Egypt and connecting all the country’s regions. Investment zones: 5 Industrial zones in new cities: 15 Total industrial zones: 47

A big market access through memberships in international regional economic bodies:

• Attractive economic relations with the Middle Eastern countries: Egypt is a main member in the Arab League and it’s economic union with privileged custom treatments with member countries. GAFTA (great arab free trade area )

• Attractive economic relations with the African countries: Egypt is a main member in the C.O.M.E.S.A. (common market of eastern and southern Africa )with privileged custom treatments with member countries.

• Egypt-EU Association Agreement • European Free Association (Switzerland-Norway-Liechtenstein) • Egypt-Turkey Free Trade Agreement • QIZ (qualifying industrial zone) • Agadir Agreement

Porter’s five forces for competitor analysis Porter‘s 5 forces model is help to evaluate the business plans of a company. Followings are Porter‘s five forces model:

Threat

of new

entrants

Degree Threat

of of PORTER‘s Rivalry substitutes 5

FORCES

Bargaining Bargaining

power of power of

suppliers buyers

Porter’s Five Forces

1) Threats of New Entrance: The market is full of competitors. It is very difficult to enter in market for a new company. On the other hand, entry of new company makes the path very tough for existing companies. So, the existing companies treat the new entrance as threats for their company. Porter (2010) mentioned that when a new company tries to enter in the market, sometimes it reduces the price of their product to attract the customer or may give some other benefits. Especially, a new company identifies and concentrates on the weaknesses of existing companies. It helps the company to meet customer requirement and get developed slowly. The new company tends to maintain the availability to beat the existing one. 2) Threats of substitute products: Reinhardt and Stavins (2010) commented that substitute product sometimes creates loss for the company. There have ample substitute of almost all products. So, whenever a company have problem with supply or availability of their product, another companies takes place. People ask for quality and it should be convenient to buy. They might buy substitute product if they could not find the product what they used to buy. Bingham and Eisenhardt (2011) opined that the various promotional activities make confuse the customer about substitute. For example: Coke and Pepsi. Both use tap water to produce same category products but they promote in different ways. So people might get confuse as it is almost same. 3) Customers bargaining power: Sometimes a situation might come that there is a single buyer and market is full of suppliers. In that situation the customer‘s bargaining power impacts on the industry in terms of price and all. Buyers have the option to choose the best one. So, companies have to reduce their prices of the product to get the customer. Otherwise other competitor will have the customer (Analoui and Karami 2009).

4) Supplier’s Bargaining Power: Every industry needs various components, raw materials, human resource etc to produce final goods. It brings a relationship between the supplier and buyer. If there is scarcity of supplier than the bargaining power of supplier take decision over buyer. Supplier may change the price of inputs to get intention of buyers. If it happens then the supplier‘s decisions takes place instead of buyer‘s decision (Brusoni and Prencipe 2009). 5) Competitive Rivalry within companies:

The rivalry of existing competitors indicates about new product launce, advertisement campaign, discounts, the price deduction etc. To some extent rivalry can creates profit but in high rivalry situation it minimizes the profit of the company. If a company having low market share in that situation rivalry can be effective for the company. The company is considered to be closely controlled if rivalry of a company is low rather than other companies. This discipline may result from the companies‘ history of competition.

Implementation of Porter’s 5 forces model in ‘Johnston and Johnston Company’:

Analoui and Karami (2009) have mentioned that the threat of new competitors affects all existing competitors. For example, a new company ‗Mini Baby‘ has come with variety of baby care products. It having good quality product to compete ‗Johnston and Johnston Company‘. This company will try to concentrate on the weakness of the ‗Johnston and Johnston Company‘ as it is the main competitor for ‗Mini Baby‘. ‗Johnston and Johnston Company‘ is a global brand because of which the market fluctuates. The ‗Mini Baby‘ having no trouble of that as it is a new company. Secondly, it has to be maintaining the quality and availability of products. ‗‗Johnston and Johnston Company‘ has lacking behind in terms of availability of skin care products. The marketing strategy of that category product is not properly implemented to attract customer. On the other hand, Bingham and Eisenhardt (2011) opined that scarcity of these products makes customer to choose substitute products. Another problem is that the availability of these items is not like the customer expectation. In that situation there is good chance for ‗mini baby‘ to grab the market.

Once it grip in the market it can produce other products with good quality which can be compete with ‗Johnston and Johnston Company‘. By evaluating the market share and market growth through BCG Matrix this can be understood that ‗Johnston and Johnston Company‘ has lacking behind in terms of skin care products. So a new company like ‗Mini Baby‘ has a very good chance to expand the market Brusoni and Prencipe (2009).

On the other hand, Goksoy and Ozsoy (2010) illustrated that medicine producing industry is more of capital intensive industry. It is a form of barriers to a new company. There need to be invest a big amount of capital to produce final outcome. ‗Mini Baby‘ has not that influence in medical or diagnosis products like ‗Johnston and Johnston Company‘ but it has the potentiality to fulfill customer requirement. The product has to be promoted in such a way that people will choose instead of ‗Johnston and Johnston Company‘ products.

In terms of buyer‘s perspective, buyers have the power to make decisions (Brusoni and Prencipe 2009). There have lots of companies who manufacture drugs and other medical products, so the buyer has lots of option to choose. It creates competition among companies. In that situation ‗Mini Baby‘ can prepare their marketing strategy keeping in mind the customers bargaining power. On the other hand, Goksoy and Ozsoy (2010) commented that in that category product the supplier has no influence over buyer as the number of buyer is less than number of supplier. Being as a new company in the market ‗Mini Baby‘ has to maintain brand loyalty. Because the existing company is having brand loyalty (Dobson 2009).

Corporate Governance

Our Board of Directors is a diverse group of individuals who are elected by our shareholders each year. We currently have 12 Board members, 11 of whom are ―independent‖ under the rules of the New York Stock Exchange. , current Chief Executive Officer (CEO) of Johnson & Johnson, also serves as the Chairman of the Board of Directors. Our independent Directors determined that for effective Board governance, it was appropriate to have an independent Lead Director and have selected Anne M. Mulcahy to serve as the designated Lead Director for 2013.

Our Board holds the ultimate authority of our Company, except to the extent that our shareholders are granted certain powers under the Company‘s Certificate of Incorporation and By-Laws. Qualifications for the Board of Directors and standards of independence are laid out in our Principles of Corporate Governance and additional guidelines are outlined in our Code of Business Conduct & Ethics for Members of the Board of Directors and Executive Officers. We believe good corporate governance results from sound processes that ensure our directors are well supported by accurate and timely information, sufficient time and resources, and unrestricted access to management. Additionally, we believe the business judgment of the Board must be exercised independently and in the long-term interests of our shareholders. The Board of Directors:

 Appoints senior management of the Company, who are responsible for conducting business and operations;  Provides oversight of management and offers strategic direction to the Company; and  Forms standing Board Committees to assist in fulfilling its obligations.

