G.L.

Bajaj Institute of Management & Research

Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
PGDM BATCH-2022-24

MINOR PROJECT REPORT

ON

Submitted in Partial Fulfillment for the Award of the

DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT

2022-24

GUIDE BY: SUBMITTED BY:

(Dr. Arpita Srivastava) Surbhi Singh

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 PGDM22346

G.L. Bajaj Institute of Management & Research

Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM Batch 2022-24

FACULTY GUIDE CERTIFICATE

This is to certify that the work reported in the Minor Project Report on “Johnson & Johnson”,
submitted by Surbhi Singh at G L Bajaj Institute of Management & Research, Greater NOIDA,
India, is a bonafede record of her/ his work carried out under my supervision. This work has not
been submitted elsewhere for any other degree or diploma.

(Signature of Faculty Guide)

Name: Dr Arpita Srivastava

Date:

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Page | 3
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM Batch 2022-24

ACKNOWLEDGEMENT

I would like to thank the following people, without whom I would not have been able to
complete this Minor Project Report.
My heartfelt thanks go to our Director Dr. Sapna Rakesh for providing an opportunity work on
the Minor project right from the first trimester of the program.
I convey my sincere thanks to my Faculty Guide Dr. Arpita Srivastava for providing me the
constant support and guidance to carry out my project effectively and efficiently.
I would also like to convey my gratitude to all faculty members and staff for their support and
guidance.

SURBHI SINGH
PGDM22346
Trimester-I
PGDM Batch 2022-24
GL Bajaj Institute of Management & Research

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 EXECUTIVE SUMMARY
1. Introduction: - Johnson and Johnson is a sizable international firm with activities in
more than 60 countries and more than 250 subsidiaries. Robert Wood Johnson, James
Wood Johnson, and Edward Mead Johnson founded the business in 1886. J & J is the
most inclusive and well-known manufacturer of health care products and a provider of
related services to customers throughout the globe.

2. Product line: - Three main business categories make up the company's operations:
pharmaceuticals, medical technology, and consumer health. The business offers products
and information on a variety of themes, including nutrition, topical care, oral care, skin
and hair care, and baby care. Examples include moisturizer, Band-Aids, and Johnson
Baby shampoo. Items in the dermatological, gastrointestinal, hematological,
immunology, neurology, oncology, cardiovascular, contraceptive, and gastrointestinal
areas are included in the pharmaceutical's broad product line.

3. Market Share: - The corporate headquarters of Johnson & Johnson, an American

pharmaceutical and consumer goods firm, are located in New Brunswick, New Jersey.
Listed in the Dow Jones Industrial Average is the firm. As of September 2022, Johnson
& Johnson's market value was $432.92 billion. This positions Johnson & Johnson as the
ninth most valuable company in the world by market cap, according to studies.

4. Competitors: - Pfizer, Abbott, Procter & Gamble (P & G), Roche, and Bayer are
among Johnson's main competitors. Comparably gives Johnson & Johnson the highest
overall culture score among its rivals. Band-Aid, Johnson's infant products, cosmetic
items, and many others are among their most well-known consumer goods. Each and
every product contains a significant amount of it. Worldwide, numerous medical
professionals trust this brand. It offers a variety of distribution channels through which to
sell its goods.

5. PESTEL Analysis: - In addition to competing forces, it provides great insight

about operational challenges that Johnson and Johnson will face in the global macro
environment. For instance, even if an industry has a great growth trajectory and high
profitability, Johnson or its subsidiaries won't benefit if the area in which they are located
is politically insecure.
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 The aggregate demand and aggregate investment in an economy are determined by the
macro environmental factors, such as the inflation rate, savings rate, interest rate, foreign
exchange rate, and economic cycle.
Changes in the macro environment conditions may have a direct impact on the Johnson
& Johnson firm as well as other players in the pharmaceutical and healthcare sectors.
Every industry ought to be required to protect the ecology of the location where it is
located.

6. SWOT: - SWOT analysis is a tried-and-true management framework that allows a

company like Johnson & Johnson to compare its operations and performance against
those of its competitors. One of the top brands in the FMCG industry is Johnson &
Johnson. In order to strengthen its position in the market, Johnson & Johnson might use a
SWOT analysis to concentrate on developing its strengths and opportunities while
solving its weaknesses and threats.

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 TABLE OF CONTENTS

SR. NO. CONTENT PAGE NO.

1. INTRODUCTION 8-20

1.1 ABOUT THE COMPANY 9-12

1.2 HISTORY 12-15

1.3 VISION AND MISSION 15-16

1.4 PRODUCT RANGE 17-19

1.5 ORGANIZATION STRUCTURE 20

2. PERFORMANCE AND POSITIONING 21-36

2.1 ABOUT PRODUCT LINE, DEPTH AND 22-27

WIDTH

2.2 MAJOR COMPETITORS AND MARKET 28-32

SHARE

2.3 FINANCIAL STATEMENTS 33-36

3. PESTEL ANALYSIS 37-43

4. SWOT ANALYSIS 44-48

5. LATEST NEWS 49-51

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6. REFERENCES 52-53

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CHAPTER-1 INTRODUCTION

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 1.1 Profile of The Company
Johnson & Johnson
 A United States large multinational corporation with more than 250 subsidiaries,
and operations in more than 60 countries.
 The company has 130,000 employees worldwide, and total annual revenue
exceeding $ 82 billion.
 The company was founded by Robert Wood Johnson, James Wood Johnson and
Edward Mead Johnson in 1886 with 14 employees, eight women and six men.
 Headquarter of Johnson and Johnson is in New Brunswick, New Jersey, United
States.
 Ranked No.36 on the 2021 Fortunes 500 list of the United States Corporations by
total revenue.
 In 2022, Johnson & Johnson won for best places to work in New York 2022.

 The company was ranked as the world’s most respected company by Barron’s
Magazine in 2008.
 Johnson & Johnson is one of only two U.S.- based companies that has a prime
credit rating of AAA, higher than that of the United States government.
 The company is listed on NYSE.

Consumer Health Products MedTech Pharmaceutical Products

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 Figure 1.1- Johnson & Johnson Products- www.jnj.com

 Invented the first Aid Kits

 First mass-produced Sanitary protection napkins for women.
 First produced readymade Bandages.
 Johnson & Johnson is well positioned within the global health care market.
The company uses innovative products, robust pipelines and its talented people
to capture a global presence in the health care industry.
 Johnson & Johnson is committed to the future research and development of
new products.
 The company is committed to expansion via acquisition to improve its
products development and global expansion.
 The company’s diverse selection of products, in all three of its segments, gives
the company flexibility, and reduce risks for investors.
 Strong logistic and supply chain.

