Company Analysis Johnson And Johnson Essay

Internationalization OverviewIt was the joint efforts of three br some opposites, Robert woodwind Johnson, Edward Wood Johnson and Edward Mead Johnson that lead to the inception of Johnson & Johnson in 1886 at New Brunswick, New Jersey. steady today the high society strongly fol grims the Credo, which was explicate by its fo chthonian Robert Wood Johnson as philosophy that guides their business. It is a multinational unfaltering established in 60 countries with e veryplace 275 companies over the world and is principal(prenominal)ly change in three several(predicate) palm namely Consumer Healthcargon, Medical Devices & diagnostics and pharmaceutics. Johnson & Johnson has an asset of $131.19 billion. (jnj.com) With entirely the companies that it possesss, it comprises as the largest and the closely divers(a) medical devices and diagnostics Company, the sixth largest consumer health lodge, sixth largest pharmaceuticals company, and the sixth largest biologics company.T he company has been control by intro from their inception. maven of their add 1 products was a scratch post aid kit up for treating small injuries, which could be characterd by any whiz. The use of child c ar products was introduced by them in 1894, which is highly successful manger date. It was in the year 1924 that Johnson & Johnson started their internationalization, expanding their operations to the linked Kingdom. This was extremely successful enlargement and it added a great boost to the companys harvest-home. This carved a path for besides expansion internationally into British colonies comparable South Africa in 1930 and Australia in 1931 and neighbouring res publica of Mexico in 1930.With the Robert Wood Johnson II winning the leadership of the company he changed the companys orbicular dodge and do the company as a deconcentrate family of companies. Their operations were further expanded into genus Argentina and Brazil in 1937 flowed by the validation o f 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 in that location were numerous learnings by the company, McNeil Laboratories in Fort Washington, get together States, Cilag AG in Switzerland followed by encyclopedism of Janssen Pharmaceutica in 1961, it was considered matchless of the most in advance(p) starchy then. (jnj.com) In the late 70s and 80s Johnson & Johnson enters into young health cargon grocery stores much(prenominal)(prenominal) as diabetes heed, vision c ar and mechanical resolving power of wounds. This created the possibilities for more 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 foodstuff and Russia was a study(ip) move.In 2002 they acquired T ibotec-Virco, a squargon which helps patients with non curable diseases such as Tuberculosis and AIDS. A study acquisition was Pfizer Consumer Healthc atomic tot 18 in 2006. The chief(prenominal) conclusion for them was to follow their Credo, which has been immensely successful. The internationalization strategy was to adapt to changing global markets and basically decentralize their operations. This was what mate them Strengthen their world(a) Presence. Most of their international expansion was through large acquisitions of established rigids. Their steady ingathering shows how they pee-pee captured markets all over the world. They use chief(prenominal)ly use adaptation strategy, and then they ar focused on the particular(prenominal) target market and get to dissimilar methods of operations in divers(prenominal) markets. internet analytic thinkingWith over 275 companies under one roof Johnson & Johnson assemblage of companies is one of the largest in the world. The Data sets provided gives us a open air idea of how the profit is committed from the name to its subsidiaries. The main objective lens is to call how the main subsidiaries be attached to the enhance.(Fig. 1) SubsidiariesThe in a higher place finger depicts the layout of how the main subsidiaries of Johnson & Johnson be connected. Generally lymph glands with high(prenominal) centrality measures domiciliate non be considered as main supplementary, accordingly a series of analysis is do on the identified subsidiaries using meshwork analysis techniques.The main subsidiaries of Johnson & Johnson ar different in severally scope of their diversify areas. The Consumer Health Segment is under Johnson & Johnson cross name and they are established in more than 60 countries and are having exclusive ties with each country and they convey their own presence by themselves without any strategical tie ups. However, the administration and finance discussion section front to bedevil many ties with subgroups at heart the organization as well as external sources.The Pharmaceutical plane section is in equivalent manner one of the largest profits, 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 also a wide company is under the Janssen Pharmaceuticals. Crucell which is a firm developing vaccine is also under the Janssen group. Galapagos which is a joint venture mingled with Crucell and Tibotec deals with the research and development in pharmaceutical industry and is a major(ip) reader to the innovations achieved by Janssen Pharmaceutical.The Medical Devices & Diagnostics segment is the largest and the most diversesegment in the world. Johnson & Johnson substantiate one of the biggest companies in impairment or Research and development under this segment. Some of their subsidiaries are Animas Corporation, Cordis Corporation, Depuy Synthes c ompanies of Johnson & Johnson, Ethicon, Ethicon Endo Surgery, Janssen Diagnostics, Johnson & Johnson Vision Care, learn and Ortho-Clinical Diagnostics. Most of these are directly connected to the set up firm, but they also front to have feeble ties deep down themselves.The similitude of different