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. …show more content…
It looks like all year long the manager and executive team is either preparing for budget or doing revision of the budget. It’s almost impossible to motivate the employees in that kind of pressured environment to meet budget. The company does not have rewards but do evaluate managers based on their budget preparation. First they make 2 year and 5-10 year plan, then they revise their plan every 6 months , in order to revise the budget the manager have to start working on that 3 months prior, so it seems like it never ending process for them. If any little change that is been made in budget, the next year budget and 5-10 year budget get change accordingly.
Strengths of Cordis planning process: Cordis’s planning process involves bottom up budget process, which really compel and motivated the bottom manager’s to get involved in budget preparation and gain knowledge of budget process and market trend. As the case states that, the budget process really gets the juice flowing from all managers. On the other side it also reduces the workload of top management executives in budget preparation. The bottom-line manager is the one, who usually deals with customers and employees at bottom-line so those managers can bring a lot on the table while making