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 Figure1.2 - Signage is displayed outside Johnson & Johnson Headquarters

Beyond Business: -
 NEUTROGENA®, which introduced the first makeup wipes made of 100 percent
plant-based, compostable fibers, and LISTERINE®, which launched new bottles
containing up to 50% recycled plastic in key markets, were two brands under the
company that were leading in emphasizing the health of our planet through
innovation.
 Johnson & Johnson has a wide range of global public health services. About 70% of
the global supply of the Janssen COVID-19 vaccine was made available to low- and
middle-income nations in 2021; the business will continue to priorities vaccination
access in those nations where people are most in need in the future.
 With partners including the National Medical Foundation, National Association of
Community Health Workers, and institutions across the United States, initiatives
included scholarships and mentorship programmes.
 Johnson & Johnson introduced "Our Race to Health Equity" in 2020, a $100 million
commitment to address the systemic care disparities that disproportionately affect
communities of color in the US.

Johnson & Johnson India

Johnson & Johnson (J&J) India, a subsidiary of Johnson & Johnson USA, is one of the
leading players in the Indian pharmaceutical and consumer products business.  In 1947, J
& J made their debut in India. Since then, the business has introduced numerous ground-
breaking concepts, goods, and services to enhance India's population's health and
wellbeing. The company currently has about 3,500 employees and is divided into the
three business sectors of pharmaceuticals, medical devices, and consumer healthcare. The
business received authorization to produce a wide range of consumer and medical goods
in 1948. From the first Johnson & Johnson facility in Mulund, Mumbai, production
started in 1959. J & J saw enormous manufacturing growth in the 1960s. In Mumbai's
Dharavi neighborhood, the first Ethicon facility was built to produce Catgut sutures. The
Bhandup facility in Mumbai was established in 1966 to produce feminine hygiene

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products. A number of notable brands owned by Johnson & Johnson India's consumer
division rank first or second in their respective categories. The medical branch of Johnson
& Johnson India is the leading medical devices company in India and has made important
contributions to surgery for more than 60 years.

The current manufacturing facilities are located in Baddi, Mulund, Aurangabad, and
Deonar. Offices are also located in Mumbai, Chennai, Delhi, and Kolkata. Pharma R&D
Centers are also located in Mulund, Powai, Mumbai, and Business Knowledge Centers
are located in Pune and Bengaluru.

With names like Band-Aid, J&J Baby Powder, and Prickly Heat Powder, J&J is now a
household name. With a volume market share of 46%, Stayfree Secure has emerged as
the top sanitary product in the nation. Leading producer of surgical supplies is Ethicon, a
subsidiary of J&J Medical India. One of the first successful biotech brands to be
promoted in India was Eprex, which was introduced in 1995. J&J is a significant player
in the nation's contact lens business.

• J&J was the first business in India to effectively get rid of CFCs from its production
processes. Due to this, the business had to change the sterilizing procedures at its Ethicon
suture finishing facilities. given to Johnson & Johnson Consumer Products by the
National Institute of Quality & Reliability and the Indian Statistical Institute.

Johnson & Johnson India is a well-known employer of choice and has won numerous
Best Employer Awards. Through its Corporate Social Responsibility (CSR) programmes,
it is also quite engaged in helping those in need. In India, J & J currently employs over
3000 employees across its consumer, pharmaceutical, medical devices & diagnostics, and
vision care sectors.(www.jnjin.com)

1.2 History of Johnson & Johnson

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 1886 - The Johnson brothers found their company based on the discoveries of Joseph
Lister.

 1887 – Johnson & Johnson is formally incorporated.

 1888 – The company produces its first two products: a mainstream manual on treating
injuries and the first mass-market first-aid kit.

 1894 – Johnson & Johnson begins its line of maternity and infant-care products, a brand
which continues to identify the company to this day.

 1921 – The company releases one of its most enduring products: the Band-Aid.
 1931 – Johnson & Johnson releases America’s first prescription contraceptive.
 1944 – The company goes public.
 1947 – Johnson & Johnson spreads its roots to India.
 1957 - Johnson & Johnson is incorporated in India.
 1959 – a). With the acquisition of two research laboratories (Cilag Chemie & McNeil),
Johnson & Johnson fully enters the pharmaceutical business. Its first product quickly
becomes one of its flagships: an over-the-counter pain reliever called Tylenol.
b). The First Manufacturing Facility for consumer products is established in Mumbai.

 1962 - The First Medical Devices (Sutures) Manufacturing Facility Is Established.

 1968 – a). Johnson & Johnson Begins Manufacturing Sanitary Napkins.
b). Partnering with the United Service Organization.

 1969 – a). ADAPTIC “Invisible Fillings”.

b). Hurricane Camille Disaster Relief.

 1975 – a). First Chickenpox Vaccine created.

b). A Pharmaceutical and Ethical Products Manufacturing Facility Is Established.
c). Vicryl® Sutures Enter the Market.

 1982 – Johnson & Johnson helps the FDA to develop the tamper-resistant pill bottle.
 1989 –The Ethicon Plant Receives the President’s Safety Award.

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 1993- a). Johnson & Johnson acquires RoC.
b). The first professional education institute for healthcare professionals is established.

 1994 – a). Johnson & Johnson invents the coronary stent, changing the modern
approach to cardiology.
b). Supporting SOS children’s Village.
c). Neutrogena joins Johnson & Johnson.

 1998 - DePuy Joins the Johnson & Johnson Family of Companies.

 1999- a). An Analytical and Pharmaceutical Development R&D Center Opens.
b). Centocor joins Johnson & Johnson.
c). Johnson & Johnson acquires AVEENO.
 2002 - Johnson & Johnson acquires Tibotec-Virco.
 2006 – The company acquires Pfizer PFE Consumer Healthcare, bringing its history
full circle as Joseph Lister’s Listerine product comes under Johnson & Johnson’s
umbrella. 

 2009- a). Johnson & Johnson acquires Health Media.

b). The Company Begins Partnering with the Indian Academy of Pediatrics to Support
Child Survival.

 2013 - Construction Begins on a New Manufacturing Facility for Consumer Products.

 2014 – Ebola Epidemic Breaks Out.
 2015 – a). The Company Launches a New Class of Type 2 Diabetes Medicine in India.
b). The Company Partners with NIPER for a Medical Device Postgraduate Program.
c). Founding of Verb Surgical.
 2016- a). Johnson & Johnson Consumer Inc. acquires Vogue International LLC.
b). Global Clinical Operations Are Established in India.
c). The Company Establishes an Innovative Partnership with the Government of India on
MDR-TB.

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 2017 – a). The Company Supports the Humana People to People Project, designed to
Save and Improve the Lives of Women and Children.

b). Johnson & Johnson acquires Abbott Medical Optics.

 2018 – a). A best place to work for people with disabilities.
b). Protecting giant pandas in China.
c). Expanding Global Partnership with UNICEF.
d). Johnson & Johnson India Joins Forces with the Government of Maharashtra to Boost
Public Health in the State.

 2020 – Addressing Racial and Social Injustice in the United States.

 2022 – Joaquin Duato becomes the Eight CEO of Johnson & Johnson.
1.3 Vision and Mission

There is no vision or mission statement for Johnson & Johnson. Instead, for more than 60
years, a straightforward, one-page document called "Our Credo" has served as their compass
for acting in a way that honours their obligations to their clients, employees, the community,
and stockholders (Annexure A).

