Table of Contents P.n.Introduction 2Company profile: Johnson and Johnson 301: Understand the concept of strategic management 31.1 Investigate the concept of strategy ………………………………………………………….. 31.2 Identify the elements of the strategic management process ………………………………… 31.3 Analyze critically the relationship between organizational processes and innovation ……… 41.4 Evaluate different perspectives on strategy formulation ……………………………………. 51.5 The importance of achieving strategic fit …………………………………………………. 502: Be able to conduct strategic analysis 62.1 Differentiate between organizations’ general, competitive and internal environments…….. 62.2 Appraise critically the tools available for the analysis of the general, competitive and internal environments……………………………………………………………………………

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2.3 Porter’s Five Forces framework as a tool of competitor analysis…………………… 703: Understand how to formulate organizational strategy 83.1 Differentiate between business and corporate strategy ……………………………………… 83.2 Compare and contrast different approaches to business level strategy ……………………... 83.3 Assess the role of business strategy in achieving competitive advantage …………………. 83.4 Demonstrate how markets influence strategy formulation ………………………………….. 93.5 Compare and contrast different approaches to corporate level strategy …………………….. 93.6 Assess organizational strategies’ suitability, feasibility and acceptability………………….. 1004: Understand how to implement organizational strategy 124.1 Analyze and evaluate different organizational structures and their influence on strategic choice …………………………………………………………………………………………….

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4.2 Analyze critically the relationship between organizational processes and innovation ……… 124.3 Recommend strategic control and reward systems …………………………………………. 124.4 The rationale for adopting a revolutionary as opposed to an evolutionary approach to

Change ……………………………………

13

4.5 The concept of strategic drift and how it might be avoided……………………………. 13

05: Be able to assess the role of administrative management in strategy formulation and implementation

13

5.1 The contribution of administrative management to implementing strategy in respect of leading strategic change……………………………………………………………………….

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5.2 Assess how administrative management facilitates the implementation of strategy across the functional areas of organizations……………………………………………………………

14

Conclusion……………………………………………………………………………………….. 15References………………………………………………………………………………………. 16

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Introduction:

According to (Henry.2011) Strategic management is a management which is mainly maintains

discipline throughout the dynamics of modern economics. Formulation of strategy is required for

identify the significance of investigate a business’s internal and external environment. It helps to

organization to know about that how much effective strategies prepared we are and also know

about that it is fit or not (Grant et al. 2010). Strategy formulation is effective when organizations

are maintained proper organizational procedure and composition. It is possible when

organizations are implementing their strategy perfectly. Structure is mainly covering the public,

place, measures, procedure, traditions, knowledge and connected basics that include the

organization.

Strategic manager is always responsible to all types of internal and external factors which are

directly impacts on business organization operation (Wild et al. (2000). When organization set

their strategy for their future, on this time they need to know about their general, competitive and

internal environments which are directly impacts on organizational performances. The general

environment covers the area of normal factors, competitive environments are mainly emphasis

on global and local market condition and also cover the internal environments of internal issues

which is directly connected with business organization (Barney and Hesterly (2008). On this

time organization need to ensure the role of administrative management because it impacts on

the formulation of strategy and it also helps to organization to implement their existing strategy

perfectly.

This assignment is includes the concept of strategic management, to know about the conduct

strategic analysis, to identify about that how to formulate organizational strategy, to distinguish

the strategy of organizational implementation, and to be acquainted with the role of

administrative management in strategy formulation and implementation.

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Company profile: Johnson and Johnson

For over 100 years Johnson and Johnson dedicated themselves on producing baby care product.

They pay proper attention in producing baby care product for special nurturing of babies eyes,

skins and hairs require. From the birth to grow up stage they provide different product for the

babies according to their needs. They are currently operating in 275 companies in 60 countries.

There are now 128000 people operating in their company.

01: Understand the concept of strategic management:

1.1 Investigate the concept of strategy:

According to (Grant et al. 2010) say that strategy is an action plan which is mainly organization use to

achieve their affirmed intends of a business. Strategy is always essential part of any business organization

to take their upcoming decision to face important challenges. Not like to separate choice or objective,

strategy is a logical position of analysis, idea, policies, influence and proceedings that act in response

to a high-stakes test. Strategy is a guideline for an organization say because it always helps the

organization to achieve their long term objective (Johnson and Scholes .2003). It is possible for

business organization if organizations are taken to handle the strategy changes which is

important for meet the requirements of stakeholders and markets. .

