WK2 Impact Of Strategy On Successful Innovation
WK2 Impact of Strategy on Successful Innovation
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WK2 Impact of Strategy on Successful Innovation
Johnson & Johnson
Johnson & Johnson is a US-Based multinational organization which develops medical devices, consumer packaged goods, and pharmaceuticals. The company has been founded by R W Johnson, J W Johnson, and E M Johnson in 1886. The common stock of Johnson & Johnson is constituent of Dow Jones Industrial Average where the company has been ranked on 37 of the Fortune list of 2018. While the company has been listed as the largest corporation in the United States in the particular industry and market due to its total revenue. In terms of value, Johnson & Johnson is considered one of the world’s most valuable corporations.
The corporation (Johnson & Johnson) is headquartered in New Brunswick, New Jersey while the consumer division of Johnson & Johnson is located in Skillman of the region. The corporation operates in 60 different countries around the world and includes 250 subsidiary companies while products of Johnson & Johnson are sold out in more than 175 countries in the world. The recent counted worldwide sales amounted for 70.1 billion dollars (during the calendar year 2015). The large brand range of the corporation includes several household medications names and other first id supplies (Johnson & Johnson, 2019). The most well-known and major products of the company are, Band-Aid, Beauty and Skin Products (Neutrogena), Clean and Clear face wash, and Acuvue Contact Lenses.
J&J is a holding corporation that is engaged in the R&D, production, manufacturing, and sale of products in the field of health care. The company operates in major three segments which are, Pharmaceutical, Consumer Products, and Medical Devices.
Mission/Vision of Johnson & Johnson
The mission and vision statement of Johnson & Johnson corporations states that;
“The fundamental and core objective of Johnson & Johnson is to provide scientifically sound and high-quality products and services to help heal and cure disease and improve the overall quality of life. ”
Additionally, the Credo of Johnson & Johnson states that “We believe our first responsibility is to the patients, doctors, and nurses, to mother and fathers and everyone who uses our products and services. In meeting their needs and expectations, everything we do, us be of high quality.”
Capitalizing on the Value of Business Strategy Process
Johnson & Johnson is the organization that has managed to achieve/accomplish success through capitalizing on the value of the business strategy process in several ways. When it is about strategy formulation, the company has ensured that is performing a detailed and in-depth analysis of the overall business environment. This makes the company able to its major strengths, weaknesses, opportunities, and threats. This entire process add value to the activities regarding strategy formulation like it makes sure that the strategy is formulated/designed are those which assist the company to take advantage of the possible and potential opportunities exist in the environment around the company or corporation. It also helps Johnson & Johnson to minimize the crucial weaknesses and reduce & eliminate all of the possible threats, so that the company would have a competitive advantage in the market and industry for the long run. Hence, it makes the utilization of process of strategy formulation as an initial thing for understanding the business environment and assists the formulators of strategies for the company to develop strategies and tactics which makes the organization able to respond to potential opportunities, weaknesses, and threat in a competitive way (Dyer, et.al, 2017).
Second, when it comes to the process of strategy implementation it utilizes this process to add values to all activities for gaining a competitive advantage over the rival for the long run it ensures that enough resources should provide do the implementation process to make sure that every requirement has been provided and availed. This also helps Johnson & Johnson to have a competitive advantage over the competitors because it helps in enough implementation of business strategies. For instance, the corporation provides each an every resource required for improvement and innovation for the target segments and customers enables the company to continuously expand the market and target segments for the long run (Amit, & Zott, 2012). Beyond that, Johnson & Johnson takes potential advantage of the process by making sure that particular tasks have been assigned to a particular person for a particular purpose of performance enhancement as well as for accountability.
Third, Johnson & Johnson makes use of strategy evaluation process for the purpose to make sure that the company has effective strategies in the place. The company does it through the evaluation that whether several strategies are appropriate to enable in terms of making sure that the corporation gets its mission and core objectives. For example, analyzing the innovative business idea to gain more customers in the market place through the determination that whether the company achieves this particular objective through the utilization of this strategy or it needs to amend the business approach accordingly (Dyer, et.al, 2017).