The Board of Directors has six standing committees

Audit Committee:

composed of non-employee Directors, determined to be "independent" under the listing standards of the New York Stock Exchange:

 Assists the Board in oversight of the Company's accounting and financial reporting process and practices.  Appoints the independent public auditor and reviews its performance.  Oversees the Company's Internal Audit department and reviews its annual plan.  Monitors adequacy of internal accounting procedures and controls.  Assists the Board in oversight of the Company's financial reporting compliance and disclosure procedures.

Compensation & Benefits Committee:

composed of non-employee Directors, determined to be "independent" under the listing standards of the New York Stock Exchange:

 Establishes the Company's executive compensation philosophy and principles, reviews and recommends for approval by the Board the compensation for the Chief Executive Officer and non-employee directors, and approves the compensation for the Company's other executive officers.  Reviews the philosophy and policies of the non-Board Management Compensation Committee with respect to management compensation, perquisites and other compensation policies for non-executive employees.  Oversees the management of the various retirement, pension, long-term incentive, savings, and health and welfare plans that cover the Company's employees.

Finance Committee:

composed of the Chairman and Lead Director of the Board, exercises the authority of the Board during the intervals between Board meetings.

Nominating & Corporate Governance Committee:

composed of non-employee Directors, determined to be "independent" under the listing standards of the New York Stock Exchange:

 Oversees corporate governance matters.  Reviews possible candidates for Board membership and recommends nominees for election.  Oversees the process for performance evaluations of the Board and its committees.  Reviews the Company's executive succession plans and executive resources.

Regulatory, Compliance & Government Affairs Committee:

composed of non-employee Directors, determined to be "independent" under the listing standards of the New York Stock Exchange:

 Oversees the Company's non-financial compliance programs and systems with respect to legal and regulatory requirements.  Oversees compliance with any ongoing Corporate Integrity Agreements or any similar undertakings by the Company with a government agency.  Reviews the organization, implementation and effectiveness of the Company's health care compliance & ethics and quality & compliance programs.  Oversees the Company's Policy on Business Conduct and Code of Business Conduct & Ethics for Members of the Board of Directors and Executive Officers.  Reviews the Company's governmental affairs policies and priorities and other public policy issues facing the Company.  Reviews the policies, practices and priorities for the Company's political expenditure and lobbying activities.

Science, Technology & Sustainability Committee:

composed of non-employee Directors, determined to be "independent" under the listing standards of the New York Stock Exchange.

 Monitors and reviews the overall strategy, direction and effectiveness of the Company's research and development.  Serves as a resource and provides input, as needed, regarding the scientific and technological aspects of product safety matters.  Reviews the Company's policies, programs and practices on environment, health, safety and sustainability.  Assists the Board in identifying and comprehending significant emerging science and technology policy and public health issues and trends that may impact the Company's overall business strategy.  Assists the Board in its oversight of the Company's major acquisitions and business development activities as they relate to the acquisition or development of new science or technology.

Corporate Culture What Sets Us Apart Meet our people and you‘ll get a real sense of how our culture enables dynamic and impactful careers. We share a kind of DNA where we‘re each…  Committed to Caring  Responsible to our communities  Ready to apply our knowledge and know-how  Unique in our background and experiences  The drivers of our own success  Passionate about doing what‘s right If you share these qualities, chances are you‘ve got that same J&J DNA. And when you join our team, we‘re prepared to help you…  Be seen for the value you bring  Drive your careers forward  Be part of something bigger People Aligned By Values We each bring a unique set of experiences from dozens of cultural backgrounds.Our shared values unify our direction and decisions, helping us touch the lives of more than a billion people every day. We collaborate in teams and continuously share and refine critical skills and methods. We value the unique perspective and approach that each person brings. We foster an environment that celebrates and leverages diversity. We welcome everyone to be authentic about who they are and the perspective they offer. We ensure that every member of the team has a chance to make their mark and drive their career growth.

Marketing

Marketing Mix

Over the years Johnson & Johnson has grown substantially in part due to strategic acquisitions ranging from large ones such as Neutrogena in 1994 and DePuy in 1998, to many smaller ones. From 1989 to 1999, the company made 45 such acquisitions of companies and product lines. Today the firm can boast of revenues exceeding $61,897 million during the financial year (FY) ended December 2009.

Product

. Johnson and Johnson products are basically in three main categories: Pharmaceuticals, Medical Devices & Diagnostics, and Consumer Health care. . The following are examples of the Johnson & Johnson product inventory: Feminine hygiene, Denture care, Contraceptives, Immunology, First aid, Family planning, Oncology, Nutritionals, Diabetes care, Neurology, Vision care, Allergy cold and flu treatment, Women’s Health, Medical devices and diagnostics. Price

. In the United States, Johnson and Johnson strives to keep their net price increases for health care products within the Consumer Price Index (CPI). . Johnson and Johnson works with governments to develop differential pricing approaches to help more people access their medical products. Johnson & Johnson companies have agreements with the United Kingdom for VELCADE ® (bortezomib), a treatment for multiple myeloma, and with France for RISPERDAL® CONSTA® ( long-acting injection) a medication for the symptoms of schizophrenia. Companies and government agencies are also entering other types of risk-sharing agreements in order to help people gain access to new therapies sooner. . The following are examples of Johnson and Johnson consumer product prices: Pain Relief $12.99, (at Amazon), Listerine Oral Care $7.49 (Next Tag), Sweetener $7 (Drusstore.com).Tylenol Rapid Release $12.95 ( Allegro Medical.com ). Place

. These are some companies that sell Johnson and Johnson products wholesale: Over the Counter Wholesale.com, WUZ Group, ShopatHome.com . Johnson and Johnson products can be found at the following retail outlets: Target, Walgreens, WalMart, Vons and Eversave, to name but a few.

Promotion

. Johnson and Johnson offers special discount coupons on products such as baby care, and contact lens. . Johnson and Johnson has run a ―Beauty for All Ages‖ rebate promotion on Coupons.com and some of the campaign products are available at Walgreens and may also include buy one get one half off discount as well. . Johnson & Johnson is involved with many causes and advertising campaigns that encourage healthy lifestyles. Key initiatives include: The Campaign for Nursing’s Future, Having a Baby Changes Things, and Because We Care We Act (China). Process

. Johnson and Johnson employs what they call a ―decentralized management approach‖. Employees are encouraged to be ―entrepreneurial‖ with the understanding that they will benefit from focusing on customer needs and providing solutions. . Johnson and Johnson seeks to turn insights into innovative new products and sometimes whole new businesses. Their goal is to capitalize on scientific breakthroughs, marketing insights and manufacturing expertise easily across the full range their businesses. With more than 250 operating companies have a local window into emerging customer needs, scientific developments, and technologies throughout the world. . The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations and allocation of the resources of the Company. This Committee oversees and coordinates the activities of the Consumer, Pharmaceuticals and Medical Devices and Diagnostics business segments. Each subsidiary within the business segments is, with some exceptions, managed by citizens of the country where it is located.

