Economic Environment Of Business Finaleeee

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Economic Environment Of Business Finaleeee

  1. 1. ECONOMIC ENVIRONMENT OF BUSINESS Submitting To:- Prof. Gitanjali Kapoor
  2. 2. ECONOMIC ENVIRONMENT OF BUSINESS <ul><li>Presented by: </li></ul><ul><li>Hemangi Bhogwal P03 </li></ul><ul><li>Prachi Karnik P15 </li></ul><ul><li>Savita Kundu P18 </li></ul><ul><li>Jyoti Pokhare P28 </li></ul><ul><li>Hemal Shah P33 </li></ul><ul><li>Sneha Sharma P41 </li></ul>
  3. 3. JOHNSON & JOHNSON <ul><li>Founded by Robert Wood Johnson in 1886 </li></ul><ul><li>In 1887 the Company was incorporated as Johnson & Johnson </li></ul><ul><li>Johnson & Johnson went public in 1944 on the New York Stock Exchange. </li></ul>
  4. 4. ABOUT J & J…
  5. 5. &quot;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.&quot;— William C. Weldon, Chairman and CEO
  6. 6. BUSINESS HIGHLIGHTS <ul><li>Strengthened core businesses. </li></ul><ul><li>launched new products. </li></ul><ul><li>Advanced their pipelines in their product. </li></ul>
  7. 7. CURRENT STRATEGIES <ul><li>Cost Leadership </li></ul><ul><li>Cultural fit in foreign markets </li></ul><ul><li>Decentralized management </li></ul>
  8. 8. MERGERS AND AQUISITIONS <ul><li>Life Scan acquired in 1986 for 81 MM with revenues of 22.8 million, 1999 revenue 1 billion </li></ul><ul><li>Clean & clear: acquired in 1991 for $26 MM with reven ues of $15 million, Rev enue approac hing $200MM. </li></ul><ul><li>In 2006, it acquired Pfizer consumer Healthcare. </li></ul>
  9. 9. AWARDS AND RECOGNITION…
  10. 10. Marketing
  11. 11. A DREAM…
  12. 12. Birth of J & J Baby Products…
  13. 14. Objectives of Drug Policy, 1986 <ul><li>Abundant availability of medicines. </li></ul><ul><li>Reducing trade barriers in the pharmaceutical sector. </li></ul><ul><li>Strengthening the system of quality control. </li></ul><ul><li>Encouraging R&D in the pharmaceutical industry. </li></ul><ul><li>Creating an incentive framework. </li></ul>
  14. 15. Changes after 1991 reforms <ul><li>Abolishment of industrial licensing </li></ul><ul><li>FDI increased from 51% to 74% and further to 100%. </li></ul><ul><li>Extension in the life of a patent to 20 years. </li></ul><ul><li>Improving incentives for R&D </li></ul>
  15. 16. Union Budget 2008-09: Impact on pharma sector <ul><li>Rs 16,534 cr Total allocation to the health sector. </li></ul><ul><li>Increase in allocation to the health sector by 15 per cent. </li></ul><ul><li>Customs duty to be reduced from 10 per cent to 5 per cent. </li></ul><ul><li>Excise duty on all goods produced to be reduced from 16% to 8%. </li></ul><ul><li>Excise duty has been fully exempted on anti-AIDS drug. </li></ul>
  16. 17. Impact on sector <ul><li>Excise duty reduction is positive for the sector. </li></ul><ul><li>Weighted deduction of 125 per cent. </li></ul>
  17. 18. FINANCIALS <ul><li>Earning Per Share $ 4.55 </li></ul><ul><li>Sales $ 63.747 Bil </li></ul><ul><li>Profits $ 12.949 Bil </li></ul><ul><li>Assets $ 84.912 Bil </li></ul>
  18. 19. ESTIMATED EARNINGS PER SHARE: <ul><li>In 2009, Avg Estimate is 4.51,High estimate is 4.65, Low Estimate is 4.44 . </li></ul><ul><li>In 2010,Avg Estimate is 4.91,High estimate is 5.14, Low Estimate is 4.77 . </li></ul>
