Company Analysis Johnson And Johnson Essay

Internationalization OverviewIt was the go efforts of three br other(a)s, Robert forest Johnson, Edward woodland Johnson and Edward Mead Johnson that lead to the inception of Johnson & Johnson in 1886 at New Brunswick, New Jersey. even up today the comp both(prenominal)(prenominal) strongly follows the Credo, which was formulated by its founder Robert Wood Johnson as philosophy that guides their business. It is a multinational tight established in 60 countries with everywhere 275 companies over the world and is in the first place diversified in three divers(prenominal) fields promisely Consumer Healthc ar, Medical Devices & Diagnostics and pharmaceutics. Johnson & Johnson has an addition of $131.19 billion. (jnj.com) With each the companies that it owns, it comprises as the largest and the most diverse medical devices and Diagnostics Company, the wholeness-sixth largest consumer health company, sixth largest pharmaceutics company, and the sixth largest biologics compan y.The company has been driven by intention from their inception. One of their first products was a first aid kit for treating microscopical injuries, which could be used by anyone. The use of child cargon products was introduced by them in 1894, which is mellowly successful till involution. It was in the year 1924 that Johnson & Johnson started their internationalization, expanding their trading operations to the United Kingdom. This was extremely successful blowup and it added a great gain to the companys growth. This carved a path for further blowup internation anyy into British colonies like South Africa in 1930 and Australia in 1931 and neighbouring province of Mexico in 1930.With the Robert Wood Johnson II taking the leadership of the company he changed the companys worldwide strategy and made the company as a modifyd family of companies. Their operations were further expanded into Argentina and brazil nut in 1937 flowed by the formation of Ortho search Laboratories Inc. and Ethicon Inc. in New Jersey.In 1957 they established their operations in India, the first expansion into Asia. In the 1959 on that point were many acquisitions 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 innovative firm then. (jnj.com) In the late 70s and 80s Johnson & Johnson enters into unfermented health c are markets such(prenominal) as diabetes charge, vision care and mechanistic 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 firm which helps patients with non curable diseases such as Tuberculosis and AIDS. A major acquisition was Pfizer Consumer Healthcare in 2006. The primary(prenominal) goal for them was to follow their Credo, which has been vastly successful. The internationalization strategy was to adapt to ever-changing global markets and basic all in ally decentralize their operations. This was what mate them Strengthen their Global Presence. about of their international expansion was by means of large acquisitions of established firms. Their steady growth shows how they pitch captured markets all over the world. They use mainly use adaptation strategy, thereof they are pore on the particular target market and hold back different methods of operations indifferent markets.Network compendiumWith over 275 companies under one roof Johnson & Johnson group of companies is one of the largest in the world. The Data sets provided wees us a clear idea of how the interlocking is committed from the parent to its subsidiaries. The main purpose is to list how the main subsidiaries are machine-accessible to the parent.(Fig. 1) SubsidiariesThe above encounter depicts the layout of how the main subsidiaries of Johnson & Johnson are connected. Generally nodes with higher centrality measures bottomnot be considered as main underling company, hence a series of analysis is assumee on the identified subsidiaries intermitment electronic network analysis techniques.The main subsidiaries of Johnson & Johnson are different in for each one scope of their diversified areas. The Consumer Health Segment is under Johnson & Johnson brand name and they are established in more(prenominal) than 60 countries and are having someone ties with each country and they fix their own presence by themselves without any strategic tie ups. However, the administration and finance department search to have many ties with subgroups within the organization as well as foreign sources.The Pharmaceutical part is overly one of the largest networks, with Ja nssen Pharmaceutica which is their main subsidiary. As a main subsidiary, they operate with a number of companies under this banner. Cilag which is also a big company is under the Janssen Pharmaceuticals. Crucell which is a firm developing vaccinum is also under the Janssen group. Galapagos which is a joint venture among Crucell and Tibotec deals with the investigate and exploitation in pharmaceutical industry and is a major contributor to the transformations achieved by Janssen Pharmaceutical.The Medical Devices & Diagnostics segment is the largest and the most diversesegment in the world. Johnson & Johnson have one of the biggest companies in terms or Research and development under this segment. Some of their subsidiaries are Animas Corporation, Cordis Corporation, Depuy Synthes companies of Johnson & Johnson, Ethicon, Ethicon Endo Surgery, Janssen Diagnostics, Johnson & Johnson Vision Care, mentor and Ortho-Clinical Diagnostics. Most of these are directly connected to the parent firm, but they also seem to have feeble ties within themselves.The comparison of different centrality measures such as Degree, Betweenness, Eigen vector, Closeness and other analysis such as tightfistedness, K- snappers, Structural Holes, and subgroup naval class Algorithms like Girvan-Newman, Fractions exit help us identify how the parent subsidiary network is formed.DensityThe complete network Density or the medium Matrix Value is 0.003 for the given data set. The Standard Deviation of the Density is 0.058 and the average weighted degree is 1.278Centrality MeasuresDegree(Fig. 2) Degree CentralityThe above figure shows the 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 limited with 16 ties, Johnson & Johnson International pay 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 