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Based on the case Johnson & Johnson from the textbook: a) Provide an answer to the following questions: 1. What are the core competencies of J&J? 2. How would you characterize the organizational structure of J&J? Is decision making centralized? 3. How does J&J create value through diversification? (Economies of scope, market power, corporate parenting, corporate structuring?) Case reading will be provided at below link: https://drive.google.com/open?id=1dJRCyEHm4T4aAVdv...
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Running head: CASE STUDY 1 Case Study Student’s name: Institution affiliation:
Case Study What are the core competencies of J&J? Acceding to the case study, the core competencies of Johnson and Johnson include extensive collaborations with other manufacturers, innovativeness, and the corporate culture that promotes innovativeness and swift management of company goals and targets (Rankin, 2004). The company spends heavily on research and development of new products that meet current market needs. Johnson and Johnson's company drives its operations on sustainable competitive advantage that means that its research and investment decisions are founded on precisely calculated financial reports predicting future turnover of investment resources (Rankin, 2004). The company has several manufacturing branches in almost every continent, and hence it is market outreach exemplary. Johnson and Johnson Company collaborations also include complete acquisition of other companies and hence the company has grown to very complex enterprises in varied operational fields.
2010). J&J enjoys a large market share in many countries, and hence it's market power controls the healthcare and pharmaceutical industry. J&J uses corporate parenting, where the sub- business borrows key operational strategies from the parent organization and builds its operational strategy.
References Borkowski, S. C., Welsh, M. J., & Wentzel, K. (2010). Johnson & Johnson: A model for sustainability reporting. Strategic Finance, 92(3), 29. Rankin, S. (2004). A mini case study of product strategy: The Cypher stent from Cordis (a Johnson & Johnson company). The Marketing Review , 4 (2), 211-224.