Johnson and Johnson: A Leader in the Healthcare Field

4683 words 19 pages
Johnson & Johnson (A)
Philosophy & Culture
Case Analysis

Introduction: Johnson & Johnson (J&J) was founded 121 years ago based on the need for sterile medical supplies to treat patient’s wounds. Post-operative mortality rates were a grim 90% and after attending a seminar on “antisepsis” Robert Wood Johnson, an apothecary, saw this as an opportunity to start a much needed company. With $100,000 in capital and the help of his brothers, James and Edward, they established Johnson & Johnson. Their prospect with J&J was “to manufacture and sell medical, pharmaceutical, surgical and antiseptic specialties and analgesic goods.” Johnson & Johnson quickly became a leader in the healthcare field and by 1910 (when Robert died) the
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Stockholders need to realize a fair return and the company must have a reserve in order to operate through rough times. Rough times for J&J were demonstrated in 1982 when the company experienced the “Tylenol crisis.” The crisis involved capsules in the Chicago area that had been laced with cyanide outside the company. Even though the company was not involved in the contamination of the capsules they took responsibility and removed all Tylenol capsules in the United States enduring a cost of $100 million. In response to this public service the Washington Post stated that “Johnson & Johnson has succeeded in portraying itself to the public as a company willing to do what’s right regardless of cost.” Even though the capsules in the rest of the U.S. market were not contaminated J&J saw the act as a way to keep public faith in the company and its products since the customer is the first responsibility of the company. The summary of the Credo states the company’s mission and vision of the company in terms of its responsibility to the customers, employees, community and stockholders. The company does this by operating in a decentralized organization. The General’s idea of business was that if the company employed sensible people in a small group then problems that occur would be worked out. This is the basis of the start of 150 companies under J&J. J&J is made up of many companies which are


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