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Contemporary Management
Final Project
Janssen (a J&J company)
AGENDA
 Company Introduction
 Org Structure
 Vision, Mission, Strategy & Goals
 Sustainability & Earthwards approach
 Balversa ®
 Work Culture
 SWOT Analysis
 Financial Statements & Ratios.
A little Introduction…
Johnson & Johnson (J&J) is a leading diversified multinational
company founded in 1886.
J&J has three business sectors
Janssen Facts
Janssen Org Structure
Org structure of Janssen Company is
the divisional structure is a type of
organizational structure that groups
each organizational function into a
division, Each division contains all the
necessary resources and functions
within it to support that product line or
geography
Janssen Org Structure
Janssen Org Structure
Janssen Competitive Position
Cilag Layout & Manufacturing Process
Vision: strive to provide access to effective and affordable
medicines and related health care services to the people who need
them.
Mission: make the most fundamental change in the way diseases
are managed.
Goals: We are building great healthcare solutions that will bring
benefits to patients and add value to society and our company’s
stakeholders.
Developing innovative and integrated products and
medicines to restore and extend the quality of life.
Strategy: Horizontal integration, growth strategy
Developing procurement relationships based on trust.
Vision & missiom
Sustainability is managing our personal, business and
societal impacts to ensure better outcomes for patients and
society.
 Committed to Clean, Renewable Energy.
 Reduced 20% in CO2 emissions by 2020.
 Reduced waste volumes by 10% compared to 2010.
 Reduced water consumption by 10% compared to 2010.
 Product Stewardship Through the Lifecycle: Green
Chemistry and Technology Yield Business and
Environmental Benefits.
Janssen Environmental Sustainability Strategy:
The Unique Johnson & Johnson Program That's Helping to
Create a More Sustainable World
Defines how Johnson & Johnson addresses the
environmental and social impacts of their products, and
engages development teams in designing innovative and
more sustainable solutions across a product’s lifecycle,
from formulation and manufacturing, to product use and
end-of-life.
The Earthwards® approach
Surgicel® Absorbable Hemostat
a fabric designed to absorb bleeding during
surgery, discovered that folding the mesh instead
of rolling it saved a whole lot of space during
packing.
The Earthwards® approach
Stelara®
At one time, users of Stelara, which treats plaque psoriasis
and psoriatic arthritis, received six injections per year. The
medication’s new formula has streamlined that number down
to four injections per year—leading to a 92% reduction in
primary packaging, as well as 90% less material being
consumed per patient.
The Janssen biopharmaceutical plants that manufacture the
drug also get 50% of their power from such renewable
sources as solar and wind energy.
The Earthwards® approach
BALVERSA® (erdafitinib)
A prescription medicine used to treat adults with bladder
cancer (urothelial cancer) that has spread or cannot be
removed by surgery.
Researchers have investigated erdafitinib for safety and
efficacy in treatment of bile duct cancer, gastric cancer, non-
small cell lung cancer, and esophageal cancer.
In April 2019, erdafitinib was granted approval by the FDA
for treatment of metastatic or locally advanced bladder
cancer with an FGFR3 or FGFR2 alteration.
Example for Janssen Products:
Johnson & Johnson Organization Culture
“A Family Company at Work for a
Better World”
1- Inclusive environment, Sense of
Security & Compensation.
2- Organization Credo, Suggestions &
complains.
3- Socialization, Work Life balance.
4- Formal Events
5- Enhancement
work culture (According to their career center)
 Committed to Caring
 Responsible to our communities
 Ready to apply our knowledge and
know-how
 Unique in our background and
experiences
 The drivers of our own success
 Passionate about doing what’s right
More than half of the first 14 employees at Johnson
& Johnson were women, and we continue to believe
that a diverse and inclusive workplace—one where
everyone feels they belong—is not only a business
imperative but a key driver of our growth today.
The world is changing—fast. But we know that by
aligning with and serving the needs of our diverse
and multicultural stakeholders, from patients to
employees, consumers and customers, we can
unlock tremendous potential for growth.
Diversity
Credo Based Company (5 star rating)
The company is a credo based company and try to live by
it.
Politics, compliance and red tape galore (2 star rating)
it’s not about being the best candidate but being the
person who falls in line easiest. If you have an opinion
and are an outspoken individual, you’ll get shunned for it.
Reviews on Janssen work culture from Indeed.com
STRENGTHS
 Worldwide: affiliate of Johnson and Johnson
 Most versatile producer of medical products in the
world
 Good reputation, profitable and innovative company
 Strong R&D commitment and productivity
 Stable market share and performance
 High product quality
 Brightest employees and researchers
 Leader in medications for Cancer
WEAKNESSES
 Expensive products
 Research takes several years (long time)
 Long training years for employees and
researchers
 Uses rare and dangerous substances
(chemotherapy)
 Any manufacturing defect: global consequences.
