Analysis of Johnson&Johnson Company Website - Essay Example

Johnson and Johnson is composed of different operating companies which function independently from each other. In other words, though Johnson and Johnson is made stronger and unified with their set of values and competitive strategies, each operating business on the other hand is allowed to freely function according to the way they would want to meet customers’ needs, which makes it a highly decentralized company in general. Management responsibilities and Credo values Johnson & Johnson is guided by a set of values that have become its strategic and moral compass from generation to generation.

This is found in their Credo, a management document created by Robert Wood Johnson, chairman from 1932 to 1963. This serves as their guiding philosophy for their entire business to give value to their customers, employees, communities, and stockholders. Not only that, they are guided by the ability to monitor social and scientific trends while ensuring their competitive advantage through short-term and long-term planning and leadership, allowing them to achieve further promising health breakthroughs at present and in the future, without compromising their responsibility for the environment, social, and governance and economic considerations.

Social responsibility Community-based programs are among the social responsibility programs carried out by Johnson and Johnson, which seek to help improve health and well-being through a pure philanthropic effort. These are implemented by supporting mothers and infants during childbirth, support for medical practitioners, and educating communities to help prevent or eradicate diseases. For the environment, Johnson and Johnson tries to set a standard operating procedure for all its operating companies by complying with environmental regulations and reducing the environmental impacts of its operation.

Aside from the above-mentioned programs, Johnson and Johnson is also committed to performing its initiatives and one of them is its program to help moms and their children in the developing world to improve their health. Shareholder satisfaction Capital gains and dividends are normally the things that would be of great importance among shareholders or investors. Higher capital gains or dividends would mean a higher return on investment. Thus, in the case of Johnson and Johnson, its upward spiraling trend of total shareholder return from 2000 to 2010 would mean a financially stable business.

In cases like this, investors would be willing to invest more in the company because this implies at some point higher capital gains or substantially higher dividends. The happiness however of investors depends on their objective, especially their expectation of shareholder return performance of the company. When these expectations are met, then they eventually should be happy about their investment. By simply looking at the graph of the total shareholder return of Johnson and Johnson from 2000 to 2010, one could simply say that this company at some point is eventually making a good profit.