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ORGANIZATIONAL ANALYSIS OF J&J Table of Contents Table of Contents ......................................................................................................................................... 2 Executive Summary ..................................................................................................................................... 4 Organizational Overview ............................................................................................................................. 5 Organizational Strategy ............................................................................................................................... 7 Mission, Vission, and Values .................................................................................................................... 7 Miles and Snow Typology ........................................................................................................................ 8 1

ORGANIZATIONAL ANALYSIS OF J&J Porter's Competitive Strategies ............................................................................................................. 10 Goals and Objectives ............................................................................................................................. 11 Organizational Structure, Design, and Effectiveness .................................................................................. 12 External Environment ................................................................................................................................ 15 Industry Sector ...................................................................................................................................... 15 Raw Materials Sector ............................................................................................................................ 16 Human Resources Sector ....................................................................................................................... 17 Financial Resources Sector .................................................................................................................... 18 Market Sector ........................................................................................................................................ 19 Technology Sector ................................................................................................................................. 20 Economic Sector .................................................................................................................................... 21 Government Sector ............................................................................................................................... 22 Sociocultural Sector ............................................................................................................................... 23 International Sector ............................................................................................................................... 24 Internal Environment ................................................................................................................................. 25 Management ......................................................................................................................................... 25 Marketing .............................................................................................................................................. 27 Production/Operation ........................................................................................................................... 28 Finance/Accounting ............................................................................................................................... 29 Research & Development ...................................................................................................................... 31 Organizational Design for an International Environment ........................................................................... 34 Products and Services ................................................................................................................................ 36 Information Technology & Control Systems ............................................................................................... 38 Organizational Size, Life Cycle, and Possible Decline ................................................................................. 41 Organization Size ................................................................................................................................... 41 Life Cycle ............................................................................................................................................... 42 Entrepreneurial stage ........................................................................................................................ 42 Collectivity stage ............................................................................................................................... 42 2

ORGANIZATIONAL ANALYSIS OF J&J they have also produced consumer items that improve the overall health and well-being of a large number of individuals. In addition to its financial endeavors, J&J's significant influence stems from its dedication to a guiding principle that prioritizes the welfare of patients, healthcare professionals, employees, communities, and shareholders as fundamental values. This ethos has firmly established the company's standing as a prominent ethical authority within a sector that holds significant importance for the well-being of humanity. This extensive examination is inspired by a primary objective: to explore the numerous facets of Johnson & Johnson. The aim is to thoroughly examine the organization's structural complexities, operational intricacy, adaptation to external factors, internal dynamics, decision- making mechanisms, and conflict resolution procedures. Through this process, the analysis aims to uncover both the positive aspects and obstacles that characterize J&J's present position and to reveal strategic suggestions that can accurately guide its future trajectory. This research is an intellectual endeavor and a pragmatic resource to guide the company's trajectory in a swiftly changing healthcare environment. Johnson & Johnson's expansive worldwide presence and strategic expansion into the pharmaceuticals, medical devices, and consumer health sectors are the foundation for its operational durability. 4 Implementing this diversification approach has facilitated J&J in effectively navigating market volatility and sustaining a robust global market presence. The commitment demonstrated by the company leads to the development of a strong and advanced portfolio of healthcare goods and therapies, thereby solidifying its standing as a leader in the field. Johnson & Johnson's decentralized organizational structure grants autonomy to local entities, allowing the corporation to cater to various healthcare requirements in various geographical areas effectively. J&J's utilization of data analysis in supply chain management and crisis response highlights the company's adeptness in making data-based decisions. Johnson & Johnson demonstrates exceptional resilience in navigating internal and external issues effectively. 5 The resilience demonstrated by the organization is strengthened by its dedication to fostering open communication and an unwavering will to achieve settlements that are advantageous to all parties involved. As a result, J&J has emerged as a prominent figure in conflict management within the healthcare sector. Johnson & Johnson should prioritize the integration of advanced data analysis and implementing emerging technologies such as artificial intelligence (AI) and the Internet of Things (IoT). An increased emphasis on sustainable practices and strengthening corporate social responsibility activities can augment J&J's public perception as a responsible corporate organization. In light of the inherent instability observed in the global market, J&J should prioritize enhancing its supply chain resilience and diversification efforts. It is paramount to 4 Johnson & Johnson our history.(2023). Reveived from: https://ourstory.jnj.com/our-beginning#experience-our-beginning-ch-1- 3 5 Johnson & Johnson our history.(2023). Reveived from: https://ourstory.jnj.com/our-beginning#experience-our- beginning-ch-1-3 4

