Jhonsan&jhonsan case Study Example | Topics and Well Written Essays - 250 words

Jhonsan&jhonsan - Case Study Example Johnson & Johnson has used the diversification strategy for international expansion and gaining more competitive advantage in the market. It has developed over 200 companies across the globe and deployed 120,000 employees in these companies (Award, 2010). The corporate strategy aims at improving the Johnson & Johnson’s structure through proper organizational design. The design has led to the formulation of a decentralized divisional structure which has encouraged the proper flow of information. It has also enhanced working relationships between activities and functional department. Furthermore, the decentralized divisional structure has allowed different stakeholders with different skills to bring together different technologies and products. This has led to satisfying the unmet needs of customers (Award, 2010). Synergy has assisted the Johnson & Johnson to acquire sustainable competitive advantage. The CEO Weldon has come up with a decentralized divisional structure to foster synergy. He has used the structure in assessing external environment to identify a number of forces. The first one is demographic that determine how population growth have affected demand of Johnson & Johnson’s products not only across New Brunswick, USA, and New Jersey but also in 60 countries in the globe. The second one is socio-cultural factor that examine social issues such as poverty that affect the purchasing power of Johnson & Johnson’s products by the people in the globe (Award, 2010). The third one is technological factor which determines the available healthcare technology such as Cougar Biotechnology and breast implant maker. The next factor is political which examines the requirement that local and national authorities expect Johnson & Johnson to meet in supplying and handling health care products. The last one is economic factors that reveal how currency fluctuates and how it may affect the costs of