1.2 Identify the elements of the strategic management process:

Strategic management procedure is start when organizations recognize their mission or vision to

achieve their future goal (Ambrosini, V. et al.1998). Here we identify the elements of Johnson &

Johnson which is mainly included their strategic management process:

Strategy Analysis: Strategic analysis is mainly based on some key elements like SWOT

analysis, PEST analysis and other strategic analysis. These theories are mainly helps to

Johnson & Johnson to analyze their strategy properly.

Strategy Formulation: Formulation of strategy is mainly involves scheming and

increasing the business strategies. Formulation of strategies are mainly depends on three

managerial level. These are corporate operational, viable, and operational corporate.

Strategy Implementation: Strategy Implementation of strategies is essentially includes

mounting stepladder, technique and measures to implement the strategy.

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1.3 Analyze critically the role of values, vision and mission statements in organizations

Organizations are generally showed their mission that why they are existed in market and what is

their main plan (Wild et al. (2000). Here we analyze the critical roles of Johnson & Johnson

statements:

The relationship between strategy and competitive advantage:

Strategic management is a management which is mainly helps the Johnson & Johnson to prepare

a proper strategy and to execute this properly. After execution of strategic management strategy,

Johnson & Johnson can get competitive advantages. Strategic management is mainly helps the

Johnson & Johnson to develop their marketing, design and manufacturing which is essential for

them to get competitive advantages from the market.

Investigate the process of strategic management:

Strategic management is until the end of time concentrate on their future plan because they know

that without investigating the process of the organization strategy no one can get success.

Organizations also investigate the process of strategic management because it helps them to get

competitive advantages from the market.

The contribution of Vision, Mission and Values:

Vision, mission and values statements are always needed for any business organization because

it helps to Johnson & Johnson for their strategy development and implementation. Here we

discuss that how vision, mission and values are contributes to Johnson & Johnson for their

strategy development and implementation:

Mission is mainly a short term plan for organization helps the organization to plan for

their activities which is less than one year. Johnson & Johnson prime mission is to ensure

the quality of baby products because they believe it helps the children to get their best

output from it.

Vision is a long term plan which helps the Johnson & Johnson to meet their future

strategic plan and implementation.

Core values also directly influences the Johnson & Johnson to prepare their strategic

plan and implementation.

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1.4 Evaluate different perspectives on strategy formulation:

Strategic management changes when needed. In modern economics, if it is change perfectly than

it helps to maintain proper discipline which is mainly work as a changing dynamics -

(Ambrosini, V. et al.1998). Here we evaluate the different perspectives on strategy formulation:

Most popular strategy formulations are now the ‘Design School’ perspective and the ‘Learning

School’ perspective. This formulation are mainly based on some important elements such as

strength and weaknesses of organization, about the internal and external environment of

organization which is mainly included values, resources, processes, general and competitive

environment, about the opportunities and threats of organization. These frameworks are mostly

assisting the Johnson & Johnson to formulate their strategy.

1.5 The importance of achieving strategic fit:

Strategic fit is needed for an organization to match their existing resources and it also helpful for

organization to build their existing capabilities which creates the opportunities. Johnson &

Johnson need to achieve it because it helps them to achieve their existing strategy and it also

helps them to support the business strategy. Strategic fit is mainly used energetically to assess

the present planned circumstances of a business. Strategic fit is essential for Johnson & Johnson

because it helps them to set their existing position and selection of industry which is important

for an organization to create unique characteristics of resource and capabilities portfolio.

Framework development is always influence strategies because it includes the internal and

external environment of business. Strategy formulation is always necessary for an organization

to know about their internal and external environment clearly. Business organizations are always

needed to establish their internal resources perfectly which is mainly helps to organization to

adjust the changes of external environment. (Barney and Hesterly (2008).

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02 Be able to conduct strategic analysis:

2.1 Differentiate between organizations’ general, competitive and internal environments:

External environment mainly helps the organization to know about their external factors and

trends which has greater impacts on business success. It is also inclined by the dimension and

scenery of a business organization. When organizations are expand their existing businesses, on

this time they need to know about external environment because it helps them to set the changes

of their business practices and market structure. If an organization implement a proper

formulation strategy than it will helpful for organization to achieve their target. (Henry, (second

edition 2011) External environment is mainly based three levels. Here we discuss the general,

competitive and internal environment of Johnson & Johnson:

The general and the competitive environment:

The general and competitive environment is always helpful for organization to prepare the

structure conduct performances model (SCP) which is generally helpful to identify competitor’s

strategies to evaluate their performance. These environments are always essential for

fundamental economics.

This environment analysis is always helpful to organization in easy for market entry.

Competitive environment:

Competitive environment or market structure knowledge is always important for Johnson &

Johnson to compete in the market. Competitive market is always relates with general

environment.

