Company Analysis Johnson And Johnson Essay

Internationalization OverviewIt was the joint efforts of three br differents, Robert wood Johnson, Edward woodwind Johnson and Edward Mead Johnson that lead to the inception of Johnson & international vitamin Aere Johnson in 1886 at red-hot Brunswick, New Jersey. Even today the follow potently follows the Credo, which was formu riped by its fo to a set let on place Robert Wood Johnson as philosophy that guides their business. It is a transnational true launch in 60 countries with everywhere 275 companies over the world and is master(prenominal)ly diversify in three polar fields namely Consumer Healthc atomic issue forth 18, Medical Devices & vitamin A Diagnostics and pharmaceuticals. Johnson & angstrom Johnson has an asset of $131.19 billion. (jnj.com) With sever eithery the companies that it knowledges, it comprises as the largest and the around divers(a) health check devices and Diagnostics Comp some(prenominal), the 6th largest consumer health comp all, sixt h largest pharmaceutics company, and the sixth largest biologics company.The company has been driven by renewing from their inception. One of their firstborn products was a first aid kit for treating trivial injuries, which could be ex adenosine monophosphateled by anyone. The use of child cargon products was introduced by them in 1894, which is lastly successful till date. It was in the year 1924 that Johnson & adenylic acid Johnson started their internationalization, expanding their operations to the linked Kingdom. This was extremely successful involution and it added a great boost to the companys growth. This carved a path for serious expansion internationally into British colonies ilk South Africa in 1930 and Australia in 1931 and neighbouring clownish of Mexico in 1930.With the Robert Wood Johnson II pickings the leadership of the company he changed the companys world(a) strategy and make the company as a change family of companies. Their operations were further ex panded into genus Argentina and Brazil in 1937 flowed by the organization of Ortho Research Laboratories Inc. and Ethicon Inc. in New Jersey.In 1957 they established their operations in India, the first expansion into Asia. In the 1959 there were umpteen learnednesss by the company, McNeil Laboratories in Fort Washington, united States, Cilag AG in Switzerland followed by acquisition of Janssen Pharmaceutica in 1961, it was considered one of the most advance(a) incorruptible then. (jnj.com) In the late 70s and 80s Johnson & vitamin Aere Johnson enters into new health c ar markets much(prenominal) as diabetes counselling, vision c atomic number 18 and windup(prenominal) closure of wounds. This created the possibilities for to a greater extent expansion, and they entered into China and Egypt. The late 90s was followed by a series of acquisitions some of them were Centocor, Cordis Corporation, Kodaks clinical Diagnostics and Neutrogena Corporation. The expansion into Eastern European market and Russia was a study move.In 2002 they acquired Tibotec-Virco, a sozzled which alleviates patients with non curable diseases much(prenominal)(prenominal) as Tuberculosis and AIDS. A study acquisition was Pfizer Consumer Healthcargon in 2006. The chief(prenominal)(prenominal) goal for them was to follow their Credo, which has been immensely successful. The internationalization strategy was to adapt to changing orbiculate markets and basically decentralize their operations. This was what mate them change their Global Presence. Most of their international expansion was through large acquisitions of established firms. Their unb abolishable growth shows how they suffer captured markets all over the world. They use chief(prenominal)ly use readjustment strategy, hence they be focused on the particular target market and excite diametrical methods of operations in  diametric markets.Net bat abridgmentWith over 275 companies under one roof Johnson & group A Johnson host of companies is one of the largest in the world. The Data sets provided gives us a clear idea of how the net is attached from the p arnt to its gunsidiaries. The primary(prenominal) accusatory is to grade how the main subsidiaries are affiliated to the parent.( shape. 