International Business

1. International Business

2. DomesticOverview
TYPE : Public
INDUSTRY : Medical Equipment / Pharmaceutical
FOUNDED : January 1886,130 years ago. New Brunswick, New Jersey, U.S.
FOUNDERS : Robert Wood Johnson I, James Wood Johnson & Edward Mead Johnson
HEADQUARTERS :One Johnson & Johnson Plaza, New Brunswick, New Jersey, U.S.
AREA SERVED :Worldwide
KEY PEOPLE :Alex Gorsky (Chairman and CEO)
NUMBER OF EMPLOYEES :1,27,100
REVENUE : 70.1 billion U.S. dollars

3. Timeline
More Than A
Century Of Caring
1886 – 2016

4. 1886
Three brothers, Robert Wood
Johnson, James Wood Johnson
and Edward Mead Johnson,
found Johnson & Johnson in
New Brunswick, New Jersey,
U.S.
Timeline

5. 1888
Johnson & Johnson pioneers the
first commercial first aid kits. The
initial kits are designed to help
railroad workers, but soon become
the standard in treating injuries.
Timeline

6. 1894
Johnson & Johnson launches maternity
kits to make childbirth safer for mothers
and babies. JOHNSON'S® Baby
Powder goes on the market. Its success
leads to the Company's heritage Baby
business.
Timeline

7. 1921
BAND-AID® Brand Adhesive
Bandages, invented by
employee Earle Dickson in 1920,
go on the market. They are the
first commercial dressings for
small wounds that consumers
can apply themselves.
Timeline

8. 1924
First overseas operating
company opens in the United
Kingdom.
1930-1931
The company expands to
Mexico and South Africa
(1930) and Australia (1931)
1937
Company expands to
Argentina and Brasil.
1957
The first Johnson & Johnson
operating company opens in
India
Timeline

9. 2002
Johnson & Johnson acquires Tibotec-
Virco BVBA to help address the vast
unmet needs of patients with
HIV/AIDS and other infectious
diseases such as tuberculosis.
2011
Johnson & Johnson celebrates 125 years of caring
and looks to the next 125 years of transforming
care for patients, consumers and communities
around the world.

10. 2016
Johnson & Johnson
Announces
Agreement to
Acquire Abbott
Medical Optics

11. PEST(India-1957)
• Liberal attitude towards MNCs and allowed
them to establish plants without facing the
hurdle of licensing agreements
• ILP-1956 made it mandatory for foreign
multinational companies to establish their
production unit in the country and produce
drugs from the basic stage
• Major Industries were govt. undertaken
e.g. Steel, mining, insurance,
telecommunications etc.
• Agriculture oriented economy
• Technologically depended on European
countries
• Lack of Infrastructure in terms of R&D
centers and manufacturing facilities
• Major population was below poverty line
• Literacy rate was very low
• Healthcare was major concern post world
war 2
Political Social
TechnologicalEconomic

12. Porter’sFiveforces(India–1957)
Threats of New Entrant
• Very high threat
• It was mandatory for MNC to
produce their product in India
• Flexible policies for setting up
new industries
Threats of Substitutes
• Ayurvedic Medicines
• Home made medicines
Bargaining Power of Supplier
• Low Power
• Raw materials were exported
and finished drugs were
imported
Bargaining Power of Customer
• Very low power
• Company could dictate price by
manipulating Patent ACT 1911
• No government regulations for
price control
Industry Competitiveness
• Less Competitive
• Hindustan Antibiotics Ltd,
Unichem, Zandu Pharmaceutical,
Calcutta Chemicals, Standard
Chemicals , Alembic, etc.
• Potential of very high returns

13. PEST(chinia-1979)
• Economic reforms opening up the country to
foreign investment
• permission for entrepreneurs to start businesses
• privatization and contracting out of much state-
owned industry and the lifting of price controls
• Growth in private sector
• Technologically advanced / Updated
• High Skilled labour
• Good Infrastructure and R&D facilities
• Major population was above poverty
line
• Literacy rate was high (75%)
• Healthcare was major concern because
of the pollution and high stress and
pollution
Political Social
TechnologicalEconomic
• Reform in the political system
• From monistic governance to pluralist
governance
• Rule of man to rule of law
• government of regulation to a government of
service
• intra-party democracy to social democracy

