Johnson & Johnson Consumer Products Brazil A
In January 2000, Jose Antonio Justino, accepted an offer to become the Managing Director of the Consumer Division of Johnson & Johnson Brazil (in Portuguese—Johnson & Johnson Comercio e Distribuicao Ltda.). Johnson & Johnson Brazil (J&J Brazil) had been the early leader in Brazil in a variety of products, including disposable diapers, sanitary napkins, bandages, cotton swabs, sunscreen, and baby care products. Unfortunately, performance had deteriorated in recent years, with both sales and profitability dropping significantly. Market share in many categories was falling because of increased competition from local firms and multinationals. The company group chairman of J&J’s global consumer business told Justino in February that he would have to present a business plan at a J&J meeting in Mexico in May 2000. The business plan would have to identify the specific steps that would allow J&J Brazil to restore profitability by the end of 2000 and position the company for future growth.
The J&J Brazil case series examines organizational turnaround. In 2000, J&J Brazil was in dire straits. Although still one of the strongest consumer brands in Brazil, the company was struggling with new competition, an outdated approach to sales and marketing, a changing Brazilian macro-environment, declining sales in key product categories, and an organizational culture resistant to change and innovation. After a successful stint as president of J&J Colombia, Justino was brought in to fix things. The (A) case requires students to develop a turnaround plan that establishes priorities and leads to improved financial performance. The (B) case describes the changes that took place and allows students to compare and contrast their plan for change with the actual changes and results.
The primary teaching and objectives are (1) to introduce the challenges facing general managers in turnaround situations; (2) to discuss the role of leadership in organizational change initiatives; and (3) to examine leadership strategies for creating effective, sustained organizational change in which employee involvement is a central aim of and vehicle for change.