In 1943, just before Johnson & Johnson became a publicly traded firm, Robert Wood
Johnson, a former chairman from 1932 to 1963 and a member of the Company's founding
family, wrote "Our Credo" himself. This was back in the day before the concept of
"corporate social responsibility" existed. Our Credo is more than just a guide for moral
behavior. Johnson & Johnson is one of only a select few businesses that has survived more
than a century of change and has thrived as a result.

Johnson & Johnson's one-page "Our Credo" document, which stands in for their lack of a
vision and mission statement, is the subject of the following mission and vision analysis.

Vision Statement

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“For every person to leverage their unique experiences and backgrounds, together - to spark
solutions that produce a better, healthier society," reads the Johnson & Johnson vision
statement. The declaration demonstrates that Johnson & Johnson cherishes each person's
unique abilities.

Mission Statement

According to the Johnson & Johnson mission statement, "our philosophy is based on the
conviction that customers, workers, and the community all have equal value." The company's
commitment to diversity and treating everyone with the utmost respect and care is evident in
the statement.

Core Values

As stated in their mission statement, Johnson & Johnson's key principles are "growth &
innovation, investing in the future, global diversity, citizenship and sustainability, developing
diversity, and global supply base." This business has proven a passion for people and their
wellbeing.

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Figure1.3 "Our Credo"

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 1.4 Product Range of Johnson & Johnson
J & J is the most inclusive and well-known manufacturer of health care products and a
provider of related services to customers throughout the globe. Numerous items in
numerous categories are constantly developed, made, and marketed in order to help
people all over the world lead healthy and happy lives.
Three main business categories make up the company's operations: pharmaceuticals,
medical technology, and consumer health.

Consumer Health Products

Johnson & Johnson Consumer Health is in a unique position to help individuals in
improving their own health because the products are supported by research and highly
recommended by professionals. They work swiftly in a dynamic area of healthcare to
serve clients and offer practical answers. The well-known skin care, self-care, and basic
health brands assist individuals in leading healthier lifestyles right from the start.

The business offers products and information on a variety of themes, including nutrition,
topical care, oral care, skin and hair care, and baby care. Johnson Baby shampoo, Band-
Aids, and lotion are some examples.
.

Figure1.4 - Consumer Health Products

MedTech
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Johnson & Johnson MedTech's goal is to transform medical intervention in the future and
empower everyone to live their best lives through the integration of extensive healthcare
expertise, cutting-edge technology, and a love of people.
For more than a century, the firm has advocated for cutting-edge scientific innovation to
address unmet needs and reexamine health. By creating smarter, less invasive, and more
individualized healthcare solutions in the disciplines of surgery, orthopaedics, vision, and
interventional treatments, the firm continues to save lives.
In order to treat patients with some of the most common and chronic ailments in the
world, hospitals, physicians, and nurses can use the supporting technologies provided by
their medical device and diagnostics firms.
.

Figure1.5 -MedTech

Pharmaceuticals
The Janssen Pharmaceutical Companies, a division of Johnson & Johnson, provide
treatment for some of the most severe and challenging diseases of our time. Janssen is
investing in a transformative future that will change how illnesses are avoided, detected
early, treated, and cured using cutting-edge biologic and other medicines.
Oncology, infectious disease, immunology, neurology, cardiovascular disease, and
metabolism are just a few of the therapeutic areas where the pharmaceutical division's

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broad portfolio focuses on unmet medical needs. Items from the dermatology,
gastrointestinal, haematological, immunology, neurology, oncology, pain management,
urology, virology, and anti-infective, antipsychotic, cardiovascular, contraceptive, and
gastrointestinal areas are included.

Figure1.6 - Pharmaceuticals

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 1.5 Organizational Structure

Board of Directors
 Alex Gorsky, Executive Chairman
 Ian Edward Lamert Davis, Independent Non-Executive Director
 Jennifer Taubert, Executive Vice President, Pharmaceuticals
 Ashley McEvoy, Executive Vice President, MedTech
 Thibaut Mongon, Executive Vice President, Consumer Health
 Joaquin Dauato, Chief Executive Officer
 Peter Fasolo, Chief Human Resources Officer
 Mark Alan Weinberger, Independent Director
 Matthew Orlando, Secretary
 Scott White, Company Group Chairman
 Hubert Joly, Independent Director
 Joseph J. Wolk, chief Financial Officer & Executive Vice President
 Nadja Y. West, Independent Director
 Peter Shen, Global Head-Research & Development

 Matthew Stuckley, Senior Finance Director

 Anne M. Mulcahy, Lead Independent Director
 Dan Zelem, Chief Technology Officer
 William E. Cohn, Vice President-Medical Devices

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Table 1:- Organizational Structure

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CHAPTER 2 – PERFORMANCE AND POSITIONING

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 2.1 About Product Line Depth and Width
J & J is the most inclusive and widely-recognized producer of health care products and a supplier
of related services to consumers all over the world. To support people all over the world in
leading healthy and happy lives, a wide range of products in a diverse range of categories are
continuously innovated, produced, and marketed.

 CONSUMER HEALTH PRODUCTS

Johnson & Johnson Consumer Health offers life-improving, first-to-market innovation
through its distinctive portfolio of enduring brands, which also includes Tylenol®,
Zarbee's®, Neutrogena®, Aveeno®, Listerine®, OGX®, and Johnson's®.

 Self-Care
In important areas like pain treatment, smoking cessation, allergy, anti-diarrheal,
antacids, nasal decongestants, and cough colds, self-care products come in both
medicated and non-medicated forms.
 Tylenol
The most popular brand of painkillers prescribed by doctors in the US is Tylenol.
Acetaminophen, an ingredient in Tylenol products, briefly decreases fever and
soothes pain.
For adults, Tylenol medications provide relief from discomfort associated with
insomnia, moderate arthritic pain, nasal pain, and muscular and joint pain.
Children's Tylenol and Infants' Tylenol both lower fevers and ease discomfort
while being gentle on the stomach.
 Motrin
Motrin has a long history of making families feel better so they can make the
most of every day. It is the #1 OB/GYN recommended medicine for menstruation
pain in the U.S. A popular type of painkillers called Motrin temporarily helps
minor aches and pains from things like headaches, menstrual cramps, muscle
discomfort, minor arthritic pain, toothaches, backaches, and the common cold. It
also temporarily lowers fever.
 Skin Health/Beauty

