Johnson and Johnson Analysis
INTRODUCTION
Johnson and Johnson have revolutionized the way people think about health care, and has easily become the pinnacle of success by doing so. Pioneers of the health care industry and overall human health and well being, Johnson and Johnson is guided by its “Our Credo” and founding principle that “doctors and nurses should use sterile sutures, dressings and bandages to treat peoples wounds” (Johnson and Johnson - Our History).
Most of Johnson and Johnson's success can be attributed to its emphasis on decentralized management, which allows for greater focus as the company blankets 250 countries across the world (Johnson and Johnson - Strategic Planning). For the last 120 years, Johnson and Johnson have been on the forefront of innovation for each of its three divisions, but it must continue to develop and grow in order to maintain its position for the future. This report will investigate, assess, and put forth recommendations to ensure continued success for Johnson and Johnson.
FINANCIAL ANALYSIS
2009 Revenue
In 2009, Johnson and Johnson experienced its first sales decline in over 76 years (JNJ 2009 Annual Report). The decline was due to a worldwide recession which caused 2009 sales ($61.9B) to decrease 2.9 percent from 2008 figures ($63.7B).
Of the three business segments which make up Johnson and Johnson, only the Medical Devices and Diagnostics segment reported an increase in sales from 2008. This segment increased its sales by 1.9 percent from 2008’s figures to $23.6B. The Pharmaceuticals segment reported sales of $22.5B (down 8.3 percent), while the Consumer Products segment reported sales of $15.8B (down 1.6 percent) (JNJ 2009 Annual Report). Only the Medical Devices and Diagnostics US sales showed any increase from 2008’s sales levels. Figure 1 below represents the three business segments displaying US and International 2009 sales figures.
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Figure 1. 2009 Sales Figures For Business Segments (US & Int’l)
2009 Quarterly Revenue
Johnson and Johnson have revolutionized the way people think about health care, and has easily become the pinnacle of success by doing so. Pioneers of the health care industry and overall human health and well being, Johnson and Johnson is guided by its “Our Credo” and founding principle that “doctors and nurses should use sterile sutures, dressings and bandages to treat peoples wounds” (Johnson and Johnson - Our History).
Most of Johnson and Johnson's success can be attributed to its emphasis on decentralized management, which allows for greater focus as the company blankets 250 countries across the world (Johnson and Johnson - Strategic Planning). For the last 120 years, Johnson and Johnson have been on the forefront of innovation for each of its three divisions, but it must continue to develop and grow in order to maintain its position for the future. This report will investigate, assess, and put forth recommendations to ensure continued success for Johnson and Johnson.
FINANCIAL ANALYSIS
2009 Revenue
In 2009, Johnson and Johnson experienced its first sales decline in over 76 years (JNJ 2009 Annual Report). The decline was due to a worldwide recession which caused 2009 sales ($61.9B) to decrease 2.9 percent from 2008 figures ($63.7B).
Of the three business segments which make up Johnson and Johnson, only the Medical Devices and Diagnostics segment reported an increase in sales from 2008. This segment increased its sales by 1.9 percent from 2008’s figures to $23.6B. The Pharmaceuticals segment reported sales of $22.5B (down 8.3 percent), while the Consumer Products segment reported sales of $15.8B (down 1.6 percent) (JNJ 2009 Annual Report). Only the Medical Devices and Diagnostics US sales showed any increase from 2008’s sales levels. Figure 1 below represents the three business segments displaying US and International 2009 sales figures.
[pic]
Figure 1. 2009 Sales Figures For Business Segments (US & Int’l)
2009 Quarterly Revenue