Critically analyse Johnson and Johnson’s current corporate strategy


A small introduction is required not regarding the company but the reason for the essay.

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The paper needs to have a strong critical view.

The information comes from the materials 1 and materials 2 documents. When referring to these in the essay it needs to be referenced.

The documents attached labelled weeks 17-20 are where the concepts are to be used and applied to the case study.

The essay needs to adhere to the following outcomes:

apply corporate-strategy theories and frameworks to inform your understanding of the wider process of strategy

examine the challenges, risks and ambiguities of making strategic choices at the corporate level
critically apply conceptual knowledge on corporate strategy to inform its development in different situations and contexts

argue coherently and justify a point of view using appropriate information and theoretical concepts on corporate strategy as part of the broader approach to strategic management

engage appropriately with quantitative and qualitative data to inform the understanding and application of corporate strategy

effectively communicate the strategic options chosen at the corporate level

be aware of the ethical aspects involved in corporate strategy decision making.

You should start your answer by identifying the strategic choices that the company has made across the years. Think about the following questions:

Is the company diversified? Is it a multinational? Is it vertically integrated? Are there any instances of horizontal integration? When talking about the vertical integration is it full integration, backward or forwards. What are the risks? What are the benefits?

What is the vertical scope of Johnson and Johnson?

How has the company grown? Week 17 4.1 summarises the main methods that companies can use to grow: organic development, M&As and alliances. Week 20 provides additional information about entry mode choices in foreign markets. Are there any failed M&As? what are their motives?

Afterwards, you should focus on the strategic choices that are more relevant for the discussion of the case. You may address questions such as the ones below. Focus on the questions that are relevant to the case.

How does Johnson et al.’s (2011) buy, ally, or DIY matrix (see Week 17 Section 4.1) apply to this case? Please include an adapted diagram.

If you have identified any instances of vertical or horizontal integration, what do you think their drivers were? Can you think of any potential benefits and downsides the company might have faced while pursuing the type of integration(s) that you have identified? You can refer to Week 18 to revise vertical integration.

How would you define the company’s business portfolio? If you have identified any instances of product diversification, what do you think their drivers were? Were the new businesses/industries related or unrelated? Can you think of any potential benefits and downsides they might have faced? Refer to Week 19 for the topics related to product diversification

Why do you think the company ventured abroad? What can you say about the foreign locations that they chose and their speed of internationalisation? Which strategic approach to competing internationally do they use? Can you think of any potential benefits and downsides they might have faced while competing in more than one location?

Do you think that corporate political activity (CPA) was important in their expansion to new countries?

A good answer to this question will be well-structured and demonstrate evidence of 1) critical thinking; 2) understanding of the chosen theoretical concepts; and 3) ability to apply these concepts to the case.

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