Physical Evidence

. The Johnson & Johnson Headquarters is located at One Johnson & Johnson Plaza, New Brunswick, New Jersey. . The Johnson& Johnson Consumer Division is located at 199 Grandview Road, Skillman New Jersey. . The Ortho-Biotech Division is located at 700 Route 202 Raritan, New Jersey. . The Lifescan Division is located at 1000 Gibralta Drive, Milpitas, California. . The VistaKon Division is located at 7500 Centurion Pkwy, Jacksonville, Florida. . The Endo Surgery Division is located at 4545 Creek Road Cincinnati, Ohio. . The Independence Technology Division is located at 40 technology Drive, Warren New Jersey. . Company Subsidiaries, Codman and Shurlett as well as De Puy Acromed are located at 325 Paramount Drive Raynham Massachusetts. . The Johnson and Johnson logo is based on the signature of , one of the two brothers originally who founded the company. . Johnson & Johnson maintains a presence online via a number of websites http://www.jnj.com/connect/others/sitemap/ which provide information on company values, and management approach. . Another Johnson and Johnson website http://www.jnj.com , provides detailed information on various consumer products such as Listerine or Tylenol. People

. William C Weldon is Chairman & Chief Executive Officer of Johnson & Johnson. . Dominic J. Caruso is the Chief Financial Officer and Vice President of Finance. . Johnson and Johnson has a Global Diversity and Inclusion program with a goal of achieving a skilled, high performance workforce that is reflective of the diverse global marketplace (workforce). . Johnson & Johnson was ranked #2 among Diversity Inc. Magazines Top 50 Companies for Diversity. . The company has ranked high Working Mother Magazines’ Top One Hundred Companies for Working Mothers or 24 years.

Market Presence

As the world has changed, so has the geographical distribution of our business, employees, products and sales. In 2012, 56 percent of the revenues of Johnson & Johnson come from outside the U.S., compared to about 40 percent a decade ago.

The BRIC markets (Brazil, Russia, India and China) comprise nearly 10 percent of our total revenues for 2012. The broader emerging markets represent more than 20 percent of our sales, reflecting double-digit growth in 2012 on an operational basis, inclusive of Synthes.

The broad base of product offerings and global critical mass of Johnson & Johnson positions us well with customers and governments, and gives us a unique ability to meet the needs of the emerging markets. As we have established and expanded our presence in global markets, we have leveraged our global portfolio and selectively acquired products tailored to meet the needs of specific populations. For example, in 2012 we acquired Spectrum Vision, LLC, a full-service distributor of contact lenses serving Russia with facilities in the Ukraine and Kazakhstan.

Our regional companies have optimized their infrastructure and are continuing to invest to support dozens of institutes around the world designed to train health care providers on the effective use of our products. For instance, our São Paulo Institute in Brazil trains nearly 3,000 health care providers annually.

An example of our commitment to offer localized health care solutions is evident in India, where we have opened a DePuy Institute. Approximately 1,000 physicians a year are trained there in the latest orthopaedics techniques and technologies to help ensure that patients can get the quality care they need.

Model of Emerging Market Strategy

The work we are doing in China illustrates how we are building our business in important emerging markets. There are 1.4 billion people in China, the majority of whom are covered by some form of health insurance. Increases in health care expenditures are estimated to run at a 20-plus percent annual growth rate through 2016. As China’s national economy grows, and more people enter the middle class, there is a rising demand for a broader array of health care solutions.

Johnson & Johnson has had businesses in China for 27 years, employing close to 9,000 people. Our China business generated nearly $2.5 billion in sales last year driven by a diverse and expanding portfolio of brands that Johnson & Johnson is known for globally, as well as those we have acquired to meet specific local needs and demand.

We have eight major manufacturing facilities in China. Our Xian plant is equipped with world-class capabilities and produces over 240 million packaging units of high-quality pharmaceutical products that supply 26 countries with benchmark cost- efficiency. Our sutures plant in Shanghai provides raw materials and semi-finished silk to the U.S., Europe and South America, where we then complete production.

We have a major new Innovation Center in Suzhou that supplies medical device and diagnostics products specifically for the emerging consumer markets in China and India. These products are targeted at specific disease states that are more prevalent in the region, and they include simplified or smaller devices that are better suited for use outside the major cities and top-tier hospitals, as well as multi-use or even disposable products that are more economical. We already have a number of these products on the market, including staplers, sutures, a blood glucose meter and an artificial knee. Yet there is much more to be done as we seek to bring the promise of good health to as many people as possible.

Our portfolio of offerings in China is diverse and expanding, and it includes iconic brands from our JOHNSON’S® Baby and NEUTROGENA® franchises. Important pharmaceutical products such as REMICADE® (infliximab) and INVEGA® SUSTENNA® (paliperidone palmitate) have strongly grown in the market. RESOLOR® (prucalopride) and EDURANT® (rilpivirine) were approved there in late December. Meanwhile, SIMPONI® (golimumab) and STELARA® (ustekinumab) are under review by the Chinese Ministry of Health.

We are also conducting research and development into new medicines that will address specific needs in China and across Asia. In May 2012, we acquired Guangzhou Bioseal Biotech, which has the only approved porcine plasma-derived fibrin sealant on the market in China. This acquisition will expand our biosurgery business there.

We know the model in China works, and we are applying it in other countries as well.

BCG Matrix:

Here BCG Matrix will be evaluated in terms of ‗Johnston and Johnston Company‘. MacMillan and Venkataraman (2009) opined that this will help the company to identify and understand the mistakes done at the time of strategic planning. This analysis is based on the product life cycle of ‗Johnston and Johnston Company‘.

Stars Question Marks

All kind of baby products:

Medical & Diagnostics Baby Oils

Contact Lenses Baby Shampoos

Cash cows Dogs

Women Health care Products Skincare Products

Tampons / Sanitary Napkins

All baby care products of ‗Johnston and Johnston Company‘ are growing worldwide with high market share and high growth. The company is generating cash because of its massive investment on baby care products. On the other hand, Robinson and Pearce (2010), demonstrate that Women Health Care product of ‗Johnston and Johnston Company‘ takes place as in Cash cow. It has the large market share in this sector. Investing lower amount in this sector, the company can make more cash which can be again invest in other sector of the company. It will be beneficial for the company to improve that sector which is lacking behind. In terms of ‗Johnston and Johnston Company‘ this cash could be invested in Medical & Diagnostics sector. Unlike the other sector Medical & Diagnostics sector is not growing so much. There is an opportunity to make Medical & Diagnostics sector to generate more case, strategic planning should be needed. Tarplett et.al. (2009) opined that all skin care products are mentioned as dog because they are unable to generate cash due to low market share and low growth. Here, the company invests a lower amount in this sector. For this company, the skin care products either have to be minimized or invest more in that sector. ‗Johnston and Johnston Company‘ have very much influence in international market, so there is a possibility of growth in this sector in future, agreed by Zott and Amit (2008).

