Organizational Structure And Function Of Johnson Johnson Commerce Essay


Like other multinational companies, Johnson & Johnson had form functional type of structure during its first operation. As the company went into globally and involved in complex products operation, Johnson & Johnson formed a divisional organization structure for better control and coordination. The structure at Johnson & Johnson consists of 180 separate operating units, including McNeil Consumer Products, makers of Tylenol; Ortho Pharmaceuticals, which makes Retin-A and birth control pills; and J & J Consumer Product, the company that brings us Johnson's Baby Shampoo and Band Aids, each division is a separately chartered and Johnson & Johnson Family Headquarters will oversees all the operations.

This decentralized structure of organization allows the employees to develop themselve in the company. It is also helps in innovation which allows the employees use their skills and knowledge effectively to bring together different products and technologies to meet with the customer demands. A good strategy also will be constructed as a feedback to customer and market issues arose in each division. Usually, Johnson & Johnson companies around the world are coordinated by local people in particular country because they can understand the needs in those market and utilize themselves in those market.

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3.2 Marketing in Johnson & Johnson

Marketing department in Johnson & Johnson plays a crucial role in not only promoting its products but also in maintaining its brand name. Johnson & Johnson has emphazised four marketing mix as the following:


Basically, Johnson & Johnson has three main products categories including Pharmaticeutical, Medical Device & Diagnostic, and Consumer Healthcare. Some of the products are Feminine hygiene, Denture care, First aid, Family planning, Nutritionals, Diabetes care, Allergy cold and flu treatment, and Women's Health.


Johnson & Johson attempt to keep their net price increases for healthcare products within the consumer price index in United Stated. Consequently, the company has cooperated with the goverment to develop differential pricing approach so that people are helped to access their medical products.


Johnson & Johnson product can be found in wholesale companies like Over the Counter, WUZ Group, and Its products can also be bought in retail outlet.


Johnson & Johnson has engaged in advertising campaigns which encourage healthy lifestyles. For example: The Campaign for Nursing's Future, Having a Baby Changes Things, and Because We Care We Act (China).

Marketing Process

Johnson and Johnson seek in approaching new products innovation and sometimes whole new businesses. Their goal is to capitalize on scientific invention, marketing insight and manufacturing expertise easily across the full range their businesses.

3.3 Management and Human Resource policies and approaches in Johnson & Johnson

Human Resource Management plays a unique role in attracting workers and maintaining the employees in a well-manner in the company. Johnson & Johnson has approximately 115 000 employees around the world. Healthy and mental well being employees have become its policies in the company. Johnson & Johnson has offered flexible work arrangements over the years. Johnson & Johnson believes that flexibility is important to attract many talented employees to work and being loyal with the company, so that it will benefited the company as well as the worker could balance their work and life. Flexible arrangements include flextime hours, telecommuting, remote work, occasional flexibility, a compressed work week, summer hours, and part-time work or job sharing. Johnson & Johnson also believes that it is important for the company to be succeeded by attracting, developing, and retaining a base of employees that reflects the diversity of its customers.

Furthermore, Johnson & Johnson has implement its philosophy which is known as 'Credo' as a guidance in its business. A Credo (appendix 2) is a set of values that have provided a strategic and moral scope for Johnson & Johnson generation of leaders and employees. Johnson & Johnson has also providing variety of programs for its employees such as Employee Assistant Program which designed to give employees access counseling, assessment, intervention and training.

3.4 IT and Information System in Johnson & Johnson

IT and information system helps in facilitating the operation of Johnson & Johnson. The development of IT has brought the organization to operate more efficient and effective. Johnson & Johnson was known for having registered many high profiles domain. Johnson & Johnson has established Corporate Office of Science and Technology (COSAT) which enable people or innovators to share their ideas with the company, seeks out scientific breakthroughs and explore the technologies. The ideas then will be identified and the incorporation of those technologies will be facilitated into Johnson & Johnson Family of Companies.

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4. Conclusion

After through the facts in this report, it can be seen that a good structure in organization is the fundamental to the well-operates of Johnson & Johnson. The human resource management and marketing department also contribute to the success of the organization. It is look into how these departments manage their resources and their approaches to attain the organizational goals and objectives. Besides that, the utilization on the recent technology by the organization is the added value to enhance the operation and put the organization in the competitive position.