ORGANIZATIONAL ANALYSIS OF J&J actively engage with regulatory authorities and consistently comply with new standards to navigate the intricate healthcare regulatory environment effectively. Recent global health crises have underscored the significance of crisis management and response techniques. Johnson & Johnson (J&J) should emphasize improving its crisis preparedness procedures to effectively respond to unexpected difficulties, thereby protecting its operations and image. Organizational Overview Johnson & Johnson (J&J) was established in 1886 and emerged as a tangible manifestation of a visionary idea. The company was founded by three brothers, Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson, who identified a potential to transform the provision of medical services within the healthcare industry. The organization was established during a period characterized by a high prevalence of post-surgical infections, frequently resulting in fatalities due to unsterile settings. Johnson & Johnson proposed a pioneering concept involving the utilization of sterile surgical coverings to address the challenges eminent in the healthcare sector. This undertaking transcended commercial interests since it aimed to address a substantial health issue. This unique methodology addressed an existing market gap, facilitated the implementation of more secure surgical techniques, and preserved numerous lives. With time, Johnson & Johnson broadened its scope by expanding its portfolio of products and venturing into domains previously unexplored by other healthcare providers. The ability to adapt was a fundamental factor that contributed to the sustained expansion of J&J. Since the 1890s, J&J has demonstrated a persistent ability to foresee medical needs and offer new solutions, such as the creation of first aid kits, pioneering dental floss, and developing maternity kits to enhance the safety of childbirth. 6 During the 20th century, Johnson & Johnson successfully established and strengthened its presence on a global scale. The company expanded its operations into the pharmaceutical industry, leveraging advancements in technology and research approaches to develop and manufacture critical medications and cures with the potential to save lives. The company's dedication to tackling global health issues positioned it as a leader amid numerous health emergencies. For instance, the company was crucial in combating tuberculosis in the early 1900s. It also contributed to the manufacturing of vital medications during World War II. J&J has seen a remarkable evolution from its humble beginnings in a tiny hamlet, emerging as a prominent global force in the healthcare industry. The trajectory of its progression, marked by a multitude of groundbreaking advancements, strategic acquisitions, and pioneering problem- solving approaches, exemplifies a longstanding commitment to improving human health. Johnson & Johnson (J&J) emerges as a substantial enterprise, distinguished by its considerable magnitude and diverse involvement in health across multiple domains. The 6 Patel, Rikin, Mohamad Kaki, Venkat S. Potluri, Payal Kahar, and Deepesh Khanna. (2022, Dec 21). "A comprehensive review of SARS-CoV-2 vaccines: Pfizer, moderna & Johnson & Johnson." Human Vaccines & Immunotherapeutics. 5

ORGANIZATIONAL ANALYSIS OF J&J that greatly values its extensive pool of skilled personnel. The firm exhibits a prominent presence, with a substantial workforce of over 136,000 employees globally. The workforce of J&J is distributed throughout many functional areas, such as research and development, manufacturing, sales, marketing, and administration. This broad composition of employees shows J&J's inclusive and extensive operational activities. Organizational Strategy Mission, Vision, and Values An organization's mission, vision, and values are integral components that define its identity. These elements offer guidance and are the foundation for the underlying principles influencing every organizational decision. The mission statement often delineates the company's underlying goals. In contrast, the vision statement delineates the organization's future state as a strategic guide. Organizational values are fundamental principles that guide conduct and ensure that actions align with a well-defined moral and ethical framework. Johnson & Johnson's mission statement illustrates a testament to its enduring commitment to the healthcare sector. The mission states, "Bringing science and sense of sight to life through world-class innovation and customer experience." 9 This mission surpasses simple verbal expressions, exemplifying the company's commitment to effecting profound changes in the lives of countless individuals. Johnson & Johnson's (J&J) efforts to enhance the quality of life for consumers by offering an extensive array of items, from baby and oral care to innovative medical gadgets utilized in orthopedics and surgery. The emphasis on health and well-being highlights the company's sincere aspiration to lead health-oriented innovation, dedicating significant efforts, expertise, and resources to improving health outcomes. Johnson & Johnson's vision statement is; "To help people see better, connect better, live better," is an articulate reflection of its comprehensive aspiration for humanity. 10 The vision is imbued with significance that encapsulates the organization's perspective on health and wellness. The phrase "To help people see better" illustrates the promotion of ocular health and symbolizes the company's dedication to enhancing the quality of life, expanding knowledge and perspectives, and assisting individuals in identifying prospects and capabilities. This statement signifies a commitment to overcoming obstacles and eliminating obstacles obstructing clear perception, whether through medical interventions or the diverse range of products and solutions it provides. 11 The expression "enhance interpersonal connections" explores well-being's emotional and psychological dimensions. Johnson & Johnson (J&J) prioritizes promoting 9 Business Strategy Hub. (2023). Johnson & Johnson Mission Statement| Vision| Core Values| Analysis 2023. Retrieved from: https://bstrategyhub.com/johnson-johnson-mission-statement-vision-core-values-analysis/ 10 Johnson & Johnson MedTech. (n.d.) Retrived from: https://www.jjvision.com/about-us 11 Lindsley, Craig W. (2018). "New 2017 data and statistics for pharmaceutical products." ACS Chemical Neuroscience. 7

