Hnson & Johnson Case Study
Many businesses have expanded into overseas markets, and now the tendency has became more and more rampant, and, gradually, formed a mature global markets. The "global market" refers to the international trade, and the country 's domestic market is linked to the area of exchanging. Furthermore, the development and the expansion of the world market have eventually turned into the most important content of the world 's economic and historical development, which also increase the level of productivity. The formation of the global market is a great event in the human social and economic history, and plays a catalytic role in enhancing the economic growth and the international relationships in …show more content…
Companies that carry out the multinational strategy are inclined to adopt the decentralized federation organizational system.
Many experts have research on the effects of the MNCs and got some conclusions. Firstly, for the effects on the world economy, MNCs enhance the integration of the world economy and international markets deeply; and also promote and control the development of international trade, and make the contemporary international investment and international trade are related to each other; what is more, MNCs promote international capital flows, optimize the allocation of resources and accelerate globalization of production which help to reduce the competitive …show more content…
In 1886, Johnson with his two brothers in New Jersey worked together to create a whole new career - production of sterile surgical dressings, which led to the birth of Johnson & Johnson. They has kept maintaining a leading position in this area with hiring 14 employees. With the expansion and development of the business, JNJ founded international branches in the Europe, Africa, Asia and Australia at the beginning of the 1920s. Then JNJ keep manufacturing high quality healthy products and promote the healthy development of the world. So far, JNJ rated 123th among the world 500 strong enterprises, and According to the results of the market value index which published by "Fortune" and "Business Week" in 1997, JNJ rated 20th in the world and on the top of list of most admired companies in the world.
Besides, Johnson & Johnson have established more than 250 branches over the world, with about 116000