What was believed to be one of the major causes of the company’s failures under CEO William C. Weldon?
a tumultuous economic environment
a drop in demand in Johnson & Johnson’s leading industries
a lack of attention to quality
unwise acquisitions of competitors
all of these
2. How simple or complex is the organizational structure of Johnson & Johnson?
It is complex, with 25 different businesses broken down into five divisions.
It is simple, with eight different businesses broken down into two divisions.
It is simple, with four different businesses, no divisions.
It is complex, with 250 different businesses broken down into three divisions.
None of these is correct
3 What did CEO Weldon do to facilitate the cooperation of the different Johnson & Johnson business units?
He created a corporate office that would oversee and help the different units work together on new opportunities.
He combined the six divisions into three organized by industry.
He placed the executives of all the different businesses in one large office and held weekly group meetings.
He transferred hundreds of employees throughout the company so that everyone knew someone who worked in a
different area of the company.
None of these are correct.
4. What event in 2006 do analysts think may have exacerbated the problems at McNeil?
The FDA discovered quality problems at McNeil, but the investigator was bnbed by McNeil supervisors and a formal
report was never made.
McNeil was combined with a newly acquired unit from Pfizer, then transferred from a heavily regulated division to a
marketing-driven division.
Johnson & Johnson decided to sell McNeil to Ranbaxy Pharmaceuticals, and the plants were neglected until the deal
fell through.
McNeil was under the guidance of a supervisor who secretly worked for a rival and was sabotaging Johnson &
Johnson's products.
None of these is correctWhat issue was DePuy dealing with when Alex Gorsky took over?
They were losing their top scientists to competitors.
They were facing customer backlash over their marketing campaigns.
They were overinvested in fixed machinery assets.
They were having trouble with their newest artificial hip.
None of these is correct.
Underlying clauses
Please answer the following multiple choice questions.
1. Which of the following was a primary contributing factor to the tumultuous decade under CEO William C. Weldon?
The complexity of the company meant that subordinates easily and frequently hid negative quality issues from Weldon.
Weldon had no business acumen and made a series of unprofitable acquisitions.
Weldon was so focused on the quality of the products that he failed to ensure they were marketed property.
Weldon was obsessed with meeting tough performance targets.
None of these is correct.
2. How did Johnson & Johnson's organizational structure become the way it is?
The company wanted to be able to keep a dose watch over each business.
The company has long pursued inorganic growth through acquisitions.
The company was bought by Bayer Schering Pharma AG, which added another layer of management
The company eliminated several divisions after the setbacks that occurred with its McNeil plants.
None of these is correct.
3. Why did CEO Weldon want Johnson & Johnson's fiercely independent businesses to work together?
Combining the knowledge of the different businesses could yield even greater benefits.
Weldon had simply run out of ideas and had to suggest something.
If they worked together, even if one business failed, no product development would be lost.
C He recognized that no single business was strong enough to survive in the consumer market.
None of these is correct.
4
What did Johnson & Johnson do to resolve the quality issues at McNeil7
The company hired a former FDA investigator to oversee the plants going forward.
Johnson & Johnson ignored the problems until much later when employees were caught quietly going from store to
store buying all packages of contaminated products
StOO million was allocated to refurbish the plants, and CEO Weldon was replaced with Bonnie Jacobs, a MCNeff
spokesperson who had experience with quality control.
Colleen Goggins was pushed out of her post, and CEO Weldon allocated $100 million to upgrade the plants and deal with procedures and systems.
None of these is correct.
5. What was Alex Gorsky’s first task after taking over as chief executive of Johnson & Johnson?
reassuring shareholders that the company would overcome its manufacturing issues
pealing with the problems in the DePuy unit
cleaning up the quality violations at the McNeil plants
eliminating underperforming units and dividing the company into smaller companies
