Johnson and Johnson Presentation includes Company history Corporate structure Management structure Employee relations policies Financial analysis Stock history State of industry ID: 669544
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Slide1
JOHNSON AND JOHNSON
By : Siraj HaqSlide2
Johnson and Johnson
Presentation includes:
Company history
Corporate structure
Management structure
Employee
relations
policies
Financial analysis
Stock history
State
of industry,
and
Competition
analysis.
Current issue to be addressed:
The
current issue of product recalls is addressed in this
presentation,
along with discussing possible solutions in solving this problem. Slide3
COMPANY HISTORY
F
ounded
in
1886
Johnson & Johnson (JNJ) was founded by the Johnson brothers , in New Brunswick, NJ. From left to right, Robert Wood Johnson, James Wood Johnson, and Edward Mead JohnsonSlide4
COMPANY HISTORY
“Modern Methods of Antiseptic Wound Treatment”
was published in 1988
served as the guide in antiseptic surgery fieldSlide5
COMPANY HISTORY
In year 1894
Maternity kits
were launched to make childbirth safer.
In the same year, the company introduced baby powder to the market, which began the company’s movement into baby products. Slide6
COMPANY HISTORY
In year 1932
Robert
Wood Johnson II, son of the original founder, took over the company
Served as the chairman
until 1963. Robert Jr. was a WWII Army General.Believed in decentralizationUnder
his management, the managers were given substantial freedom, and company believed and stuck to this way in conducting business to this day Slide7
COMPANY HISTORYSlide8
COMPANY HISTORY
Between 1989 and
2006 JNJ acquired
Neutrogena Corporation
Kodak’s
Clinical DiagnosticsCordis CorporationTibotec-Virco BVBA
Centocor
and
Pfizer
Consumer
Healthcare Slide9
Company historySlide10
COMPANY HISTORY - present
Today the Johnson and Johnson Family of Companies ranks as
:
The world’s sixth-largest consumer health
company
The world’s largest and most diverse medical devices and diagnostics companyThe world’s fifth-largest biologics company, andThe world’s eighth-largest pharmaceuticals company
JNJ
employs over 180,000 people across the United States.
Worldwide
, Johnson & Johnson is made up of over 275 companies located across 60 countries.Slide11
Company profileSlide12
Consumer products
The consumer products are available to the general public for purchase and can be found in grocery stores, drug stores, and other retail outlets.
The
first component of the consumer segment is baby products, which consist of popular lines like
Johnson’s ® Destin ®
and
Prim’age
®Slide13
Consumer products
The
consumer segment also consists of cosmetic care product lines like
Neutrogena ®
Aveeno
® Clean & Clear ® Bebe ®
Roco
® Rogaine ®
Lubriderm
® Visine ® and
Acuvue
®Slide14
Consumer products
also
includes wound care and
topicals
, Oral Healthcare products, Womens products and Eye products. Examples of a few include big brands like Band-Aid ® Bengay ® Neosporin ® Listerine ® Rembrandt ® K-Y ® Carefree® Tylenol
®
Zyrtec
®
Benadryl
®
Splenda
®
and
Lactaid ®Slide15
Medical Devices & Diagnostics
O
rthopedic
products include
implants
, joint replacements, and sports medicine products.Lifesaving medical surgery products include
cardiovascular
disease products, coronary disease products, peripheral vascular and obstructive disease products (stents), and neurovascular surgery products. Slide16
Medical Devices & Diagnostics
Diagnostic
tools include
products
for
arrhythmias and diabetes, blood glucose monitors, and insulin delivery devices.
Surgical room products include
general
surgery products, bariatric surgery tools, urologic surgery tools, hernia surgery tools, aesthetics products, surgical instruments, and infection prevention productsSlide17
Pharmaceutical Products
JNJ invested
$5.1 billion in 2011 for research in new drugs.
The
company focuses on a vast variety of therapeutic areas
including cardiovascular, internal Medicine, immunology, central nervous system, infectious diseases, and oncology.