Balance Sheet Assets Liabilities and Owners Equity 2011 2012 2013 2011 2012 2013 Current assets Current liabilities Cash 35,253,783 49,531,712 58,962,772 Account 46,462,123 68,295,011 112,499,508 Inventory 15,711,586 17,526,836 29,532,547 Payable Account 47,536,606 64,777,950 76,747,990 Receivables Total Current 98,501,975 131,836,498 165,243,309 Total 46,462,123 68,295,011 112,499,508 Assets Current Liabilities Fixed Assets 6,419,028 8,521,178 11,528,991 Long 4,054,394 4,316,065 5,467,835 Term liabilities Total 50,516,517 72,611,076 117,967,343 Liabilities Equity 54,404,486 67,746,600 58,804,957 Total liabilities and Total Assets 104,921,003 140,357,676 176,772,300 Equity 104,921,003 140,357,676 176,772,300 Income Statement 2011 2012 2013 Sales 141,269,528 192,259,443 194,566,628 Cost of goods sold (80,798,862) (99,304,061) (108,071,416) Gross Profit 60,470,666 92,955,382 86,495,212 Marketing (38,018,964) (52,704,602) (57,596,926) expenses Administrative (8,335,397) (10,994,265) (6,502,626) expenses Other operating 2,268,250 1,085,679 1,231,957 revenues Other operating (3,684,881) (5,941,931) (5,114,269) expenses Operating 12,699,674 24,400,263 18,513,348 loss/profit Investment profit 449,930 1,207,800 1,167,865 EBIT 13,149,604 25,608,063 19,681,213 Taxes (3,011,334) (5,982,189) (1,622,856) Net income 10,138,270 19,625,874 18,058,357

2011 2012 2013 Comments Liquidity Ratio Current ratio 2.12 1.93 1.47 Quick ratio 1.78 1.67 1.2 Activity Ratio Inventory 5.1 5.66 3.66 Turnover Total Asset 1.34 1.36 1.1 Turnover Average 122.8 122.9 55.4 collection Period Average 209.8 251.1 379.9 Payment period Debt Ratio Debt ratio 0.48 0.51 0.66 Profitability Ratio Return on 9% 14% 10% Assets ROA Return on 18% 28% 30% Equity Net profit 9.3% 13.3% 10% margin

Human Resources Benefits

Johnson & Johnson offers a comprehensive and competitive benefits program to attract and retain talented employees. In the U.S., the Choices Benefits Program is designed to meet the needs of employees and their families by providing a wide range of health, survivor, disability and retirement options. Choices Benefits are provided annually to active salaried and non-union hourly employees, as well as regular and casual part-time employees who are scheduled to work 19 or more hours per week. The Choices Benefits Program lets employees create a personalized benefit package for themselves and their eligible dependents. Benefits include:

 Medical  Dental  Vision  Tobacco Cessation  HealthAccount (Flexible Spending Account)  CareAccount (Flexible Spending Account)  Life Insurance  Accident Insurance  Disability Coverage  Long-Term Care Insurance  Group Legal Insurance  Auto and Home Insurance  Commuter Benefits Program

The Company provides a basic level of life insurance and business travel accident coverage for eligible employees at no cost. In addition to Choices benefits, the Company provides a noncontributory pension plan and offers employees the opportunity to participate in a savings plan with a company match. Employees may also be eligible for retiree medical coverage and company-provided retiree term life insurance. Plan provisions may differ for certain part-time employees and by country. Benefits are provided to union employees through collective bargaining agreements. Additional information is available in Note 10 and Note 11 of our 2012 Annual Report and in the economic performance section of this report.

As the largest health care company in the world, enhancing the health and wellness of our employees is a logical extension of our corporate mission. It is our belief that promoting employee health and wellness makes good business sense because it increases productivity and engagement, while decreasing health care costs and providing personal benefits to our workforce. Our Healthy People program provides Employee Assistance, as well as Occupational Health and Wellness and Health Promotion services, all of which have expanded globally since 2005. Additionally, we now offer a full suite of online resources through HEALTH MEDIA™ and a unique approach to increasing physical and emotional capacity through the HUMAN PERFORMANCE INSTITUTE™ and Our Energy in Performance for Life programs. See our 2012 Executive Summary Report feature story for more information.

Johnson & Johnson provides a range of benefits to employees impacted by reorganizations. The benefits can include severance payments and access to outplacement support, as well as Employee Assistance programs. The benefits employees receive will depend on a number of factors, including local practices, size and scale of the restructuring, etc., and if the employees are represented by a third party with whom we would negotiate such benefits.

Hiring Practices

In a global, decentralized business, hiring locally helps us best meet customer needs. Our operating companies hire from the communities in which we do business and follow all applicable labor laws and requirements. In most cases, the Johnson & Johnson Family of Companies does not offer visas or work permits. Candidates must be authorized to work in the country to which they are applying. Applicants must be fluent in the language of the country where a job is based.

Each subsidiary within our business segments is, with some exceptions, managed by citizens of the country where it is located. Among our Executive Committee, based at our headquarters in New Brunswick, New Jersey, two-thirds of members are from the U.S. Employee & Labor Relations Practices

Our employees are our most valuable asset.

We are committed to respecting human rights as embodied in the Universal Declaration of Human Rights and its two corresponding covenants, The International Covenant on Civil and Political Rights and The International Covenant on Economic, Social, and Cultural Rights. In addition to the universal statements of human rights noted above, we follow the principles in the International Labor Organization‘s Declaration on Fundamental Principles and Rights at Work, including nondiscrimination, freedom of association and collective bargaining, and freedom from forced and child labor.

Global Labor and Employment Guidelines

In keeping with these and other internationally recognized expectations for business ethics, product quality, labor and employment, health, safety and the environment, and to ensure that Johnson & Johnson and each of its subsidiaries throughout the world follow consistent labor and employment policies, our Global Labor and Employment Guidelines clearly set forth our expectations. These Guidelines require, first, that our policies and actions are in full compliance with the laws and regulations of the respective countries in which we operate. In addition:

We communicate regularly with our employees and, whenever possible, partner with them to achieve desirable competitive outcomes

We require our operating companies to respect each employee‘s right to decide if they wish to join or not join associations and/or labor unions, and to respect the ability to make an informed decision, free of coercion

We operate so that support of, or opposition to, associations, does not impact an employee‘s employment or an individual‘s application for employment

Employees have the right to organize, join associations and bargain collectively, if they so choose. The company and its operating companies are required to bargain in good faith with these associations

It is not permitted to accept or condone any aspect of forced labor

The Company and its subsidiaries may not discriminate against any employee based on their ideological views, race, color, religion, gender, sexual orientation, national origin, age, disability, or any other status protected by law

While the Company may counsel, and if necessary, discipline employees in connection with unacceptable behavior, physical punishment is not permitted

Employees choose to work for us at their own discretion. It is not permitted to force them to remain in our employ

We support, adhere to and must strictly enforce child labor laws

Johnson & Johnson has additional guidelines that work to assure our employees are treated fairly and equally. These include:

 Equal Employment Opportunity Policy;

 Policy on the Employment of Young Persons;

 Guide for Resolving Employee Disagreements; and

 Harassment Policy

Several global functions support and share responsibility for various aspects of labor practices. These include Global Diversity & Inclusion, which reports to the Chairman and Board of Directors through its Vice President and Chief Diversity Officer, and to Human Resources, whose Vice President is a Corporate Officer and a member of the Executive Committee. Human Resources responsibilities include Global Talent Management, Global Benefits, Health Resources and Worldwide Compensation Resources. The Supply Chain Vice President of Human Resources for Johnson & Johnson is responsible for the oversight and/or implementation of the labor relations policy. Employee representatives are included in formalizing labor relations policy in certain regions of the world, such as Asia Pacific.

