The Company Johnson & Johnson came into being way back in 1886 by the company releasing to the market its first product the same year. Over the years, Johnson & Johnson Company has established its brand in nearly 57 countries with approximately 250 company stores. It is considered a leader in healthcare products, medical devices, pharmaceuticals, contact lenses, and diagnostics tools. However, the signature products of Johnson & Johnson are baby care products. The baby care products range from child care, oral care, skincare, and women healthcare. The variation of products and the quality of manufacturing has remained a competitive strength of Johnson & Johnson over the years with a massive impact on the sales and operations of the company. However, to stay competitive and in the lead within its industry, Johnson & Johnson has been forced to make significant and drastic changes in its operations as a way of ensuring that the products and services delivered to its customers meet their needs and is within a price range that is affordable. These drastic changes, however, have also been a cause for some of the economic concerns related to the products the company offers and its ability to deliver on its promises to the customers.
How the Company Johnson & Johnson Recalls Are Handled
Traditionally speaking, Johnson & Johnson is quite successful in handling the case of Tylenol, after which it remained a leader in the market. However, it took Johnson & Johnson around 100 million dollars to accumulate products and to investigate causes (Love et al., 2020). The money for advertising, public relationship & related activities could not be merely calculated in numbers. In 2016 the Company Johnson & Johnson was to answer for nearly 1,200 lawsuits that were brought against the company questioning its talcum product, the baby, and shower powders (Bernon, Bastl, Zhang & Johnson, 2018). The lawsuits were the first of the many that the company has faced since 2016, with the latest lawsuit being that the company adds asbestos in the talcum powder used by many of its customers globally.
These lawsuits against Johnson & Johnson concerning the allegations raise concerns as to the priorities of the company concerning its customers and the priority for the profits earned. Some of the arguments that raise concerns are studies that have linked talcum powder to various health complications. The use of talcum powder has been associated with the development of ovarian cancer. At the same time, the presence of asbestos in the talcum powder has been considered as a trigger for mesothelioma (Chebolu-Subramanian, Kayal, Mathur & Khan, 2019). Upon making a simple comparison with crisis management theory, which includes six stages, it can be revealed that Johnson and Johnson had gone through the last four phases, recognizing, containing, resolving, and profiting from the crisis. The first two stages, avoiding the disaster and preparing for the disaster seemed to be ignored by Johnson & Johnson. The crisis resulted from the external risks deemed to be unavoidable and accepted by most companies, including Johnson & Johnson, when doing business.
Johnson and Johnson had immediately recognized the emergency at whatever point they got the call from the media. At that point, after that, they made a gathering of 7 to distinguish the reasons underneath that mishap. Around then, all the data from Johnson and Johnson is available to the media and open. Healthcare economics remains a broad topic and area of study within the healthcare topic. Evaluating a company individually raises difficulties such as the inability to determine the specific elements of interest that also affects the other sectors of the industry or sector. Another complication is that there is a need to establish an association between the economic issues that a company has had on other institutions, which might not be the case in this study.
The significant impact experienced is on the customers. This is imperative to make the open known the comprehension and preparation of J&J for such a developing case to contain the emergency, making less uncertainty from the clients. At stage 5, the phase of settling the crisis, they lead this phase nearby with step 3. This implies making the issue illuminated quickly and diminished the degree of negative impacts (Chebolu-Subramanian, Kayal, Mathur & Khan, 2019). They settle on the choices to review all the items and recognize which products can contain more toxic substances. J&J additionally helps out the FBI to research the company's manufacturing plant. At stage 6, after the long and faultless responses during the emergency, the organization now re-dispatches the items with publicizing and advancement. It additionally educates about the new bundle that forestalls items to be harmed later on.
What the Company Johnson & Johnson Does To Protect the Brand
Company Johnson & Johnson uses the following five strategies to protect its brand:
Keeping Correspondence Channels Open
The work of the administration is to advertise the company and its products to build up the standard and essential connections between the company and the general public on whom its prosperity or failure depends. An organization must pick up the high compatibility with the media, so enroll their help and even their compassion (Love et al., 2020). This is trouble done because the press frequently slopes to sensationalize, reprimand, and favor one side against the large enterprise. In any case, through corporate receptiveness and participation, Johnson and Johnson picked up the required affinity. Yet, additionally, because it gave the full and legitimate revelation of its inward examination and restorative activities, Johnson and Johnson was given a lot of positive inclusion for their treatment of the emergency.
