Final Paper

Strategic Plan Part 2 – SWOT Analysis

SWOT Analysis Table for Johnson & Johnson

Introduction

Johnson & Johnson is America's leading company that produces healthcare products. It is well known for the provision of medical products for children, skin care, women healthcare and other pharmaceuticals. The main aim of the company is to provide the best and quality care to all the patients internationally. The new division at the company will significantly contribute to this goal. As such, a SWOT of the enterprise is needed to determine the operations of the new division at the enterprise. Throughout this paper we will analyze internal and external controls as well as a supply chain analysis for the new division at Johnson & Johnson.

Economic Forces

The pharmaceutical ventures have been very active as of late. This has helped in giving all the more new items and a comprehensive database of drug items to its clients. Many organizations are upheld using bank advances and income, while others are subsidized through securities and offers of shares (Haseeb, 2017). Additionally, the solidarity of European Union has likewise made a solitary money showcase for the organization to target. In any case, Johnson and Johnson must have the capacity to foresee financial difficulties that they are relied upon to confront in future. In any case, the across the board wings of Johnson and Johnson in numerous nations make it work in advantage of the organization. Regardless of the possibility that the economy of a few nations flattens or break down, others will be sheltered from the swelling and stay stable. This makes security at the costs of items that are offered by Johnson & Johnson.

Legal Forces

Pharmaceutical organizations are confined contrasted with others. Subsequently, they ought to cooperate with regulatory and administrative norms (Haseeb, 2017). The Internet has likewise changed authoritative points of confinement the same number of individuals request privileges of reasonable and better social insurance. The organization must check all items before achieving the market for deals. The lawful varieties in a nation impact each industry either adversely or decidedly.

Regulatory Forces

Governmental issues have been incredibly affecting the pharmaceutical business in light of the economic significance of human services. Therefore of being a necessary part and supporter of the economy, pharmaceutical and human services businesses, additional modifications battle significantly under the political weight (Haseeb, 2017). Political interests influence the general well-being part. Truth be told, the legislative changes and modifications can vigorously impact any creating industry of that nation. This outcome in the pharmaceutical organizations to contact the legislature in a significant portion of their exercises has proven to be a challenge to the organization.

Controlling these organizations worldwide has turned out to be strict which at last prompts expanding the rate at which business is finished. Johnson & Johnson is one organization that is spread everywhere throughout the world henceforth; they ought to guarantee that they are refreshed about the political circumstance that influences their business and the nation they work. For an organization that is spread over such a vast scale ought to never be insensible of the political settings, improvements and changes (Jurevicious, 2013). Johnson & Johnson ought to be given an acknowledgement for being circumspect towards the approaches of the legislature and survey it on numerous occasions for a clearer understanding of how things function. It will likewise make it less demanding to arrange out how things ought to continue out later on.

Organizational Adaptation to Change

Johnson & Johnson adapt to change through four ways. These include building leadership in marketing, acclimatizing to the changing global markets, reinforcing the global presence and concentrating on the overall goal of the company. It achieves all these by creating value through innovation of products (Sharma, 2013).

Supply Chain of the New Group

The new division at Johnson & Johnson will use a decentralized management system to control its supply chain. The new division is small and big at the same time in that it is a vibrant entrepreneurial in the operations. The new group understands that the success of the business largely depends on meeting the needs of the customers. The new unit will ensure that the company realizes its long-term and short-term goals in the strategic planning of the corporation (Arndt, 2004).

Issues and opportunities

Opportunities

Full Range of Cross-selling Opportunities: Are there a wide range of selling opportunities? The company has an excellent chance to develop cross-selling opportunities and explore its balance through diagnostics and pharmaceuticals.

The possibility of exploiting biologics markets: Is there a possibility of using these markets in the new division? Therapeutic proteins and the antibodies used in most products provide a better chance to explore this opportunity.

Changing Lifestyle: Can the company change its way of life? The corporation can take advantage of the increasing demand for medical and pharmaceutical products.

Threats

The battle against harmful ingredients – Are there harmful ingredients in the products? Some of the products have been proved to contain carcinogenic substances. This can affect the image of the brand.

The negative influence of product recalls: Are there negative impacts on the recalls of products? The company has had the challenge of recalling its products. This can destroy the reputation of the enterprise.

Extreme competition: Is there external competition in the market? There are strong international competitors within the market that manufacture alternative products. These pose stiff competition to the company.

Government regulatory standards: are there governmental regulatory standards affecting the organization? The national, import and export tariffs have an important role in the success of the business.

References

Arndt, H. (2004). Supply Chain Management. Gabler Verlag Springer Fachmedien Wiesbaden GmbH, Wiesbaden.

Haseeb. (2017, February 12). Pestle Analysis of Johnson & Johnson. Retrieved from Marketing Dawn: http://marketingdawn.com/pestle-analysis-of-johnson-johnson/

Sharma, D. (2013). Stuti Rakecha Available at: http://www.slideshare.net/deepreekadeepi-johnson-johnson-24443713

Jurevicios, O. (2013) PEST and PESTEL analysis. Available at: http://strategicmanagementinsight.com-tools-pest-and-pestel-analysis.html