J&J case - J&J Case Analysis Yujie Zhang Why was this...

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Yujie Zhang Why was this case picked? Like P&G we have discussed, J&J is also the Big blue chip company that facing the problem of tinkering its independent business structure. And financial institutions from Wall Street also have been backing away from company’s stock due to under- expected growth potential for next five years. Company needs to innovate to get out the dilemma. What surprised you about this case? Looking back the stock price around the time this article was written in 2006, it offered much important information for shareholders, however it came late after the stock price had already been slipped. Overall, J&J is a good company, their suffering made investors a good stock cheaper to buy with valuable return before financial crisis in 2008. It also recovers into the average price level around $60 per share after 2009, meaning the company is still operating in stable environment. What is the extra mile for this case? Companies consider acquisition of other companies a way to build ideas from outside, so that they could maintain expected growth and extend business scope. However, sometimes acquisition is not all about innovation. As the article “The impact of acquisitions on innovation” 1 indicates a successful strategy requires a judicious combination of internal and external sources of knowledge that interact in a dynamic fashion to produce innovations, it could also be poison pill or hurt the innovation. What are some alternative discussion questions for this case?
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This note was uploaded on 11/19/2011 for the course COB 0104-722 taught by Professor Wollan during the Fall '10 term at RIT.

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J&J case - J&J Case Analysis Yujie Zhang Why was this...

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