The
company also has a robust pipeline of popular products
like
Aciphex
®
Remicaide
® Risperdal ®
Duragesic
®
Procrit
® and Topamax®Slide18
Company structureSlide19
The Board of DirectorsSlide20
THE SIX COMMITTEES
The Consumer, Pharmaceutical, and Medical Devices & Diagnostic Segments are then each managed individually and usually regionallySlide21
Employee relations policies
Employees
are the company’s greatest asset.
T
reating
their employees well is one of their top priorities, because it is the employees who help the company progress and flourish. The company does not tolerate discrimination on the basis of
gender
, age, race, nationality, sexual orientation, physical ability, and thinking
styles. Slide22
Employee relations policies
Diversity University
In
order to educate employees about the value of
diversity
Employees are required to complete training modules that demonstrate diversity and the company’s commitment.
The O
ffice
of Diversity & Inclusion
for
employees who may have any
concernsSlide23
Employee relations policies
Employees
Resource
Group
Voluntary
, employee-led group based on similar interests and goals. Allows for a forum for employees to pass ideas off of and further develop professionally.
The
company also supports Mentoring Programs that pair employees with mentors,
to
further develop both professionally and
personally.
one
of the top 50 companies for Latinas, and
one
of the top 100 companies for working mothers for the past 26 consecutive
yearsSlide24
Financial analysis
TOTAL REVENUE NET INCOME
Source : Hoover’s Online database
http
://eres.medaille.edu:2292/H/company360/overview.htmlSlide25
Financial analysis
The
price per ratios compare how well the company is related to the price of its shares.
Having
a high return on assets and on equity shows that the company’s management is utilizing its resources properly and efficiently
.The current ratio, measures the liquidity and ability to pay off debts, and since anything over 1 is a good sign, JNJ is doing very well.
Source : Hoover’s Online database
http
://eres.medaille.edu:2292/H/company360/overview.html
Financial Ratios
Price/Sales Ratio
3.41
Price/Book Ratio
3.52
Price/Earnings Ratio
21.14
Price/Cash Flow Ratio
14.90
Return On Assets
9.24%
Return On Equity
17.81%
Current Ratio
1.90Slide26
Stock history
The current stock price for the company is
$85.22.
This demonstrates Johnson & Johnson’s ability to grow, since the stock was valued at
$65.17
in March of 2012 and $50 in January of 2009.JNJ pays
a dividend of
$2.44
for its 2,795,320 outstanding shares, and not many companies are able to accomplish these stats in today’s economic down times
Source : Hoover’s Online database
http
://eres.medaille.edu:2292/H/company360/overview.html
Last Close 26-Apr-2013
$85.22
52-Week High
$85.22
52-Week Low
$61.71
60-Month Beta
0.55
Market Cap
$227,902.36 M
Shares Outstanding
2,795.32M
Dividend Rate
$2.44
Dividend Yield
2.94%Slide27
Stock history
Stock prices of Johnson and Johnson, over past 10 years (04-12)
Source : Hoover’s Online database
http
://eres.medaille.edu:2292/H/company360/overview.htmlSlide28
State of industry – consumer products
Companies in this industry manufacture
cosmetics, grooming products, and toiletries.
The
demand for personal care products is expected to grow at a constant rate since the demand to look good is constant. Slide29
State of industry – consumer products
The aging
population may help the company further grow as more money is spent on cosmetics and anti-aging products.
Hoovers Financial forecasted
that
this industry will grow at a compounded rate of 4 percent between 2013 and 2017 Slide30
State of industry – Pharmaceutical products
Companies
that develop, manufacture, and market pharmaceutical drugs
.
Currently
, the demand for pharmaceuticals are on the rise with a rise in cancer, HIV/AIDs, and other rare diseases. Hoovers Financial forecasted the industry will grow at a compounded rate of 5 percent between 2013 and 2017Slide31
State of industry – Medical devices and diagnostics
Manufacture
surgical and medical equipment, dental equipment, and surgical appliances.
New
technology helps ensure that medical procedures are safer, more accurate, and easier in many cases.
The industry is expected to grow as new technology is developed. The industry is forecasted to grow at a compounded rate of 5 percent between 2013 and 2017. Slide32
competition analysis
2012 Annual Sales and Net profit margins of JNJ and its biggest competitors.
TOTAL REVENUE NET profit margins
Source : Hoover’s Online database
http
://eres.medaille.edu:2292/H/company360/overview.htmlSlide33
“recalls”
Current issue to be AddressedSlide34
The issue of recalls
JNJ has been
under the spotlight for numerous product recalls that pose a safety threat to its patients and consumers.
