Assignment Topic:SWOT Analysis & PEST Analysis of Janssen Pharmaceutical Companies of Johnson & Johnson, Janssen Inc.

Assigned To: Aqsa Bilal Assigned by: Prof. Jhanzaib Yousaf Class: M.Com (1) Section: (B)

Janssen History Janssen Products began operations in Montreal in 1941 with one product and three employees. Moving to Toronto in 1944, the company outgrew a number of rented facilities until its own facilities were constructed in 1955. Continued growth required a number of plant expansions. McNeil products were first offered in Canada in 1948 through a distributor. Approximately ten years later, Johnson & Johnson acquired McNeil Laboratories and rapid growth began. In 1991, McNeil merged with Ortho to form Ortho-McNeil Inc. In 1953, Dr. Paul Janssen established Janssen Pharmaceutica, N.V., a pharmaceutical research laboratory based in Beerse, Belgium. This company became part of Johnson & Johnson in 1961. Initially, McNeil Pharmaceutical and Ortho Pharmaceutical distributed Janssen products, until the company was established in Canada in 1982. Growth in new products, staff and sales were rapid for Janssen Pharmaceutica Canada and in 1995 merged with OrthoMcNeil to form Janssen-Ortho Inc. which was later renamed Janssen Inc. Today, the Janssen Pharmaceutical Companies have thousands of committed employees in hundreds of innovative companies located in more than 50 countries around the world. Introduction of Janssen Pharmaceutical Companies of Johnson & Johnson, Janssen Inc. It is dedicated to finding the best treatments for unmet medical needs. Driven by our passionate pursuit of science, we invest in our own research and development efforts while we work to bring innovative ideas, products and services to patients across Canada and around the world.

Johnson & Johnson embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people.

Johnson & Johnson comprises: The worlds sixth-largest consumer health company The worlds largest and most diverse medical devices and diagnostics company The worlds fifth-largest biologics company And the worlds eighth-largest pharmaceuticals company Vision Statement Advancing science for the benefit of patients Janssen is looking at a future where the world of healthcare will be challenged by informed and empowered patients. We work for change that will improve access to medicines: the best available treatment at an affordable price. That's why we at Janssen strive to provide access to effective and affordable medicines and related health care services to the people who need them. Mission Statement

Janssen's mission is to make the most fundamental change in the way diseases are managed. We have a leading portfolio of solutions that can alleviate, contain or cure some of the world's most serious conditions and diseases. To ensure that we can deliver our commitments to patients, customers and investors who rely on us, we work side-by-side with healthcare stakeholders and build on our people's talent. Together, we are looking at a future where patients and their families have a new sense of hope. Hope for a cure. Our mission is to transform individual lives. Janssen are actively developing treatments for our patients in five important therapeutic areas of healthcare: Cardiovascular & Metabolic diseases Immunology Infectious diseases & vaccines Neuroscience Oncology Janssen will develop sustainable and integrated healthcare solutions by working side-byside with patients, healthcare professionals and other stakeholders who rely on us. We are focused on operating in transparency and on building trust by listening to the people involved in healthcare decisions. That's why we at Janssen will continue to invest in our people. We monitor individual progress and fill management positions predominantly from within our own ranks, so that personal aspirations become a reality. At Janssen we believe that we are building our leaders of the future. Our ultimate goal is to ensure that people everywhere in the world have a new sense of hope: access to innovative treatments and quality healthcare.

SWOT ANALYSIS

Johnson & Johnson is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer. Johnson & Johnson was founded in 1886 and the company is headquartered in New Brunswick, New Jersey. Some of the important products of the company are Tylenol, Motrin, Johnsons baby oil, Visine, Bengay, Neutrogena skin care products and Band-Aid bandages. The company employees approximately 114,000 people worldwide. The SWOT Analysis of Johnson & Johnson is given below: Strengths Johnson & Johnson is one of the worlds few companies having presence before the 20 century. It has higher customer satisfaction and strong R&D facilities. The company has achieved economies of scale and economies of scope. Johnson & Johnson is recognized for its corporate repute, strong customer base, brand loyalty and brand image. Johnson & Johnson has strong global presence by having 250 subsidiary companies with operations in more than 57 countries. The company products are sold in more than 175 countries and it had global pharmaceutical revenues of $24.6 billion for the FY 2008. Johnson & Johnson has successfully differentiated itself from competitors. Johnson & Johnson is a vastly diversified company by having enormous variety of products in medical devices, pharmaceutical, and consumer packaged goods. Johnson & Johnson has more than 29,925 internet domains over most of the big Internet & technology companies. Weaknesses On April 30, 2010, one of the subsidiaries of J& J willingly recalled 43 OTC childrens medicines, including Benadr, Tylenol Plus, Tylenol, Mortrin and Zyrtec.

In 2010, U.S. Department of Justice filed suit against Johnson & Johnson for illegally marketing its drugs throughout Omnicare (a firm that allot medicines to nursing homes counting patients with dementia). Johnson and Johnsons key products demand is shrinking; several of these products were branded and have been substituted by common programmes at the finish of copyright. Johnson & Johnson is wasting a lot of money and time during the hunt for information. For example, workers are wasting a lot of time replying cyclical enquiries, rather than moving out value-added actions. Johnson & Johnson is facing strong pressure to reduce prices and preserve copyright expirations in order to make sure that nonspecific programs are reorganized within decisive lane activities. The company has high dependence on the revenue of Risperdal and CNS. Opportunities The Acquisition of Pfizer by Johnson & Johnson; will present the company to support growth for the Johnson & Johnson. Johnson & Johnson has opportunity to increase market share by product development and product innovation globally. Increase global presence by expanding globally through the joint ventures and acquisitions. Expansion and innovation into diagnostics and medical devices will grants new markets to grow. Financial economic recovery will boost the income of consumers which will ultimately increase the company revenues. Assimilate current acquisitions of different companies.

