Jhonson and Johnson Strategic Analysis Process
I. What Business Are We In?
II. Where Are We Now?
External Assessment
Trend Analysis
Economic Factors
U.S GDP
One of the main economic factors that would affect JNJ is GDP. As shown above GDP in the United States is decreasing meaning resources will be limited and there will be a much needed increase in cash flows for competitive advantage. GDP’s in others countries are increasing giving JNJ more opportunities to expand to more markets around the world to increase their market share and distribution.
Currency | US Dollar Per Currency December 31st, 2008 | US Dollar Per Currency December 31st, 2009 | Trend | EUR | 1.392 | 1.4405 | 0.0485 | GBP | 1.462 | 1.6221 | 0.1601 | JPY | 0.011 | 0.0108 | -0.0002 | CAD | 0.817 | 0.9523 | 0.1353 | AUD | 0.6983 | 0.8999 | 0.2016 | CHF | 0.9369 | 0.9711 | 0.0342 | CNY | 0.1466 | 0.1465 | -0.0001 | ZAR | 0.1075 | 0.1351 | 0.0276 | MXN | 0.0723 | 0.0761 | 0.0038 |
Being that JNJ’s international operations account for almost half of their sales and revenues, foreign exchange rates can also influence JNJ. With the U.S. dollar losing value compared to many currencies, as shown above, international sales and profits will be more than projected in some countries. Some currencies on the other hand are actually losing value compared to the U.S. dollar, so revenues and profits would be less than expected.
Social, Cultural, Demographic, and Natural Environment Forces
In 2008 and 2009 when many firms were enduring revenue decreases while JNJ reported increased revenues from $61 billion to $63 billion. One reason for this is the fact that society as a whole is changing their attitudes towards healthier lives. Many cultures are making good health an essential part of life and even when incomes go down their health needs are staying top priority. The increase concern for healthy lives is a great trend for JNJ.
According to the Census Bureau 's decennial census, U.S. population is growing by approximately
II. Where Are We Now?
External Assessment
Trend Analysis
Economic Factors
U.S GDP
One of the main economic factors that would affect JNJ is GDP. As shown above GDP in the United States is decreasing meaning resources will be limited and there will be a much needed increase in cash flows for competitive advantage. GDP’s in others countries are increasing giving JNJ more opportunities to expand to more markets around the world to increase their market share and distribution.
Currency | US Dollar Per Currency December 31st, 2008 | US Dollar Per Currency December 31st, 2009 | Trend | EUR | 1.392 | 1.4405 | 0.0485 | GBP | 1.462 | 1.6221 | 0.1601 | JPY | 0.011 | 0.0108 | -0.0002 | CAD | 0.817 | 0.9523 | 0.1353 | AUD | 0.6983 | 0.8999 | 0.2016 | CHF | 0.9369 | 0.9711 | 0.0342 | CNY | 0.1466 | 0.1465 | -0.0001 | ZAR | 0.1075 | 0.1351 | 0.0276 | MXN | 0.0723 | 0.0761 | 0.0038 |
Being that JNJ’s international operations account for almost half of their sales and revenues, foreign exchange rates can also influence JNJ. With the U.S. dollar losing value compared to many currencies, as shown above, international sales and profits will be more than projected in some countries. Some currencies on the other hand are actually losing value compared to the U.S. dollar, so revenues and profits would be less than expected.
Social, Cultural, Demographic, and Natural Environment Forces
In 2008 and 2009 when many firms were enduring revenue decreases while JNJ reported increased revenues from $61 billion to $63 billion. One reason for this is the fact that society as a whole is changing their attitudes towards healthier lives. Many cultures are making good health an essential part of life and even when incomes go down their health needs are staying top priority. The increase concern for healthy lives is a great trend for JNJ.
According to the Census Bureau 's decennial census, U.S. population is growing by approximately
References: www.JNJ.com Organizational Design for a Supply Chain Transformation: Best Practice at Johnson & Johnson Health Care Systems Inc. (2007, June). In BNET. Retrieved April 2, 2011, from http://findarticles.com/p/articles/mi_qa5427/is_200710/ai_n21294885/ Six Sigma. (n.d.). In Wikipedia. Retrieved April 2, 2011, from http://en.wikipedia.org/wiki/Six_Sigma