The Birth of Johnson and Johnson Company Paper
In the mid-1880’s the development of the first ready-made and ready to use surgical dressing marked the birth of a company, Johnson and Johnson. This new product was based on a surgical concept that led to the reduction of infection and disease to patients.
It all started with Robert Wood Johnson who studied surgeon Sir Joseph Lister. Sir Joseph Lister had new idea about airborne germs that were the source of infections in operating rooms. After hearing Lister speak Robert Wood Johnson played with the idea and how to use Lister’s teaching. He had the idea of surgical dressings, ready made, sterile, wrapped, and sealed in individual packages. They would be perfect for instant use without the risk of infections.
In 1885 Robert Wood Johnson joined with his two brothers James Wood and Edward Mead Johnson and created a partnership. By 1886 the three men started a small operation in New Brunswick, N.J. with fourteen employees. They were in the fourth floor of an old wallpaper factory. In 1887 the Company became incorporated and entered the surgical dressings industry.
Johnson and Johnson’s first products were medicinal plasters with medical compounds mixed in adhesive. They worked at improving products and thinking of new ones. Then the company designed a soft absorbent cotton and gauze dressing that could be mass produced and shipped in great quantity to hospitals.
1897 was the year that the company found it’s slogan “The Most Trusted Name in Surgical Dressing.” This came from their new sterilization processes, which used steam and pressure.
Over the years Johnson and Johnson has become to enjoy product diversification. In 1921 they came out with Band Aid Brand Adhesive Bandaged and Johnson’s Baby cream. As the Company grew in products and size they started organizing individual divisions. The manufacture of disposible surgical packs and gowns became Surgikos Inc., and now called Johnson & Johnson Medical. In 1994 Johnson & Johnson had the addition of the Neutrogena Corporation which dealt with skin and hair care products. From 1989-99 the company made 45 aquisitions of companies and product lines.
Today Johnson & Johnson has become worldwide with 190 companies and marketing health care products in more than 175 countries. Companies with more than 99,000 employees also produce products that serve a broad range of medical needs,which range from baby care products to pharmaceuticals. Johnson & Johnson has become the world’s most broadly based maufacturer of health care products.
On September 25, 1944 Johnson & Johnson went public. Their opening stock price was three cents a share with 1,106.8 net share outstanding. Over the years as Johnson & Johnson has grown their stock has gone through many splits and has become more valuable. Since 1944 the value of the Johnson & Johnson stock has gone from $.03 to $101.05. The yearly dividend in 1998 was $0.97 with 1,344.1 net shares outstanding.
A stock split means that there are more shares created that are available to the public but have the same initial pay off. On May 21, 1996 Johnson & Johnson had a 2 for 1 split . On April 17, 1970 they experienced a 3 for 1 split. This means that for every single share owned you now would own 3.
Johnson & Johnson has had some of the most money invested from 1994-1999 in their stock. Being compared to competitors such as S & P diversified Health care. This graph shows the years from 1994-1999.
Johnson & Johnson manufactures and sells a broad range of products in the health care field in many countries of the world. The worldwide business is divided into three segments: Consumer and Pharmaceutical. Johnson & Johnson has so many subsidiaries and diversity in products that it is hard to have strong competition. Johnson & Johnson can be found all over the healthcare industry.
The Consumer segment’s principal products are personal care and hygienic products, including nonprescription drugs, adult skin and hair care products, baby care products, oral care products, first aid products and sanitary protection products. Major brands include Aveeno skin care products; Band-Aid Brand Adhesive Bandages; Benecol food products; Carefree Panty Shields;
Clean ; Clear teen skin care products; Imodium A-D, an antidiarrheal; Johnson’s Baby line of products; Johnson’s pH 5.5 skin and hair care products; Lactaid lactose-intolerance products; Monistat, a remedy for vaginal yeast infections; adult and children’s Motrin IB ibuprofen products; Mylanta gastrointestinal products and Pepcid AC Acid Controller from the Johnson & Johnson – Merck Consumer Pharmaceuticals Co.; Neutrogena skin and hair care products; o.b. Tampons; Penaten and Natusan baby care products; Piz Buin and Sundown sun care products; Reach toothbrushes; RoC skin care products; Shower to Shower persona!
l care products; Stayfree sanitary protection products; and the broad family of Tylenol acetaminophen products. Some main competitors of the personal hygiene sector are Colgate-Palmolive co., The Consumer Health Group Co., These products are marketed principally to the general public and distributed both to wholesalers and directly to independent and chain retail outlets.
The Pharmaceutical segment’s principal worldwide franchises are in the antifungal, anti-infective, cardiovascular, contraceptive, dermatology, immunology, neurology, oncology, pain management and psychotropic fields. These products are distributed both directly and through wholesalers for use by health care professionals and the general public. Prescription drugs in the antifungal field include Nizoral, Sporanox, Terazol and Daktarin antifungal products.
Prescription drugs in the cardiovascular field include Retavase, and Reopro for the treatment of heart disease. Prescription drugs in the contraceptive field include Ortho-Novum and Tricilest group of oral contraceptives. Prescriptions drugs in the dermatology field include Retin-A Micro, a dermatological cream for acne. Some main competitors of the pharmaceutical industry are Abbot Laboratories, Amgen Inc., Avertis, and Pharmacia Corp. Most of these companies deal in the specialization of just pharmaceuticals. Johnson ; J!
ohnson is a powerful player in this market which is an accomplishment providing that they have various areas of industry. Distribution to these markets is done both directly and through surgical supply and other dealers.