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 In order to offer high performance products for healthy skin, the company
combine Johnson & Johnson Consumer Health's distinct perspective as a leader in
personal health with next-generation science and close partnerships with skin
specialists and dermatologists. The greatest skin care is offered by extensive Skin
Health range. Innovative products for treating acne, eczema, and ageing signs
include customized skin health assessments, gentle skin-loving cleansers,
moisturizers that support the skin's microbiome and strengthen the skin barrier,
and sunscreens that reduce the risk of skin cancer and the appearance of ageing
skin.
 Neutrogena
For more than 60 years, Neutrogena, the top brand recommended by
dermatologists in the U.S.1, has offered customers clinically tested skin care
products. Neutrogena solutions for the face and body give genuine results without
making concessions by creating, innovating, and reimagining what is possible in
skin care. Today, Neutrogena offers customers throughout the world healthy
beauty solutions in more than 80 different nations.
 Aveeno
Aveeno has relied on nature's calming and healing qualities for decades to help
care for all skin types, even the most sensitive. Because of this, a company uses
cutting-edge research to create products that restore and regenerate your skin and
have clinical proof of their efficacy. Since 1945, dermatologists have relied on
and recommended Aveeno, and the company's body, face, infant, and hair
products are sold in 22 nations worldwide.
 Essential Health
With products that give cherished experiences and practical results for healthier
customers at every stage of life, J&J raises the bar for daily care. Customers turn
to renowned brands for wound care, oral care, newborn care, and women's health
throughout their lives to take care of themselves and others. Consumers' everyday
habits leave a lasting impression thanks to the things they use. Many of
J&J brands have been an integral part of peoples' lives for more than 100 years
and have helped develop the categories they currently dominate.
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  Listerine
The most popular daily mouthwash in the world is Listerine. Over 50 peer-
reviewed scientific studies on Listerine's effectiveness back up its special capacity
to combat plaque, shield gums, strengthen teeth, and give you long-lasting fresh
breath. More than one billion people have used Listerine Mouthwash, which is
available in over 85 nations.
 BAND-AID Brand Adhesive Bandages
For 100 years, BAND-AID Brand Adhesive Bandages have been a mainstay in a
family's first aid box and have provided comfort, care, and security. The creators
of BAND - AID Brand Adhesive Bandages now offer a wide range of goods to
address the different needs of today's busy families and their lifestyles as the
technology and innovation behind the brand have grown.

 MEDTECH
In order to revolutionize the future of medical intervention and enable everyone to
live their best lives, Johnson & Johnson MedTech unleashes a varied range of
healthcare expertise, meaningful technology, and a passion for people. Company has
fostered ground-breaking scientific innovation for more than a century to solve unmet
needs and rethink health. Johnson & Johnson continue to work to save lives and build
a future where healthcare is smarter, less invasive, and more individualized in the
fields of surgery, orthopaedics, vision, and interventional treatments.
 Orthopaedics
DePuy Synthes' Global Orthopaedics division is made up of the Joint Reconstruction,
Trauma, Spine, Sports Medicine, and Power Tools divisions. In order to help
individuals, get back to living active, fulfilling lives, these businesses are collectively
focused on assisting patients along the treatment continuum - from early intervention
to surgical replacement.
 Joint Reconstruction
 Trauma
 Spine
 Sports Medicine

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  Power Tools
 CMF
 Biomaterials
 Surgery
Using dependable surgical systems and instruments created to offer the safest and
most effective treatment for a variety of medical diseases, surgeons work with
confidence in hospitals all over the world.
 Ethicon
 Energy
 Endomechanical
 Bio surgery
 Wound Closure
 Breast Aesthetics
 Ear, Nose and Throat
 Interventional Solutions
Johnson & Johnson medical devices portfolio includes a variety of cutting-edge
business lines that provide experts with equipment to treat heart rhythm problems and
provide neurovascular treatment.
 Arrythmias
 Neurovascular and stroke
 Vision
Johnson & Johnson Vision is to support the preservation of sight; the most priceless
sense a person may possess. Cutting-edge ideas, science, technology, and people are
brought together by the organization to inspire professionals and patients to actively
preserve and improve sight for life. Additionally, the company work together to
increase access to high-quality eye care in communities with the highest need. With
offices in Santa Ana, California, and Jacksonville, Florida, they have more than
10,000 staff members worldwide. Johnson & Johnson’s eye care products are offered
in 103 nations.

 PHARMACEUTICALS PRODUCTS
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In six crucial therapeutic areas—cardiovascular and metabolism, immunology, infectious
diseases & vaccines, neuroscience, oncology, and pulmonary hypertension—Johnson &
Johnson are actively researching medicines for patients.
 Immunology
The mission is to redefine immune disease treatments by providing patients with
autoimmune disease with transformative and affordable therapies and regimens. This
is motivated by a relentless dissatisfaction with the status quo. The company has a
long history of providing innovative medications for immune system disorders. They
are still developing a pipeline of cutting-edge biologic and oral treatments for the
three main diseases of rheumatoid arthritis, inflammatory bowel disorders, and
psoriasis.
Transformational medications will be made available to patients and medical
professionals all throughout the world thanks to our ongoing efforts in discovery,
biomarkers, clinical research, and outside innovation.
 Cardiovascular & Metabolic Disease
The mission is to enhance the lives of the millions of individuals who suffer from
diabetes and cardiovascular disease while relentlessly pursuing their eradication.
More than 19 million people worldwide pass away from cardiovascular and metabolic
disorders each year. The company create novel therapeutics that will alter the course
of these diseases in order to eradicate them due to their enormous worldwide impact.
They concentrate on identifying and creating truly transformative treatments that
target fundamental illness pathways, significant pathways, and fresh modes of action.
The next generation of innovative cardiovascular and metabolic medicines is still
being developed.
 Pulmonary Hypertension
To enable patients to lead normal lives, the goal is to make pulmonary hypertension
(PH) a chronic, controllable condition. Pulmonary arterial hypertension (PAH) is a
rare, progressive type of the frequently disabling ailment known as pulmonary
hypertension, which is defined as excessive blood vessel pressure in the lungs. The

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 illness, which affects more women than men, can also affect children of any age and
of any race. The prevalence of PAH is 15 per million persons. They have been able to
develop specialized medications to enhance patient outcomes and make a difference
for those who live with PAH all over the world because to our understanding of the
disorder's complex molecular underpinnings.
In six key therapeutic areas, including Oncology, Neuroscience, and Infectious Diseases &
Vaccines, Johnson & Johnson are actively researching medicines for their patients.
 Infectious Diseases & Vaccines
To treat and eliminate infectious illnesses worldwide while enhancing patient care
and outcomes, they work to discover and develop innovative medicines and vaccines.
Johnson & Johnson mission is to improve human health by working toward the
eradication of infectious illnesses that pose a serious threat to human life. They will
achieve this through discovering and creating life-saving treatments and vaccines for
some of the deadliest infectious diseases in the world, including HIV, viral hepatitis,
respiratory syncytial virus, influenza, and Ebola.
 Neuroscience
Johnson & Johnson’s goal is to reduce the suffering, disabling effects, and destruction
brought on by severe neuropsychiatric and neurodegenerative disorders. Alzheimer's
disease, major depressive disorder, and neurological autoantibody-driven disorders
including myasthenia gravis are among the study goals of Neuroscience Therapeutic
Area. To optimize the potential clinical benefit of our medicines, our experts in
neuroscience are uncovering synergies between neuropsychiatric and
neurodegenerative disorders. In order to meet unmet needs and lessen the illness
burden for patients with these conditions, as well as the healthcare professionals and
loved ones who care for them, the company is actively developing medicines that are
designed to change disease.
 Oncology
The company picture a world in which cancer is a chronic, avoidable illness that can
be treated. They are concentrating on creating solutions that extend and enhance
patient lives in order to get there. Every year, millions of people die from cancer, and
the number is rising. By providing therapeutic and diagnostic options that lengthen

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 and improve patient lives, J&J hope to make cancer a treatable or even avoidable
condition. To stop cancer's destruction, they are dedicated to providing focused
therapies.