Threats

This industry may be on the restore, but its revival could be slowed down by heavyhanded regulation and more hurting in the housing market, amongst other things. Johnson & Johnson has strong global competitors. These competitors provide alternative and substitute products at lower prices. Johnson & Johnson is in the mature market with very low market growth rate. Major pharmaceutical companies are facing strong competition for the generics markets from the local players. Bio-technological expansion will potentially move the established pharmaceutical process out of the market in the future. All the global players are facing strong regulations in the pharmaceutical industry by different respective countries. Private label has increased the nonspecific drugs growth. PEST ANALYSIS A PEST (Political, Economic, Social, and Technological) analysis is a useful tool for understanding the larger environment within which the company operates. Companies can use this tool to identify a multitude of important aspects of their environments that may impact their 1. Political Environment Changing Politics and Policies First, the politics on local, regional, national, or international scales can exert strong forces on businesses. Since Johnson & Johnson operates worldwide, it must keep track of the political developments that may affect its business. For example, in the Czech Republic, health care is the subject of a major political debate. Changes in the healthcare system may affect to whom Johnson & Johnson needs to market, and with whom it needs to negotiate if the company wants its products covered by the Czech healthcare system. Also, Johnson & Johnson should be aware that the Czech Republic has a weak Parliament that will change in 2010s elections. The company needs to anticipate which policies may shift under the new government.

Finally, Johnson & Johnson should be aware that the Czech Republic will serve as president of the Council of the European Union for the first six months of 2009. This is the best time for the Johnson & Johnson branch located in the Czech Republic to lobby for any policy changes regarding the companys interests and the business environment. 2. Economic Environment The Crisis and the Euro The economic climate is also important for Johnson & Johnson to analyze in order to predict when its business may face challenges, as well as when it can seize an opportunity for growth. Operating in the European Union and larger European community means that Johnson & Johnson has felt the effects of the current economic crisis. Aware of the crisis, the company has been able to plan for its impact, and fortunately, the effects on Johnson & Johnson have not been severe, as medical products remain necessities even in periods of economic downturn. In respect to the Johnson & Johnson branch in the Czech Republic, the economic environment is one that quickly transitioned from a communist, planned economy to the free market. Though the Czech Republic has embraced free market principles since the fall of the Soviet Union, it is important that Johnson & Johnson recognize that this change was relatively recent, and certain aspects of working in the Czech Republic may still be affected by this history. Finally, discussions surrounding the use of the euro and the benefits and disadvantages of a common currency are debates that Johnson & Johnson should be aware of in this time period. While Slovakia adopted the euro in January 2009, the Czech Republic has kept its own currency. A switch to the euro in the Czech Republic could have a wide range of effects, some positive and some negative, and Johnson & Johnson should understand the implications for its business if that change occurs in the Czech Republic. For example, adopting the euro would make transactions with other countries more

convenient, and Johnson & Johnson should be prepared for a possible increase in transactions or the speed in which transactions take place in order to take advantage of the opportunities this change could provide. It should also be ready for the numerous practical difficulties with tasks such as accounting that may occur with a change in currency. Keeping these economic scenarios in mind is the kind of forwardthinking that is crucial to Johnson & Johnson's success. 3. Social Environment Aging Population and Public Health Problems There are two major social changes on the horizon that will both affect Johnson & Johnson as well as provide tremendous opportunities. The first is the aging population. The gigantic baby boomer generation, consisting of those born between 1946 and 1964, has had a huge social and economic impact on the world since its birth. This trend will continue as the generation is beginning to enter old age. The influx of senior citizens will create huge demands throughout all realms of medical care. Johnson & Johnson can expect to see increased sales across all three of its segments pharmaceuticals, medical devices and diagnostics, and consumer goods in the coming decades, and must plan production accordingly to be able to meet the needs of this huge generation as they enter their most medically-dependent years. Additionally, in order to cater to the aging population, Johnson & Johnson is pioneering developments in preventative medicine as well as less invasive surgery techniques. Another major social change affecting Johnson & Johnson is the phenomenon of surging rates of various health problems, especially in developed societies but spreading worldwide, from obesity and diabetes to cancer and mental disorders. Though highly problematic for society, companies in medicine-related industries such as Johnson & Johnson are finding themselves with an increasing number of people to treat and cure. As a company that invests heavily in research and development, Johnson & Johnson has the opportunity to lead the way in finding ways to address these serious public health issues.

4. Technological Environment Promising New Fields As many pharmaceutical drug markets become saturated and the blockbuster drug strategy becomes obsolete due to the major changes occurring in the industry, innovation and breakthrough medical technologies are essential for finding blue oceans in which to compete. Predictive medicine, which entails predicting diseases based on genetics and preventing them, and personalized medicine, which involves managing a patients health based on his or her individual characteristics as opposed to following the more traditional standards of care model, are growing fields into which Johnson & Johnson can expand. The companys strong emphasis on research and development and its leadership in the medical devices and diagnostics segment put it in an excellent position to become a frontrunner in making new discoveries in these promising new technological fields.