Economic Environment Of Business FinaleeeePresentation Transcript
ECONOMIC ENVIRONMENT OF BUSINESS Submitting To:- Prof. Gitanjali Kapoor
ECONOMIC ENVIRONMENT OF BUSINESS
Hemangi Bhogwal P03
Prachi Karnik P15
Savita Kundu P18
Jyoti Pokhare P28
Hemal Shah P33
Sneha Sharma P41
JOHNSON & JOHNSON
Founded by Robert Wood Johnson in 1886
In 1887 the Company was incorporated as Johnson & Johnson
Johnson & Johnson went public in 1944 on the New York Stock Exchange.
ABOUT J & J…
"It is essential that we have a culture of value based leaders with integrity and passion to set a vision, to inspire their organizations to align around that vision and to nurture greatness in those around them."— William C. Weldon, Chairman and CEO
Strengthened core businesses.
launched new products.
Advanced their pipelines in their product.
Cultural fit in foreign markets
MERGERS AND AQUISITIONS
Life Scan acquired in 1986 for 81 MM with revenues of 22.8 million, 1999 revenue 1 billion
Clean & clear: acquired in 1991 for $26 MM with reven ues of $15 million, Rev enue approac hing $200MM.
In 2006, it acquired Pfizer consumer Healthcare.
AWARDS AND RECOGNITION…
Birth of J & J Baby Products…
Objectives of Drug Policy, 1986
Abundant availability of medicines.
Reducing trade barriers in the pharmaceutical sector.
Strengthening the system of quality control.
Encouraging R&D in the pharmaceutical industry.
Creating an incentive framework.
Changes after 1991 reforms
Abolishment of industrial licensing
FDI increased from 51% to 74% and further to 100%.
Extension in the life of a patent to 20 years.
Improving incentives for R&D
Union Budget 2008-09: Impact on pharma sector
Rs 16,534 cr Total allocation to the health sector.
Increase in allocation to the health sector by 15 per cent.
Customs duty to be reduced from 10 per cent to 5 per cent.
Excise duty on all goods produced to be reduced from 16% to 8%.
Excise duty has been fully exempted on anti-AIDS drug.
Impact on sector
Excise duty reduction is positive for the sector.
Weighted deduction of 125 per cent.
Earning Per Share $ 4.55
Sales $ 63.747 Bil
Profits $ 12.949 Bil
Assets $ 84.912 Bil
ESTIMATED EARNINGS PER SHARE:
In 2009, Avg Estimate is 4.51,High estimate is 4.65, Low Estimate is 4.44 .
In 2010,Avg Estimate is 4.91,High estimate is 5.14, Low Estimate is 4.77 .
Dividend Per Share:
Total Revenue $ Mil
Net Income $ Mil
Audit committee of bod
Human Resource policy
To redefine the standards of leadership within J&J by creating a new credo set of company values.
The 6 credo values are as follows:
Dignity and respect
Apply the credo values
Use the credo survey
To manage for the future
Balance the interests of all constituents
IMPLEMENTATION of CREDO
Redefined their management development
Global coordination and development program
Advancement of women
Flexible work arrangements
Talent management and training
Product Quality & Safety
After reaching the market place
External environment Competitors
Name of the Competitors Symbol
Merck & Co Ltd
MRK 2. Novartis A G NVS 3. Procter & Gamble Co PG
OTHERS IN THE SAME pool ….
Glaxo smith kline
Operating beyond compliance.
Integrating Environmental Goals
Striving For Zero Waste
Utilizing Innovative Technologies
Ozone depleting substances.
Pharmaceuticals in the environment.
Key Success Factors
Growth in developing markets
Integrate m & A into culture
Plans to Improve Overall Cost Structure
Company will also continue to invest in both its growing businesses as well as promising technologies
The company plans to file applications for seven to ten new compounds between 2008 and the end of 2010.
Bibliography & Webliography
Misra S.K. & Puri V.K., Economic Environment of Business.