Case Type: improve profits/bottom line; increase sales.
Consulting Firm: Easton Associates 2nd round job interview.
Industry Coverage: Healthcare: Pharmaceutical, Biotech & Life Sciences.
Case Interview Questions #00029: Your client Johnson & Johnson (NYSE: JNJ) is a global health care company manufacturing pharmaceutical, medical devices and consumer packaged goods. Its headquarters is located in New Brunswick, New Jersey, United States. The corporation has some 250 subsidiary companies with operations in over 57 
countries and products sold in over 175 countries. Johnson & Johnson had worldwide pharmaceutical sales of $24.6 billion for the calendar year of 2008.
Recently, Johnson & Johnson has decided it is interested in substantially increasing the size of its operations. Its goal is to double both total sales and profits in less than two years. As a consultant brought in to assist them, what would you do? What issues would you consider? What are some likely alternatives for the client?
Possible Answers:
I. Possible Issues to consider:
1. What is the current scope of operations? In what areas of health care does the company deal? What is its current market share in these areas?
I think this is an interesting case because the goal is to double sales and profits. I would have drilled down on profits to find out a hard number on what the goal is — say, $50MM to $100MM. Next, I would have drilled down on costs to find out if we could boost profits through a cost reduction. For example, if we could reduce costs from $300MM to $250MM, then that would meet the objective of doubling profits. As for doubling sales, it looks like a deeper analysis on price and units sold would be the next thing to look at. Maybe probing on the customer segments and market shares for each would reveal an opportunity.
by increasing product portfolio,and cost cutting of manufacturing product by making it manufactured in other countries where basic manufacturing can be reduced to lot of % age and by acquiring good ranked companies and reducing sales force or increasing product basket to one filed executive also purchasing brand with good market value.are other chances of increasing sales and also entering into super – specialization costly chronic diseases management therapies (oncology / nephrology /implant medical devices etc ) and entering into government supplies of general products.