 Any mistake= whole process lost= extra cost
Opportunities
 COVID-19 = Johnson and Johnson vaccine
 New diseases = new medications
 Consistent customer growth
 Sustainability
Threats
 Increasing competition
 Complex chemistry procedures
 Any small problem consider worldwide problem
 Expensive sector ( high cost)
SWOT Analysis
SWOT Analysis
STRENGTHS
 Worldwide: affiliate of Johnson and Johnson
 Most versatile producer of medical products in the world
 Good reputation, profitable and innovative company
 Strong R&D commitment and productivity
 Stable market share and performance
 High product quality
 Brightest employees and researchers
 Leader in medications for Cancer
SWOT Analysis
WEAKNESSES
 Expensive products
 Research takes several years (long time)
 Long training years for employees and researchers
 Uses rare and dangerous substances (chemotherapy)
 Any manufacturing defect: global consequences.
 Any mistake= whole process lost= extra cost
SWOT Analysis
Opportunities
 COVID-19 = Johnson and Johnson vaccine
 New diseases = new medications
 Consistent customer growth
 Sustainability
SWOT Analysis
Threats
 Increasing competition
 Complex chemistry procedures
 Any small problem consider worldwide problem
 Expensive sector ( high cost)
Operating Budgets
Segment Square Feet (in thousands)
Consumer Health 4,684
Pharmaceutical 5,559
Medical Devices 4,951
Worldwide Total 15,194
The financial statements
The financial statements
Earnings before taxes
Rebates
Pricing
Cost of Products Sold
The intangible asset amortization
expense included in cost of products
sold was $4.7 billion (2020) and $4.5
billion (2019)
Ratios In 2020
A. Liquidity Ratios : Current Ratio (Current Assets / Current
Liabilities) = 51237 / 42493 = 1.206
B. Debt Management Ratios: Debt Ratio = Total Debt / Total
Assets = 111,616 / 174,894 = 0.64
C. Assets utilization / management i.e. Activity Ratios: Total
Assets Turnover = Sales / Total Assets = 82,584 / 174,894 =
0.47
D. Profitability Ratios :
1- Sales: Net Income Margin (NIM) (Net Income / Sales) =
14,714 / 82,584 =0.178
2- Financial Performances: Return on Equity (ROE)= Earning
before Tax / Equity= 16,497 / 63,278 = 0.26
•Prepared by: Group 1A
•Marina Adel
•Esraa Magdy
•Dalia Sobhi
•Norhan Salah
•Yasmin Farouk

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Janssen full analysis.pptx

  • 2. AGENDA  Company Introduction  Org Structure  Vision, Mission, Strategy & Goals  Sustainability & Earthwards approach  Balversa ®  Work Culture  SWOT Analysis  Financial Statements & Ratios.
  • 3. A little Introduction… Johnson & Johnson (J&J) is a leading diversified multinational company founded in 1886. J&J has three business sectors
  • 5. Janssen Org Structure Org structure of Janssen Company is the divisional structure is a type of organizational structure that groups each organizational function into a division, Each division contains all the necessary resources and functions within it to support that product line or geography
  • 9. Cilag Layout & Manufacturing Process
  • 10. Vision: strive to provide access to effective and affordable medicines and related health care services to the people who need them. Mission: make the most fundamental change in the way diseases are managed. Goals: We are building great healthcare solutions that will bring benefits to patients and add value to society and our company’s stakeholders. Developing innovative and integrated products and medicines to restore and extend the quality of life. Strategy: Horizontal integration, growth strategy Developing procurement relationships based on trust. Vision & missiom
  • 11. Sustainability is managing our personal, business and societal impacts to ensure better outcomes for patients and society.  Committed to Clean, Renewable Energy.  Reduced 20% in CO2 emissions by 2020.  Reduced waste volumes by 10% compared to 2010.  Reduced water consumption by 10% compared to 2010.  Product Stewardship Through the Lifecycle: Green Chemistry and Technology Yield Business and Environmental Benefits. Janssen Environmental Sustainability Strategy:
  • 12. The Unique Johnson & Johnson Program That's Helping to Create a More Sustainable World Defines how Johnson & Johnson addresses the environmental and social impacts of their products, and engages development teams in designing innovative and more sustainable solutions across a product’s lifecycle, from formulation and manufacturing, to product use and end-of-life. The Earthwards® approach
  • 13. Surgicel® Absorbable Hemostat a fabric designed to absorb bleeding during surgery, discovered that folding the mesh instead of rolling it saved a whole lot of space during packing. The Earthwards® approach
  • 14. Stelara® At one time, users of Stelara, which treats plaque psoriasis and psoriatic arthritis, received six injections per year. The medication’s new formula has streamlined that number down to four injections per year—leading to a 92% reduction in primary packaging, as well as 90% less material being consumed per patient. The Janssen biopharmaceutical plants that manufacture the drug also get 50% of their power from such renewable sources as solar and wind energy. The Earthwards® approach