1) SubsidiariesThe above figure depicts the layout of how the main subsidiaries of Johnson & Johnson are attached. Generally nodes with lofty(prenominal)(prenominal) centrality measures batchnot be considered as main subordinate, hence a series of abbreviation is done on the set subsidiaries using interlock depth psychology techniques.The main subsidiaries of Johnson & Johnson are incompatible in each scope of their diversified areas. The Consumer Health Segment is under Johnson & Johnson brand name and they are established in more than 60 countries and are having individual ties with each country and they arrest their own presence by themselves without any strategic tie ups. However, the administration and finance department seem to absorb numerous ties with subgroups indoors the organization as salutary(p) as international sources.The pharmaceutic portion is excessively one of the largest net incomes, with Janssen Pharmaceutica which is their main subsidiary. As a main subsidiary, they operate with a number of companies under this banner. Cilag which is as well a big company is under the Janssen Pharmaceuticals. Crucell which is a firm developing vaccine is also under the Janssen group. Galapagos which is a joint judge between Crucell and Tibotec potentiometers with the research and increase in pharmaceutical industry and is a major contributor to the innovations achieved by Janssen Pharmaceutical.The Medical Devices & Diagnostics segment is the largest and the most diverse segment in the world. Johnson & Johnson capture one of the biggest companies in terms or Research and development under this segment. some(a) of t heir subsidiaries are Animas Corporation, Cordis Corporation, Depuy Synthes companies of Johnson & Johnson, Ethicon, Ethicon Endo Surgery, Janssen Diagnostics, Johnson & Johnson lot Care, mentor and Ortho-Clinical Diagnostics. Most of these are right off connected to the parent firm, but they also seem to read feeble ties within themselves.The comparison of different centrality measures such as tier, Betweenness, Eigenvector, Closeness and other analysis such as engrossment, K- core outs, Structural Holes, and subgroup division algorithmic programs ilk Girvan-Newman, Fractions will help us identify how the parent subsidiary mesh topology is formed. parsimoniousnessThe complete cyberspace Density or the Average Matrix Value is 0.003 for the presumption data set. The Standard Deviation of the Density is 0.058 and the average weighted floor is 1.278Centrality MeasuresDegree(Fig. 2) Degree CentralityThe above figure shows the academic degree of each node with respect to its size, the highest degree is Johnson & Johnson with 119 ties, followed by Indaver with 30 ties Indaver BV with 18ties, Cilag Holdings AG with 17 ties, Johnson & Johnson management special with 16 ties, Johnson & Johnson International finance with 15, Synthes Holdings AG with 14 and Crucell N.V. with 12. Indaver has higher degrees than the subsidiary of Johnson & Johnson, though it is not its subsidiary. Janssen pharmaceutical is one of the share holder with Indaver, which provides them with take management solutions, they hand helped them to cut carbonic acid gas emission by 270 tonnes annually (Indaver Sustainability Report, 2013).The main subsidiaries of Johnson & Johnson have also higher degree centrality. The labelled nodes were identified to have the higher degree.Eigen vector(Fig 3) Eigenvector CentralityEigen vector centrality is careful with respect to the connectivity of nodes with higher degrees. This is effective in helping to identify firms wit h more favorable importance or higher take aim firms such as management and operations level. The key observations from this centrality are that all the nodes they acquaint the Main subsidiaries of Johnson & Johnson, have higher eigenvector fosters, as they had connectivity to nodes with higher degrees, Cilag, Depuy Synthes, Crucell, Janssen Pahrmaceutica, Ethicon, Apsis, all of them have higher eigenvectors as they are the main subsidiaries and are connected with nodes with higher degree.Betweenness(Fig 4) BetweenessBetweeneess represents the nodes that are involved in linking major nodes to lesser connected nodes, thereby making a strong coordination within a network. This identifies the nodes of the network that are bridges between the stronger and the weaker connected nodes.The analysis from fig 4. implies that companies such as Adimmune Corporation, Taiwan Biotech, Indaver, Galapagos , Janssen Pahrmaceutica, Crucell , have very high betweenness and are majorly involved i n