STRATEGIC MANAGEMENT

NAME: Senwelo pearl Kemoitse

STUDENT NUMBER:100345740

MODULE CODE:6BE501

MODULE LEADER: Vurayai Vurayai

CONTENTS PAGE

• INTRODUCTION

• BACKGROUND

• STRATEGIC DECISIONS & MANAGEMENT

• NON STRATEGIC DECISIONS

• RISK AND RISK MANAGEMENT

• RECOMMENDATIONS

• REFERENCES

INTRODUCTION

• This case is about critically analyzing strategic

decisions and non-strategic decisions on a

functional, business and corporate level,

evaluation of the risk.

Johnson: vision and mission

•Vision: Trusted to enrich the health and wellness of every person every day.

Mission: the fastest growing consumer

healthcare company.

BACKGROUND

• Johnson and Johnson was established in 1886 by Robert wood Johnson.

• Located in new Jersey ,United States of America.

• Consumer, Pharmaceutical and Medical Devices.

• The company is transnational because of its home base asset and operates

in different continents with its headquarters at the country of origin

(Whiting, 2003).

STRATEGIC DECISIONS & MANAGEMENT

• Strategic decision: Hamel & Media (2015) strategic decision

making is the procedure of creating a company’s mission and

intentions, whilst deciding upon the act a company should

follow to attain the goals.

CONTI…

Strategic Management: Freeman (2010) defines it as the organized exploration of the issues that are related with consumers, entrants and organizations to give basis of optimum practices.

STRATEGIC DECISIONS PESTEL

• Environmental issues-They continue with the legacy of care for the

environment and protection of natural resources.

POWER OF SUPPLIERS

• Supply chain management-delivering is reliable and validity at the lowest

conceivable fee, whilst supporting inventive growth of the company.

CONTI..

PRODUCT LIFE CYCLE

• New product-Example “Band-Aid adhesive bandages use quiltivent

technology, which promotes breathability a feature consumers have

said they want-and enables the wick away blood, leaving the wound

clean (Johnson and Johnson, 2011).

NON STRATEGIC DECISIONSAn operational strategy or non strategy is a necessary element for a business and supports the firm's corporate

strategy (Business, 2015).

TRAINING AND DEVELOPMENT

DeNisi (2000) holds that performance management refers to the range of activities engaged in by an organization to

enhance the performance of a target person or group, with the ultimate purpose of improving organizational

effectiveness.

• e.g. Johnson & Johnson and its operating companies provide on-the-job EHS training, including extensive,

globally accessible training and development at the individual, team, organizational and leadership levels (Johnson

And Johnson, 2013).

Advertising

RISK AND RISK MANAGEMENT

Conrow (2003:435) indicates risk as a “potential problem to be

avoided if there is a possibility of reduction, it may be an

indefinite experience or condition that if take place has a

affirmative or undesirable consequence on the project’s

objective.

Cont..

• Risk management as “the act or the preparation of dealing

with risk, includes design, evaluating, rising, conduct and

monitoring risks to regulate how risks have transformed in

verifying overall management platform (Conrow, 2003:22).

RISK examples..

• Medication kills consumers-“In 1982, Johnson & Johnson's

Tylenol medication killed 7 people with an infection.

• Climate change-extreme weather event, such as a hurricane

or flood, causing closing of a manufacturing facility,

disruption in the supply chain or loss of product inventory”.

THE DIFFERENCE BETWEEN RISK AVERSE AND AWARE.

• Crickette et al. (2012) articulates risk appetite as more strategic to

the business model whilst risk tolerance is more operational and

relates primarily to the companies targets.

RECOMMENDATIONS

• To manage risks use strategies of cooperation that is cost

reduction (value in negotiating and identification of business

opportunities as they emerge) and opportunity maximization

(negotiating ad monitoring of developments).

REFERENCES Available at: [online] http://www.reuters.com/finance/stocks/companyProfile?symbol=JNJ.N (13/10/2015).

Cornrow, E., H (2003) Effective risk management some keys to success.2nd edn. Virginia: American institution of

Aeronautics and Astronautics Inc.

DeNisi, A.S. (2000). Performance appraisal and performance management: A multi-Level analysis. In K.J. Klein & S.

Kozlowski (Eds.), multilevel theory, research and methods in organizations (pp. 121 – 156). San Francisco: Jossey-Bass.

Lynch, R. (2015) strategic management.7th edn. United kingdom: Pearson education limited.

Makos J. (2011) Environmental analysis, [online] Available at: http://www.pestleanalysis.com/pestle-analysis-business-

environmental-analysis/html (20/11/2015).

Narvaez K. (2015) risk appetite and risk tolerance, [online] Available at: http://www.erm-strategies.com/blog/.../Risk-

Appetite-and-Risk-Tolerance.pdf (17/11/2015).

Papadakis, V., Barwise, P. (1997) Strategic decisions .United States of America: Kluwer Academic Publishers.

Conti..

Pride, M.W., Ferrell, and O.C (2012) Marketing: strategies.16th edn. Ohio: Cengage learning.

Pride, W,.M. , Hughes, J.,R, Kapoor, R., J (2012)Introduction to business. 11th edn.United Kingdom: Cengage Learning.

Reid, R.D.,Sanders, N,. R (2005)Operations Management.2nd edn. Wiley publications.

Stevens, J. (1989), Integrating the supply chain, International Journal of Physical Distribution and Materials Management,

Vol. 19 No. 8, pp. 3-8.

Wigel, S. ,Mike, L. (2002) Operations Management. USA: Prentice Hall.

“caring for the world one person at a time”(Johnson and Johnson, 2014).

Thank you!