Question.863 - Scenario You are a Business Process Consultant for Kingston-Media and have been selected as a keynote speaker at an industry conference. To help you prepare, you will be writing a research brief for at the upcoming Supply Chain Conference, for one of the Fortune 500 companies in Kingston-Media’s client portfolio. Instructions In preparation for the conference, select a Fortune 500 company from the Pharmaceutical industry to create a research brief for use in building your presentation that will include the following: Evaluate the company uses of value chain management. Explain how the global business environment competitive forces affects the company’s operational success. Analyze the company’s primary and support operations management functions impact on organizational performance. Evaluate the effect of supply chain strategies and economic factors on the company’s profitability and sustainability financial practices. Discuss how the company has developed a differentiation strategy on workflow across the value chain or the organization. Summarize your findings and highlight some best practices. Provide attribution for credible sources.
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Deliverable 7 - Kingston-Media Organizational Case Markus CaravacaRasmussen University MAN 5100 Value Chain and Operations Management Instructor Matthew Ademola, Cole Hamilton and Eduardo Haynes February 28th, 2023 Value Chain Management and Organizational Performance in the Pharmaceutical Industry Introduction This research brief evaluates the value chain management practices of a Fortune 500 pharmaceutical company and analyzes the impact of the global business environment, operations management, and supply chain strategies on the company's organizational performance. The brief also discusses the differentiation strategies adopted by the company to optimize workflow across the value chain. Company Overview The selected pharmaceutical company for this research brief is Johnson & Johnson (J&J). J&J is a global healthcare company that operates in three business segments: pharmaceuticals, medical devices, and consumer health products. J&J has a strong presence in more than 60 countries worldwide and employs over 135,000 people (Johnson & Johnson, 2022). Sourcing Johnson & Johnson has a robust supplier management program in place to guarantee that suppliers satisfy the company's environmental and reliability criteria (Johnson & Johnson, 2022). Audits, supplier scorecards, and risk assessments are among the tools and procedures used by the organization to analyze and monitor the performance of its suppliers. Manufacturing Johnson & Johnson's production sites are situated across the world and create a variety of items such as medicines, medical equipment, and consumer healthcare products. To enhance manufacturing efficiency and eliminate waste, the organization employs lean manufacturing techniques. In addition, the firm places a high value on quality management and has incorporated Six Sigma approaches in its production operations to minimize errors and increase quality (Johnson & Johnson, 2022). Distribution Johnson & Johnson manages its distribution operations through a network of third-party logistics companies. The organization maintains good ties with its logistics partners to ensure that items are delivered on time and at the lowest possible cost (Johnson & Johnson, 2022; Hoque et al., 2020). In addition, technology is used by the organization to enhance its distribution network and improve visibility and control over its supply chain. Customer Support Johnson & Johnson has a customer-centric company culture, focusing on satisfying the needs and expectations of its customers. The organization has a well-established customer service policy with feedback tools in place to uncover areas for improvement. Data analytics is also used by the organization to better understand client preferences and patterns of behavior and to develop its goods and services (Hoque et al., 2020). Management of the Value Chain J&J has a sophisticated value chain management system that incorporates all of its business segments' activities. The value chain of the firm includes incoming logistics, operations, freight forwarding, advertising and sales, and service (Hoque et al., 2020). J&J's value chain management techniques are centered on lowering costs, increasing efficiency, and increasing customer happiness. Global Business Environment The Influence of Global Competitive Forces Johnson & Johnson works in an extremely competitive global business environment influenced by a variety of influences. The most powerful forces are the danger of potential entry copying their demand trends, buyer and supplier negotiating power, the threat of replacements, and competition among current rivals. Johnson & Johnson is a highly diversified firm that engages in a variety of healthcare industries. By focusing on research & development, innovation, and strategic collaborations with other firms in the sector, the company has been able to sustain a competitive edge. Johnson & Johnson, according to Hoque et al. (2020), utilizes an effective supply chain management framework that allows it to limit the influence of competitive pressures on its operational performance. Some of these forces include economic volatility, political instability, changing customer needs, and technological advancements. J&J has responded to these forces by adopting a proactive approach to managing its operations, which enables it to stay ahead of