Johnson & Johnson completes labor and employee relations assessments and audits through local Human Resources and our Global Employee & Labor Relations Function. Currently, three regional leaders are assigned to various countries/regions throughout the world. These leaders interact with employees, trade unions and other employee representatives (works councils), and government officials. They have broad oversight and responsibility for monitoring compliance and maintaining relationships with labor unions and works councils. Grievance Resolution

Johnson & Johnson maintains a variety of mechanisms for collecting and addressing employee grievances and complaints to ensure that workers can raise concerns confidentially. These mechanisms include an employee hotline through which employees can confidentially and anonymously raise their questions and concerns. The Company also has an Open Door policy; employees are encouraged to air their grievances to any manager, regardless of level, within the Company, and those grievances will be addressed.

Additionally, anyone can report allegations through other methods within the operating companies or to Internal Audit, the Law Department, Global Security or Human Resources. Hotline access is communicated broadly, and visibility of this access and Hotline functionality are in-scope for financial audits. Regional Labor and Employee Relations staffs independently investigate noncompliance in employee relations matters, and verified non-compliant situations are addressed at the respective business unit. Of the approximately 690 employee relations hotline matters received in 2013, all were addressed. Of these, approximately 90 percent were closed, along with approximately 130 matters pending from 2012. Although additional grievance data is not tracked at the enterprise level, a global system to gather this enterprise data is under development and being implemented in 2014.

In addition, the Common Ground program in the U.S. is a three-step process (Open Door, Facilitation and Mediation) through which employees are afforded the ability to have their grievances and complaints confidentially aired and addressed. The program has been recognized both internally and externally as a leading resource in encouraging employees to raise and resolve disputes. The Company also maintains a non-retaliation policy Collective Bargaining

Employee representation structures vary throughout the world, and Johnson & Johnson is assessing the status of sites with employee representation by region. The regions are North America, Latin America, Asia-Pacific and Europe/Middle East/Africa (EMEA). In the EMEA region, up to 100 percent of Company sites have the ability to establish an employee representation structure or framework. Where employees choose to establish these structures, management provides support. However, employees at some of the Company‘s sites have chosen not to establish these employee representation structures. In the Latin American region, approximately 55 percent of employees have employee representation structures in place. In the North American region, less than 10 percent of employees have employee representation structures in place. We do not currently have information for the Asia-Pacific region.

Working conditions at Johnson & Johnson operating companies have been collectively bargained in many different ways throughout the world. Subjects covered by collective bargaining agreements with trade unions over the past year include, but are not limited to: wages, hours of work, terms and conditions of employment, work rules, health and safety, grievance processes, organization structures, holidays, vacation, training, active and retired employee benefits, drug testing, seniority, travel expenses, leaves of absence, shift premium pay, overtime pay, overtime administration, bonuses, rest periods, job bidding procedures, severance pay, equal employment opportunity, union dues payments, trade union representation, restructurings/reorganizations, layoffs and recalls. We estimate that greater than 95 percent of employees of Johnson & Johnson companies covered by collective agreements have working conditions included in their agreements.

Minimum Notice Periods

Johnson & Johnson is a highly decentralized corporation comprised of many distinct and relatively autonomous operating units around the world. We do not have a formal enterprise-wide policy mandating a minimum notice period regarding significant operational changes. However, local operating unit leaders endeavor to communicate significant plans of operational changes to employees and their representatives, where they are present, in a timely and practical manner in advance of actions being taken. Feedback and suggestions from employees and their representatives, where they are present, are always taken into consideration before any final decisions are made. In regions/countries where involvement of employees‘ representatives in decision-making processes is legally required, we have established rigorous formal consultation processes to ensure compliance.

Where minimum notice periods for layoffs are required by local law or incorporated into collective bargaining agreements, the operating units are always in compliance. For example, in the U.S., where a minimum of 150 employees or one-third of a unit‘s workforce is scheduled for layoff, the WARN Act requires that the affected employees, their representatives (where present) and local government officials be provided 60 days‘ notice. If employees are negatively impacted by any changes, we have measures in place to help and support them appropriately. Where there is no legal minimum notice period, Johnson & Johnson companies attempt to provide notice at the earliest possible time, often ranging from 30 days to 180 days. Talent Attraction, Management & Retention

Skill and Talent Management and Training

In the Johnson & Johnson Family of Companies, every leader believes that our people are a competitive advantage and, therefore, every leader takes full ownership for talent management. Human resource leaders and business leaders jointly own talent management on behalf of the enterprise. Our leaders are accountable for attracting and recruiting talent, managing performance and development, building a pipeline of global and diverse leaders, and creating an environment that embraces diversity and inclusion.

Our employees are active participants in their development. Employees are given the opportunity to develop and grow, and have access to the tools and resources needed to do so. More importantly, they are empowered to navigate their own career development and to be accountable for knowing what is expected from them in terms of performance and development. This talent philosophy ensures a robust and diverse pipeline of global leaders, high performing and highly engaged employees and culture, and continued business continuity and growth.

Development is an interconnected series of experiences that strengthen our workforce and advance our organization. We provide enterprise-wide training that is business-aligned and accessible to all employees within Johnson & Johnson companies globally. The training encompasses a vast array of topics, from leadership development and management education to training in disciplines such as finance, marketing, business practices and compliance requirements. We offer on-the-job training, plus extensive, globally accessible training and development at the individual, team and organizational levels. These are available online to all full- and part-time employees globally and include independent study courses, web- based courses, interviewing simulations, assessments, intensive workshops and action planning courses. Temporary workers do not participate in Johnson & Johnson learning or leadership development offerings.

In 2012, the curriculum was streamlined and reorganized, with over 400 courses offered. Training is provided, tracked and documented by the operating companies. Training programs are accessible in every region and, in some cases, in several languages. These programs are open to all employees and are designed to address the different stages of their growth. Programs are part of an integrated global curriculum that establishes a global standard of leadership development experience available throughout each employee‘s career.

Training is provided, tracked and documented by the operating companies. Employees receive an average of eight hours or more of training per year, although many receive much more. Senior management, high potential employees (below vice president) and other critical positions receive six to seven days of education per year; middle management and front line management receive four to five days of education a year; and vice presidents and above receive eight to 19 days of education per year. Because training records are maintained at a local or operational level, we are not able to provide a detailed report on this information on a global level for all employees.

Transition assistance programs offered to support employees who are retiring or who have been terminated from employment comply with regulatory or collective bargaining agreement requirements, with many locations providing more than what is required. Offerings may include pre-retirement planning for those contemplating retirement, retraining for those who will continue working, severance pay, job placement services and assistance (e.g. training, counseling) for those transitioning to a non-working life.

