Johnson & Johnson (J&J) had relied heavily on acquisitions to enter and expand into a wide range of health care related businesses. As it grew, J&J developed into a complex enterprise made up of over 250 different businesses, organized into three different divisions: consumer products, pharmaceuticals, and medical devices.

Use the information in the case study and your knowledge from our coursework so far to respond to the following questions. Your answers will be graded on completeness, accuracy, consistency, and analytical rigor according to the prescriptions of the Ten Commandments of case analysis.

1. Is Johnson & Johnson creating value? Define 'value' and provide evidence whether the company is creating value or not.

2. What core competencies can the firm exploit across its many business units? Define 'core competencies and list three or more examples.