Johnson & Johnson is a very successful company that seems to have instilled a strong belief in decentralization and to have created a strong management culture. These two factors in the firm’s past success play an important role in the options Pete Ventrella has as he is charged with creating a new unit in the firm more responsive to the changing competitive environment.
Preparation Questions
1. James Burke is quoted, “Our culture is really it.” Just what is the J&J culture and what difference does it really make for the company?
2. What do you think about the way in which Burke and Clare have brought about the creation of the Hospital Services Group?
3. What problems does Pete Ventrella face?
4. What should Ventrella do about hospital services as a cost or profit center? About the differences with Ethicon over inventory placements?