Talent Attraction and Retention

The opportunities for development and career advancement are strong components of Global Talent Management. Our recruiting organization continues to implement recruiting models in countries around the world—now in all countries in which we operate except two, which are coming on line this year—to focus on university recruiting, invest in social media and implement U.S. diversity recruiting strategy. The Global Job Posting program promotes our commitment to the advancement and development of our employees, and helps to create a strong foundation for ongoing development discussions between employees and managers.

The Total Rewards program is another important part of Global Talent Management and includes compensation, benefits and health resources services across the Johnson & Johnson Family of Companies. To ensure positive employee experiences, we offer competitive compensation programs as well as costeffective and country- focused services related to health and wellness, pension, disability and leave of absence. These offerings meet the needs of our diverse workforces and align with Our Credo values.

The Johnson & Johnson Family of Companies provides a portfolio of leadership development offerings that include training and leadership development programs. The learning strategy provides opportunities in foundational, advanced and continuing development for the individual contributor, first line leader, leader of leader and business unit leader. Core Training is available to support transitions into new roles, advanced development within roles, and development of skills to meet current and future business and leadership capabilities through six-month development programs, instructor-led courses, eLearning and online resources. In addition to these open enrollment programs, functional leadership teams design and provide for development at significant levels, from entry level to senior leadership.

Multiple Pathways for Career Advancement

The diversity of businesses among our family of companies offers employees a broad range of career path options. Employees can advance within their functional discipline, or progress along a path that provides experience across a range of functions. Based on performance, business needs and personal interest, employees can cross job functions, operating companies, business segments and geographic boundaries as they advance within our companies. Optimizing Work, Family & Personal Life

Our comprehensive programs and services for employees reflect a holistic view of work, family and personal life to help support individual effectiveness at work and at home. Specific programs, including those for flexible work arrangements, education, adoption, child care and elder care may vary around the world based on local circumstances and business needs. In all cases, however, they reflect our fundamental goal of helping employees live well, work well and be well.

Examples of programs that may be offered within our companies include:

Employee Assistance and Work/Life Resource & Referral Services to help employees address personal issues and achieve a balance between their work and personal lives;

Proactive Health Assessments & Health Counseling to help employees assess their risk for certain health problems through counseling with a registered nurse;

Workplace Health Programs to help ensure the health and safety of employees through on-site, online, self-paced and group programs; and

Wellness and Fitness Services to address employees‘ health and wellness needs; some companies offer on-site fitness centers, personal training and exercise classes. Workforce Statistics

Johnson & Johnson companies have approximately 128,700 employees working in more than 275 operating companies located in 60 countries. Previously, due to the complex nature of the Company‘s various employee databases and payroll systems, and differences in how employees are compensated in different countries, the Company was not able to calculate the total workforce breakdown by employees and supervised workers, employment contract, employment type and region, nor were we able to report on turnover on a enterprise-wide basis. A new employee data management system now allows us to capture and report some of this information. The table below shows our workforce by region.

Information regarding employment type, turnover and diversity indicators is available for our North America region: 98 percent of our workforce is made up of full-time employees; 2 percent is considered to be part time. In 2012, our total turnover rate was just under 11 percent; the voluntary turnover rate was 7.5 percent. Options are being explored that would enable this data to be provided in a reliable manner on a global scale.

At year-end 2012, key workforce statistics for our Board of Directors were as follows: three women (23 percent female), ten men; ethnic minorities equaled four (31 percent).

Operation and logistics Supply Chain Management

Taking responsibility for the environmental and social impacts of our products begins with product design and development, and then extends to the sourcing, manufacturing and delivery of our products to our customers. For many years, we have been implementing and improving environmental and social measures in our own organization. As a natural progression, we are focusing on promoting sustainability throughout the supply chain.By doing so, we can improve our own performance, as well as influence the performance of our supply chain partners. We give preference to purchasing products or services that demonstrate the following attributes:

• Use of renewable resources

• Use of sustainable practices

• Energy efficiency

• Packaging efficiency

• Transport efficiency

• Made from recycled materials and/or can be recycled or reused at end of life

• Products that do not contain or use in their production materials listed on the Johnson & Johnson Watch List (a compilation of lists of banned and/or restricted materials, according to country and regional legislation).

With annual spending of approximately $30 billion, we are able to leverage our purchasing power to set sustainability expectations beyond our own operations. Our Procurement Sustainability Initiative, developed in 2008, aligns our procurement processes with our sustainability efforts and provides guidance for Johnson & Johnson operating company managers who purchase goods or services.

We set a Healthy Future 2015 goal for all strategic suppliers to publicly report on two or more sustainability goals in one of the following goal categories: energy reduction, waste reduction, water use reduction, workforce injury/illness reduction, workforce wellness, and community and human rights investment. At the end of 2012, 41 percent of our strategic suppliers had met this goal. Of the suppliers that have publicly reported goals, the percentage reporting in each of the goal areas is shown in the table below. We are particularly gratified that our efforts have helped a few suppliers to report sustainability goals publicly for the first time. Our challenge going forward will be to continue with our assessments and partnerships to assist all remaining strategic suppliers in meeting this goal. Companies require significant internal review and support before many of them can share this information publicly, although many have programs and goals in place. Additionally, as a participant in the Carbon Disclosure Project‘s (CDP) Supply Chain program, we encourage suppliers to measure their energy use and greenhouse gas emissions, and to develop and publicly report on their emissions. In 2012, 139 of the 156 suppliers we approached have chosen to participate in the program. We also work with our peer companies in the Pharmaceutical Supply Chain Initiative, an effort to drive consistent expectations and supply chain improvements through collaboration.

Procurement Practices

Our Procurement Sustainability Initiative (PSI) provides a foundation to guide our procurement professionals in their purchasing decisions and gives them a framework to provide guidance to influence our suppliers. Through PSI, we evaluate several non-financial performance factors when contracting with suppliers, seeking to partner with those that are aligned with our Citizenship & Sustainability commitments. Across the 14 broad categories of goods and services we purchase, we look for suppliers that are transparent about their sustainability programs, can assure us that they are sustainably producing the goods and/or services we are buying, and can verify the legal and regulatory compliance of their supply chain. We developed a tool, known as the Sustainability Toolkit for Suppliers, to assist our suppliers in understanding our sustainability commitments and to improve their sustainability processes.

In 2013, using a standardized enterprise segmentation and alignment process, Johnson & Johnson identified approximately 120 suppliers considered to be Segment 1, representing approximately $8 billion in spend, and approximately 220 considered to be Segment 2. Supplier management processes applied vary by Segment, with more targeted management effort directed at the Segment 1 suppliers, followed by the Segment 2 suppliers. Supplier Standards

Our commitment to human rights extends to our business partners around the world. OurResponsibility Standards for Suppliers outline compliance expectations for suppliers and external manufacturers. Our external manufacturing partners are subject to assessments that may include an on-site audit or periodic inspections and must maintain records to demonstrate conformance to our supplier standards.Going forward, we will continue to monitor these suppliers to verify that they conform to our human rights standards, with a strong focus placed on about 20 percent of the total that are located in high-risk countries. All external manufacturing, active pharmaceutical ingredient supplier, re-packer and sterilizer site locations (numbering approximately 900) have been confirmed, and approximately 130 were identified as being located in high-risk countries, including Algeria, Brazil, China, India, Indonesia, Kenya, Mexico, Nigeria, Pakistan, Panama, Paraguay, Romania, Russian Federation, Thailand, Ukraine and Vietnam. Of those, 88 percent have been confirmed to conform to the human rights provisions of our standards, and none were identified as non-conformant.

