Please do researh ONLINE about J&J to get all the information needed to be able
ID: 362285 • Letter: P
Question
Please do researh ONLINE about J&J to get all the information needed to be able to answer the following questions.
1. What are the problems that Johnson & Johnson have in a corporate governance? Does the CEO take care of his own interests or take care of the company to be successful? Then explain your answer with specifics 3 to 4 sentences
2. Please pick one of these governance technique as follows: ownership concentration, corporate control, executive pay, or board of directors. For Johnson & Johnson that used to reduce corporate governance issue. Then explain your answer with specifics 3 to 4 sentences, why choose that technique.
3. Please pick one of the Johnson & Johnson vertical structure which are flat or tall organization. Then explain your answer with specifics 3 to 4 sentences.
4. Please pick one (only) of these Johnson & Johnson horizontal structure which is: Simple, functional, divisional, multidivisional, network, or matrix structure. Then explain your answer with specifics 3 to 4 sentences
5. Why does “establishing balanced organizational controls” for Johnson & Johnson leaders were very effective in this part?
Explanation / Answer
1.Problems of Johnson and Johnson in corporate governance:
The Food and Drug Administarion department inspected the company in 2010 and reported some manufacturing problems in liquid medications.So all the infannts and chindren bottled products were recalled for check.
Johnson and Johnson have mishandled some four particular products like surgical mesh products.These products were complained by FDA and the company agreed they would not bring the products to shelves
There were some issues regarding the quality of the product so that they lost their market share and the recall cost was very huge for the company
The company pleaded some european docotrs and agreed topay fines for minimizing risks associated with some drugs
The CEO of the company wants the company to successful and competitive in the market so it compromised on quality of the products and its manufacturing terms to lower their cost to company .This has lead to serious governance issues regarding their products to lose their market share.
2. Governance technique:
They used board of directors governance to reduce their issue because they believe that it is the board of directors fundamental responsibility to take care of the critical matters regarding the company
They said there should not be less than twelve directors and atleast one third should be executive and two third should be non executive directors with high professional and intellectual skills
They reduced the issue by electing an senior manager who is responsible for the day to day activities of the company's business and operations
They formed board commitees to check and fulfill the obligations
They also appointed top level manager to monitor the performance of the senior management teanand to offer strategic decisions for the company
These proccesses helped them in reducing their governance issues and improving their product quality and strengthened their manufacturing units
3.Johnson and Johnson vertical structure:
Johnson and johnson follows tall vertical structure because they have various hierarchies for different segments they produce like healthcare,medical and pharmateuticals .
Their products are of wide range and each one is responsible for each activity in manufacturing various products and have presence in many countries so they have different levels of managers to handle various segments
They have 180 operating units so for each operations they form a divisional organization structure for better coordination and control
This tall structure has lead the employess to quote their ideas for innovation and they encourage the employees to grow themselves
4.Horizontal structure:
They follow multidivisional structure as they are organized into several business segments comprised of franchises
As the company went globally they started venturing into various segments like healthcare ,medical and pharmateuticals so the multidivisional structure helped the company to get market share in all segments
Each division is separately chartered and JJ headquarters oversees all their operations
Each division is coordinated by local people in particular country so that they can understand the needs of the customers in that country
By creating division they created a sense of interest and coordination among the employees of various divisions
5.Balanced organization controls:
Organizational controls were balanced by the board of directors and they appointed various executive ,non executive directors,chairman to gain a equal control of the company
These board of directors elected managers for each division to control and monitor each segment so that any issue regarding to that segment can be resolved easily
They also empowered employees ideas and encouraged them to have a balanced structure
By establishing balanced organization control each individual of the company will be responsible for every actions so that their commitment towards the company also increases.so everone are treated equally inside the organization