Case Study: Johnson and Johnson
Johnson and Johnson: Case Study
The biggest issue had to be all the recalls that J and J had to do with some of it’ products due to them being faulty. Johnson and Johnson had to deal with McNeil Consumer Healthcare as they were where the trouble was. The big thing that had to be recalled was the artificial hip. DePuy was also another company that was a part of Johnson and Johnson that was involved. The FDA made McNeil shut down a plant as well and Sheldon, for Johnson and Johnson CEO stepped down and Gorsky stepped in. Many people feel as though hiring someone internal to the company as CEO is not a great idea.
Acquired a plethora of companies to make them a leader in the industry. A couple of companies that J and J acquired include like Synthes for $20 Billion.
Many business units (250) and 3 divisions.
All the divisions basically act as their own company. I have a recommendation for this later in my review.
Too much being spent on research and development.
Quality is weak.. ex.) childs/infants tylenol
Keep producing highly successful products because Johnson and Johnson is still at the top for now.
Growth is still necessary as well as continuing to gain revenue and continue purchasing smaller companies.
Innovation can continue to grow and new products can come from this.
Have business units work more closely together.
Losing a customer base due to faulty products and lawsuits. Customers are losing trust in the company, basically.
Possible Alternatives and Analyze
First thing that comes to my mind is… hiring a third party company or consultant to help maintain FDA approvals and keep plants up to date and FDA approved.
More money can be put into keeping the plants and equipment up to FDA approval and that will reduce risk of lawsuits and so forth.
Supply Chain changes could be possible as well.
Adding money and hiring third party companies to help McNeil reach FDA standards will help with the speed of the process and help with making better quality products and no issues with the FDA for a while. Supply chain changes will not be great because if Johnson and Johnson were to fix their supply change, the company would not do as well and would lose the innovation aspect and more importantly lose control and that sometimes does not sit well