In 2012, we began implementing our Responsibility Standards for Suppliers. Implementation across our supply chain will take time, due to the sheer number of suppliers. These standards, which previously applied only to our external manufacturing partners, have been extended to all of our suppliers, totaling tens of thousands. The standards were revised to be more inclusive, including some revisions on human rights, such as the requirement to implement policies and/or procedures to evaluate the risk of human trafficking. The revised standards are available on our responsibility website at http://www.jnj.com/responsibility/ESG/social/Supply_Chain/Standards.

Related to human rights, these standards state that external manufacturers must:

Not use forced, bonded, indentured or involuntary prison labor

Not discriminate against or harass an individual on the basis of race, color, religion, gender, pregnancy, HIV status, sexual orientation, national origin, age, disability, veteran‘s status, marital status, or political affiliation

Not treat or threaten to treat an individual harshly or inhumanely. Harsh or inhumane treatment includes sexual harassment or abuse, corporal punishment, coercion or verbal abuse Avoid unsafe working conditions by providing sufficient rest periods during the workday and honor agreed upon days off from work and maximum working hours

Pay wages for all hours worked and clearly communicate the wages that employees are to be paid to them in advance of commencing work and communicate to all employees if overtime is required and the wages to be paid for such overtime

Comply with the Johnson & Johnson Policy on the Employment of Young Persons and not employ anyone under the age of 16 and not employ anyone under the age of 18 to perform hazardous work

Respect workers‘ rights to make informed decisions free of coercion, threat of reprisal or unlawful interference regarding their desire to join or not join organizations

Respect workers' rights to bargain collectively without unlawful interference

External manufacturers for Johnson & Johnson operating companies enter into an enforceable written agreement to comply with these standards. External manufacturers are also subject to periodic inspections and must maintain records to demonstrate conformance to these standards.

Our Healthy Future 2015 goal requires that all suppliers in high-risk countries confirm awareness of and conformance with the human rights provisions of our Responsibility Standards for Suppliers. For the purpose of identifying high-risk countries, we have used regulatory requirements within the country pertaining to product safety, application of good manufacturing practices and quality management systems, protection of intellectual property, the enforcement of regulations and the ranking of the country in the Corruption Perception Index produced by Transparency International and the Johnson & Johnson Export Compliance Policy. In 2012, tools to evaluate and verify if a supplier conformed to the human rights provisions of our policies and standards were developed and provided to Johnson & Johnson businesses.

Although we have the tools (both internally developed and third-party solutions) to evaluate suppliers and verify that they conform, our efforts continue to be limited due to difficulty in identifying which suppliers make or sell a service from any high- risk country. Sector strategies have been developed and are being implemented. A working group has been initiated and will meet regularly to review overall efforts to ensure progress throughout 2013 and beyond.

To meet this goal across our supply chain, we have classified our suppliers by type and volume of business conducted. Of our approximately 200 strategic suppliers, 51 percent have been evaluated to see if they make or sell a service from a high- risk country. Approximately 40 percent of these suppliers confirmed that they do, and slightly less than half of these have been confirmed to conform to the human rights provisions of our standards. To date, none have been identified as non- conformant. Distribution and logistics strategy

Johnson & Johnson is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.

Johnson & Johnson consistently ranks at the top of Harris Interactive's National Corporate Reputation Survey, ranking as the world's most respected company by Barron's Magazine, and was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U.S. State Department for its funding of international education programs. A suit brought by the United States Department of Justice in 2010, however, alleges that the company from 1999 to 2004 illegally marketed drugs to Omnicare, a pharmacy that dispenses the drugs in nursing homes. Johnson & Johnson has responded that the payments were lawful and appropriate.

The corporation's headquarters is located in New Brunswick, New Jersey, United States. Its consumer division is located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries. Its products are sold in over 175 countries. Johnson & Johnson had worldwide pharmaceutical sales of $24.6 billion for the full-year 2008.

Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and contact lenses.

This measure of the market relates to the different distribution channels to market for each product. The distribution can include the following channels

Consumer Goods example:

Supermarket

Hypermarket

Discount Store

Corner shop

Internet

Johnson & Johnson's new fundraiser strategy just doesn't seem appropriate to me. Earlier this week J&J announced it will launch a newpromotion this month enabling fundraising groups to sell J&J's over-the-counter medicines and products in exchange for an 8% donation to the community group sponsoring the fundraiser.

J&J is positioning this new distribution channel as a great alternative to door-to- door sales of cookies, wrapping paper or candy.

Johnson & Johnson(JNJ) is requiring all of its medical products distributors to agree to not source any JNJ products from any entity other than JNJ. It appears that the aim of this mandate is to reduce the risk of counterfeit medical products reaching end customers by forcing distributors to agree not to participate in the secondary market and to purchase only from JNJ. If a distributor involved in the sale of JNJ products fails to agree with the terms, the company's status as an authorized distributor of JNJ products will be revoked and shipments of the company's products will cease effective March 5, 2004.

While over 100 distributors have signed the agreement none of the publicly traded medical distributors (as of January 9th) are on JNJ's list of those who have agreed with the company's terms and signed its agreement. This includes Cardinal Health (Allegiance division), Henry Schein (via its Medical segment), McKesson (Medical products division), Owens & Minor, and PSS World Medical.

This decision by the company is important because of the clear mandate made in its trading partners. Goldman Sachs believes that JNJ products may account for as much as 14% of the hospital distribution market. Owens & Minor indicates that JNJ products represent approximately 16% of total company sales. The impact is likely to be somewhat less in Cardinal's Allegiance division and McKesson's medical products. However, that JNJ remains an extremely important supplier for any medical products distributor is an axiom. It is probable that distributor managements are under significant pressure to come to agreement with company demands and to remain as authorized distributors.

Information technology

Johnson & Johnson - Intranet Approvals System

Project information

Business Problem

Johnson & Johnson companies in the United States use an integrated Purchasing/Accounts Payable application for electronic requisitioning and approval. This system, called Intranet Approvals, connects a DB2/CICS application on a mainframe to a client machine through Java technology.

A user on this system needing budget approval creates a requisition that will go through one to many layers of authorization, and therefore management, depending upon the dollar amount involved. As the request is created directly on the mainframe, a 3270 screen was the interface that was sent through the pipeline to the appropriate personnel for approval. Many of the managers involved in the approval process found the 3270 screens difficult to work with. Data was scattered across different screens; one could not run multiple transactions, but had to go through each requisition separately. The screen scraper they had been using varied in performance across platforms and had to be installed on each client machine at fifteen different sites separately. This in itself was a maintenance and distribution nightmare. What J&J needed was a centralized, streamlined approval system whose front end was more useful, intuitive, and interactive. Moreover, they wanted a Java solution, which is what they found in Red Oak‘s Stingray product.