ORGANIZATIONAL ANALYSIS OF J&J physical well-being and cultivating emotional connections, comprehension, and empathy. This approach aims to facilitate stronger social cohesion and improve mutual understanding among individuals. Additionally, the phrase "live better" effectively encapsulates the comprehensive nature of J&J's overarching purpose. This statement is a comprehensive appeal to enhance the general living standard, enabling each person to experience a satisfying existence. This aspect of the organization's vision acknowledges that life extends beyond survival or the absence of illness. It encompasses flourishing, experiencing happiness, and attaining a sense of meaning and satisfaction. At the foundation of Johnson & Johnson's corporate philosophy lies its Credo, a collection of core values that offer guidance and meaning to all undertakings carried out by the company. The values that stand out are "Giving" and "Sustainability." The Johnson & Johnson Corporate Contributions Report emphasizes several activities that exemplify the importance of philanthropy. These efforts aim to enhance and preserve the well-being of individuals, particularly women, and children, by strengthening the healthcare workforce and mitigating diseases within marginalized communities. In contrast, "Sustainability" exemplifies J&J's overarching dedication to the environment and society. The company's efforts in resource conservation, addressing global healthcare concerns, and undertaking socially beneficial business activities demonstrate its dedication to promoting a more sustainable and healthier future. These core values are the foundation for the company's business goals and highlight its broader responsibility as a global corporate entity. Miles and Snow Typology The Miles and Snow typology is a widely recognized strategic framework that classifies firms into four distinct categories according to their reactions to changes in the external environment and their approaches to innovation. The classification includes the categories of Prospector, Defender, Analyzer, and Reactor, providing valuable insights into organizations' strategic orientation and accompanying behaviors within competitive markets. Prospectors exhibit a proactive approach in actively searching for novel business prospects. These organizations serve as pioneers, consistently embarking on ventures in unfamiliar domains, launching novel products, and investigating inventive market sectors. 12 In contrast, defenders are entities who diligently protect their established market territories. The company significantly emphasizes optimizing operational efficiency and maintains a strategic approach that prioritizes staying within the boundaries of its core business activities. Analyzers achieve a balanced ground by incorporating elements from the techniques utilized by Prospectors and Defenders. The organization maintains a secure foundation of well-established activities while carefully pursuing new market opportunities. This dual approach provides Analyzer organizations with the benefit of stability derived from their core operations and the possibility for expansion through new 12 Abubakar, Abubakar Mohammed, Hamzah Elrehail, Maher Ahmad Alatailat, and Alev Elçi. (2015). "Knowledge management, decision-making style and organizational performance." Journal of Innovation & Knowledge. 8

