3 - Wealth creation by Johnson & Johnson

Abstract

The family of companies under Johnson & Johnson (J&J) is engaged globally in research and development, manufacture, and sale of a wide range of products in the health care sector. J&J has more than 250 companies located in 60 countries around the world. The J&J Family of Companies is organized into several business segments comprised of franchises and therapeutic categories. J&J is divided into three business segments-pharmaceutical, medical devices, and consumer segments. On account of patent expiry, the company adopted a strategic refocus on five therapeutics areas of immunology, oncology, cardiovascular and metabolism, neuroscience, and infectious diseases. These therapeutic areas have strategic focus on discovery, research, early development, late development, and life cycle management. The strategy of the medical division is to direct resources towards the highest patient value opportunities for R&D. In the consumer segment, R&D initiatives focuses on critical need areas in the over the counter (OTC) medicines as well as oral care, baby and skin care markets. The company had entered into 100 strategic partnerships, licenses, and acquisitions in pharmaceutical, medical devices, and consumer segments. The three main strategic pillars of sustainability adopted by J&J are advancing human health and well-being, stewarding healthy environment, and leading a dynamic and growing business responsibly. J&J have been targeting health education programs in targeted communities around the world. The credo principles of J&J define the responsibilities of the company toward patients, consumers, employees, and the communities. J&J is one of the three industrial companies to hold AAA ratings.