Johnson & Johnson is a global American company that operates as a pharmaceutical, medical devices and consumer packaged goods manufacturer that serves with its products to over 175 countries worldwide.
It was founded in 1886 by Robert Wood Johnson I, James Wood Johnson and Edward Mead Johnson.
The corporation's headquarters is located in New Brunswick,in the state of New Jersey, USA; and its consumer division is located in Skillman, New Jersey.
It is formed by a group of 118.700 employees (data of 2009), and it is governed by the Chairman, Board of Directors, and Chief Executive Officer of the company William C. Weldon since 2002.
Since the 1900s, the company has been consistent with a steady diversification: In the 1020s they started to addconsumer products and they created a separate division for surgical products in 1941 which soon it became Ethicon, allowing the company to specialize and therefore focus on this area. It also expanded into pharmaceuticals with the purchase of McNeil Laboratories, Cilag, and Janssen Pharmaceutical, and into women's sanitary products and toiletries in the 1970s and 1980s.
During the recent years,Johnson & Johnson has expanded into such diverse areas as biopharmaceuticals, orthopedic devices, and Internet publishing. Recently, Johnson & Johnson has purchased Pfizer’s Consumer Healthcare department.
The company’s structure is based on the principle of Decentralized Management; an executive committee is the principal management group. It is responsible for the operations and allocation ofthe resources; oversees and coordinates the activities of its segments.
The corporation is formed by an estimation of 250 subsidiary companies with operations in over 57 countries. Each subsidiary within the business segments is, with some exceptions, managed by citizens of the country where it is located. Some of these subsidiaries included in the "Johnson & Johnson Family of Companies" are:
• Baby Center, L.L.C.
• Johnson & Johnson, Group of Consumer Companies, Inc.
• Johnson & Johnson Health Care Systems Inc.
• Johnson & Johnson - Merck Consumer Pharmaceuticals Co.
• Johnson & Johnson Pharmaceutical Research & Development, L.L.C.
• Pfizer Consumer
In relation to its business segments, Johnson & Johnson is organized into three business segments:Consumer, Pharmaceutical, and Medical Devices and Diagnostics.
And manufactures and markets a broad range of products used in the fields like: baby and child Care; skin care; oral and wound care; women’s health care; nutritional and over-the-counter; and pharmaceutical products.
J&J is known not only for the quality service & types of products but also for the variety & range of products in all thissix product line.
We must also mention the company’s corporate social responsibility. It is a center of health, environment and justice. It has a pledge to make safe products and it’s also considered an Eco-Friendly Company.
II. Income Statement
As it can be observed, this chart summarizes the firm’s revenues and expenses during the accounting years of 2007, 2008 and 2009,obtaining a Net Income that represents the revenues of the company once all the expenses have been reduced.
In this analysis we will focus on the results for 2009:
Its starts with the account Sales to Customers of $61,897 form which Cost of goods sold are deducted to obtain a Gross Profit. We can see that no Returns on Sales have been made and therefore there is no need to use it.
2009’s GrossProfit accounts $43,450 after costs for business operations have been deducted and results on $1,786 less than the previous year.
We can also see that in 2009 the company did not expend on Purchase in process research and development as it did on the previous year.
This could have been due to the economic recession that the world economy is suffering nowadays.
It also stands out that this...