ORGANIZATIONAL ANALYSIS OF J&J Porter's Competitive Strategies In his seminal work, Michael Porter formulated Porter's Competitive Strategies Model, which delineates organizations' major tactics to achieve and preserve competitive advantage in their respective industries. This conceptual framework classifies organizational strategies into three overarching principles: Cost Leadership, which entails businesses striving to achieve the status of the most economical producer within their industry; Differentiation, which involves companies aiming to provide products or services that are unique and superior to those offered by their competitors; and Focus, which refers to organizations directing their efforts towards serving a specific segment or niche of the market more efficiently than their rivals. Within the vast and diverse domain of the global healthcare sector, Johnson & Johnson's strategic approach exemplifies a well-balanced integration of Porter's Differentiation and Focus strategies. 14 The ability of Johnson & Johnson to differentiate itself within the very competitive healthcare industry is praiseworthy. The differentiation manifests in the extensive range of healthcare products' originality, innovation, and exceptional quality. The company's strong brand equity serves as additional evidence of the effectiveness of its differentiation strategy. The brands within the J&J conglomerate, like Neutrogena and Tylenol, have achieved widespread recognition and are widely known for their high-quality standards, dependability, and exceptional performance. In addition to its differentiation strategy, Johnson & Johnson effectively utilizes a Focus strategy by targeting certain areas within the large healthcare market. Instead of pursuing a universal approach, J&J customizes its products and services to effectively address the distinct and specific requirements of its broad customer base, which includes healthcare experts, patients, and general consumers. Johnson & Johnson's strategic emphasis on specific therapeutic areas within the pharmaceutical business illustrates this concentrated approach. Johnson & Johnson has strategically allocated its resources and specialized knowledge to focus on particular areas of study, such as oncology and immunology. As a result, the company has engaged in these sectors and emerged as a prominent leader, setting standards in terms of treatment effectiveness and the well-being of patients. Goals and Objectives Johnson & Johnson's operating culture is centered around comprehensive organizational goals and objectives. These elements are firmly ingrained in the organization's mission, vision, and values, exemplifying its steadfast commitment to enhancing lifestyles, providing unmatched customer experiences, and revitalizing communities. The core goals of Johnson & Johnson align with its dedication to driving progress in global healthcare while maintaining strong financial performance. The organization demonstrates a strong commitment to enhancing healthcare. An essential element of the company's approach involves its dedication to developing and implementing healthcare interventions that enhance the well-being of individuals on a global 14 Johnson & Johnson. (n.d.). Johnson & Johnson: How we are organized. Retrieved from: https://www.jnj.com/sites/default/files/pdf/how- we-are-organized.pdf/ 10

ORGANIZATIONAL ANALYSIS OF J&J scale. This comprises innovative advancements in the pharmaceutical industry and cutting-edge medical gadgets that address essential medical requirements. Within a global framework, the firm demonstrates a strong commitment to tackling health concerns on a global scale. This encompasses enhancing the availability of healthcare services in marginalized groups, advocating for the well-being of mothers and children, and actively addressing the spread of infectious diseases. From a financial standpoint, Johnson & Johnson, like many other publicly traded corporations, aims to increase its revenue to enhance shareholder value constantly. The process involves product innovation, market expansion, and effective cost control. 15 Maintaining profitability and securing long-term financial stability are also fundamental objectives for the organization, necessitating efficient operating practices and prudent financial management. Incorporating sustainability and corporate responsibility is essential to Johnson & Johnson's operational framework. The organization is strongly dedicated to environmental accountability, evidenced by its goals of mitigating carbon emissions, effective waste disposal, and procuring sustainable resources. In addition to its environmental initiatives, Johnson & Johnson emphasizes corporate social responsibility. This entails the practice of ethical business conduct, cultivating a culture that values diversity and inclusion, and active participation in community engagement. In order to achieve its ambitious objectives, Johnson & Johnson has developed a range of strategic methodologies. One crucial approach is deploying resources towards research and development. By consistently allocating a substantial amount of its income towards research and development initiatives, the corporation has successfully taken the lead in developing novel medications, medical equipment, and consumer health goods that effectively cater to unfulfilled medical needs. 16 Johnson & Johnson has also gained recognition for its expertise in mergers and acquisitions. This strategy has facilitated the integration of enterprises possessing specialized knowledge, expanding their range of products, and accessing untapped markets. The company's strategic approach is exemplified by its collaborations with Actelion, specializing in pulmonary hypertension, and Synthes, a prominent player in orthopedic appliances. In order to expand its presence on a worldwide scale, the company has actively pursued opportunities in emerging regions, establishing partnerships with healthcare institutions and government agencies at the local level. Implementing this dual approach augments the company's financial inflows and strengthens its effectiveness in tackling global health issues. Johnson & Johnson has been at the forefront of implementing environmentally friendly initiatives in alignment with its sustainability and corporate responsibility objectives. This entails activities to mitigate greenhouse gas emissions, preserve water resources, and strive for a zero-waste impact in its operational activities. 15 Johnson & Johnson (n.d) Position on Ethics and Compliance. Retrieved from https://www.our-position-on-ethics- and-compliance/ 16 Johnson &Johnson.(2021). Pharmaceuticals. Retrieved from: https://www.com/healthcare- products/pharmaceuticals/ 11