Taking Speedy, Restorative Activity
At the point when item wellbeing is in jeopardy, a dependable undertaking should make a rapidly remedial move, paying little mind to the expense. For Johnson and Johnson, inside five months of the catastrophe, it had recouped 70% of its piece of the overall industry for the medication, regardless of whether the shortcoming lies with just a detach group of items (Love et al., 2020). The expense was the high one, and the company's share cost was affected, yet Johnson and Johnson were commended for their activities by the Media for their socially dependable businesses.
Keeping Confidence in the Item
After the emergency, a few specialists thought the Tylenol name ought to be surrendered. Yet, Johnson and Johnson, despite everything, kept confidence with its item and brand name since it was not to blame, no culpability, and even no lack of regard (James et al. 2019). Even though it is hard to characterize keeping confidence is an affirmative duty or unmanageable tenacity to look up to any issue and acknowledge any fault, Johnson and Johnson's belief in Tylenol was justified, on the grounds that without it the organization would have gotten no opportunity of reviving the item and its piece of the overall industry.
Protecting the Open Picture at All Expense
Even though the majority of the company's products are outsourced to subsidiary companies or suppliers, Johnson & Johnson ensures these companies follow their operational standards. Having a large number of subsidiary companies and suppliers allows each company to master its production process. Except for the Research and Development companies, the manufacturing process is continuous. This means that the variety of products being manufactured is low, and the volume of products is relatively high.
Aggressively Bringing Back the Brand
At the point when a disaster occurred, the company should move quickly to defend its image by coming up with ways in which it will protect itself from such a calamity in the future. Every progress counts to the success of the business. For Johnson and Johnson, the company made a quick move by opening correspondence channels to help in solving the issue. On the other hand, the company likewise believed in its products and built up the bigger picture once more. At last, Johnson and Johnson recovered fully from the product recalls and continued to be successful.
What the Company Should Do To Prevent a Similar Situation In The Future
Johnson & Johnson could first cooperate with other companies to advise the corporate with new rules. These rules should specify the process of investigating the case on which a product crisis happened. The company should especially have an explicit talk in Media concerning the crisis (James et al. 2019). On the one hand, this will help in informing the public about the truth on the ground. On the other hand, this will help to protect the image of the company. The company can also improve the delivering and consuming process. For example, it should not allow stores to sell the returned products. This kind of product contains high risk involved in them since they may have been opened and poisoned. Instead, those products should be returned to the company to be discarded. In case stores sell these products, they should be responsible for their actions.
Johnson & Johnson Products and Consumer Point of View
During the initial times, the Company Johnson & Johnson was focused on clinical supplies, for example, swathes, sterile stitches, children products, and ladies items that incorporate maternity products with first-aid items. As it stands, Johnson and Johnson is a global biggest dealer of human service products and the eighth-most prominent pharmaceutical organizations around the world (Ergen Keles & Ulengin, 2019). The company was explored by the U.S. Food and Drug Administration (FDA) as their advancement of specific medications by reviewing different items. The Federal and Drug Administration discovered Johnson and Johnson in an advertising case that included 36 states, where the organization inappropriately promoted antipsychotic drugs for as far back as six years.
Johnson & Johnson's manufacturing process has many exciting and unique elements. Johnson & Johnson, a global manufacturing company, is among the world's largest producer of a wide variety of consumer goods. Regional manufacturing hubs can be found in India, Thailand, and China, to name a few. Choosing international locations for product productions is part of Johnson & Johnson's manufacturing process that allows the company "to find new ways to increase productivity and lower production costs while still delivering the highest quality consumer goods." Johnson & Johnson believes that their business practice fosters environments where quality assurance standards are upheld at every level of the production process. Johnson & Johnson also remain conscious of their social responsibility by incorporating modern technology and other steps to decrease negative environmental impact, promote health standards, and workplace safety. Johnson & Johnson's manufacturing process is what allows the company to continue to employ 114, 000 employees at over 250 locations and service over a billion people worldwide each day. Although controversial opinions about the U.S. based company outsourcing much of its work remains ongoing, Johnson & Johnson continues to hold its position as one of the leading manufacturing companies in the industry.
To resolve the quality issue faced by the company, Johnson & Johnson has to make its internal system more robust and flexible. Strategic decisions of the company must add more value and must always be ethical. A company must not always focus on numbers, and leaders must be responsible and m...
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