Pieces of case study focusing on
J&J since its inception to grow at a rapid pace in its business follow an acquisition strategy in its business. Under this business firm acquire 250 different businesses. These different businesses operate in multiple areas like pharmaceutical medicines, medical equipments and healthcare related products. Firm to efficiently run its business follow decentralized organization structure in its business. More clearly, it can be said that J&J treat each unit like SBU or strategic business unit. Like each SBU has its own management team in the same way these units also had their management team, which take day to day to strategic business decisions independently (Li, M. Cui and Lu, 2018). This leads to efficiency in the business operations and performance of the business activities in a proper manner. However, William C Weldon later believe that decentralization lead to efficiency in the business operations, but by promoting collaboration between varied unit new opportunities can be explored or capitalized on the business. This will benefit J&J.
William to promote collaboration further focus on the centralization of organization structure under which focus was on performing procurement to HR related activities under command and order of the center. Means that unit’s management teams will have fewer powers in their hand and central team will make all decisions in respect to HR and performance of the business operations (Wickert, Scherer and Spence, 2016). However, there is an issue with this approach because there needs to be a proper process of making decisions and analysis of the situation. In case there will not be proper processed the in that case wrong decisions can be taken which may negatively affect J&J.
REFERENCE
Books and Journals
Bolis, I.. and Sznelwar, L. I. 2016. A case study of the implementation of an ergonomics improvement committee in a Brazilian hospital–Challenges and benefits. Applied ergonomics. 53. 181-189.
Bradley, G. 2016. Benefit Realisation Management: A practical guide to achieving benefits through change. CRC Press.
Fındıklı, M. A., Yozgat, U.. and Rofcanin, Y. 2015. Examining organizational innovation and knowledge management capacity the central role of strategic human resources practices (SHRPs). Procedia-Social and Behavioral Sciences. 181. 377-387.
Kysucky, V.. and Norden, L. 2016. The benefits of relationship lending in a cross-country context: A meta-analysis. Management Science. 62(1). 90-110.
Li, M. H., Cui, L.. and Lu, J. 2018. Varieties in state capitalism: Outward FDI strategies of central and local state-owned enterprises from emerging economy countries. In State-owned multinationals (pp. 175-210). Palgrave Macmillan, Cham.
Wickert, C., Scherer, A. G.. and Spence, L. J. 2016. Walking and talking corporate social responsibility: Implications of firm size and organizational cost. Journal of Management Studies. 53(7). 1169-1196.
Zavyalova, A. and et.al., 2016. Reputation as a benefit and a burden? How stakeholders’ organizational identification affects the role of reputation following a negative event. Academy of Management Journal. 59(1). 253-276.
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