2.2 Major Competitors and Market Share

Top 5 Competitors of Johnson & Johnson:
A. Pfizer

Figure 2.1:- Pfizer

One of the biggest pharmaceutical companies with a focus on research is Pfizer. The
business makes vaccines and pharmaceuticals for a variety of medical specialties,
including oncology, cardiology, immunology, diabetology, and neurology.
Pfizer Innovative Health and Pfizer Essential Health are two business sectors that support
the corporation in managing its commercial operations. Pfizer Innovative Health places a
strong emphasis on creating drugs and vaccines that aim to enhance a patient's quality of
life. Pfizer Essential Health is a component of the R&D that produces advancements in
the pharmaceutical industry.
Six of this company's products are among the top pharmaceutical brands in India, which
is its key point of differentiation. It has a top-notch R&D division that consistently
creates and innovates items. Pfizer is recognized as one of the main competitors to
Johnson & Johnson because of the strong brand name.
B. Abbott

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 Abbott is a global, multifaceted healthcare company that specializes the research,
development, production, and marketing of goods for the pharmacy and healthcare
industries. These goods include pharmaceuticals, nutritional products for children and
adults, and a range of instruments, devices, and diagnostic tests.
In the year 1888, a doctor named Wallace Calvin Abbott founded the business. The
company's in-vitro diagnostics division performs blood testing and immunoassays. Many
laboratories, hospitals, and blood banks employ their diagnostic equipment systems and
medical tests to detect and screen for diseases like cancer, hepatitis, HIV, heart failure,
and metabolic disorders.
In 1985, the business created the first blood test for the detection of HIV. An exclusive
license has been created by Abbott Molecular to manufacture a diagnostic test in the US.
Abbott is regarded as one of the main competitors to Johnson & Johnson because of their
extensive offering of specialty medicine. Figure2.2:- Abbott
C. Procter and Gamble (P&G)

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 Figure2.3:- P&G
An American global corporation called Procter and Gamble makes cleaning supplies,
cosmetics, healthcare items, and diagnostics.
It is regarded as one of the top producers of household goods in the country. The
corporation runs over 300 brands and has operations in about 80 different countries
throughout the world. The business has a strong R&D division and has created numerous
advancements by introducing cutting-edge products to the market. The business has a
successful distribution network and has essentially reached every country in the world.

Procter & Gamble is one of the main rivals of Johnson & Johnson because of their well-
known marketing tactics.
D. Roche

Figure 2.4 Roche

Roche is a global healthcare firm with two divisions: pharmaceuticals and diagnostics.
One of the first businesses to offer patients personalized therapy was Roche. The business
is well-equipped to promote individualized healthcare because to their expertise in drugs
and diagnostics.
The research and development programmes use diagnostics in two thirds of their
development. The business has created numerous antiretroviral medications and HIV
testing. In 1992, it had produced patents for the polymerase chain reaction method. It is
the top provider of cancer medications in the entire world.
The corporation places a strong emphasis on R&D in each of its target industries. With
around 14 biological products, it is regarded as the largest biotechnology company.

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Roche is regarded as one of the main competitors to Johnson & Johnson because of their
outstanding breakthroughs in the pharmaceutical industry.
E. Bayer

Figure 2.5:- Bayer

Bayer is a pharmaceutical and life science global firm with its headquarters there. It is a
multinational corporation with core competencies in the life science industries of
healthcare and agriculture.
Veterinary and human medications, agricultural chemicals, healthcare items, and
biotechnology products make up the company's major business sector. Products from the
brand are created to help consumers and improve their quality of life. Additionally, it
seeks to add value through expansion and innovation. Their primary area of strength is in
pediatric vitamin and dietary supplement products, which account for roughly 25% of
sales.
Long-term supply items and a variety of supply processes help to lower the company's
exposure to production-related risk. Bayer is regarded as one of the main competitors to
Johnson & Johnson due to their strong brand presence and financial standing.
Market Share and Performance
Johnson & Johnson is a global American pharmaceutical and consumer goods company
with headquarters in New Brunswick, New Jersey. The company is listed in the Dow
Jones Industrial Average. Johnson & Johnson's market cap as of September 2022 is
$432.92 billion. According to research, this places Johnson & Johnson as the ninth most
valuable corporation in the world by market cap.

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 The company reported overall sales growth of 3.0% to $24.0 billion for the quarter that
ended on June 30, 2022, along with operational growth of 8.0%* and adjusted operational
growth of 8.1%*.
 Profits per share of $1.80 decreased by 23.4%, while adjusted earnings per share of $2.59
increased by 4.4%.

 The company is maintaining its midpoint estimates for 2022's full-year adjusted
operational sales and adjusted operational earnings per share; the forecast for reported
results is affected by the strengthening of the US dollar.
Johnson and Johnson share Price Vs Peers
1QTR 1YR 3YR
Companies LTP 1W % 1M % 5YR %
% % %
               
Johnson and Johnson 165.94 -0.07% 2.68% -2.42% 0.27% 25.07% 25.32%
               
Pfizer 46.09 -3.70% 1.84% -4.97% 2.97% 25.78% 28.34%
               
101.45
Abbott 105.82 2.47% 3.07% 1.10% -16.90% 26.56%
%
               
Procter and
14683.05 -0.05% 4.96% 3.76% -5.26% 13.31% 50.16%
Gamble(P&G)
               
Roche 393.8 1.29% 5.24% 26.84% -0.67% 37.79% 53.91%
               
Bayer 53.59 2.15% 2.62% -15.53% 18.78% -19.79% -50.23%
Table 2:- Johnson and Johnson Share Price and Peers
The price of a share of Johnson and Johnson increased by 0.71% from its previous close of Rs
164.65. The last traded price for Johnson and Johnson stock was 165.95.