JNJ
needs to make the necessary adjustments, as the numerous product recalls and associated lawsuits has put the company in an unfavorable position as well has cost the company and its investors billions of Dollars. Slide35
‘Due care’ theory
“Ethics
of
care”
the
company is prompt to recall products to ensure consumer and patient safety. Although there is little guarantee of all defective products being pulled off shelves, and the message is conveyed to all product users. “Due Care Theory”As the manufacturer and being trusted/depended on by the consumers, it’s the duty of JNJ to take care that consumers are not harmed by JNJs product.Slide36
What is a recall??Slide37
Recalls – An industry wide problemSlide38
The Depuy ASR Hip implant recall
As a result of the complications, failure rates, and recall, the company now faces over 10,000 lawsuits with regards to the
DePuy
hip replacement.
In
a recent hearing, the company lost its first
DePuY
ASR lawsuit. The company is responsible for paying the plaintiff $8.3 million in damages.
With estimated over
30,000
patients transplanted
with this
device, JNJ might suffer a loss totaling in billions.Slide39
Negligence ??
It is believed that the company was aware of the poor design of the product - the metal cup and ball components that would rub against each other, resulting in metallic debris in the surrounding tissue. The metallic debris could lead to tissue and bone damage. Slide40
Proposed changes ?Slide41
Proposed changes Slide42
“Root Cause Analysis”Slide43
Future of Johnson and johsnon??
$Slide44
References
Causey, M. (2013, February 11). Study: FDA enforcement growing for medical device companies.
AssurX
Blog
. Retrieved April 27, 2013, from http://blog.assurx.com/2013/02/11/study-fda-enforcement-growing-for-medical-device-companies/Demian, H. (n.d.). Preventing and addressing problems in the medical device recalls. Retrieved April 8, 2013, from
http://www.fda.gov/MedicalDevices/Safety/RecallsCorrectionsRemovals/default.htm
Hoovers Online Database (2013a). Competitive landscape. Retrieved April 9, 2013, from
http://eres.medaille.edu:2292/H/company360/competitiveLandscape.html
Hoovers Online Database (2013b). History overview. Retrieved April 9, 2013, from
http://eres.medaille.edu:2292/H/company360/history.html
Hoovers Online Database (2013c). Industry overview. Retrieved April 9, 2013, from
http://eres.medaille.edu:2292/H/industry360/overview.html?industryId=1192
Hoovers Online Database (2013d). Stock quote and chart. Retrieved April 9, 2013, from
http://eres.medaille.edu:2292/H/company360/detailedStockQuote.html
Johnson & Johnson (2013a). Board of directors. Retrieved April 7, 2013, from
http://www.investor.jnj.com/governance/board.cfm
Johnson & Johnson (2013b). Company structure. Retrieved April 7, 2013, from
http://www.jnj.com/connect/about-jnj/company-structure/
Johnson & Johnson (2013c). Our company. Retrieved April 7, 2013, from
www.jnj.com/connect/about-jnj/
Johnson & Johnson (2013d). Our history timeline. Retrieved April 7, 2013, from
http://www.jnj.com/connect/about-jnj/company-history/
Johnson & Johnson (2013e). Our people and diversity. Retrieved April 7, 2013, from
http://www.jnj.com/connect/about-jnj/diversity/
Lawson, A. (2013, March 19).
DePuy
hip lawsuits, Johnson & Johnson loses ASR lawsuit.
Injury Lawyer News
. Retrieved April 7, 2013, from
http://injurylawyer-news.com/2013/03/johnson-johnson-loses-first-depuy-asr-lawsuit/
Silverman, E. (2013, April 5). A real false alarm: Johnson & Johnson recalls another product |
Pharmalive
.
Pharmalive
| The Pulse of the Pharmaceutical Industry
.
Retrieved April 9, 2013, from
http://www.pharmalive.com/real-false-alarm-johnson-johnson-recalls-another-productSlide45
QUESTIONS ???
QUESTIONS ???