Early in their quest for a solution, developers at J&J commissioned Delta Corporate Services (DCS), a consulting firm based in Richardson, TX, to help them build an updated and versatile requisitioning system. DCS decided to utilize the Stingray 3270 SDK as their ultimate solution. One of the main reasons DCS chose Stingray was that competitive products offered only HTML solutions, while Stingray offered among other things Java code generation. The developers built an Intranet Approvals applet using this feature of the SDK; the system could now be deployed from one location across many platforms.

A manager using the Intranet Approvals system will first run the Intranet Approvals applet on their client machine. The applet is a front-end to CICS: it sends information to and gathers information from the mainframe screens throughStingray‘s runtime components. The Stingray Runtime handles actual communications to and from the mainframe, and is bundled with the applet so that anyone running Intranet Approvals will automatically have navigation and 3270 capabilities built-in.

The first panel of the applet displays logon fields and buttons giving the user the option to either approve/reject requisitions or to designate other personnel for the task. When the user enters their data, the applet sends logon and navigation information to CICS, which returns 3270 screens appropriate to the user‘s choice. These screens are dynamically translated by the applet into a GUI that resembles a Windows Explorer interface.

A manager choosing to authorize requisitions will next receive the approvals/rejections panel. On the left side of the interface are ―folders‖ that represent different queue, or document types. (A queue comprises all the requisition documents awaiting action. These reside on the mainframe in DB2 tables, which contain the documents specific to each user). On the right is a list view displaying various details of the documents in queue: date created, author, etc. A manager will choose one or more documents from this list view and from there can either get the full details of the requisition (via a ―details‖ button), or approve or reject the requisition. If approved, the requisition goes to the appropriate supplier. If rejected, it is sent back to the requisitioner.

A manager may alternatively choose to designate his or her authority to approve requisitions to other personnel of their choosing. This is done from the logon screen. After logon, the user sees a panel displaying a list of employees to whom they have designated authority in the past. They can choose from this list or search for someone entirely different. When the designee is chosen, all requisitions awaiting action will show up in the designee‘s queue when they log on to the Intranet Approvals system.

A few notes about the role of Stingray 3270 SDK in the Intranet Approvals project. As stated above, Stingray Runtime handles communications to and from the mainframe. But that is not the only capacity in which the SDK was integral to this project‘s success.

When a user logs on through the Intranet Approvals applet, automatic navigation to his or her 3270 screens on the mainframe was made possible using code generated from Stingray Recorder. Developers from DCS opened 3270 connections to all manager accounts in one terminal session using Stingray. The Stingray Recorder then generated pure Java code from this session that implements these connections (or a subset thereof) when a user logs on through the Intranet Approvals applet. In this way the terminal session is reduced to one logon panel; Stingray takes care of the detailed underlying complexity of the legacy application connection.

Requisitions, however, are still created directly on the mainframe through a 3270 screen. Only the approval portion of the requisitioning process has been updated using Stingray.

Development of Intranet Approvals at DCS was completed; the Intranet Approvals system was pilot tested and the application rolled out to the entire company and its subsidiaries.

The project was targeted for those J&J managers who approve a requisition at any stage in the process, and who were using the screen scraper previously in place. In most cases, this was usually team or department managers. This application solution is but one example of how Stingray can be used to update and increase the usability of legacy applications. The majority of J&J US companies are using this application today.

How Stingray has benefited Johnson & Johnson

Stingray provided Johnson & Johnson with an intranet requisition approval system that saves managers time, money, and headaches. First, the initial investment required was minimal. Developers simply needed Stingray 3270 SDK: no other software was necessary. And the applet created with Stingray runs in a web browser, an environment that is already in place on each desktop.

The new approval system also consolidates dispersed pieces of data in two key areas:

themselves, are now contained in one Windows Explorer-like graphical interface. Previously a manager had to use character-based 3270 screens and could access only one requisition document at a time. Information on any given document was scattered throughout several 3270 screens. Now, the user has one familiar interface through which he or she can not only access multiple data sets stored on the mainframe, but also take action on that information.

encapsulates the ―behind-the-scenes‖ code, and is deployed on many client machines at many different sites from one location – an NT/Web server on site at J&J. Any maintenance or modifications are performed just once. In the non-web based, pre-Stingray architecture, the screen scraper utilized had to be loaded on the desktops of all clients involved in the approval process, which made maintenance and upgrades a time-consuming, expensive undertaking for IT managers at the various sites. Performance varied based on what version of terminal emulator the client used (there were 14 different versions of emulator) and on platform. DCS and Blue Lobster Software‘s efforts removed these obstacles to efficiency, saving the company time and money.

Finally, the new Intranet Approvals system satisfies the need for a visually appealing, easy to use front-end. Stingray helped breathe new life into J&J‘s existing legacy systems.

Research and development

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women’s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the names JOHNSON’S.

For JNJ, India is a base for manufacturing and launching many products. It has a R&D center called Johnson and Johnson Technical Laboratory. JNJ’s focus on their customers instead of their revenue has allowed customers to develop a strong trust in JNJ. Their focus on their product development, their customers, a decentralized organization, and Ethical practices has led to JNJ’s success. Johnson & Johnson has also entered into pharmaceutical research partnerships that connect biotech, medical and academic communities to its global research centers.

In 2009, Johnson & Johnson established a first-of-its-kind late-phase chemical entity facility, Analytical and Pharmaceutical Development Center, in Mumbai, India. The center will play a key role in addressing major global health care challenges, many of which also face Mumbai and the region.

SWOT Analysis of ‘Johnston and Johnston Company’:

According to Jeannet and Hennessey (2010), SWOT analysis helps a company to plan accordingly their need and to focus on the strength to beat the competitor. By evaluating the market situation of ‗Johnston and Johnston Company‘, the SWOT analysis has done as following.

Lee (2009) stated that ‗‗Johnston and Johnston Company‘‘ has listed among one of the leading companies. It has been awarded for baby care and women health care initiatives. It always maintains quality, because of which it creates a brand image on consumer‘s mind. It manufactures variety of products which fulfills customer requirement by going through a proper distribution channel. The products have a competitive price to grab the market. It always tries to promote the products in an effective and unique way.

Strength Weakness

 It is listed as one of the world‘s best  Because of its popularity the retailer company. might sell the expired product.  It maintains quality performance,  Being a global brand leads to Market  Strategic acquisition makes Johnson and fluctuation. Johnson even more powerful.  Some category products are not available  It has a good economic position through everywhere. its cash reservation to invest on acquisition.  All products have a competitive and fair price.  It provides variety of choice to customers.  Product diversification leads Johnson and Johnson a better position than its competitors.  Brand loyalty.  It is the sixth biggest health care across the globe.  It has the product category for every segment of people.  It has a huge market internationally which includes more than 250 subsidiary companies and products sold in 175 countries.  It is in the list of top 100 companies for taking initiative on working mothers. Opportunities Threats  Getting hold of other smaller companies  There have competitors which provides can help the company to expand its same product at lower price. business.  Tough opposition from generic market.  Manufacture products for lower economic class might lead to get enter in rural areas.  Expand the business internationally.  Research and development investment.