Johnson & Johnson

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Case 15: Johnson & Johnson Case Summary Johnson & Johnson announced the $1.1 billion acquisition of Mentor Corporation, a leading supplier of medical products for the global aesthetic market. The company is the pioneered who get into the cosmetic medicine market with the launch of its injectable wrinkle-filler Evolence. The company used acquisition as a strategy to grow. The biggest acquisition was the bought of Pfizer, the consumer health unit for $16.6 billion. According to company’s CEO, William C.Weldon it is getting much harder for J&J to spot smaller firms with promising drugs and to avoid running up against other firms that want to make the same kinds of deals. Besides acquisition, Weldon believes that to accelerate top-and-bottom line growth, the company should increase the collaboration between its different units. New product can be developed by combining its strengths across pharmaceutical products, medical devices, and consumer products. The company had facing for the first time decline in revenue due to expiration of patents on some of its best selling drugs and by the growth of competition from generic drugs. This had urged the company to find new avenues for growth. The success of J&J over the years has been based on relative autonomy and independence that it has accorded its various business units. Any collaboration must not threaten the strong entrepreneurial spirit that has been fostered through the firm’s reliance on this type of organization. Fostering Entrepreneurship J&J has relied heavily on acquisition. The firm has spent nearly $50 billion on 70 different purchases and in 2008, the company move into the area of wellness and protection by focusing on creating systems to foster and monitor healthy behavior among employees. As it has grown, J&J has developed into an astonishingly complex enterprise, made up of

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