The Decision of Johnson & Johnson Acquires Dabao.

2445 words 10 pages
The decision of Johnson & Johnson Acquires Dabao.
Di Wang
MGT 540 MI004
Professor: Arthur Annechino
20th February 2013

Table of Contents

Executive Summary 3
Introduction 4
The reasons of decision 6
Decision making style 7
The problem in decision making process 8
Recommendations 9
Conclusion 11
Reference 12

Executive Summary This paper is talking about the Johnson & Johnson Acquires Dabao. It starts with review the two companies’ history, and then shows the problem of them before acquiring. Further analysis of Johnson & Johnson’s decision with the problems that in their decision making process and also the decision making style that could be found in the acquisition. At last, give some
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Dabao is undoubtedly the best choice to achieve this strategic goal for Johnson & Johnson. Johnson & Johnson can access to the business development department directly, gain the time advantage in order to avoid time delays in plant construction. Secondly, Reduce a competitor, and directly get its position in the industry. Thirdly, get the use of high energy market forces. The two corporate uniform price policy, earnings higher than the revenue they gained when they were compete with each other. For example, a large number of information resources will be available for disclosure. Such as accounting income data can be used to illustrate the profitability of the enterprise, also can be used to evaluate the changes of industry profitability. The acquisition will bring Johnson & Johnson the efficiency of production and operation, the most obvious performance was to achieved economies of scale to help Johnson &Johnson to improve the control ability of Chinese market. Dabao in the second and third line markets has a strong marketing network and great attraction. Dabao have the mature path in these markets , especially advantage in the wholesale field of the second and third line markets, there will be conducive to the expansion of the Johnson & Johnson products field. Also can filling in gaps for Johnson & Johnson in the field of low-end mass cosmetics