centrality measures such as grad, Betweenness, Eigen vector, indecorum and other analysis such as Density, K- fondnesss, Structural Holes, and subgroup division algorithms like Girvan-Newman, Fractions impart help us identify how the parent subsidiary network is formed.DensityThe unadulterated network Density or the modal(a) Matrix Value is 0.003 for the given information set. The Standard Deviation of the Density is 0.058 and the average out 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 Ind aver BV with 18ties, Cilag Holdings AG with 17 ties, Johnson & Johnson focussing limited with 16 ties, Johnson & Johnson International finance with 15, Synthes Holdings AG with 14 and Crucell N.V. with 12. Indaver has higher(prenominal)(prenominal) 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 instruction solutions, they have helped them to cut CO2 sacking by 270 tonnes annually (Indaver Sustainability Report, 2013).The main subsidiaries of Johnson & Johnson havealso higher degree centrality. The labelled 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 fr om this centrality are that all the nodes they represent the Main subsidiaries of Johnson & Johnson, have higher eigenvector assesss, 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 fashioning a strong coordination in spite of appearance 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, chinaware Biotech, Indaver, Galapagos , Janssen Pahrmaceutica, Crucell , have very high betweenness and are majorly involved in coordination of work between firms. secretiveness(Fig 5) ClosenessThe constriction determines how close the next node is to the main node, hencethe nodes at the periphery of the network are more close at hand(predicate) to the next node inside the network. The nodes with lesser closeness are more harder to be deriveed for any communication.Fig. 5 shows the different closeness of 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 lower closeness nodes were mostly the major subsidiaries of Johnson & Johnson.Network CohesivenessK- Core depth psychologyThe 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 alpha than the other nodes.(Fig 6) K-Core abbreviationIn the above figure the nodes in re have a k value of 1. These nodes are mainly in the periphery of the networ k 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. and then the labelled nodes are the majornodes that are involved in the functioning 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 entrepot innovations that are much needed for the moderniseth of the company. Turnbull In vestment Company plays an important grapheme in handling investments of Johnson & Johnson.Sub group AnalysisGirvan-Newman AlgorithmThis algorithm helps in sorting out different residential area of structures deep down 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 only if 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 external companies that have ties ups or applied science sharing with Johnson & Johnson.Other Subgroups that are divided 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 counsel Limited. These firms form the major subgroup in the network.(Fig 9) Girvan New man AlgorithmFactionsThe Factions sub grouping is another method to find the subgroups in spite of appearance a network. here(predicate) again we are able to input signal 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 answer 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 wad Johnson & Johnson has managed to reach its products 175 countries. From the network structure it is unvarnished tha t subsidiary firms are maintained with self-sufficient operations and the operations of the firms is decentralized. Pharmaceutical companies possess 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 specific upon their product line and are coast to deliver their targets. to the highest degree all the firms in this segment have Research and Development facilities of their own and do not rely on other investments from external sources. Many joint ventures within its network of subsidiaries have been beneficial for Johnson & Johnson, like Depuy Synthes, the collaboration between them has given suffer 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 check 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 maternal(p) firm. This has been the major reason for the vast expansion of Johnson & Johnson into many markets.Scope for further forward motion in instaurationAs 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 list of inaugurated products by Johnson & Johnson is vast. They are a firm which are all depended upon innovation.Technology sharing within the companies within the firm essential be initiated within all firms to enhance the ties within partnering firms.As on date they are the one-sixth largest Consumer healthcare company, Their Target must be to become the number one company in the world. Only inventing more products get out 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.thence 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 combined efforts to make the firm strengthen its capacity.Diabetes is believed to be increasing in the younger population, hence controlling drugs and cake methods or early diagnostics can be innovated.Setting up Innovation center in local market will help in carry up more innovations into the firm, as only local people will check 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 Angeles i.e. kB Oaks, Calif. SAGE Publications.WebsitesAdimmune.com.tw, (2015). o nline accessible 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). accounting Cilag AG. online Cilag.ch. Available at http//www.cilag.ch/en/about-us/ story/ 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 muniment. online Available at http//crucell.com/history Accessed 5 Mar. 2015.