In the light of the recent complications in the Johnson & Johnson company’s reputation due to the lawsuits addressing product quality and its effect on human health, a shift in corporate strategy implementation is required. The company’s long history, diverse system of subsidiary companies, and a well-established horizontal corporate strategy imply the necessity to prioritize quality for a reliable company image (Dess C186). Having reviewed the company’s outlined challenges in sustaining its quality assurance across the diverse system of products and processes, a recommended solution has been generated.
Overall, the merger and acquisition corporate strategy of the Johnson & Johnson company has allowed it to build a strong system of branches allowing for the diversification strategy to be successful. Regarding quality assurance in the health care setting, the priority should be based on the facilitation of procedures that would guarantee minimal risks. For that matter, it is recommended to adhere to the merger and acquisition strategy as a strength of the company with the incorporation of proper quality control measures in specific subsidiaries specializing in medication production (James 8-9). Indeed, since the diversified system of acquisitions of the company exposes it to expertise in various areas, it is essential to delegate quality assurance responsibilities to individual companies within the corporate system.
In particular, the integration of the overall corporate experience in value creation and quality control should be shared with the subsidiaries while encouraging them to exhibit their own measures. Such a recommendation is based on the parenting advantage that would promote quality assurance in each area of expertise (Dess 183). Thus, it is essential to improve the medication-producing subsidiaries’ budgeting, procurement, and human resource management to address the quality assurance challenges.
Works Cited
James, Monica Merli Anak, et al. “Johnson & Johnson’s Product Safety Issues and Ways the Company can Address those Issues.” Asia Pacific Journal of Management and Education, vol. 2, no. 3, 2019, pp. 7-18.
Dess, Gregory, et al. Strategic Management: Text and Cases. 10th ed., McGraw-Hill, 2021.