waste management solutions, they have helped them to visit CO2 emission by 270 tonnes annually (Indaver Sustainability Report, 2013).The main subsidiaries of Johnson & Johnson havealso higher degree centrality. The label nodes were identified to have the higher degree.Eigen vector(Fig 3) Eigenvector CentralityEigen vector centrality is measured with respect to the connectivity of nodes with higher degrees. This is effective in helping to identify firms with more social importance or higher level firms such as management and operations level. The key observations from this centrality are that all the nodes they represent the Main subsidiaries of Johnson & Johnson, have higher eigenvector nurses, 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 gnarled 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 in coordination of work between firms.Closeness(Fig 5) ClosenessThe final stageness determines how keep mum the next node is to the main node, hencethe nodes at the periphery of the network are more closer to the next node inside the network. The nodes with lesser closeness are more harder to be reached for any communication.Fig. 5 shows the different closeness o f each node. Nodes of higher degree were not really close to each subset of nodes. Nodes with higher betweenness had proportional farness, which mean they had very low closeness. The freeze off closeness nodes were mostly the major subsidiaries of Johnson & Johnson.Network CohesivenessK- Core AnalysisThe 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 appraises 1, 2 and 3. This is helpful to identify the core network which is more authorized than the other nodes.(Fig 6) K-Core AnalysisIn the above figure the nodes in re have a k think of 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 subsid iary 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. thereof the labelled nodes are the majornodes that are involved in the operation 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 organisation fund innovations that are much hireed for the growth of the company. Turnbull Investment Company plays an important subprogram in handling investments of Johnson & Johnson.Sub Group AnalysisGirvan-Newman AlgorithmThis algorithm helps in sorting out different community of structures within a network that forms a cohesive sub group. The main objective is to identify differe nt subgroups in a large network by removing important nodes and leaving only the sub group intact. Fig. 9 clearly shows the division of subgroups that having different colour.Indaver , Adimmune Corporation, Prime Oil Service Corporation, Taiwan Biotech Co. Ltd., these are out-of-door companies that have ties ups or engine room sharing with Johnson & Johnson.Other Subgroups that are dissever are subsidiaries of Johnson & Johnson, some of them are Janssen Pharmaceutica, Synthes Inc., Crucell N.V., Johnson & Johnson Holding Gmbh, Johnson & Johnson Financial Services Company, Johnson And Johnson wariness Limited. These firms form the major subgroup in the network.(Fig 9) Girvan Newman AlgorithmFactionsThe Factions sub grouping is another(prenominal) 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 pr oceeds 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 action at lawJohnson & 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 175 countries. From the network structure it is sheer that subsidiary firms are maintained with independent 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, Syn thes, 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 particular upon their product line and are bound to deliver their targets. Almost all the firms in this segment have Research and study facilities of their own and do not rely on other investments from away sources. Many joint ventures within its network of subsidiaries have been beneficial for Johnson & Johnson, like Depuy Synthes, the collaboration between them has given birth 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 shake out innovations on their own as well. But they tend to have a collaborated structure within them and they are bound 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 grow to a higher potential than the parental firm. This has been the major reason for the vast expansion of Johnson & Johnson into many markets.Scope for further betterment in InnovationAs 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 ju st changed the way people have been treating wounds. The list of innovated products by Johnson & Johnson is vast. They are a firm which are tout ensemble depended upon innovation.Technology sharing within the companies within the firm must be initiated within all firms to enhance the ties within partnering firms.As on date they are the Sixth largest Consumer healthcare company, Their Target must be to blend the number one company in the world. Only inventing more products will help them reach their target. Setting up more Research and Development programmes in underdeveloped countries will help in opening 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 therise, Johnson & Johnson must capitalize these opportunities and innovate new vaccines for cure. Hence the pharmaceutical companies must take have efforts to make the firm strengthen its capacity.Diabetes is believed to be increasing in the young population, hence controlling drugs and prevention methods or early diagnostics can be innovated.Setting up Innovation center in local market will help in bringing up more innovations into the firm, as only local people will understand the need of the local market. This could help them to leapfrog their position as to become the number one Consumer Healthcare Company.ReferencesBooksBorgatti, S., Everett, M. and Johnson, J. (2013). Analyzing social networks. Los Angeles i.e. Thousand Oaks, Calif. SAGE Publications.WebsitesAdimmune.com.tw, (2015). online Available 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). History Cilag AG. online Cilag.ch. Available at http//www.cilag.ch/en/about-us/ history/ 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 option/files/pdf/jnj_ourcredo_english_us_8.5x11_cmyk.pdf Accessed 5 Mar. 2015. Crucell.com, (2015). Crucells history. online Available at http//crucell.com/history Accessed 5 Mar. 2015.