Business Analysis: Johnson & Johnson

Johnson & Johnson is a widely diversified company in the field of health care and places a high value on holistic responsibility that serves as a defining component of their corporate philosophy. They believe that people who work in health care are responsible for the well-being of all others. This serves as the focus of J&J’s global business activities. Their products ranging from baby care, pharmaceuticals, products for quitting smoking, antiseptics, vaccines and a variety of medical devices touch the lives of over one fifth of humanity.

This huge responsibility is the key driving factor for their strong value system. J&J’s credo obligates them to accord top priority to the needs of the people they are working for. The credo is applicable

Stronger position in medical devices: J&J has a strong focus on accelerating growth with innovative products and their go-to-market models to serve their customers and patients in a better manner.

INTERNAL ANALYSIS

Johnson & Johnson is one of the world's largest providers of diverse healthcare products. Their sustained leadership position in various categories enables them to penetrate new markets.

STRENGTHS

LEADERSHIP POSITION:

Johnson & Johnson is one of the largest and highly diversified healthcare companies in the world. Globally, Johnson & Johnson is the fifth largest pharmaceutical company, and the sixth largest biotech and consumer health care company. The company also holds leadership positions across several categories, including anti-thrombotic agents, anti-psychotics, bio-surgicals, baby and child care, disposable contact lenses, diagnostics and catheters, endo-mechanical, endoscopy, sweetener, infection prevention, minimally invasive surgery, oral rinses, orthopaedics, hormone therapies, sutures and wound care. Close to 70% of sales are derived from products or businesses that have number one or two position in the global market share. Strong market leadership enhances the company's brand image and enables it to penetrate new markets as new product launches become

In late 2014 and early 2015, the company settled more than 100 mesh lawsuits for undisclosed amounts. In March 2015, a jury sided with Coleen Perry against Ethicon and awarded her $5.7 million. J&J still faces more than 25,400 federal mesh lawsuits and countless suits in state courts.

Further, in 2015 because of the side-effects of its drug Risperdal, J&J had to pay$2.5 million to a boy through a court verdict and settle multiple lawsuits before they reached trial, but hundreds are still pending.

FINANCIAL ANALYSIS

The revenues of Johnson & Johnson in their three business segments have grown consistently. The revenue division amongst the three segments are as follows:

• The total sales of Johnson & Johnson in the year 2014 is $74.3 billion.

• In the pharmaceutical segment, sales for 2014 totalled $32.3 billion or 43% of total sales

• In the consumer segment, sales for 2014 totalled $14.5 billion or 19.5% of total sales.

• In the medical devices and diagnostics segment, sales for 2014 totalled $27.5 billion or 37% of total sales.

In comparison to sales in 2013:

• Total sales for the 3 business segments were up 4.2%.

• Pharmaceutical sales were up 14.9%.

• Consumer business sales were reduced by 1.4%.

• Medical devices and diagnostics business sales were down by 3.4%

• Total assets for 2014 were up by