Johnson & Johnson Internal and External Examination

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Macroenvironmental Evaluation:

•Economic: Globalization from the pharmaceutical market is an exilerating opportunity to possess research and development carried out at less expensive prices in other countries. However , this can be a bitter sword for companies since it is easy for other countries, including India, to create generic editions of the medication in bulk. •Technological: Profitability is decided mainly by ability to discover new drugs. Technology reaches the front of the pharmaceutical drug industry because advances allow for expanded r and d which in turn permits companies to create new powerful drug chemistries. •Legal/Political: In accordance to a US senator, legislation has been presented that would need public disclosure of scholarships made to groups and medical professionals. These grants or loans can include totally free trips to exotic places to educational conferences; some experts say these scholarships can wrongly influence amounts. The presidential election as well as the governmental decisions made about health care overall may also effect consumer capacity to purchase goods. • Social/Cultural: Thirty-two percent of Americans offer an unfavorable judgment of Pharmaceutical drug industry. Most of the adverse opinions come from the awareness of profiteering. Other people likewise have concerns that companies are underhanded in the study stage and do not care about the future effects for the experimental subject. •Demographics: With all the baby boomers maturing, a higher percentage of the population is now sixty-five or old and are necessary more amounts and prescription medications. Market Research

Supplier: Labor, Drug marketers

Customers: Mass Consumers

Substitutes: herbal medicines, alternative remedies, therapeutic substitutes Rivalries of Existing Corporations: price, features, innovation, performance, availability, company reputation

Major Opponents: Merck, Novartis, Proctor & Gamble

Conclusion: In the pharmaceutical industry what they needs to be most excited about this also what they should be the majority of concerned about; the positive effect. Being able to research and develop drugs far away can give a firm and monetary advantage nevertheless can also push them at risk for folks to create a universal version from the drug promote it individually. Being the leader of creativity in the marketplace is quite important. This will also enable companies to generate brand reputation for making the most up to date and effective prescription drugs. A final important aspect of current rivalries is perfect for drugs to get priced inexpensively. In this time of economic downturn buyers will quickly turn to a generic drug if perhaps they seem like the name brand drug can be priced further than its worth.




•Financial (USD):

oNet Cash flow $10, 567, 000, 000

oStock Price(9/05/08) money 70. 67

•Physical: Johnson & Johnson provides $1, 4185, 000, 000 worth of plants, house, and products. Technology: Many products of Johnson & Johnson rely of recent technologies to enable them to be developed. Recent research using technology help scientist come up with fresh HIV treatment called Intelence and Prezista. Also, " many of the product launches in 2007—from an extensive portfolio of brands which includes Clean & Clear, Bloc, Neutrogena, AVEENO, Lubriderm, Ambi and Groupe Vendome—were developed on proprietary technology platforms proven effective through extensive medical research. ” Technology contributed to the " new prolonged-release oral atypical antipsychotic, INVEGA Extended-Release Tablets” which aids in schizophrenia. Intangible

•Culture: Consider that when you are feeling your best you perform your very best, therefore they give support programs that support their staff live more healthy and safer lives. This encourages workers to pioneer, create, develop and improve products every day. •Brand Status: According for this year's Standing Quotient study, for the seventh consecutive year, Johnson & Meeks ranks Number 1 ...



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