the competition. For example, the company has invested in advanced technology to enhance its manufacturing processes and improve product quality. The organization has built a global supply network and use cutting-edge technologies to track and manage inventory levels. This enables the organization to react swiftly to changes in market demand while reducing the risk of stockouts. Economic volatility, political turmoil, fluctuating client requirements, and technology improvements are some of these influences (Hoque et al., 2020). J&J has responded to these dynamics by taking a proactive approach to operations management, allowing it to remain competitive in the marketplace. For instance, the corporation has invested in cutting-edge technologies to improve manufacturing procedures and product quality. Operations Management's Effect on Organizational Performance Johnson & Johnson's major operations management activities include product design, production scheduling, and quality management. These functions have a substantial influence on the organizational success of the corporation. Johnson & Johnson is well-known for its unique product designs that are suited to diverse client segments' demands (Kovach, 2018). The company's product design process includes considerable research and development to produce the best quality goods. Another essential operations management job at Johnson & Johnson is capacity planning. To boost production capacity, the corporation has made significant investments in its manufacturing facilities (Kovach, 2018). The capacity planning process at the organization include projecting market demand and assigning resources to satisfy that need. This guarantees that the firm can satisfy its consumers' requirements while still maintaining a competitive advantage in the market. Lastly, for Johnson & Johnson, quality control is a vital support operations management role. The firm has put in place a strong quality control framework to verify that its goods satisfy the highest industry standards. A team of quality control specialists monitors the manufacturing process to guarantee that the goods are of the best standard. J&J's Financial Practices as a Result of Supply Chain Strategy and Economic Factors J&J has been successful in establishing innovative supply chain methods that have contributed to the company's significant concentrations of profitability and sustainability. Strategic alliances, new technology, and operational excellence are used to improve the efficiency and effectiveness of the company's supply chain management procedures (Kovach, 2018). J&J has also created a worldwide procurement method to capitalize on scale and minimize expenses. Other economic conditions, including inflation, mortgage rates, and currency exchange rates, additionally have an impact on J&J's financial practices. To limit the risks related to currency changes, the firm adopted a hedging program, that has assisted it in maintaining consistent financial performance. Additionally, J&J has concentrated on sustainable supply chain management strategies, which have allowed it to decrease costs and boost profitability in the long run (Kovach, 2018). Finally, J&J's creative supply chain techniques and focus on sustainability have aided the company's profitability and long-term viability. Many economic conditions impact the company's financial practices, but J&J has established strong risk mitigation techniques to preserve consistent financial performance. Workflow Differentiation Strategy Throughout the Value Chain or the Organization By a commitment to creativity in terms of innovation, operational efficiencies, and customer-centricity, J&J has built a differentiation strategy in its workflow across the enterprise. The company's operational excellence programs are aimed at lowering costs, improving quality, and increasing operational efficiency. J&J has also created an innovation culture, allowing it to develop new goods and technology to satisfy the changing demands of its clients (Kovach, 2018). Furthermore, J&J has built a customer-centric value chain strategy by harnessing consumer feedback to improve its goods and services. Customer input is used to build goods that match unique client demands and preferences. In addition, J&J has adopted a collaborative approach to working with suppliers, allowing it to create goods that are both creative and cost-effective (Kovach, 2018). References Hoque, M. R., Uddin, M. N., & Alam, M. A. (2020). Johnson & Johnson: Analyzing its Supply Chain Management Strategies. International Journal of Business and Management, 15(7), 27-39. https://doi.org/10.5539/ijbm.v15n7p27 Johnson & Johnson. (2022). Customer Service. Retrieved from https://www.jnj.com/customer-serviceJohnson & Johnson. (2022). Distribution. Retrieved from https://www.jnj.com/distribution Johnson & Johnson. (2022). Our Company. Retrieved from https://www.jnj.com/about-jnj Johnson & Johnson. (2022). Supplier Diversity. Retrieved from https://www.jnj.com/supplier-diversity Johnson & Johnson. (2022). Our Manufacturing Facilities. Retrieved from https://www.jnj.com/about-jnj/manufacturing-facilities Johnson & Johnson. (2022). Sustainable Procurement. Retrieved from https://www.jnj.com/sustainable-procurement Kovach, K. (2018). Johnson & Johnson's supply chain excellence. IndustryWeek. Retrieved from https://www.industryweek.com/supply-chain/article/22028197/johnson-johnsons-supply-chain-excellenceMore Articles From Business Management
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