Introduction
The critical subject is quality issues threatening Johnson & Johnson’s reputation and brand image. Consumers are complaining about the quality of some of the company’s products, which has contributed to the negative image of the organization (Dess et al. 186). Customers are engaging the company in legal battles, challenging the fitness of the company’s products, such as Johnson’s Baby Powder, which is alleged to contain cancer-causing asbestos in the commodities.
Critical Facts
Johnson & Johnson is facing a brand image threat due to the continuous production of substandard products. The company, which is an amalgamation of numerous firms, has some constituent subsidiary units producing commodities of inferior quality that are not fit for human consumption (Dess et al. 186). Therefore, several consumers are petitioning the company against the quality of the products and endangering the company’s reputation by tarnishing the brand image. Johnson & Johnson’s Company comprises various firms that operate as independent units. Thus, the quality of the products is not regulated by the overall body.
Analysis of the Facts
Johnson & Johnson’s Company brand image is under threat due to substandard products. The inferior quality is attributed to the inability of the company to regulate the standard from constituent firms. Johnson & Johnson’s Company comprises numerous subsidiaries spread all over the globe, which operate as independent units. Thus, the product’s quality is not dictated by the general body (Dess et al. 187). Some of the subordinates, such as Johnson’s Baby Powder, are facing public backlash for producing products that allegedly have traces of asbestos that cause cancer.
Recommended Decision
Johnson & Johnson’s Company should have a central oversight body that oversees critical departmental activities of the constituent firms and, importantly, that regulates the quality of products from all units of the company. The central oversight body will set quality standards and ensure all commodities under Johnson and Johnson conform to the requirement (Dess et al. 187). This will prevent the production of substandard goods, which attract complaints from consumers, thereby threatening the company’s reputation and spoiling its brand image.
Effectiveness of the Recommended Decision
The presence of a central oversight body to oversee the critical activities of the constituents and regulate the quality of all products under the company’s name will effectively eliminate quality issues caused by poor standards. The central oversight body will set a standard for all the commodities within Johnson & Johnson’s Company umbrella, thereby reducing the cases of inferior goods (Brown 117). Firms such as Johnson’s Baby Powder, whose product quality is under criticism, will improve their commodities to the required standard.
Execution
In constituting the central oversight body, the constituent firms will surrender the independence of the critical departments and associated activities under the care of the overall institution of the company. While enjoying their autonomous operation, the units will not be isolated but regulated by the parent company (Brown 117). The central oversight body will dictate the quality of all the products from the subsidiaries under Johnson & Johnson.
Conclusion
Having a central oversight body may be challenging due to the geographical boundaries of the constituent firms. Johnson & Johnson has firms spread all over the world, thus having a central oversight body will be difficult (Brown 118). However, to overcome that, the company will have representatives from the parent body in every subsidiary to ensure each unit follows the standard quality of the company. The parent firm will recruit more quality experts and assign them to every subsidiary.
Works Cited
Bown, Chad P. “How COVID‐19 Medical Supply Shortages Led to Extraordinary Trade and Industrial Policy.” Asian Economic Policy Review, vol. 17, no. 1, 2022, pp. 114-135. Web.
Dess, Gregory G., et al. Strategic Management: Text and Cases 10th Edition. McGgraw-Hill, 2021.