Much of this research has been undertaken within the ‘disciplines’ adjacent to strategic management (e.g., economics, finance, law, marketing).

Although establishing the strategic logic of options is very valuable, it is also important to review those options within the political and cultural realities of the organisation. Does the strategy exploit the company strengths — such as providing work for skilled craftsmen — or environmental opportunities — for example, helping to establish the company in new growth sectors of the market. Many of the ovarian cancer lawsuits have blamed the disease on perineal use of J&J cosmetic talcs – a claim supported by some studies showing an association between such use and increased cancer risk. Will the technology (both product and process) be available to compete effectively? A 2009 presentation laying out the “Powder media plan” highlights that it will reach 31 million people “in the South (hot climates/overweight states),” and that “43% of our plan will focus on the top 10 overweight states in the nation.”, A 2009 ad in Weight Watchers magazine suggests readers “bust stress with a midday workout” and then “stay fresh post-exercise by applying Johnson’s Baby Powder.”. Talc supplier Luzenac America Inc started including that information on its shipments to J&J and other customers. Internal J&J marketing emails before the Weight Watchers campaign ran discuss whether the women featured are heavy enough to resonate with the intended audience. Needs, power, interest, and predictability of stakeholders. The parallel in the public sector would be cost/benefit assessment. Can the necessary materials and services be obtained? J&J challenged the findings of the Reuters report, describing them as inaccurate and misleading. In 1886, J&J was founded by 3 brothers with a dream of saving people lives by producing the first commercial antiseptic surgical dressings. Metal-on-metal hip implants represent one of the biggest medical device failures in history. J&J’s spending on Baby Powder promotions – coupons, discounts, and samples – came to about $1.2 million in 2008 and again in 2010, almost half of it directed at overweight and minority women. J&J denied the allegations and last year filed a motion for summary judgment in the suit, arguing that the case involved matters of federal law, beyond the state’s purview.

Beginning in the 1950s, however, a series of case studies published in medical journals pointed to the dangers of breathing in talc. This field is for validation purposes and should be left unchanged. How will the organisation ensure that the required skills at both managerial and operative level are available? Many analytical methods are useful both for understanding the current situation (strategic analysis) and for evaluating strategic options for the future. In contrast, if the paradigm will need to change, the analyses help in establishing the ways in which culture will need to adapt to embrace new types of strategy.

Marketing Johnson & Johnson Strategies. Financial ratio projections; Sensitivity analysis; Decision matrices; Simulation modelling; Heuristic models. Synergy can be sought in several circumstances, as is illustrated by the three strategies under consideration for a grocery retailer (See Figure 3).

What is a brand? Pediatricians took notice.

The following questions need to be asked about strategic options: An assessment of the feasibility of any strategy is concerned with whether it can be implemented successfully. “When caring rituals started in infancy continue through adulthood, a person’s self-confidence and even faith in the world are often strengthened,” the pamphlet said. This older device has a markedly similar metal-on-metal design. Stakeholder mapping is an important method for testing the acceptability of strategies. “Powder is still considered a relevant product among AA consumers,” the presentation said. The following types of analysis will be discussed: The concept of synergy is concerned with assessing how much extra benefit can be obtained from providing linkages within the value system between activities which have either been previously unconnected or where the connection has been of a different type. Will any proposed changes be appropriate to the general expectations within the organisation (e.g., attitudes to greater levels of risks)? What will be the effect on capital structure (e.g., gearing or share ownership)? In its response to Reuters’ questions, J&J said: “Suggesting that Johnson & Johnson targeted a particular group with a potentially harmful product is incredibly offensive and patently false.”, Sold continuously since 1894, Johnson’s Baby Powder accounted for less than 1 percent of J&J’s $81.6 billion in revenue last year, but it is deemed critical to the company’s family-friendly image. Adults have been the main users of Johnson’s Baby Powder since at least the 1970s, after pediatricians started warning of the danger to infants of inhaling talc. This is why the strategies of most organisations develop incrementally.

It has been argued, firms which diversity by building on their core business do better than those who diversity in an unrelated way. Alongside suitability and feasibility is the third criterion, acceptability. J&J is appealing all the verdicts against it. Source: JOHNSON, G., and SCHOLES, K. (1997).