Internal environment:

Internal environment is constantly essential for Johnson & Johnson. Internal environment is

plays a vital role to develop their internal condition. Internal environment analysis also helps

organization to meet their stakeholder demand.

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2.2 Appraise critically the tools available for the analysis of the general, competitive and

internal environments:

Ranges of suitable tools are available for the analysis of the general, competitive and internal

environments. (Henry.2011). Here we discuss that how tools available for the analysis of the

general, competitive and internal environments of Johnson & Johnson:

SWOT analysis is necessary to analyze the internal environment of Johnson & Johnson.

SWOT is identifying the strength, weakness, threats and opportunities of Johnson &

Johnson which is needed for their future development.

Johnson & Johnson is generally used PEST analyzes tools to know about their external

environment.

Porter’s five forces models are probable of a business. But it is questionably not an ideal

instrument.

Different tools are available to analyze the general, competitive and internal environment of

company. Every tools analysis process is not same but they provide information to Johnson &

Johnson to know about their internal and external position.

2.3 Porter’s Five Forces framework as a tool of competitor analysis:

Johnson & Johnson always tries to analyze their internal and external environment. During this

time they need to maintain some appropriate tools which can help them to analyze their

environment properly (Henry.2011). Porter’s five forces model helps them as a tool assist them

to analyze their competitors. Here we select Porter’s five forces model and to know about that

why it is appropriate tools for their competitor analysis:

Threat of entry: Porters five forces model is used to facilitate the Johnson & Johnson to analyze

their existing competitors. First of all, here we discuss that the threats of entry:

Scale economics

Identify the brand

Allocation entrance

Advantages of cost

Policies of government

Threat of rivalry: Rivalry is another significant tool for Johnson & Johnson in the context of

competitive market. It is generally indicate that the growth of projected industry, cost of project

etc

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Threat of substitutes: A Substitute threat is another big issue for Johnson & Johnson to survive

in the competitive market. It is generally indicate that the cost of switching, threats of integrated

and suppliers volume.

Threat of suppliers: Supplier threats have impact on business organization activities. It is

essentially occurred when substitute buyer tendency and substitute price are relative etc.

Threat of buyers: Concentration about buyer movement, volume of buyer and low revenues are

the threat of buyers. These items are essential part for any organization to analyze their

competitors.

Sources: hbr.org

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03 Understand how to formulate organizational strategy

3.1 Differentiate between business and corporate strategy:

“Business strategy is mainly helps the single business organization to set their strategy which is

helps to gain competitive advantages”. On the other hand, “Corporate strategy is a strategy which

is mainly helps the organization to operate different types of businesses in the same time to gain

competitive advantages” (Barney and Hesterly (2008). Here we differentiate between business

and corporate level strategies of Johnson & Johnson:

Business level strategy: “Business level strategy is mainly refers to extrication elsewhere and

tries to formulate a strategy for individual level of business units. On the other hand, corporate

strategy is mainly helps the organization to concern with their decision to compete in different

market”. Henry (2011)

Corporate level strategy: Corporate strategy is mainly based on three important elements to

achieve their position. These elements are – organization logic for value creation, organization

operated portfolio business procedure and knowledge which is mainly used to manage the centre

portfolio. - Ambrosini et al. (1998)

3.2 Compare and contrast different approaches to business-level strategy

Business level strategy is chiefly adopted different types of approaches which are help the

Johnson & Johnson to formulate their strategy. Here we compare and contrast different level

approaches to business level strategy of Johnson & Johnson:

Generic competitive strategies: Generic competitive strategies are mainly reflected on

three key elements like leadership cost, isolation, spotlight which helps to get competitive

advantages. (Porter’s (1985)

Resource-based approaches: Resource based approaches are mainly helps the Johnson

& Johnson to get short run competitive advantages from the market. These resources are

important, exceptional, non-substitutable and unique.

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3.3 Assess the role of business strategy in achieving competitive advantage

Johnson & Johnson is always concerned about their decision making procedure because it helps

them to know about that how they are compete in the market. (Coulter, M. .2005) Business

strategy is always significant for Johnson & Johnson to achieve their competitive advantages in

the market. Porter’s theory is also influence the Johnson & Johnson to use proper formulation of

strategies which is helps to organization to achieve their competitive advantages from the

market. Porter’s trade theory is more successful in recent times that’s why most of the business

organization are used it for prepare their business strategy. (Henry, 2011),

3.4 Demonstrate how markets influence strategy formulation:

Johnson & Johnson needs to adopt the approaches of strategy formulation because it is always

essential for meet the requirements of changing market condition and it also helps the

organization to develop their existing position also. D’Aveni (1994). Here we discuss the

strategy formulation of Johnson & Johnson which is mainly influenced by their market

condition:

“When business organizations are taking several types of policies for their future achievement

and also get the competitive advantages from the market are always helps the organization to

formulate their competitors compensation outmoded”.- (Henry (2011)

Johnson & Johnson are mainly formulated their strategy after analyze the situation of market

turbulence and they also consider some important competitive environments like stability,

changeable stability, punctuate stability and Instability.