  19. 20. OTHER FORECASTS <ul><li>Dividend Per Share: </li></ul><ul><li>2.03 </li></ul><ul><li>Total Revenue $ Mil </li></ul><ul><li>1.97 </li></ul><ul><li>61,832 </li></ul><ul><li>64.819 </li></ul><ul><li>Net Income $ Mil </li></ul><ul><li>12,539 </li></ul><ul><li>13,551 </li></ul>
  20. 21. Corporate governance <ul><li>Accounting controls </li></ul><ul><li>Independent auditors </li></ul><ul><li>Audit committee of bod </li></ul><ul><li>Business results </li></ul>
  21. 22. Human Resource policy <ul><li>To redefine the standards of leadership within J&J by creating a new credo set of company values. </li></ul><ul><li>The 6 credo values are as follows: </li></ul><ul><li>Integrity </li></ul><ul><li>Dignity and respect </li></ul><ul><li>Apply the credo values </li></ul><ul><li>Use the credo survey </li></ul><ul><li>To manage for the future </li></ul><ul><li>Balance the interests of all constituents </li></ul>
  22. 23. IMPLEMENTATION of CREDO <ul><li>Redefined their management development </li></ul><ul><li>Formal training, </li></ul><ul><li>Sub programs </li></ul><ul><li>Ethics training </li></ul><ul><li>Stretch assignments </li></ul><ul><li>Global coordination and development program </li></ul>
  23. 24. Work environment
  24. 25. Workplace practices <ul><li>Work/life effectiveness </li></ul><ul><li>Advancement of women </li></ul><ul><li>Employee assistance </li></ul><ul><li>Equal employment </li></ul><ul><li>opportunity </li></ul><ul><li>Flexible work arrangements </li></ul>
  25. 26. <ul><li>Affinity groups </li></ul><ul><li>Health management </li></ul><ul><li>Talent management and training </li></ul><ul><li>Safety management </li></ul>
  26. 27. Product Quality & Safety <ul><li>During Production </li></ul><ul><li>After reaching the market place </li></ul>
  27. 28. External environment Competitors
  28. 29. Name of the Competitors Symbol <ul><li>Merck & Co Ltd </li></ul>MRK 2. Novartis A G NVS 3. Procter & Gamble Co PG
  29. 30. Other competitors <ul><li>OTHERS IN THE SAME pool …. </li></ul><ul><li>Glaxo smith kline </li></ul><ul><li>Abbott Laboratories </li></ul><ul><li>Wyeth </li></ul>
  30. 31. Environment policy <ul><li>Operating beyond compliance. </li></ul><ul><li>Integrating Environmental Goals </li></ul><ul><li>Striving For Zero Waste </li></ul><ul><li>Utilizing Innovative Technologies </li></ul><ul><li>Building Relationships </li></ul><ul><li>Enhancing CSR. </li></ul>
  31. 32. <ul><li>Ozone depleting substances. </li></ul><ul><li>Packaging. </li></ul><ul><li>Pharmaceuticals in the environment. </li></ul><ul><li>PVC packaging. </li></ul><ul><li>Water use. </li></ul><ul><li>Waste reduction. </li></ul>
  32. 33. Key Success Factors <ul><li>Ethical practices. </li></ul><ul><li>Growth in developing markets </li></ul><ul><li>Integrate m & A into culture </li></ul><ul><li>Product Innovation. </li></ul>
  33. 34. Future plans <ul><li>Plans to Improve Overall Cost Structure </li></ul><ul><li>Company will also continue to invest in both its growing businesses as well as promising technologies </li></ul><ul><li>The company plans to file applications for seven to ten new compounds between 2008 and the end of 2010. </li></ul>
  34. 35. Bibliography & Webliography <ul><li>Misra S.K. & Puri V.K., Economic Environment of Business. </li></ul><ul><li>www.jnjindia.com </li></ul><ul><li>www.jnj.com </li></ul><ul><li>www.google.com </li></ul>
  35. 36. THANK YOU…

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