Case Study : Johnson And Johnson Essay
Johnson & Johnson comprised 155 autonomous subsidiaries operating in three healthcare markets: consumer product, pharmaceutical products, and professional products. Each operating company is responsible for preparing its own plans and strategies. Johnson and Johnson have no corporate strategic plan; their strategic plan is the sum of the strategic plans of each of the 155 business units. The company is organized on principle of decentralized management. Direct responsibilities of each company lies with its operating management, headed by the president. Roy Black is the president of the Cordis, who directly reports to H.G.Stolzer, who is executive committee member, who reports to David Clair, president of Johnson and Johnson.
1. When does the long range planning start and what input go into planning?
Cordis, Inc. prepares a five and ten year plan annually. Financial estimates are based on four numbers: estimated unit sales volume, estimated sales revenue, estimated net income, and estimated return on investment.
Long range planning starts at manager level, to get manager’s buy-in in the budget. At Cordis annual, five and ten year plan commenced each January and takes approximately six months to complete. The marketing plan included an estimated…