Analysis of the environment
Johnson and Johnson currently operate over 250 subsidiary companies in 57 countries. It is the world’s largest healthcare company comprising of three segments: pharmaceuticals, medical devices and diagnostics and consumer products.
There are two sets of forces that Johnson and Johnson’s faces in its current environment: competitive and contextual environments.
The competitive environment can be analyzed using Michael Porter’s five forces model while the contextual environment can be analyzed using PEST (Political, Economic, Social and Technological).
A. Contextual Environment- PEST analysis
Political environment- Dynamic policies and political regimes: The political scene on the local, regional and national front affects the operations of businesses. Given that Johnsons and Johnsons is an international company, it is important to keep track of the political