  • 15. BALVERSA® (erdafitinib) A prescription medicine used to treat adults with bladder cancer (urothelial cancer) that has spread or cannot be removed by surgery. Researchers have investigated erdafitinib for safety and efficacy in treatment of bile duct cancer, gastric cancer, non- small cell lung cancer, and esophageal cancer. In April 2019, erdafitinib was granted approval by the FDA for treatment of metastatic or locally advanced bladder cancer with an FGFR3 or FGFR2 alteration. Example for Janssen Products:
  • 16. Johnson & Johnson Organization Culture “A Family Company at Work for a Better World” 1- Inclusive environment, Sense of Security & Compensation. 2- Organization Credo, Suggestions & complains. 3- Socialization, Work Life balance. 4- Formal Events 5- Enhancement
  • 17. work culture (According to their career center)  Committed to Caring  Responsible to our communities  Ready to apply our knowledge and know-how  Unique in our background and experiences  The drivers of our own success  Passionate about doing what’s right
  • 18. More than half of the first 14 employees at Johnson & Johnson were women, and we continue to believe that a diverse and inclusive workplace—one where everyone feels they belong—is not only a business imperative but a key driver of our growth today. The world is changing—fast. But we know that by aligning with and serving the needs of our diverse and multicultural stakeholders, from patients to employees, consumers and customers, we can unlock tremendous potential for growth. Diversity
  • 19. Credo Based Company (5 star rating) The company is a credo based company and try to live by it. Politics, compliance and red tape galore (2 star rating) it’s not about being the best candidate but being the person who falls in line easiest. If you have an opinion and are an outspoken individual, you’ll get shunned for it. Reviews on Janssen work culture from Indeed.com
  • 20. STRENGTHS  Worldwide: affiliate of Johnson and Johnson  Most versatile producer of medical products in the world  Good reputation, profitable and innovative company  Strong R&D commitment and productivity  Stable market share and performance  High product quality  Brightest employees and researchers  Leader in medications for Cancer WEAKNESSES  Expensive products  Research takes several years (long time)  Long training years for employees and researchers  Uses rare and dangerous substances (chemotherapy)  Any manufacturing defect: global consequences.  Any mistake= whole process lost= extra cost Opportunities  COVID-19 = Johnson and Johnson vaccine  New diseases = new medications  Consistent customer growth  Sustainability Threats  Increasing competition  Complex chemistry procedures  Any small problem consider worldwide problem  Expensive sector ( high cost) SWOT Analysis
  • 21. SWOT Analysis STRENGTHS  Worldwide: affiliate of Johnson and Johnson  Most versatile producer of medical products in the world  Good reputation, profitable and innovative company  Strong R&D commitment and productivity  Stable market share and performance  High product quality  Brightest employees and researchers  Leader in medications for Cancer
  • 22. SWOT Analysis WEAKNESSES  Expensive products  Research takes several years (long time)  Long training years for employees and researchers  Uses rare and dangerous substances (chemotherapy)  Any manufacturing defect: global consequences.  Any mistake= whole process lost= extra cost
  • 23. SWOT Analysis Opportunities  COVID-19 = Johnson and Johnson vaccine  New diseases = new medications  Consistent customer growth  Sustainability
  • 24. SWOT Analysis Threats  Increasing competition  Complex chemistry procedures  Any small problem consider worldwide problem  Expensive sector ( high cost)
  • 25. Operating Budgets Segment Square Feet (in thousands) Consumer Health 4,684 Pharmaceutical 5,559 Medical Devices 4,951 Worldwide Total 15,194
  • 31. Cost of Products Sold The intangible asset amortization expense included in cost of products sold was $4.7 billion (2020) and $4.5 billion (2019)
  • 32. Ratios In 2020 A. Liquidity Ratios : Current Ratio (Current Assets / Current Liabilities) = 51237 / 42493 = 1.206 B. Debt Management Ratios: Debt Ratio = Total Debt / Total Assets = 111,616 / 174,894 = 0.64 C. Assets utilization / management i.e. Activity Ratios: Total Assets Turnover = Sales / Total Assets = 82,584 / 174,894 = 0.47 D. Profitability Ratios : 1- Sales: Net Income Margin (NIM) (Net Income / Sales) = 14,714 / 82,584 =0.178 2- Financial Performances: Return on Equity (ROE)= Earning before Tax / Equity= 16,497 / 63,278 = 0.26
  • 33. •Prepared by: Group 1A •Marina Adel •Esraa Magdy •Dalia Sobhi •Norhan Salah •Yasmin Farouk