Reports by Bloomberg News, the New York Times and the Post and Courier of Charleston, South Carolina, have cited some internal J&J documents revealing the company’s focus on African-American and overweight women at certain times. Most businesses know the demographic profiles of those who buy their products and, as a matter of course, direct their marketing at those groups.

The presentation sets out to identify the underlying theory of segmentation through to the positioning of a product/service in the mind. After the IARC’s 2006 move, talc supplier Luzenac America started including a note about the agency’s latest classification on a chemical safety document accompanying shipments to all customers, including J&J. Johnson & Johnson marketed Risperdal aggressively to the elderly in spite of knowing that Risperdal posed serious health risks for older adults, like an increased risk of strokes, the company went so far as to create a dedicated sales force, ElderCare, to promote the drug to doctors who primarily treated older patients. In this context the continuing work of the Strategic Planning Institute (SPI) through its PIMS data-bank is useful. But the full timeline and scale of the marketing efforts, particularly those aimed at teenage girls, in minority communities and through organizations such as Weight Watchers, are reported here for the first time. Slack in the physical resources or intangible resources (brand name, core skills, etc.) How far does the strategy overcome the difficulties identified in the strategic analysis (resource weaknesses and environmental threats)?

That came about 20 years after IARC classified “talc containing asbestiform fibres” as “carcinogenic to humans,” its highest-risk classification. It advertised in Weight Watchers magazine and offered promotions through the Lane Bryant clothing chain for plus-size women and Curves, a women’s fitness and weight-loss franchise. Diversification is probably one of the most frequently researched areas of business. Synergy is often used as the justification for diversification — particularly through acquisition or merger.

These concerns are best understood in terms of the previous discussions about the cultural web of an organisation and how it legitimises and sustains the paradigm of the organisation. This is particularly supported in the research on diversification through acquisition.

[Chapter 8]. For example, is the strategy likely to improve the organisation’s competitive standing, resolve the company’s liquidity problems, or decrease dependence on a particular supplier? Asked whether Luzenac knew that J&J did not pass on this warning, Sharma said: “It is not our job to tell our customers what to do with their products.”. Marketing plans also included ads to run in Southern Living magazine and during the Style Network show “Ruby,” a reality TV series that documented an obese Georgia woman on a mission to lose weight. Profitability analyses (return on capital employed, payback period, discounted cash flow, earning potential, market valuation, etc.

Synergy could arise through many different types of link or interrelationship: for example, in the market (by exploiting brand name, sharing outlets, or pooling selling or promotional costs); in the company’s operations (by shared purchasing, facilities, maintenance, quality control, etc. Browse marketing analysis of more brands and companies similar to Johnson & Johnson. Weight Watchers, now known officially as WW International Inc, declined to comment on the campaign. What will be the financial performance of the company in profitability terms? However, the key judgment is whether or not such strategies are suitable for the organisation’s current situation — particularly if significant environmental change has occurred. Run by African-Americans who had been executives at Procter & Gamble Co and Quaker Oats, Segmented Marketing Services has said in past press releases and its own marketing publications that it hands out millions of free product samples and promotional offers through national networks of more than 10,000 African-American and Hispanic churches, and tens of thousands of “beauty salons, barber shops, entertainment venues and healthcare networks.”.

LOS ANGELES - Pressure was mounting on Johnson & Johnson and its signature Baby Powder. J&J, meanwhile, looked for ways to sell more Baby Powder to two key groups of longtime users: African-American and overweight women. These analyses are primarily concerned with matching specific strategic options with an organisation’s market situation and its relative strategic capabilities (or core competences). Today, women who fall into those categories make up a large number of the 13,000 plaintiffs alleging that J&J’s Baby Powder and Shower to Shower, a powder brand the company sold off in 2012, caused their ovarian cancer or mesothelioma. Schein provides a useful discussion of the relationship between life cycle, culture, and strategy. My firm will continue to accept and file hip implant lawsuits against many of these manufacturers.

Since the major purpose of strategic change in most organistions relates to the need to sustain or improve performance, this section will review the research evidence which is available on the relationship between the choice of strategy and the performance of organisations. ); in product/process development (by sharing information/know-how). (Four life-cycle stages are recognised: Embryonic, Growth, Maturity, and Decline. Johnson & Johnson still faces thousands more regarding its Pinnacle hip model, which remains on the market. A 2015 presentation makes no mention of minorities, suggesting the brand “target adults, with a focus on men.”.

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