While, it is ensuring that every division has the tools to communicate with other departments and managers. Over the course of time, this allows executives to have high degrees of transparency and freedom to improve the operations of specific segments. This is when the cost structure will decrease and the underlying rates of productivity will rise. ("Pathways to Patients," 2012) (Stevenson, 2012, pp. 663 -- 698)
Evidence of this can be seen with comments from Ajit Shetty (Corporate Vice President for Johnson & Johnson Supply Chain) who said, "Our supply chain organization is a large part of who we are as a company and plays a vital role in our ability to meet the needs of our customers. We have deployed a new supply chain operating model that will enable growth, drive quality and compliance, and help us run more efficiently so we can more effectively serve patients and consumers worldwide. Ultimately, this new approach to the supply chain will improve the experience our customers have when doing business with Johnson & Johnson companies while generating incremental value for our businesses." ("Pathways to Patients," 2012) This is significant in illustrating how the current approach being used by Johnson and Johnson is increasing the underlying levels of: growth, productivity and profit margins. In the future, this helps the firm to adjust to the challenges that they are facing inside the marketplace. (Stevenson, 2012, pp. 663 -- 698)
This is allowing the company to address the needs of customers more effectively. One of the biggest challenges facing most firms, is they can become too successful. This is problematic, as it will often lead to less focus on the needs of the customer (i.e. waiting in lines). Once this happens, is when many individuals will often complain about how the company has poor quality control surrounding the products and services that it is delivering. (Stevenson, 2012, pp. 800-831) ("Zoomerang," 2012)
In the case of Johnson and Johnson, the firm has been seeking to understand the thoughts of the customer by working with employees. The way that this will occur is through Human Resources conducting an anonymous survey of employees to understand what issues need to be...
At the same time, there is a focus on how the company can make adjustments to meet the demands of customers. Since employees are interacting with them on a regular basis, is when they can help to identify new products and services to meet these changing demands. This is accomplished by Johnson & Johnson valuing the employee's opinions and providing enough benefits / compensation that will address all of their needs. Once this takes place, is the point that an employee will feel like their ideas are respected and will share these views with others they are working with. In the future, this helps managers to identify and create strategies to meet customer demands. ("Zoomerang," 2012) This is important, as it will allow Johnson & Johnson to receive more out of their employees. Over the course of time, this will increase the operational performance of the organization. This is the point that the firm will be able to continually maximize their profit margins by addressing these issues. (Stevenson, 2012, pp. 800 -- 831)
Conclusion
Clearly, the tools that Johnson and Johnson had been using are giving them a strategic advantage. These include: simplifying / customizing supply chain management and providing superior customer service (i.e. waiting in lines). The combination of these factors has helped the firm to be able to maintain their market share and image among customers. In many ways, one could argue that this is what has allowed the firm to remain so successful.
References
Company Overview. (2012). JNJ. Retrieved from: http://www.investor.jnj.com/company-overview.cfm
Inside Johnson and Johnson's. (2011). Technology Review. Retrieved from:
http://www.technologyreview.com/business/39217/
Our Management Approach. (2012). JNJ. Retrieved from:
http://www.jnj.com/connect/about-jnj/management-approach/
Pathways to Patients. (2012). JNJ. Retrieved from: http://www.investor.jnj.com/2010annualreport/supply/index.html
Zoomerang. (2012). Zoomerang. Retrieved from: http://www.zoomerang.com/success-stories-jj/
Stevenson, W.J. (2012). Operations management. New York, NY: Irwin McGraw-Hill.