ORGANIZATIONAL ANALYSIS OF J&J Organizations can customize their strategy, aligning with the specific characteristics of local market situations, legal frameworks, and cultural subtleties. The capacity to adapt enables Johnson & Johnson to maintain relevance in a wide range of markets and effectively adjust its strategy as needed. One possible obstacle associated with a decentralized organizational structure is the potential hazard of diminishing the company's overall brand identity. The highest level of organizational hierarchy at Johnson & Johnson is held by the Chief Executive Officer (CEO). The Chief Executive Officer (CEO) maintains direct communication channels and exercises supervisory authority over the leaders of three principal business divisions. The primary role of the Consumer Segment Head encompasses the significant responsibility of overseeing all goods that directly engage with customers. This encompasses many items, including skin care products and over-the-counter pharmaceuticals. The primary duty of this leader is to guarantee that consumer products not only conform to present market trends but also exhibit innovation for the future, all while consistently preserving Johnson & Johnson's esteemed dedication to quality and safety. The head of the Pharmaceutical Segment leads the second notable division. The field in question can be considered highly complex, as it encompasses the numerous procedures involved in developing, testing, and commercializing pharmaceuticals intended to cater to a wide range of medical requirements. This leader demonstrates a collaborative approach by effectively coordinating research teams, regulatory agencies, and marketing units to facilitate the consistent delivery of novel medical solutions to the market. The third segment, Medical Devices, is overseen by its designated Segment Head. The department is crucial in producing and distributing state-of-the-art medical devices by Johnson & Johnson, which are supplied to healthcare institutions worldwide. The leader's job is crucial in upholding the company's reputation in the medical devices sector since it encompasses several domains, such as product innovation, safety protocols, and strategic market positioning. In addition to the core segment executives, Johnson & Johnson's organizational structure includes regional chiefs responsible for governing several worldwide territories, including North America, Europe, and Asia-Pacific. 18 The organization's mandate encompasses two distinct aspects: aligning with global plans at a broad level and effectively adapting operations to address local market demands and cultural subtleties. Presented here is a simplified representation of the organizational structure of the corporation. A comprehensive chart would provide a more in- depth analysis, elucidating the extensive array of departments, subsidiaries, and units within the organization. Several subtleties may be identified within the Corporate Operations section, which oversees crucial areas such as Human Resources, Finance, and Legal problems that encompass the entirety of the firm. The Executive Committee and the Board of Directors are responsible for offering comprehensive management and strategic guidance. Figure 1 illustrates a simplified organizational chart for J&J Company. 18 J ohnson & Johnson(2023, Aug 31) Johnson & Johnson - Statistics & Facts. Retrieved from https://www.statista.com/topics/1517/johnson-and-johnson/ 13

ORGANIZATIONAL ANALYSIS OF J&J External Environment Industry Sector The healthcare industry involves a diverse range of services, products, and treatments with the primary objective of promoting and enhancing the health and welfare of populations. The components under this domain encompass hospitals, medical practitioners, long-term care facilities, diagnostic services, public health initiatives, health insurance coverage, and a diverse array of additional elements. However, within the expansive realm of this economy, three prominent sectors emerge medicines, consumer health, and medical devices. 19 The pharmaceutical industry is accountable for researching, engaging in development activities, manufacturing, and promoting medications that address various health concerns. The worldwide medicines market was estimated at around $1.2 trillion in 2019. 20 According to a survey by Grand View Research in 2019, the anticipated size of the global consumer health industry was approximately $233.4 billion. The final aspect of the industry under consideration is the medical 19 Soto, F. (2022, October 27). Johnson & Johnson: Attractive opportunity during market turmoil. Seeking Alpha . https://seekingalpha.com/article/4550014-johnson-and-johnson-attractive-opportunity-during-market-turmoil / 20 Johnson & Johnson( 2023, Aug 31) Johnson & Johnson - Statistics & Facts. Retrieved , from https://www.statista.com/topics/1517/johnson-and-johnson/ Figure 1: J&J Organizational Chart 14