14. Porter’sFiveforces(chinia-1979)
Threats of New Entrant
• Very high threat
• Flexible policies for setting up
new industries
• Separate hospitals from the drug
retailing business
Threats of Substitutes
• Chinese traditional medicines
• Home made medicines
• Acupressure/ Acupuncture
• Counterfeit drugs
Bargaining Power of Supplier
• Medium Power
• Strengthening intellectual
property protection and SFDA
supervision
Bargaining Power of Customer
• High power
• Domestic players ruling the
market
• Competitive pricing policies
Industry Competitiveness
• Very Competitive
• Many existing players (Domestic &
International)
• Potential of very high returns

15. Modeofentry(INDIA-1957)
1947- Mr. Patrick Whaley began the work of establishing Johnson & Johnson
1948 – started marketing Johnson's Baby Powder manufactured by British Drug House from Prabhadevi, Bombay
1957 - In September, A new company, Johnson & Johnson (India) Limited was created and registered
1959 — Production began from the earliest Johnson & Johnson plant in Mulund in Mumbai
1966 – Production began at the Bhandup plant in Mumbai to make personal products.
1970 – Ortho Diagnostics (a division of Johnson & Johnson.) set up a manufacturing unit
1975 –Ethnor Ltd set up a plant for manufacturing pharmaceutical and ethical products of Ortho McNeil
Laboratories and Cilag Chemie.

16. Modeofentry(CHINA-1979)
1979 : The company entered China through a technology-transfer agreement to build a chemical factory
1985: Johnson & Johnson established its first joint venture in China, Xi’an-Janssen Pharmaceutical Ltd.
1988 to 1995: Johnson & Johnson set up a number of additional affiliates in China, including Shanghai
Johnson & Johnson Ltd., Johnson & Johnson China Ltd., Johnson & Johnson Medical China Ltd
2006: Johnson & Johnson established three more affiliates in China, Johnson & Johnson Vision Care
(Shanghai) Ltd., Johnson & Johnson Medical (Suzhou) Ltd., Shanghai Maisiqiang Medical Ltd.
2008:Johnson & Johnson acquired Beijing Dabao Cosmetics Co. Ltd

17. Television ads
Newspaper
Hoardings
MarketinginIndia

18. Magazine
Offers
Product Kit

19. MarketingcampaignsinChina
• Storytelling campaign
• Product placement in a movie
• sponsor of the Beijing 2008 Olympic and Paralympics Games
• worldwide sponsor for the American Pavilion at the 2010 Shanghai Expo
“Because we care, we act “ campaign

20. HUMANRESOUCESANDDEVELOPMENTININDIA
Caring for Our Employee
• Decentralised structure
• Popularly ascribed as having high sociability and high solidarity
• HR strategies mainly focused on maintenance of cultural values
• J&J encourages and promotes intrapreneurial culture

21. MAJORINITIATIVES
1. Serving the employees
• Managing savings plan account
• Access benefits forms
• Initiate retirement
2. Employee relations and commitment
• Providing benefits
• Proper succession planning
3. Talent attraction and retention:
 Benefits and employee programs opportunities
for career development and growth
 On-job training and globally accessible training
and development
4. Multiple pathways for career development
5. Optimizing work, family and personal life
6. Performance Management

22. Programs offered within the companies
• Employee Assistance and Work/Life Resource &
Referral Services their work and personal lives;
• Proactive Health Assessments & Health Counseling
through counseling with a registered nurse;
• Workplace Health Programs
• Wellness and Fitness Services

23. HUMANRESOUCESANDDEVELOPMENTINCHINA
• J&J treasures employees as its most valuable asset
• Career training and other opportunities for the
employees
• Unified HR Council for 7 subsidiaries of J&J in China
• Launching of cross-sector employee program

24. PROGRAMS
1. Employee training and career advancement
2. The Intergenerational Program of Johnson &
Johnson (China) Co., LTD
3. International development program
4. The Buddy Program

25. Conclusion:
• Johnson & Johnson have built a reputed brand in the world.
• An established company with a good research and
development team
• Improving the way of life
• Daily operations with global presence

26. • Grow and expand in India
• Boast several strong nutritional brands
• Open innovation centres
• Open consumer-care centres
• Continue to improve on product recalls
• Improve cross-selling techniques
RECOMMENDATIONS

27. ThankYou:)