MAN7068 Strategic Leadership and Organisational
Transformation Assignment Sample

Introduction

Strategic management is a vital factor within a country as it assists in increasing the sales growth and decreasing the challenges from the business. Present study focuses on the strategic management of Johnson & Johnson and its strategic dependency on the various factors like competitors, collaborators, political, social and economic factors.

1.

a) Company

Company Overview

Johnson & Johnson was founded as a famous multinational company in America. It was founded in 1886 (Johnson & Johnson, 2021). This company provides health products, pharmaceutical essentials and medical services. This company is further familiar with different effective skin products. Consequently, this study is performed on the strategic management of Johnson & Johnson as this company has decided to develop its subsidiary in North Korea.

TOWS Matrix

Table 1: TOWS Matrix

(Source: As influenced by Dandage et al. 2019)

b) Customers

Analysis of Market size

         Johnson & Johnson involves the pharmaceutical market, and health care sector. This company has acquired 82.6 billion U.S. dollars sales growth in 2020 and $ 22,321.00 million revenue growth (Statista, 2020). Pharmaceutical market of America has earned 1.27 trillion U.S. dollars in this year. Market cap of this company is 382 bn USD.

Discussions of Customer Satisfaction

                     Johnson & Johnson has found that their key customers are parents of new born babies as well as women who are likely to be fond of having glowing skin. This company targets its customers by advertising in social media and television. Purchasing patterns of the customers are purchasing by focusing on the quality instead of price.

c) Competitors

Determination of competitive organisations of Johnson & Johnson

          Key competitors of Johnson and Johnson are Pfizer and Moderna. These companies are providing a tough competition to Johnson & Johnson by producing almost similar products of Johnson & Johnson.

Analysis and comparison of competitive advantages of different companies

Pfizer has introduced a higher efficiency vaccine of coronavirus than Johnson & Johnson’s one dose vaccine so that this company gains competitive advantage. On the other hand, Moderna invents ethical products whereas Johnson & Johnson was suspected for the non-ethical practices. Henceforth it is clarified severe weaknesses of Johnson & Johnson is providing the competitive advantage to the competitive advantages of the competitors. In this account, this company needs to improve its weaknesses and mitigate its issues for gaining competitive advantage within the business.

d) Collaborators

Analysis of different collaborators of Johnson & Johnson

     Collaborators of Johnson & Johnson are suppliers, business partners, and supply chain managers. This company includes more than 50 suppliers within the entire businesses like Hospira Inc., Stericycle Inc., and Veeva Systems Inc. Business partners of this company are commercialisation partners, supply chain partners and research and development partners. This company uses the Gartner Supply chain company as a distribution channel.

e) Climate

PESTLE Analysis

Table 2: PESTLE Framework

(Source: As influenced by Perera, 2017)

2.

a) Political risk Assessment

Johnson & Johnson has faced a major political turmoil at the time of launching COVID 19 vaccines in the UK. This is the first organisation which invents the one dose vaccine. From this environment, due to political grounds of the UK, this company was forced to disrupt their work as the rumours were spread that this vaccine is ineffective. From these circumstances, this company has proved the quality of their products and launched their products.

b) Threat of expropriation and confiscation and its impact

Johnson and Johnson have faced expropriation and confiscation in the UK in 2018 at the time of gaining international investment and so that this company was accused by several legal actions and followed by disruptions in work happen.

c) Campaigns against foreign goods and its impact

   Johnson & Johnson has faced the issues regarding the campaigns against the foreign goods within the UK to prevent international piracy. For these this company has suffered from logistics unavailability.

d) Labour benefits legislations within this workplace

In the UK, there are several legal acts for labour benefits like “Minimum Wages Act of 1948 (c.11)” and “Health and Safety at Work etc. Act 1974 (c.37)” help in maintaining the work of labourers within this workplace.

e) Recent Violent and its impact

In the UK, recent violence is a medicinal scam due to COVID 19 demands. For this situation, this company has suffered from the medicinal unavailability within its pharmaceutical retailing sector and faced financial loss.

f) Civil Wars and its impact

In 2000, Johnson & Johnson suffered from the “Sierra Leone Civil War”. In this account, this company has faced the financial loss due to the socio-economic damage of the UK for this War.

g) Inflation and its impact

In the UK, inflation growth rates are decreasing day by day. This increases the household income within this country. This helps Johnson & Johnson in gaining a wide range of customer base.

h) Currency devaluations and its impact

In 2019, for the impact of the BREXIT pandemic, currency devaluation has happened within the UK. For this, Johnson & Johnson has experienced financial loss in international trading.

i) Induction of taxation and its impact

In 2019, due to the BREXIT pandemic, Johnson & Johnson faced the induction of taxation due to the introduction of fiscal policy. Consequently this company has observed reduction in annual turnover.

j) Impact of COVID 19 on the business

For COVID 19, Johnson & Johnson has faced barriers in international dealing, and supply chain disruptions. In spite of these, this company has gained some excessive profit by launching COVID19 medicines and vaccines.