ORGANIZATIONAL ANALYSIS OF J&J Raw Materials Sector Johnson & Johnson operates across various healthcare industry sectors, requiring distinct raw materials. Active pharmaceutical ingredients (APIs) are essential in the pharmaceutical industry. Acetaminophen, present in Tylenol, and improvise, a crucial constituent in certain cancer medicines manufactured by J&J, serve as illustrative instances from their comprehensive roster of ingredients. In the consumer health industry, various raw materials are utilized, including chemicals and natural extracts in skincare products such as Neutrogena and the components found in its over-the-counter medications. For example, baby shampoos may contain mild cleansing agents, moisturizing agents, and preservatives, all carefully manufactured to adhere to the safety and effectiveness requirements set by Johnson & Johnson. The medical devices industry represents a distinct domain. In this context, the primary constituents frequently encompass metallic elements, polymers, ceramics, and other substances employed in fabricating medical apparatus and machinery. Surgical instruments necessitate using materials such as stainless steel or titanium due to their renowned attributes of durability and non-reactivity. The sourcing of raw materials for a multinational such as Johnson & Johnson is a complex procedure that relies on strategic alliances, large-scale procurement, and effective management of worldwide supply chains. The company's procurement practices are diversified to mitigate risks related to reliance on a singular source or geographic region, with activities spanning more than 60 nations. Pharmaceutical ingredients are frequently procured from various providers to maintain a regular supply, mitigating potential disruptions in the event of supplier-related issues. Over its existence, Johnson & Johnson (J&J) has prioritized establishing partnerships with suppliers who demonstrate a shared dedication to upholding standards of quality, sustainability, and ethical conduct. The expectations outlined in the company's Supplier Code of Conduct are elucidated, ensuring all supply chain partners comply with the most stringent standards. The expansive scope of J&J's operations makes the corporation susceptible to many supply chain hazards, encompassing geopolitical conflicts, trade barriers, natural disasters, and pandemics. In order to address these problems, Johnson & Johnson implements a comprehensive risk 16

ORGANIZATIONAL ANALYSIS OF J&J management plan. This encompasses keeping strategic reserves of vital components, utilizing sophisticated data analysis to anticipate possible interruptions, and continuously evaluating and adjusting their network of suppliers. 23 There has been an observable trend towards adopting sustainable sourcing practices in recent years. This initiative aligns with J&J's overarching dedication to environmental stewardship. Through engaging in collaborative efforts with suppliers to implement sustainable practices, the company effectively mitigates its environmental impact while simultaneously fulfilling its substantial need for raw materials. Human Resources Sector Johnson & Johnson, a prominent multinational healthcare conglomerate, is renowned for its extensive and diverse workforce on a global scale. In this diverse workforce comprising individuals from various nations, one encounters a multitude of professionals with distinct areas of expertise. These include biochemists, medical researchers contributing to the research and development (R&D) departments, and marketing experts pivotal in driving the consumer products segment. The company also emphasizes its dedication to promoting gender and ethnic diversity. The presence of diverse individuals in the workforce promotes inclusivity and enhances the company's ability to develop products and solutions better aligned with the requirements of a diverse global customer base. In the highly competitive healthcare sector, acquiring high-caliber talent holds significant importance, and Johnson & Johnson is no exception in its endeavor to attract the most exceptional and talented individuals. The company's holistic recruitment strategy seeks young graduates and seasoned employees. Campus recruitment initiatives maintain a consistent flow of young and innovative individuals, while targeted headhunting and industry outreach efforts facilitate the acquisition of specialized expertise. Upon joining the organization, Johnson & Johnson demonstrated a significant commitment to enhancing its workforce through substantial investments in employee development. J&J acknowledges the correlation between the development of its workforce and its organizational growth, thus providing an extensive array of training initiatives, workshops, and avenues for pursuing advanced education. These initiatives not only facilitate the refinement of employees' existing skills but also provide them with additional competencies, preparing them for more significant responsibilities within the organization. Retention encompasses more than just the acquisition of skills. A strong and comprehensive employee value proposition is central to Johnson & Johnson's retention strategy. The company's competitive compensation packages, comprehensive health and wellness benefits, and well-defined career progression opportunities render it a highly appealing destination for individuals seeking long-term employment. In addition, the strong dedication of Johnson & Johnson to corporate social responsibility and community service is highly attractive to a significant number of employees, cultivating a profound sense of pride and a clear sense of purpose in their respective positions. The organization acknowledges the significance of upholding a harmonious equilibrium between 23 Daft, R. L. (2015). Organization theory and design. Cengage learning. 17

