Johnson & Johnson Report

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Weakness

The information obtained because of the BOD performance evaluation can be used by the BOD to identify training needs for the BOD as a whole, as well as individual members. Corporate training events take on added importance with the recent development as a result of financial crises, since the revenue went down 5.7% in 2015 but bounced in 2016.

Directors need to be kept up to date on changes to the legal and regulatory framework, as well as best practices, since no organizational training events was disclosed in annual reports or other written policies. The compensation policy determined by the GSM for directors and the compensation for each director must be disclosed in detail in the annual financial statements of the company. Annual GSM agenda should explicitly include this item so that shareholders have an opportunity to debate over these matters.

Opportunity

The completed HR department of Johnson & Johnson and employee’s policies disclosure can bring continuous new talented employees to Johnson and Johnson. And the punctual update of financial and organizational reports of uptrend market value can appeal more investors for Johnson & Johnson. The acquisitions are also disclosed apparently and display an expansion of this company.

Meanwhile, online meeting will be held for all branches in the world, announced 30 days before the meeting starts, which may clarify central strategies and delivery accurate information from the headquarter.

Threat

No independent director in BoD may lead to problems of auditing. The chairman and CEO Alex Gorsky did well in recent two years and propose a series of market strategies, and promote innovation of new products. And 9 executives also manage global companies well. But we still need independent director to control and ensure the process and objectivity of board meeting and decision. And the separate management of worldwide branches by different executives may lead to conflicts with each other.

Reference

- JNJ official website : https://www.jnj.com/leadership/our-leadership-team#management

- , Aug 22, 2012, Business Decision Making for Johnson & Johnson. From: http://www.studymode.com/course-notes/Business-Decision-Making-For-Johnson-1072211.html