Johnson and Johnson Share Price Value

Today/Last/Current 165.95
Previous Day 164.65

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 2.3 Financial Statements of Johnson and Johnson
CONSOLIDATED BALANCE SHEET
For the year ended March 31, 2021

(Dollars in Millions Except Share and Per Share Amounts)

Particulars 2021 2020 2019 2018 2017
Assets
Current assets
Cash and cash equivalents 14,487 13,985 $17,305 18,107 17,824
Marketable securities 17,121 11,200 1,982 1,580 472
Accounts receivable trade, less allowances 15,283 13,576 14,481 14,098 13,490
for doubtful accounts $230 (2020, $293)
Inventories 10,387 9,344 9,020 8,599 8,765
Prepaid expenses and other receivables 3,701 3,132 2,392 2,699 2,537
Total current assets 60,979 51,237 45180 45083 43,088
Property, plant and equipment, net 18,962 18,766 17,658 17,035 17,005
Intangible assets, net 46,392 53,402 47,643 47,611 53,228
Goodwill 35,246 36,393 33,639 30,453 31,906
Deferred taxes on income 10,223 8,534 7,819 7,640 7,105
Other assets 10,216 6,562 5,695 4,182 4,971
Total assets 182,018 174,894 157,728 152,954 157,303
Liabilities and Shareholders’ Equity
Current liabilities
Loans and notes payable 3,766 2,631 $1,202 2,796 3,906
Accounts payable 11,055 9,505 8,544 7,537 7,310
Accrued liabilities 13,612 13,968 9,715 7,601 7,304

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Accrued rebates, returns and promotions 12,095 11,513 10,883 9,380 7,210
Accrued compensation and employee 3,586 3,484 3,354 3,098 2,953
related obligations
Accrued taxes on income 1,112 1,392 2,266 818 1,854
Total current liabilities 45,226 42,493 35,964 31,230 30,537
Long-term debt 29,985 32,635 26,494 27,684 30,675
Deferred taxes on income 7,487 7,214 5,958 7,506 8,368
Employee related obligations 8,898 10,771 10,663 9,951 10,074
Long-term taxes payable 5,713 6,559 7,444 8,242 8,472
Other liabilities 10,686 11,944 11,734 8,589 9,017
Total liabilities 107,995 111,616 98,257 93,202 97,143
Shareholders’ equity
Preferred stock — without par value - - - - -
Common stock — par value $1.00 per share 3,120 3,120 3,120 3,120 3,120
Accumulated other comprehensive income (13,058) (15,242) (15,891) (15,222) (13,199)
(loss)
Retained earnings 123,060 113,890 110,659 106,216 101,793
113,122 101,768 97,888 94,114 91,714
Less: common stock held in treasury, at cost 39,099 38,490 38,417 34,362 31,554
Total shareholders’ equity 74,023 63,278 59,471 59,752 60,160
Total liabilities and shareholders’ equity 182,018 174,894 157,728 152,954 157,303
Table3: - www.investor.jnj.com

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended March 31, 2021
(Dollars in Millions)
Particulars 2021 2020 2019
Cash flows from operating activities
Net earnings 20878 14714 15119
Adjustments to reconcile net earnings to cash

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flows from operating activities:
Depreciation and amortization of property and 7390 7231 7009
intangibles
Stock based compensation 1135 1005 977
Asset write-downs 989 233 977
Contingent consideration reversal - (1148) -
Net gain on sale of assets/businesses (617) (111) (2,154)

Deferred tax provision (2,079) (1,141) (2,476)

Credit losses and accounts receivable allowances (48) 63 (20)
Changes in assets and liabilities, net of effects
from acquisitions and divestitures:
(Increase)/Decrease in accounts receivable (2,402) 774 (289)
Increase in inventories (1,248) (265) (277)
Increase in accounts payable and accrued 2,437 5,141 4,060
liabilities
Increase in other current and non-current assets (1,964) (3,704) (1,054)
(Decrease)/Increase in other current and non- (1,061) 744 1425
current liabilities
Net cash flows from operating activities 23410 23536 23416
Cash flows from investing activities
Additions to property, plant and equipment (3652) (3347) (3498)
Proceeds from the disposal of assets/businesses, 711 305 3265
net
Acquisitions, net of cash acquired (60) (7323) (5810)
Purchases of investments (30394) (21089) (3920)
Sales of investments 25006 12137 3387
Credit support agreements activity, net 214 (987) 338
Other (primarily licenses and milestones) (508) (521) 44
Net cash used by investing activities (8683) (20825) (6194)

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Cash flows from financing activities
Dividends to shareholders (11032) (10481) (9917)
Repurchase of common stock (3456) (3221) (6746)
Proceeds from short-term debt 1997 3391 39
Repayment of short-term debt (1190) (2663) (100)
Proceeds from long-term debt, net of issuance 5 7431 3
costs
Repayment of long-term debt (1802) (1064) (2823)
Proceeds from the exercise of stock 1036 1114 954
options/employee withholding tax on stock
awards, net
Credit support agreements activity, net 281 (333) 100
Other 114 (294) 475
Net cash used by financing activities (14047) (6120) (180150
Effect of exchange rate changes on cash and (178) 89 (9)
cash equivalent
Increase/(Decrease) in cash and cash equivalents 502 (3320) (802)
Cash and cash equivalents, beginning of year 13985 17305 18107
Cash and cash equivalents, end of year 14487 13985 17305
Table4 :- www.investor.jnj.com

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CHAPTER 3- PESTEL ANALYSIS

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3.1 WHAT IS PESTEL ANALYSIS
PESTEL analysis is a tactical method for examining the organization's overall
microenvironment. Political, Economic, Social, Technological, Environmental, and Legal
(PESTEL) aspects have an impact on every company's or organization's
macroenvironment. Here, we'll do a thorough examination of Johnson & Johnson and
look into all the variables that might have an impact on the company's
macroenvironment.

The Johnson & Johnson corporation, as well as other participants in the pharmaceutical
and healthcare industries, may be directly impacted by changes in the macroenvironment
conditions. The Porter Five Forces, which influence strategy and the competitive
environment, can be impacted by macroenvironmental issues. They may affect a firm's
ability to compete or the fundamental industry's overall profitability levels.

Figure 3.1- PESTLE ANALYSIS-www.googleimages.com

Other than competing factors, PESTEL analysis provides extensive detail about operating
issues that a company will experience in the general macro environment. For instance,
even if a company has a strong growth trajectory and high profitability, Johnson &

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 Johnson or any of its subsidiaries will not benefit from its location in a volatile political
climate.

The impact that each of the following factors—political, economic, social, technological,
environmental, and legal—could have on the company will now be covered in detail.

Political Factors:

The factors that can affect Johnson & Johnson's long-term profitability in a particular
nation or area are heavily influenced by political factors. Johnson & Johnson operates in
the Drug Manufacturers - Major industry in more than a dozen nations, where it is
exposed to various political system and environmental concerns. Diversifying the
systemic political environment risks is necessary to succeed in such a dynamic industry
as drug manufacturers, which spans many nations. Before entering or making an
investment in a certain market, Johnson & Johnson can carefully consider the following
criteria.

 Political stability and the significance of the nation's largest economic sector, drug
manufacturers.
 Military invasion possibility.
 Levels of regulation, particularly in the healthcare industry, are very corrupt.
 Government bureaucracy and involvement in a major industry like drug
manufacturing.
 governing body of law for contract enforcement.
 protection of intellectual property.
 Health-related trade restrictions and tariffs.
 Favored business associates.
 Antitrust regulations that apply to pharmaceutical companies.
 Pricing controls - Is there a healthcare pricing control mechanism?
 Taxation: tax incentives and rates.
 minimum wage and overtime regulations.

