Johnson & Johnson: Strategy

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Johnson & Johnson
This case is about Johnson & Johnson's quest to remain an outstanding company. You remember the Credo from Week 1 so this will give you greater insight on how Johnson & Johnson has achieved this status.

This assignment will involve the following three sections:

1. First identify the three most important strategy questions needing answers on how Johnson & Johnson can stay on top.

The three most important strategy questions seeking answers on how Johnson & Johnson can stay at the top are:
Should Johnson & Johnson maintain its growth rate through acquisition or through internal development of new products to maintain the rate of historical growth?
Should Johnson & Johnson maintain its growth rate through its unique culture and structure that values independence, or should it restructure the company to have greater control over its far flung units to sustain growth.
Should Johnson & Johnson maintain its growth rate through focusing on pharmaceuticals or should it diversify more into consumer products to maintain its growth.

2. Then answer those questions from two differing perspectives. For example lets assume one question is: "Should Johnson & Johnson grow by acquisition or internal development to maintain the rate of historical growth?" One side would take the growth by acquisition strategy and the other side growth by internal development strategy. Both would provide several (2-4) convincing arguments for their respective perspectives based on case facts and/or outside research.

Let us examine the question; Should Johnson & Johnson maintain its growth rate through acquisition or through internal development of new products to maintain the rate of historical growth?
One perspective is that Johnson & Johnson should ensure its growth through acquisition of outside companies. First, during the last decade Johnson & Johnson has sustained its growth through 52 acquisitions and there is no reason why Johnson & Johnson cannot sustain its growth rate through further acquisitions. Second, when acquiring companies, Johnson & Johnson can evaluate and decide on the potential of the products the company is having before making a purchase however in case of developing new products most of the 'new' products are just modification. For example currently there are 56 drugs in late testing phase but of these only eight are really new. Third, ...