On the other side, the process of strategy evaluation is used by the company as the fundamental for acceptability through finding out that whether the organization works towards the competitive advantage or changes are needed to be brought. Beyond this, the company uses this method for determination of its strategies by figuring out that whether the company works that enables them to accomplish its mission and vision statement.
There are several approaches and methods or tactics that Johnson & Johnson can use for the purpose to enhance strategic innovation. First, it has been recommended to Johnson & Johnson to invest as much as possible in the research and development to support the process of idea generation and to try several ideas to determine what would these be used to move the organization forward. Investing funds in R&D ensures that several ideas and concepts about probable business or organizational strategies could be used by the company to know and find that are they appropriate and perfect for the company (Amit, & Zott, 2012).
The second recommendation is the company should provide an environment that is highly enabling so that the people would be motivated to give ideas regarding enabling strategic innovation. This can be done through developing a leadership which allows the involvement of employees in the process of decision making (Teece, 2015). Developing such an environment makes employees able to contribute via their creativity and innovative ideas which could be used by the organization to establish strategies that provide competitive advantages in the long run.
Further, it is recommended to Johnson & Johnson to have highly flexible financial arrangements that allow financial managers to implement risky strategies if necessary. Most of the time, highly innovative strategies are mush risky than the less innovative and can be implemented in the case when an organization provides the required financial resources for testing them. Like, developing an application (mobile app) to bring customers close in not a less risky venture. Hence this strategy can be implemented if the Johnson & Johnson wants to provide the required and adequate financing and funding to make sure that it and its feasibility have been tested methodically (Dyer, et.al, 2017).
Data to be leveraged
There are many types of data which can be leveraged by someone in the business strategy. One of the data is the problems or issues to do with the organization’s competitive environment. This data is aimed to provide a competitive edge to Johnson & Johnson in many ways over the rivals in the industry. At the time of strategy development, it will be crucial to leverage associated information with the feasibility of the strategy.
Every company needs to ensure that it develops and designs a strategy that is feasible in terms of enabling the organization to accomplish long term goals and objectives. When considering this information during strategy development, it ensures that only those stra5tegies are developed and implemented which are fully workable. It is also crucial to leverage information about strategy’s suitability in terms of goals that it is planned to accomplish (Dyer, et.al, 2017). This adds in the procedure of developing only those strategies that fit the needs and expectations of the company/organization.
Lastly, this can leverage information on the strategy’s acceptability by the envisioned stakeholders. It includes information regarding whether the tactics and strategy would be opposed by the staff or employees or not, the staff which will be involved in its implementation. As it may have a direct effect on how efficiently the strategy has implemented (Teece, 2015).
Business Strategy and Innovation
Johnson & Johnson can use its business strategy for further innovation in numerous ways. The very first is the implementation of a strategy that supports innovation like staff/employees engagement and encouraging innovation. Second, the management of Johnson & Johnson can utilize the business strategy to do financial analyses and measures which facilitate innovation. Like, providing the funding it employees to try innovative and risky ideas as well as encourage innovation at the workplace (Teece, 2015). As well as they can use the business strategy to enhance innovation among staff members.
Also, the business strategy can be used by Johnson & Johnson to implement technological measures that facilitate innovation. Like, facilitating the concerned employees which could be source for the organization to gain and sustain competitive advantage and/o edge over the competitors in the market industry of operations.
Amit, R., & Zott, C. (2012). Creating value through business model innovation. 2012.
Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2017). Strategic management: Concepts and cases. Wiley Global Education.
Johnson & Johnson. (2019). Homepage - Content Lab - the U.S. Retrieved 11 September 2019, from https://www.jnj.com/
Teece, D. J. (2015). Business models, business strategy and innovation. Long-range planning, 43(2-3), 172-194.
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