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  Workweek restrictions at pharmaceutical manufacturers.
 mandatory benefits for workers.
 requirements for industrial safety in the healthcare industry.
 Drug Manufacturers - Major requirements for product labeling.

Economic Factors:

The aggregate demand and aggregate investment in an economy are determined by the
macroenvironmental factors, such as the inflation rate, savings rate, interest rate, foreign
exchange rate, and economic cycle. While microenvironmental elements like industry
norms have an impact on the firm's competitive edge. Johnson & Johnson can forecast
the growth trajectory of not only —sector name— sector but also that of the organization
by using country-level economic factors like growth rate, inflation, and industry-level
economic indicators like Drug Manufacturers - Major industry growth rate, consumer
spending, etc. When doing a PESTEL study, Johnson & Johnson should take into account
the following economic factors:

 What kind of economic structure exists in the nations where we operate and how
stable it is.
 the stability of the currency of the host country and exchange rates, which are tied
to government interference in the free market.
 Does Johnson & Johnson need to raise funds in the local market given the
efficiency of the financial markets?
 Infrastructure quality in the major industry of drug manufacturers
 comparative advantages between the host nation and its healthcare system.
 Workforce skill level in the major industry of drug manufacturers.
 Economical level of education
 Labor costs and economic productivity
 in the business cycle (e.g., prosperity, recession, recovery)
 economic expansion rate
 Income with discretion
 Rate of unemployment

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  % of inflation
 rates of interest

Social Factors:

The manner of life and culture of the society have an effect on the organizational culture
in a given setting. Johnson & Johnson marketers will analyze the customers of a specific
market and will build the marketing message for Drug Manufacturers - Major industry
consumers in part based on the shared ideas and attitudes of the population. The
following social aspects should be examined by Johnson & Johnson leadership for
PESTEL analysis:

 Population statistics and skill level

 Society's power structure, class system, and hierarchy.
 The industry of Johnson & Johnson's has a high standard of education as well as a
degree of education.
 Culture (gender roles, social conventions etc.)
 the more open-minded nature of society and the entrepreneurial spirit. While some
societies support entrepreneurship, others do not.
 Attitudes (health, environmental consciousness, etc.)
 Recreational pursuits

Technological Factors:

Numerous industries are being rapidly disrupted by technology. The transportation sector
is a wonderful example to demonstrate this idea. The industry has been changing quite
quickly over the past five years, not even giving the established firms a chance to adapt.
Technology companies like Google are driving the automation of the automotive sector,
while Tesla, which has declared an electrical car revolution, is upending production.

A company should analyze the industry's technological state as well as how quickly it is
being disrupted by technology. Slow technological disruption will allow more time,
whereas rapid disruption may give a firm little time to adapt and be profitable.
Technology analysis involves understanding the following impacts-

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  Recent technological advancements by competitors of Johnson & Johnson
 Impact of technology on product offerings
 Impact on the cost structure in the major industry of drug manufacturers
 Impact on the healthcare sector's value chain structure
 Technology diffusion rate

Environment Factors:

Different markets have various norms or environmental requirements, which might have
an effect on an organization's profitability there. States frequently have differing liability
and environmental regulations even within the same nation. For instance, in the United
States, Florida and Texas have differing liability provisions in the event of accidents or
environmental catastrophes. Similar to this, many European nations offer substantial tax
incentives to businesses engaged in the renewable energy industry.

The firm should thoroughly assess the environmental criteria necessary to operate in
those areas before entering new markets or opening a new business in an existing market.
Among the environmental factors a company should think about in advance are:

 Weather
 Changing weather  
 Laws to control contamination of the environment
 Regulations on air and water pollution in the major business of drug manufacturers
 Recycling
 Managing waste in the healthcare industry
 Stances on environmentally friendly or "green" products
 Threatened species
 The opinions about and support for renewable energy

Legal Factors:

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Many nations' institutions and legal systems are not strong enough to safeguard an organization's
intellectual property rights. Before entering such markets, a company should carefully consider
its options because doing so could result in the theft of its secret competitive advantage. When
entering a new market, Johnson & Johnson should take certain legal considerations into account.

 Drug manufacturers are a significant industry in the nation and are subject to
antitrust law.
 Legal discrimination
 Patents, intellectual property law, and copyright
 Consumer protection and e-commerce
 Occupational law
 Health and safety law
 Protection of Data

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CHAPTER 4- SWOT ANALYSIS

Page | 47
4. Johnson & Johnson SWOT Analysis:

What Is a SWOT Analysis?

A SWOT Analysis is a method for evaluating these four areas of your company. SWOT
stands for Strengths, Weaknesses, Opportunities, and Threats.

Utilizing what you already have to the best advantage of your company, you can employ
SWOT analysis. Additionally, you can lessen your chances of failing by identifying your
weaknesses and removing any potential threats.

Even better, you may begin to develop a plan that sets you apart from your rivals and
enables you to dominate your market.

Four sections make up Johnson & Johnson's SWOT analysis:

Strengths Weaknesses
Stable Market Performance Uneven Revenue Distribution
Global Reach Unethical Practices
High Revenue Fall in consumer health sales
High R&D budget

Opportunities
SWOT Threats
One Dose Vaccine Lawsuits
Robotic Surgical System Competitions
Mergers and Acquisitions Government Regulations

figure 4.1:- SWOT Analysis

STRENGTHS:

1. Research and development: According to Johnson & Johnson's financial report

for the third quarter of 2020, the business invested 20.13% of its gross profit in this

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 area. According to Johnson & Johnson's quarterly filings for 2019, the company spent
$11.35 billion on R&D. Since R&D is a crucial part of medication development in the
pharmaceutical and healthcare industries, Johnson & Johnson's greatest strength is its
substantial R&D budget.
2. Revenue: Johnson & Johnson made $80.86 billion throughout the course of the
previous 12 months. Pfizer, Johnson & Johnson's main competition, made $48.65
billion during the same time period. Johnson & Johnson holds a commanding position
in the business thanks to its income stream, which gives the corporation a significant
advantage of 66.20% over its closest rival.
3. Products: Johnson & Johnson produces pharmaceuticals, medical devices, and
consumer health products. It is the owner of well-known brands like Pepcid, Band-
Aid, Tylenol, and Listerine. More than 380 products are produced by Johnson &
Johnson's pharmaceutical division, Janssen. One of Johnson & Johnson's key
advantages is its broad selection of well-known and uncommon items.