coordination of work between firms.Closeness(Fig 5) ClosenessThe niggardness determines how close the coterminous node is to the main node, hence the nodes at the periphery of the network are more closer to the next node inside the network. The nodes with lesser concentration are more harder to be reached for any communication.Fig. 5 shows the different closeness of each node. Nodes of higher degree were not rightfully close to each subset of nodes. Nodes with higher betweenness had proportionate farness, which mean they had very low closeness. The lower closeness nodes were mostly the major subsidiaries of Johnson & Johnson.Network CohesivenessK- Core digestThe K-core analysis identifies nodes of a network that are more connected to other nodes in other parts of the network. The analysis provided us with three k values 1, 2 and 3. This is helpful to identify the core network which is more pregnant than the other nodes.(Fig 6) K-Core AnalysisIn the above figure the n odes in re have a k value of 1. These nodes are mainly in the periphery of the network and are lesser connected to the main network, the sub nodes connected to them have degree 1.(Fig 7) K-Core Analysis with k value 2These nodes in fig. 2 have a k value of 2, these are mainly the nodes which bridge the main core to the other network. The labelled nodes are the subsidiary of Johnson & Johnson which are in the sub-core.(Fig 8) K-Core Analysis with k value 3The above figure show the core network of the organization, these nodes are more connected the main node that the others with their connected nodes having higher degrees than others. Hence the labelled nodes are the major nodes that are involved in the work of the organization.The observations of the k-core analysis are that the subsidiary such as Cilag, Ethicon, OMJ pharmaceuticals, Depuy, forms the major core of the organization. The main core also consists of investor management firm, which helps the judicature fund inno vations that are much involve for the growth of the company. Turnbull Investment Company plays an important role in handling investments of Johnson & Johnson.Sub Group AnalysisGirvan-Newman AlgorithmThis algorithm helps in sorting out different community of organises within a network that forms a cohesive sub group. The main objective is to identify different subgroups in a large network by removing important nodes and leaving unaccompanied the sub group intact. Fig. 9 clearly shows the division of subgroups that having different colour.Indaver , Adimmune Corporation, Prime rock oil Service Corporation, Taiwan Biotech Co. Ltd., these are external companies that have ties ups or engine room share-out with Johnson & Johnson.Other Subgroups that are dual-lane are subsidiaries of Johnson & Johnson, some of them are Janssen Pharmaceutica, Synthes Inc., Crucell N.V., Johnson & Johnson Holding Gmbh, Johnson & Johnson fiscal Services Company, Johnson And Johnson Managem ent Limited. These firms form the major subgroup in the network.(Fig 9) Girvan Newman AlgorithmFactionsThe Factions sub separate is another method to find the subgroups within a network. Here again we are able to input the number of groups to be divided. An estimate of 38 clusters could give an idea of how many major subgroups that existed in the network. Fig 10 shows the outcome of the factions sub grouping.(Fig 10) FactionsFrom the analysis and the network datasets, the parent Network is Identifies as Johnson & Johnson, and some of the major subsidiaries are Janssen Pharmaceutica, Cilag, Depuy Synthes, Animas Corporation, Apsis, Mcneil Products, Crucell, Ethicon, Ethicon Endo surgery, Cordis Corporation, Mentor.Implications of the network structure on the innovation activityJohnson & Johnson has been a firm driven by innovation since its inception. As the outcomes of innovation influences the lives of many people Johnson & Johnson has managed to reach its products 17 5 countries. From the network structure it is evident that subsidiary firms are maintained with single-handed operations and the operations of the firms is decentralized. Pharmaceutical companies owned by them are independent by themselves for any innovations involved. They dont seem to have influence on the other subsidiary firms.Firms such as Apsis, Ethicon, Ethicon Endo, Depuy, Synthes, have innovation activity of their own and are developing their own products, and do not reply upon other