...Codman & Shurtleff, Inc. Introduction and Issues Codman & Shurtleff was launched in 1838, focusing on the design and fabrication of surgical supplies. Years later, Johnson & Johnson acquired it in 1964. Today, Codman & Shurtleff, Inc. is still one of many subsidiaries of Johnson & Johnson. It continues to supply the medical profession with surgical tools, equipment, implants, disposable materials and many other medical supplies. This case discusses the planning and control system of Codman & Shurtleff, Inc. It focuses on the reporting relationships, five and ten-year plans, financial planning, and budget revisions and reviews. One major issue is that the company is dealing with an unfavorable profit objective. They are currently two million dollars short of their projection for the year. The weakening of the dollar, a poor mix variance and unexpected high start-up costs have all contributed to the underperformance of the company. In order to understand the position of Codman & Shurtleff, this paper will analyze the culture and the organizational structure of Johnson & Johnson, as well as Codman & Shurtleff. It will also analyze how well the company coordinates their financial planning and what problems they may encounter as the company implements changes in order to adhere to the corporate mission statement. Analysis The Culture of Codman & Shurtleff, Inc. / Johnson & Johnson Per the case, when Johnson & Johnson acquired Codman, they...
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...TO: Professor Vasu Ramanujam FROM: Tatsunori Sasaki SUBJ: Analysis of Codman & Shurtleff, Inc. DATE: February 15, 2007 Johnson & Johnson relies on decentralized management system and its autonomous operating subsidiaries to compete in high-competitive health care markets. The planning and control system has benefits and detriments. The system creates a decentralized culture which is necessary for their success. The center of the control function is the Executive Committee comprising the chairman, president, chief financial officer, vice president of administration, and eight Executive Committee members with responsibilities for company sectors. In some ways, each subsidiary reports to a member of the Executive Committee. However, each company develops its own plans and strategies. In addition, those strategic plans remain fixed over a five-year period. Therefore, the managers are not only effectively delegated but also strongly accountable for their actions. They set their targets by themselves. Then, they move toward the goals based on their own decisions. So, there is no excuse for them to miss the objectives. That’s why Roy Black states that decentralized management is “unequivocal accountability for what you do.” Five- and Ten-year plans at Johnson & Johnson let them have long-term views and learning opportunities. It is in the fast-moving, complex, high competitive health care businesses. It is hard to make a prediction for the future and so...
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... Managerial accounting is concerned with the use of accounting data by managers to plan and control (evaluate) personnel and operations of the firm. The focus is on planning, decision-making, and control by the organization and on the accounting systems that managers have to assist them in their decisions about resource allocation and performance evaluation. The course is intended as an introduction for individuals who will make business decisions, evaluate business units, and evaluate others (or be evaluated) through the use of accounting systems. The course will be loosely divided into two topics: cost management systems and managerial control systems. Each topic is briefly described below. Cost Management Systems: The objective of the cost management system is to provide information about the costs of the goods and services sold by the firm. While financial accounting requires that product cost information be accumulated in particular ways for external reporting, the focus in the course will be on cost systems that aid managerial decision-making. We will start with a study of traditional cost systems still in widespread use today. Next, we will examine the problems associated with these systems in today’s business environment. Through the use of readings and cases, we will discuss situations in which the traditional systems provide seriously flawed or excessively costly product cost information. We will then look...
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...proposed two distinct approaches to address what they believe are shortcomings of traditional budgeting practices. One approach advocates improving the budgeting process and primarily focuses on the planning problems with budgeting. The other advocates abandoning the budget and primarily focuses on the performance evaluation problems with budgeting. This paper provides an overview and research perspective on these two recent developments. We discuss why practitioners have become dissatisfied with budgets, describe the two distinct approaches, place them in a research context, suggest insights that may aid the practitioners, and use the practitioner perspectives to identify fruitful areas for research. INTRODUCTION udgeting is the cornerstone of the management control process in nearly all organizations, but despite its widespread use, it is far from perfect.1 Practitioners express concerns about using budgets for planning and performance evaluation. The practitioners argue that budgets impede the allocation of organizational resources to their best uses and encourage myopic decision making and other dysfunctional budget games. They attribute these problems, in part, to traditional budgeting’s financial, top-down, commandand-control orientation as embedded in annual budget planning and performance evaluation processes (e.g., Schmidt 1992; Bunce et al. 1995; Hope and Fraser 1997, 2000, 2003; Wallander 1999; Ekholm and Wallin 2000; Marcino 2000; Jensen 2001). We demonstrate practitioners’...