WEAKNESSES:
1. Uneven Revenue Distribution: The pharmaceutical sector accounts for 50.7%
of Johnson & Johnson's total revenue. A further 32% of pharmaceutical sales
originate from items related to immunology. The sales of immunology are
specifically driven by three medications. Thus, a select few major goods account for a
large portion of Johnson & Johnson's revenue. These essential products are
susceptible to competition and patent lapse. The worst shortcoming of Johnson &
Johnson is its lack of variety.
2. Unmoral Behavior: Johnson & Johnson was held accountable by a judge in
Oklahoma for disseminating "false, harmful, and misleading marketing efforts" for
opioids. The judge added that the advertising caused a sharp increase in overdose and
addiction mortality. A few months ago, Johnson & Johnson added $1 billion to the $4
billion that was previously put aside to settle 2000 lawsuits related to the opioid
crisis.
3. Consumer health care generates the least amount of money among its three main
industries—pharmaceuticals, medical equipment, and consumer health care.
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 Increased sales in this sector would produce higher profits and a portfolio with a more
balanced distribution.

OPPORTUNITIES:

1. One Dose Vaccine: Pfizer and Moderna have already released one-dose vaccines
and are currently applying for emergency use authorization in the US. However,
Pfizer and Moderna vaccines call for two doses. The Johnson & Johnson vaccination
only needs one dose. As a result, Johnson & Johnson makes twice as much money
from each vaccine as Pfizer and Moderna. So, this is the Johnson & Johnson
opportunity that offers the highest profit margin.
2. Robotic Surgical System: Intuitive Surgical currently holds 92.3% of the
market for robotic surgical systems. Johnson & Johnson has disclosed details on
Ottava, its own robotic surgical system. In 2022, Johnson & Johnson intends to start
clinical trials. Although it's a young industry that's only available in the US, it has a
lot of room to grow. Ottava offers Johnson & Johnson the chance to beat its
competitors early on.
3. Telehealth: This industry deals with the delivery of medical and healthcare-related
services via electronic channels. It enables long-distance treatment and advice.
Johnson & Johnson has invested in the telehealth firm Thirty Madison after realizing
the potential of this industry. The telehealth industry will expand by 14.9% CAGR
during the coming years.

THREATS:

1. Lawsuits: Johnson & Johnson has announced that it will pay $100 million to
resolve over 1000 complaints involving its talcum powder. The plaintiffs assert that
their ovarian cancer was brought on by their continued use of Johnson & Johnson's
talcum powder. Such lawsuits are one of Johnson & Johnson's biggest dangers since
they damage the business's reputation and customer trust.
2. Surgery Postponements: One of Johnson & Johnson's three primary business
verticals is the supply of medical devices. Additionally, only this vertical's sales
during the previous two quarters have decreased. Due to COVID-19, procedures have

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 been postponed, according to Johnson & Johnson, which invests extensively in
research and development.
3. Corporate Cyberwarfare: Johnson & Johnson reports a decline in revenue.
Naturally, corporate espionage might target Johnson & Johnson's intellectual
property. For instance, lately, hackers with ties to North Korea attempted to steal data
from Johnson & Johnson's development on the COVID-19 vaccine.

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CHAPTER 5: LATEST NEWS

Page | 52
1. Johnson & Johnson's legal strategy on cancer suits questioned by

court in US (September 20, 2022).

2. J&J continues to sell talc-based baby powder in India, despite

discontinuing in U.S. and Canada (August 28, 2022)

3. Johnson & Johnson to pay $40.5 million to settle opioid epidemic

lawsuit (September 1, 2022)

4. Maharashtra cancels Johnson & Johnson's manufacturing licence

for baby powder (September 20, 2022)

5. Johnson & Johnson reaches $205 million settlement in Australian

pelvic mesh class action (September 12, 2022)

6. What is the controversy around J&J's talc-based baby powder?

(August 30, 2022)

7. Former J&J executive settles with company in workplace

discrimination lawsuit (September 8, 2022)

8. Johnson & Johnson Vision Care Ireland expands Limerick

facility (September 26, 2022)

9. For Blood Cancer Awareness Month, the company spotlighting

three leading Johnson & Johnson female hematologists—

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innovators who are not only saving lives and advancing new

treatments but also paving the way for the next generation of

women in their field. (September 22, 2022)

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 6. REFRENCES
 Profile of the company (17 August, 2022)
https://www.jnj.com/about-jnj
 Beyond Business (19 August, 2022)
https://www.investor.jnj.com/annual-meeting-materials/2021-annual-
report
 Johnson and Johnson India (21 August, 2022)
https://www.jnj.in
 History of Johnson and Johnson (24 August, 2022)
https://ourstory.jnj.com/
https://www.jnj.in
 Vision and Mission(30 August, 2022)
https://mission-statement.com/johnson-johnson
 Product Range of Johnson and Johnson (1 September, 2022)
https://www.jnj.com//healthcare-products
 Organizational Structure (6 September, 2022)
https://www.jnj.com/leadership/our-leadership-team#board-of-directors
 About Product Line Depth and Width (8 September, 2022)
https://www.jnj.com//healthcare-products/consumer
https://www.jnj.com/healthcare-products/medtech
https://www.jnj.com/healthcare-products/prescription
 Major Competitors and Market Share (11 September, 2022)
https://www.marketing91.com/johnson-johnson-competitors/
https://www.jnj.com/johnson-johnson-reports-q2-2022-results
https://finance.yahoo.com/quote/JNJ/history/

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 Financial Statements of Johnson and Johnson (16 September, 2022)
https://www.investor.jnj.com/annual-meeting-materials/2021-annual-
report
 PESTEL Analysis (22 September, 2022)
http://fernfortuniversity.com/term-papers/pestel/nyse4/1838-johnson---
johnson.php
 SWOT Analysis (25 September, 2022)
https://pestleanalysis.com/johnson-and-johnson-swot-analysis/
 Annexure (27 September, 2022)
https://www.jnj.com/credo/

Page | 56
 Annexure
Our Credo
We believe our first responsibility is to the patients, doctors and nurses, to mothers and
fathers and all others who use our products and services. In meeting their needs
everything we do must be of high quality. We must constantly strive to provide value,
reduce our costs and maintain reasonable prices. Customers' orders must be serviced
promptly and accurately. Our business partners must have an opportunity to make a fair
profit.
We are responsible to our employees who work with us throughout the world. We must
provide an inclusive work environment where each person must be considered as an
individual. We must respect their diversity and dignity and recognize their merit. They
must have a sense of security, fulfillment and purpose in their jobs. Compensation must
be fair and adequate and working conditions clean, orderly and safe. We must support the
health and well-being of our employees and help them fulfill their family and other
personal responsibilities. Employees must feel free to make suggestions and complaints.
There must be equal opportunity for employment, development and advancement for
those qualified. We must provide highly capable leaders and their actions must be just
and ethical.
We are responsible to the communities in which we live and work and to the world
community as well. We must help people be healthier by supporting better access and
care in more places around the world. We must be good citizens — support good works
and charities, better health and education, and bear our fair share of taxes. We must
maintain in good order the property we are privileged to use, protecting the environment
and natural resources.
Our final responsibility is to our stockholders. Business must make a sound profit. We
must experiment with new ideas. Research must be carried on, innovative programs
developed, investments made for the future and mistakes paid for. New equipment must
be purchased, new facilities provided and new products launched. Reserves must be

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created to provide for adverse times. When we operate according to these principles, the
stockholders should realize a fair return.

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