Johnson & Johnson

Essay by fredericlfA, May 2004

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J&J presents us a very unique situation in that it has been able to maintain a decentralized organization even in the face of very rapid growth. The issue at hand, is in fact, managing further growth of the organization while still maintaining the unity of J&J.

The success of the corporation has developed by following fundamental philosophies that have guided J&J since its inception. At the core of this philosophy we find three main components: firstly, the company's credo, which emphasizes the adherence to ethical principles of behavior, secondly, avoiding to become "a large and ponderous organization", and lastly, long term commitment

However, we find there are new emerging problems that threaten the current integrity of the company's structure. Namely, we find there are operational problems creeping up to the executive committee level. J&J would like to keep its executive committee from dealing with operational issues; yet, on the other hand, there exists the problem of too many existing layers of decision making between the operating manager and this committee.


A Visionary Company

In our view, J&J fits into the category of a visionary company, such as premier in industry, widely admired, made an indelible print in the world we live in, multiple products and life cycle. Nevertheless, we would like to add to the list, the characteristic of adapting successfully to the environment and the demands for growth

J&J started as a company focused on the sale and manufacturing of medical pharmaceutical, surgical, and antiseptic specialties and analgesic goods in 1887. In 1982 the expansion of their products has grouped them in four major categories: consumer; professional; ethical pharmaceutical; and industrial. The key to this enormous expansion has been the success of each new product launched, from which we can induce, they have been able...