Case study description and analysis of Johnson Johnson's production and distribution of products

Essay by cicirabbitUniversity, Master'sA-, August 2009

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1. Company characteristics and supply chainJohnson & Johnson is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in the state of New Jersey, United States in 1886 (Wikipedia, 2008). The corporation's headquarters is located in New Brunswick and its consumer division is located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries while its products are sold in over 175 countries. Johnson & Johnson and its subsidiaries have approximately 115,600 employees worldwide. Johnson & Johnson's primary focus has been on products related to human health and well-being. According to MarketWatch (2006) states that Johnson & Johnson's worldwide business is divided into three segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics. The Consumer segment manufactures and markets a range of products used in the baby and child care, skin care, oral and wound care and women's health care fields, as well as nutritional and over-the-counter pharmaceutical products.

These products, available without prescription, are marketed principally to the general public and sold both to wholesalers and directly to independent and chain retail outlets throughout the world (MarketWatch, 2006). The Pharmaceutical segment includes products in the following therapeutic areas: anti-fungal, anti-infective, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, psychotropic and urology. These products are distributed directly to retailers, wholesalers and health care professionals for prescription use by the general public (MarketWatch, 2006). The Medical Devices and Diagnostics segment includes a range of products distributed to wholesalers, hospitals and retailers, used principally in the professional fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. Distribution to these health care professional markets is done both directly and through surgical supply and other dealers (MarketWatch, 2006).

From the research we gather, that effective supply...