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...New Medical Devices in the US August 13 2010 Table of Contents 1. Introduction……………………………………………………………………………………………………………………………………2 2. Background and Framework……………………………………………………………………………………………………………4 2.1 Priority Medical Devices for the Netherlands…..……………………………………………………………………4 2.2 The US Vision: From see and treat to predict and prevent……………………………………………………6 2.3 Conclusions…………………………………………………………………………………………………………………………..7 3. Medical device sector in the US………………………………………………………………………………………………………8 3.1 Economic Impact…..………………………………………………………………………………………………………………8 3.2 The Sector by State…..…………………………………………………………………………………………………………10 3.3 Key Institutes: Patent Applications in the Cluster Areas…..………………………………………………….13 3.4 Conclusions…..…………………………………………………………………………………………………………………….20 4. Turning research into novel medical devices………………………………………………………………………………….22 4.1 The Medical Device Development Process…..……………………………………………………………………..22 4.2 CIMIT: A Structure for Medical Device Innovation…..………………………………………………………….23 4.3 Stanford Biodesign: Innovation as a Discipline…..………………………………………………………………..26 4.4 Conclusions and Recommendations…..……………………………………………………………………………….28 5. Summary and Conclusions…………………………………………………………………………………………………………….30 6. Acknowledgements……………………………………………………………………………………………………………………….32 7. References…………………………………………………………………………………………………………………………………….33 Appendices A1 Selection of Key Institutes A2 Results Patent Analysis A3 Research...
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...diabetes and uses the waterproof ANIMAS® VIBE™ insulin pump, swam an English Channel relay to raise money for the Juvenile Diabetes Research Foundation. Matt wants to show his son, Jack, who also has type 1 diabetes, that the condition need not hold him back in life. Read Matt’s story on page 16. CHAIRMAN’S LETTER To Our Shareholders hroughout our annual report this year, you’ll read the severe economic decline; the tightening of consumer about how Johnson & Johnson is bringing meaningful spending and health care budgets; over-the-counter (OTC) innovation to our patients and customers, and making product quality issues at McNeil Consumer Healthcare and a difference in their lives in a personal way—from the recall of the DePuy ASR™ Hip System. Brunhilde Wecker, who made a full recovery from her stroke Our company was severely tested. thanks to our new blood clot retrieval and removal device, In managing through this stretch, we relied heavily on the resolve to our own Bill Hait, an oncologist whose vision and insights of our people and on our time-tested business model: our broad helped accelerate the approval of a wholly new treatment for base in health care, our decentralized management structure, prostate cancer. managing for the long term and the values set forth in Our Credo. These stories remind us why health care is such a rewarding We made necessary restructurings to our business to manage endeavor. They excite me about the future of Johnson...
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...This page intentionally left blank Business Performance Measurement Drawing together contributions from leading thinkers around the world, this book reviews recent developments in the theory and practice of performance measurement and management. Significantly updated and modified from the first edition, the book includes ten new chapters that provide a comprehensive review of performance measurement from the perspectives of accounting, marketing, operations, public services and supply chain management. In addition to these functional analyses the book explores performance measurement frameworks and methodologies, practicalities and challenges, and enduring questions and issues. Edited by one of the world’s leading experts on performance measurement and management, Business Performance Measurement will be of interest to graduate students, managers and researchers who wish to understand more about the latest developments in this rapidly changing field. Andy Neely is Deputy Director of the ESRC/EPSRC AIM Research initiative, Professor of Operations Strategy and Performance at Cranfield School of Management, and Visiting Professor of Operations Management at London Business School. Business Performance Measurement Unifying theories and integrating practice Second edition Edited by Andy Neely CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge...
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