3.5 Compare and contrast different approaches to corporate-level strategy

Corporate level strategy is mainly depends on some important approaches such as penetration of

market, internal growth, acquisition and merger, joint business enterprise and strategic

agreement. Here we contrast and compare different approaches of Johnson & Johnson which are

mainly related to corporate level strategy:

“Corporate level strategy formulation is always important thought which is mainly identifying

two differentiations such as related and unrelated differentiation which is mainly linked with

value chain of businesses and shift to totally unconnected industry”-. (Barney and Hesterley

(2008)

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Here we discuss the approaches of Johnson & Johnson:

Johnson & Johnson is principally based on four components such as margin growth,

organic growth, bolt-on acquisitions and new growth options strategy. These strategies

are mainly helps to organization to recover their internal and external factors perfectly

which is helping them to get competitive advantages.

3.6 Assess organizational strategies’ suitability, feasibility and acceptability

According toJohnson and Scholes (2003) propose that Strategic preference is mainly define on

the basis of three important strategies. This are-

Identification on the basis of choice: How organizations are creates an advantage and

how to balance their activities for their future.

Option generated; It is mainly directed which organization might shift and by what means

Option which is mainly included selection and evaluation; it is mainly meeting the tests

of suitability, feasibility and acceptability.

Organizational strategies suitability, acceptability and feasibility are always assist to Johnson &

Johnson to the assessment of strategy utilized, have a tendency to be appropriate to different

business. Generally, at the same time as businesses will make use of both quantitative and

qualitative events in approach assessment.

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04 Understand how to implement organizational strategy

4.1 Analyze and evaluate different organizational structures and their influence on

strategic choice:

According to Barney and Hesterley (2008): “Implementation of strategy is mainly occurs when

an organization agrees to managerial strategy and observe to facilitate are reliable through its

strategy”. On the other hand, Strategy implementation is mainly future spin into exploit; it is

mainly shift from corporate to operational stage, Most of the strategies are not to implement

perfectly because of some common errors is to take for granted that formulation of strategy will

led to effortless execution (De Wit, B and Meyer, M. 2010). Organizational structure is needed

for Johnson & Johnson to define the procedures which are mainly indicated that separated works

are decentralized and co-ordinate with their stakeholders.

4.2 Analyze critically the relationship between organizational processes and innovation:

According to Barney and Hesterley (2008), a few firms turn out to be so accomplished at

creating innovative goods and strategies with the intention of this inventive ability know how to

be a resource of continued viable benefit. On the other hand, what is needed for knowledge to get

position is the continuation of learn as a managerial intention which is aggressively maintain and

positive by higher supervision make use of necessary scheme and procedure (Henry, 2011).

Johnson & Johnson procedures are essentially help the organization to maintain a good

relationship with management and civilization and provide to force approach further.

4.3 Recommend strategic control and reward systems

Strategic reward and control system relationships are mainly plays an important role to formulate

strategy and execution. Johnson & Johnson are always tries to assess their existing strategies

because it helps them to recover their previous mistake which is always needed for an

organization to develop their reward and control system effectively which works for their future.

Control is a broad idea that is functional to equally human being performance and managerial

presentation Mullins (2010). Reward system is constantly important factor for an employee to

know about that how organizations are evaluate their performances and how to get benefited

from organization.

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4.4 The rationale for adopting a revolutionary as opposed to an evolutionary approach to

Change:

Strategic change is generally needed for an organization to assist their ultimate objectives.

Change is actually depends on the situation. An evolutionary change is always happening but

revolutionary change is not doing the same thing. Johnson & Johnson is also adopted with

evolutionary changes. These different approaches are main concern to strategic changes. When

organizations are uses same strategies for all time than organization need to change their strategy

approaches. Organizations are always tries to execute revolution strategy to achieve their

objective and need to identify proper strategies for evolutionary changes. According to Witt and

Meyer (2010)

-Change something to be needed, others conserved.

