Johnson & Johnson

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Johnson & Johnson

Introduction

Johnson & Johnson is the second most biggest and widely spread manufacturer of health care products. The company has an integral share of the consumer and pharmaceutical markets, and is the biggest developer and producer of medical treatment and diagnostic devices around the globe.

Discussion

Their Business Model and Supply Chain Strategy

The business model that Johnson & Johnson follows since many years is a business development model. For developing their business, they look out for assets in terms of people who will develop and enhance their business. The core strategy of the company was to make antiseptic surgical procedures easier. After several targeted acquisitions and research over the next century, Johnson & Johnson progressively expanded its business to include pharmaceutical, medical devices, and consumer packaged goods.

Their supply chain strategy relies on to diminish their impact on the environment, which they do through their own value chain, by reducing their own path to sustain its external manufacturers and suppliers to do the same. No matter they do not have a direct control over their external supply chain, but still they are devoted to make sure that the operations conducted are persistent to their values.

The company takes responsibility for the environmental and social impacts of its products through product design and development, which then moves on to sourcing, manufacturing and then finally delivering our products to our customers. The company aims to focus on encouraging sustainability via their supply chain.

With about an annual expenditure of almost $30 billion, the company gets an opportunity to influence our purchasing power to set expectations of sustainability above its own operations. The Procurement Sustainability Initiative that was developed in 2008 worked for its procurement processes with our maintenance efforts and offers supervision for Johnson & Johnson operating company managers.

Being ...