ORGANIZATIONAL ANALYSIS OF J&J the company maintains its financial strength even in the face of adverse conditions within the business. Figure 3: Financial Overview 25 Market Sector Johnson & Johnson, a company with a history spanning over a century, has cultivated a wide-ranging consumer base encompassing diverse demographic groups and geographical areas. The extensive customer base shows the company's diverse range of products catering to various health and wellness requirements. Johnson & Johnson's wide range of products, including those designed for infant care that appeal to young parents and advanced pharmaceuticals tailored to specific patient populations, significantly impact the lives of countless individuals daily, potentially reaching millions, if not billions, of people. 26 The company's consumer health sector addresses individuals' general well-being requirements, offering a diverse range of products spanning skincare items to over-the-counter medications. Johnson & Johnson has garnered notable standing in the pharmaceutical industry due to its endeavors in developing innovative medications that effectively target significant medical ailments. These advancements cater to a patient population that actively seeks state-of-the-art therapeutic interventions. 25 Johnson & Johnson ( 2022, July 19 ). Johnson & Johnson Reports Q2 2022 Results. Retrieved from: https://www.jnj.com/johnson-johnson-reports-q2-2022-results 26 Jirásek, M., & Bílek, J. (2018). The organizational life cycle: review and future agenda. Quality Innovation Prosperity. 19

ORGANIZATIONAL ANALYSIS OF J&J The primary advantage of Johnson & Johnson is its capacity to serve diverse demographic segments effectively. The company's baby care range primarily focuses on young families and parents, while its skincare products are designed to meet the needs of younger individuals seeking preventive care and older individuals seeking therapeutic skincare treatments. The company's pharmaceutical products are designed to meet the diverse requirements of different age groups, medical conditions, and patient needs, owing to their extensive range. 27 Johnson & Johnson's wide portfolio allows for a significant market presence across many segments, ensuring a dominant market share. Within the realm of over-the-counter wellness, these entities have prominent positions as market leaders, boasting globally recognized goods that have become household names. The medical devices division also holds a substantial portion of the market, particularly in specialized areas where they provide distinctive and pioneering solutions. The pharmaceutical industry, characterized by intense competition and rapid advancements, observes J&J consistently pushing the limits to sustain a substantial market presence by regularly introducing pioneering treatments. Despite fierce competition across all operational sectors, the company has established a strong position via its unwavering dedication to quality, innovation, and brand trust. Johnson & Johnson's comprehensive knowledge of its target demographics and ability to engage in innovative practices that align with customer demands enables the company to maintain a substantial market share across its diverse product categories. Technology Sector Johnson & Johnson utilizes a strong technical framework that serves as the fundamental support for its many activities, including operations, research endeavors, and interactions with consumers. The infrastructure is specifically built to facilitate the intricate procedures involved in drug research and medical device innovation while addressing the current needs of data analysis, digital marketing, and customer relationship management. Incorporation of sophisticated computer techniques, such as artificial intelligence (AI) and machine learning, is progressively being assimilated into drug discovery pipelines to forecast molecular behaviors and patient responses. Within the field of medical equipment, the company employs advanced production technologies that guarantee accuracy, dependability, and the potential to be scaled up. The consumer health business of Johnson & Johnson is becoming increasingly dependent on digital platforms, encompassing e-commerce solutions and digital marketing tools. This strategic approach allows the company to maintain connectivity with its worldwide customer base and deliver tailored solutions. In light of the rapid advancement of technology and the considerable opportunities for collaboration, Johnson & Johnson has established several strategic alliances with technology companies, emerging enterprises, and academic institutions. These collaborations aim to use the potential of emerging technologies, encompassing data analysis, AI-driven research, and digital health solutions. As an illustration, the company's cooperation 27 IFAC. (2019). Building data science and analytics capabilities in finance and accounting.Retrieved from: professionals/discussion/building-data-science-and-analytics-capabilities-finance-and accountin 20