4.5 The concept of strategic drift and how it might be avoided

Strategic drift happen when organizations are not able to quick responds with their existing

stakeholders on due time. Strategic drift is not only a fact for any business organization but also

impacts negatively on overall performances. Strategic drift is generally occur when organization

are not quick enough to adjust with their external environment. Johnson & Johnsons also

concentrated about their strategic drift because they know about it and also believe that if they

are not able to quick enough to adjust with their existing external environment than they are not

get any competitive advantages from the market. Porter’s theory is also influence the Johnson &

Johnson to use proper strategies which is helps to Johnson & Johnson to achieve their

competitive advantages from the market. Avoiding strategic drift is one of the most essential

concerns in the context of Johnson & Johnson strategic management perspective. On this time

Johnson & Johnson need to focus on some essential elements like implementation approach of

strategic plan, flexibility, time scales, Gant chart and other related elements. Porter’s trade theory

is more successful in recent times that’s why most of the business organizations are used it for

prepare their business strategy. (Henry, 2011),

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05 Be able to assess the role of administrative management in strategy formulation and

implementation

5.1 The contribution of administrative management to implementing strategy in respect of

leading strategic change:

Effective administrative management and leadership behavior are always necessary for strategy

developed and it also helps to introduce changes (Henry, 2011). Administrative manager is

mainly helps to Johnson & Johnson to leading strategic change with focus some important areas:

Direction location

People bring into line

People inspiring

Here we discuss the role of administrative managers in designing and implementing process

which is manly execute in Johnson & Johnson strategy:

Interpersonal roles: Consist of figurehead, management, and connection behavior

Informational roles: Contain check, distribute, and spokes human being behavior

Decisional roles: Contain industrialist, trouble trainer, source allocator, and

representative

Administrative manager plays a vital part to improve the performances of Johnson & Johnson

internal resources during designing and implementing Johnson & Johnson plan. It s always helps

to Johnson & Johnson to enhances their existing values.

5.2 Assess how administrative management facilitates the implementation of strategy

across the functional areas of organizations:

Administrative management plays a key part to facilitate the implementation of approach

diagonally to the useful region of association. It involves some important elements:

System which is mainly helps to design and structures facilitates

Need to assess the performances of organization.

Effective administrative management is always helps the organization to involve some important

activities like grumble treatment, acclaim manage, procurement and system management of

inventory. Johnson & Johnson is always concentrated about their existing administrative

management activities. Administrative management efficient performance can make large

distinction to the current and prospect achievement of a company. ( Leary-Joyce (2011)

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Conclusion:

Strategic management is an evitable part of any business organization. It is mainly helps the

organization to achieve their vision, mission and objective. It is also set the policies of business

organization for their long term business operation (Palmer, I. and Hardy, C. 2000). It is always

essential for evaluation of organization performances. It also covers the areas like company

stakeholders expectation which is very important for any business organization for their business

operation. (Coulter, M. .2005)

Strategic management is mainly based on three important components such as analysis the

situation perfectly, after that they take decision and finally execute this plan perfectly (Merson,

R. (2011).Strategic management is also trying to find out the internal and external situation of

business organization. Strategic management is always important for business organization for

their decision making procedure. Strategic manager need to develop a plan which is mainly helps

to organization to produce a quality product for their consumers, which is mainly helpful for

organization to sustain in the market ( Leary-Joyce (2011). Strategic management is also helpful

to organization to select a proper way which is always needed for any organization to expand

their business activities.

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References:

Ambrosini, V. et al. 1998. Exploring Techniques of Analysis and Evaluation in Strategic

Management, Prentice Hall

Barney, J. and Hesterly, W. 2008. Strategic Management and Competitive Advantage, 2nd

edition, Pearson Education

Coulter, M. 2005. Strategic Management in Action. (3rd ed.). Upper Saddle River, NJ: Pearson

Prentice Hall.

D’Aveni, R.A. 1994. Hyper competition: Managing the Dynamics of Strategic Manoeuvring,

Free Press

De Wit, B and Meyer, M. 2010. Strategy – Process, Content, Context, 4th edition, Cengage

Grant et al. 2010. Strategic Information Systems Management, Cengage Learning

Henry, second edition. 2011. Understanding Strategic Management,

Johnson, G and Scholes, K. 2003. Exploring Corporate Strategy, 6th Edition, Pearson

Leary-Joyce, J. 2011, Inspirational Manager, 2nd Edition, Prentice Hall/Pearson

Merson, R. 2011. Guide to Managing Growth, the Economist

Mullins, L. 2010. Management and Organisational Behaviour, 9th edition, Pearson

Palmer, I. and Hardy, C. 2000. Thinking about Management, Sage Publications

Wild et al. 2000. International Business, An Integrated Approach, Prentice Hall

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