firms which are owned by Johnson & Johnson. These firms that deal with Medical Devices and Diagnostics are special upon their product line and are leap to deliver their targets. Almost all the firms in this segment have Research and study facilities of their own and do not intrust on other investments from external sources. more joint ventures within its network of subsidiaries have been beneficial for Johnson & Johnson, handle Depuy Synthes, the coaction between them has given b irth to subsidiaries like Depuy Spine, Depuy Mitek, Depuy Orthopaedics, and Depuy Products. This shows the strength of Johnson & Johnson as the largest and the most diverse organization in the world.The Pharmaceutical segment which is under Janssen Pharmaceutica, has some firms like, Crucell, Cilga, and McNeill. These companies subscribe to out innovations on their own as well. But they tend to have a collaborated structure within them and they are ensnare to share technologies with external firms outside their network, In order to share risks and benefits. Crucell have a technology sharing strategy with Adimmune Corporation. Whereas Janssen Pharmecutica are dependent on Indaver for waste management solutions. There are many benefits of collaborations and technology sharing.Johnson & Johnson is a firm with high collaborations within their firms, different companies within their firms have self sustainable resources to develop alliances with other firms, this allows them to g row to a higher likely than the parental firm. This has been the major reason for the Brobdingnagian expansion of Johnson & Johnson into many markets. cooking stove for further improvement in asylumAs there is no end for innovation the firms has been actively involved in various innovation programs that currently changing the trends in the world. One of the simplest innovations that changed the world was the Band-Aid. It just changed the way people have been treating wounds. The count of enclosed products by Johnson & Johnson is vast. They are a firm which are totally depended upon innovation. applied science sharing within the companies within the firm mustiness be initiated within all firms to enhance the ties within partnering firms.As on date they are the Sixth largest Consumer health care company, Their Target must be to go away the number one company in the world. Only inventing more products will help them reach their target. Setting up more Research and Developm ent programmes in underdevelop countries will help in gap up new ventures for the firm, as well as then targeted area.Then development of vaccines for new virus that have been identified can be implemented. Viruses such as HIV, Ebola, Swine Flu, and Bird Flu are on the rise, Johnson & Johnson must capitalize these opportunities and innovate new vaccines for cure. Hence the pharmaceutical companies must take combined efforts to make the firm strengthen its capacity.Diabetes is believed to be increasing in the younger population, hence controlling drugs and stripe methods or early diagnostics can be innovated.Setting up installation center in local market will help in convey up more innovations into the firm, as unless local people will render the need of the local market. This could help them to jump their position as to become the number one Consumer Healthcare Company.ReferencesBooksBorgatti, S., Everett, M. and Johnson, J. (2013). Analyzing social networks. Los Ange les i.e. one thousand Oaks, Calif. SAGE Publications.WebsitesAdimmune.com.tw, (2015). online functional at http//www.adimmune.com.tw/eng/goods.php?catId=5 Accessed 5 Mar. 2015. antwerpes + partner, w. (2015). Fields of Activity Cilag AG. online Cilag.ch. Available at http//www.cilag.ch/en/about-us/fields-of-activity/ Accessed 5 Mar. 2015. antwerpes + partner, w. (2015). record Cilag AG. online Cilag.ch. Available at http//www.cilag.ch/en/about-us/ register/ Accessed 5 Mar. 2015. antwerpes + partner, w. (2015). Portrait Cilag AG. online Cilag.ch. Available at http//www.cilag.ch/en/about-us/portrait/ Accessed 5 Mar. 2015. Cordis.com, (2015). Global Home Cordis cordis. online Available at http//www.cordis.com/ Accessed 5 Mar. 2015. Credo. (2015). online Available at http//www.jnj.com/sites/default/files/pdf/jnj_ourcredo_english_us_8.5x11_cmyk.pdf Accessed 5 Mar. 2015. Crucell.com, (2015). Crucells account. online Available at http//crucell.com/history Accessed 5 Mar. 2015.