3.

a) Web of Culture Framework

Web of Culture Framework involves the importance of organisation culture, management implications, historical analysis and cultural influences within a company. This company has used CREDO for maintaining the organisation culture within this organisation. For this, in spite of several cultural diversities among the employees, they can work in this company collaboratively. This company has included the hierarchy managerial structure which assists this company in gaining significant work monitoring within the workplace. A healthy cultural harmony takes place within this company.  Apart from their CREDO, Johnson & Johnson is maintaining human health within the workplace and also has implemented corporate governance regarding this. This effective workplace of this company has helped this organisation in developing a high rate of job satisfaction among its employees of different countries.

b) Strategic Drift

                  Strategic Drift framework is used for understanding the existing strategies of a company. This company has implemented the strategies of targeting audiences like involvement of attractive contents in advertisements and developing websites. On the other hand, this company has also adopted the strategies of using advanced technologies like Artificial intelligence and big data analysis for increasing working quality within this organisation. Johnson & Johnson also has implemented the customer-centric approach for increasing business growth within this company. On the other hand, this company has adopted several business tactics for enhancing innovation, investing for the future and maintaining global diversity and sustainability (Johnson & Johnson, 2021).

c) Discussion of Ethics, Governance and Corporate Social Responsibility of this company

Johnson & Johnson has involved the code of business conduct for maintaining the ethics within this company. However, Johnson & Johnson faces several ethical issues like privacy issues, quality related issues and inadequate information provision related issues. On the other hand, this company has several policies and guidelines for ensuring compliance. This company also uses code of business conduct for managing the stakeholders. Furthermore, this company involves “CREDO-oriented” corporate social responsibilities which are to provide the service firstly to the doctors, nurses and patients. Johnson & Johnson further has developed the “Health care compliance policies”, “robust compliance programmes” and anticorruption programmes for maintaining the working culture within this company.

d) Balanced Scorecard Strategic Management Tools

                      Balanced scorecard strategic management tools can help Johnson & Johnson in increasing its competitive advantages for decreasing the power of competitors. This strategic management tool can help this company in developing strategies for customer engagement, gaining financial benefits, increasing the quality of internal procedures and inducing the learning of employees. This company can engage its customers by launching ethical and healthy products on a rapid basis and producing cost-effective products. This company can increase its financial benefits by reducing the internal costs by reducing the number of supply chains and by preventing mishandling of resources and budget. This company can induce the quality of internal procedures by strengthening the quality control system within this company. Lastly, this company can increase the knowledge of employees by arranging the training for them. As this company has implemented some strategies for providing better products to customers like meeting the global diversification, involving a high rate of innovation and delivering online shopping facilities to customers so that this company can apply balanced scorecard management tools for understanding financial requirements, expected customer engagements, required modifications in business processes and expected business growth.

e) Analysis of entry strategies for the chosen country

This company can involve several entry strategies for entering North Korea. This company can implement the product development strategies by which they need to enter this market by reducing the costs of products and by developing diversified products. This company also can adopt the strategy of franchising by which they require to enter this new market by joining hands with a running business of this country.

f) Analysis of overall findings

From the analysis of strategic management, this study has found that Johnson & Johnson have some existing strategies for attracting customers and inducing its sales growth. This company also needs to implement more effective strategies for mitigating its ethical issues and engaging new customers, for instance providing adequate information about products and producing diversified products. Taking these into accounts, this company can maintain effective organisation culture and employee management in this country due to their effective business ethics, compliance programmes, workplace health and safety measurements and its CREDO. From these evaluations, this context has determined that this company can get a high rate of customer growth in North Korea.

Conclusions

From discussions, this study can conclude that Johnson & Johnson can have the severe adverse political, economic, social and environmental impact of North Korea. This company would have a chance of not developing desired sales and revenue growth in the very beginning of subsidiary development.

Reference list

Dandage, R.V., Mantha, S.S. and Rane, S.B., (2019). Strategy development using TOWS matrix for international project risk management based on prioritization of risk categories. International Journal of Managing Projects in Business.

Index of Economic Freedom, (2021), GDP Growth in North Korea. Available at https://www.heritage.org/index/country/northkorea [Accessed on 13 July 2021].

International Trade Administration, (2020), Government Investment in North Korea on Technology.Available at: https://www.trade.gov/country-commercial-guides/south-korea-information-and-communication-technology [Accessed on 10 July 2021].

Johnson & Johnson, (2021). Business strategies of Johnson & Johnson. Available at https://www.jnj.com/partners/supplier-principles#:~:text=Johnson%20%26%20Johnson%20is%20committed%20to%20developing%20procurement,high%20quality%2C%20compliant%20and%20reliable%20products%20and%20services. [Accessed on 01 September 2021].

Johnson & Johnson, (2021), Official Website.Available at https://www.jnj.com [Accessed    on 12 July 2021].

Macro Trends, (2021), Birth Rate in North Korea. Available at: https://www.macrotrends.net/countries/PRK/north-korea/birth-rate [Accessed on 15 July 2021].

Perera, R., (2017). The PESTLE analysis. Nerdynaut.

Statista, (2021). Market size and growth of Johnson & Johnson.Available at https://www.statista.com/topics/1517/johnson-and-johnson/ [Accessed on 11 July 2021].

YonhapNews Agency, (2021), Inflation growth rate of North Korea.Available at https://en.yna.co.kr/view/AEN20210702001151320#:~:text=In%20May%2C%20the%20BOK%20revised%20up%20its%202021,consumer%20prices%20to%20grow%201.8%20percent%20this%20year.[Accessed on 14 July 2021].

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