Johnson & Johnson Strategic Audit

Authors

Hannah Headley, University of Nebraska - LincolnFollow
Lucy Peterkin, University of Nebraska-LincolnFollow
Ryan Nyffeler, University of Nebraska - LincolnFollow
Joshua Wiemers, University of Nebraska - LincolnFollow
Bailey Birkholtz, University of Nebraska - LincolnFollow

Document Type

Thesis

Date of this Version

5-2023

Citation

Birkholtz, B., Headley, H., Nyffeler, R., Peterkin, L., Wiemers, J., 2023. Johnson & Johnson Strategic Audit. Undergraduate Honors Thesis. University of Nebraska-Lincoln.

Comments

Copyright Bailey Birkholtz, Hannah Headley, Ryan Nyffeler, Lucy Peterkin, Joshua Wiemers 2023

Abstract

Johnson & Johnson (J&J) is a healthcare company that generates economic value from its three core business segments: Consumer Health, Pharmaceuticals, and Medical Devices. Recent innovations include new pharmaceutical products, remote clinical trials, automated patient recruitment, improved scientific and digital literacy amongst employees, and innovative digitized models for supply chain planning. J&J has a competitive edge in R&D efficiency, with a 4.35 return on research capital ratio. Sociocultural, technological, and economic factors will play a large role in changing the pharmaceutical industry environment, and J&J is well positioned to benefit from sources of growth such as the increase in aging populations, technological innovation, and expansion of health care coverage.

J&J's broad differentiation strategy is evident in every aspect of the company's strategic decision-making. J&J benefits from numerous unique competencies and constantly adapts to the industry environment through strategic maneuvers such as acquisitions and R&D expenditures. The company's corporate-level strategy utilizes large-scale integration to work efficiently across the healthcare industry and harness an aggressive acquisition strategy. J&J also employs a thoughtful corporate governance system with a 14-member Board of Directors and specialized executive team to support its broad differentiation strategy.

This strategic audit was conducted using industry analysis reports, J&J statements, financial statements, news reports, and other company reports, covering topics such as business-level strategy, merger and acquisition history, corporate governance, organizational structure, and future investment in renewable energy.