Johnson and Johnson 2013 Annual Report Download - page 5

•We created new Johnson & Johnson Innovation Centers. We announced the creation of the Johnson & Johnson Innovation
Centers with locations in London, Shanghai, Boston, San Francisco and San Diego. These customized collaborations are part
of our enterprise-wide strategy to support an international network of scientific entrepreneurs through access to best-in-
class laboratory facilities and scientific expertise.
Second, We are Bringing To Life Our Global Reach with Local Focus
Johnson & Johnson is truly a global company, with more than 275 operating companies in 60 countries. While we are headquartered
in the United States, our mindset is global—we are focused on new products, new technologies and new business models that truly
connect with the way our customers live. Today, 55 percent of Johnson & Johnson’s business comes from outside the United States, and
that number is growing—as 22 percent of our sales come from fast growing emerging markets such as Brazil, Russia, India and China.
•We created a unified business model in China. Johnson & Johnson was one of the first western companies to expand into
China 28 years ago. Our locally based, broad range of businesses gives us unique insight into China’s health care challenges,
including an aging population. That’s why we have created Johnson & Johnson China, a new model that unifies our core
business segments and allows us to identify and facilitate the creation of new opportunities in China’s rapidly growing health
care system.
•We have taken a unified “go-to-market” approach in Southeast Asia. In Southeast Asia, we have aligned our operations and
management under a single business model called “One Johnson & Johnson” for nine countries, including Thailand,
Indonesia and the Philippines. We believe this streamlined approach gives us a market advantage to operate more efficiently
and effectively in smaller and mid-sized markets.
Third, We are Maintaining a Laser Focus on Excellent Execution
Nowhere is the need for excellence in execution more critical than in health care. Strategy is only as good as the ability to execute
flawlessly—focusing and setting priorities; doing the right thing and not just getting it done; meeting milestones and delivering on our
commitments. Excellence in execution starts with quality, a top priority at Johnson & Johnson, and one embodied in Our Credo by a
commitment that “everything we do must be of high quality.” In 2013:
•We restored more of our products to shelves. We met our objective of restoring approximately 75 percent of our planned
U.S. OTC products to store shelves.
•We have implemented a new quality and compliance operating model. We’ve taken important steps to ensure the quality
and safety of our products by adopting a single, global set of quality standards. We’ve also established a single Medical Safety
organization focused on ensuring that our in-market products perform as intended.
•We’ve strengthened and streamlined our supply chain to ensure that we reliably meet demand for our products. We’ve
raised the bar and created a single global enterprise Supply Chain organization in order to ensure the development and
production of high-quality products. This has helped us improve our customer service and reliability performance and will
better position us for future growth.
Fourth, We are Leading with Purpose to Make a Difference
Guided by Our Credo, our citizenship and sustainability priorities focus on advancing human health and well-being, safeguarding
the planet, and leading a strong and responsible business:
•We are helping to advance the United Nations Millennium Development Goals. One example of this legacy is our
commitment to the United Nations Millennium Development Goals focused on the well-being of mothers and children
around the world, including geographic locations where the needs are the greatest and the resources are most scarce. Our
commitment focuses on five key areas where we have developed strong, innovative partnerships. First, making childbirth
safer. Second, treating and preventing intestinal worms in children. Third, using mobile phones to share vital health
information with new and expectant mothers. Fourth, eliminating mother-to-child transmission of HIV. Fifth, piloting and
scaling therapeutic innovation through research and development to treat HIV, tuberculosis and neglected tropical diseases.
•We are supporting over 500 communities globally. We contributed about $1 billion in products and cash and supported
over 500 community programs in more than 60 countries.
•We are helping to fight tuberculosis by making medicine more available. We are committed to advancing global health to
fight multi-drug resistant tuberculosis by working with health authorities to make SIRTURO®(bedaquiline) more available
in countries like Russia where outbreaks have become more prevalent.
2013 CHAIRMAN’S LETTER