As stated in its corporate responsibility section:
Each Johnson & Johnson business unit or facility is required to measure, monitor and report on its environmental performance and evaluate its Environmental Management System for effectiveness (J&J, 2007).
J&J maintains a small central administrative and finance staff at its headquarters, called "the Tower," in East Brunswick, New Jersey. The top members of the Executive Committee are all operating managers -- each has a group President role for about one-fifth of J&J's companies. Each interacts regularly, with their offices next to one another in close proximity. Thus, the key value at J&J is operating excellence, not the ability to play politics.
From an anthropological point-of-view, J&J's "tribe" supports operations, not staff. J&J top management emphasizes the elements of control which matter most to the corporation:
Put control where the operation is: J&J's division Presidents make most of the operating decisions, with the central HQ acting as "referee" and "scorekeeper," not director.
Uses "real time" controls: Despite approval during the budget process, the division must come back to corporate to renew approvals for capital approvals, deviations from business plans, or major hires.
Builds on trust: Like many 'excellent' companies, J&J entrusts its divisional managers with a great deal of operating authority, then monitors the results.
Strong peer norm culture: There is a strong rivalry amongst J&J divisional managers. Part of this is informal -- all are performance-driven. Some is formal -- they compete for resources from corporate in order to support their divisions.
Incentive systems support teamwork: J&J has an incentive system which is strongly based on divisional and group attainment of goals (Snell, 1995).
Drawbacks
J&J's...
Companies such as XYZ Widget Corporation are well situated to take advantage of burgeoning markets in developing nations, particularly in Asia and Africa. 2. XYZ can grow its business by expanding its operations to certain developing nations in ways that profit the company as well as the impoverished regions that are involved, particularly when marketing efforts are coordinated with nongovernmental organizations operating in the region. 3. Several constraints and challenges must
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