CLC $$ Environmental and Industry Analysis

The purpose of this assignment is to conduct an environmental scan and industry analysis on Johnson & Johnson and identify how external and industry environmental factors impact the operational and competitive landscapes of the corporation.

Perform an external environmental scan and industry environmental analysis on this publicly traded company from the perspective of a business unit. Begin analysis with the seven segments of the general environment $($Figure $2\mathrm{.}1)$ and the five forces of competition model $($Figure $2\mathrm{.}2)$ as presented in the text, and then complete a detailed outline of the meaningful trends, issues, and factors that impact or are likely to impact the overall competitive landscape for Johnson & Johnson in the future. The purpose of this multilevel analytical approach is to break down macro trends and issues until it is identified how exactly they affect the company and business unit.

Although the framework suggested is structured, this assignment is not intended to be a linear exercise. Be creative in the research$$the entire idea of strategy lies in having information or insight that the competition may not have. You may look for standardized SEC corporate filings and industry analyses through the GCU library, or you could also begin your research by consulting online NAICS databases, SEC filing databases $($such as EDGAR$),$ or sources like business and industry periodicals.

The analysis should include the Concepts to research in each category. $($Note: This list is intended to be used as a springboard and should not be considered exhaustive in any individual case.$)$

Figure $2\mathrm{.}1$

The General Environment: Segments and Elements

Demographic segment $$ Population size

$$ Age structure

$$ Geographic distribution $$ Ethnic mix

$$ Income distribution

Economic segment $$ Inflation rates

$$ Interest rates

$$ Trade deficits or surpluses

$$ Budget deficits or surpluses $$ Personal savings rate

$$ Business savings rates

$$ Gross domestic product

Political$/$Legal segment $$ Antitrust laws

$$ Taxation laws

$$ Deregulation philosophies $$ Labor training laws

$$ Educational philosophies and policies

Sociocultural segment $$ Women in the workforce

$$ Workforce diversity

$$ Attitudes about the quality of work life $$ Shifts in work and career preferences

$$ Shifts in preferences regarding product and service characteristics

Technological segment $$ Product innovations

$$ Applications of knowledge $$ Focus of private and government$-$supported R&D expenditures

$$ New communication technologies

Global segment $$ Important political events

$$ Critical global markets $$ Newly industrialized countries

$$ Different cultural and institutional attributes

Sustainable physical environment segment $$ Energy consumption

$$ Practices used to develop energy sources

$$ Renewable energy efforts

$$ Minimizing a firm's environmental footprint $$ Availability of water as a resource

$$ Producing environmentally friendly products

$$ Reacting to natural or man$-$made disasters

Figure $2\mathrm{.}2$

Parts of the External Environment Analysis

Scanning $$ Identifying early signals of environmental changes and trends

Monitoring $$ Detecting meaning through ongoing observations of environmental changes and trends

Forecasting $$ Developing projections of anticipated outcomes based on monitored changes and trends

Assessing $$ Determining the timing and importance of environmental changes and trends for firms' strategies and their management