Rasmussen College Johnson & Johnson Company Portfolio Analysis

Running head: PORTFOLIO ASSESSMENT ANALYSIS
Portfolio Assessment Analysis
Linsey Mendoza
Rasmussen University
Financial Analysis and Decision-Making
Audra Sherwood
March 5th, 2022
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PORTFOLIO ASSESSMENT ANALYSIS
2
Portfolio Analysis
Introduction
Johnson & Johnson is multinational cooperation in America launched in 1886 whose
prominent role is to manufacture pharmaceuticals, devices, and packaged customers. Its ordinal
stock is an element of the Dow Jones manufacturing average. The organization is graded number
36 in the fortune 500 lists in 2021 among the most extensive cooperation in the United States. In
Johnson &Johnson company, I was promoted to be the Chief Financial Officer responsible for
controlling the economic actions like financial planning and cash flow.
A
How Investments Made the Company Successful
The company has been involved in several investments that have contributed to its
success. The recent acquisition has made the company successful by delivering differentiated
drugs; the pharmaceutical industry has changed its portfolio by increasing its management in
immunology, developed its proficiency in oncology, and arrived vaccines. The organization’s
business of pharmaceuticals is in the progress of releasing six essential new goods between 2009
and 2012. Two of the current goods are undecided regulatory assessments in the European
Union, and two extra major components are recorded in leading markets. Most of these goods
would symbolize essential improvements over the new care principles.
Secondly, it has created a transformational pipeline; therapeutic business prioritizes
investments in interior Red, planned licensing preparations, acquisition selection, and partnership
to remain to create a robust pipeline for a long time. (Brown & Nwagbara,2018) The
organization’s medication business is expected to case 11 goods and over crucial line addition
between 2011 and 2015. It has also reinforced geographic attendance since the business will
PORTFOLIO ASSESSMENT ANALYSIS
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increase its geographic footmark and rise investments in upcoming markets, assessing market
suitable business approaches and collections. It also maintenance as the main advanced market.
Japan’s second greatest drug market is the major growth marketplace and corporate medication
business, with seven presentations prepared for 2021.
Lastly, the company has invested in gifted individuals and organizational abilities; the
company’s medication business is reinforcing management abilities locally, globally, and
regionally. A may element includes rotating principal gifts into significant duties to rapidly
quicken the skills to report a complex and growing business platform. The therapeutic business is
also creating R&D abilities in the current technology parts and evolving markets.
PORTFOLIO ASSESSMENT ANALYSIS
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B
Johnson & Johnson’s Portfolio
E
lements
Q
uantity
P
Divi
B
D
rice –to- dends yields
uying
ividend
earning
Price
s
Q
uantity
M
arket
E
PS
Price
Receive
d In
The
Year
S
TOCK x
1
000
9
8÷111=
6÷11
1*100=
$
98
$
6
1
000
$
111
0
.6782%
5.4054
0.883%
S
TOCK y
1
000
2
7÷24
13÷240
0*100=2.91
=
%
$
213
$
7
1
000
$
240
1
.333%
1.0125
%
S
TOCK z
1
000
8
14÷1
2÷ 100= 00*100=14
0.82%
$
82
14
1
000
$
100
%
Total dividends received = $
26000
$
451000
0
.6723%
PORTFOLIO ASSESSMENT ANALYSIS
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Bayer’s Company Portfolio
E
lements
Q
uantity
Price
-to-earning
D
B
ividend
uying
ividend
Yields
Price
s
D
Q
uantity
M
arket
e
EPS
Price
Receive
d In
The
Year
S
1
TOCK x 000
111÷
100= 1%
6
÷111*
$
100
$
6
1
000
$
111
0
0.36%
100=
5.4%
S
1
TOCK y 000
240÷
250=0.96%
8
÷240*10
$
250
$
8
1
000
$
240
0
.24%
0= 3.33%
S
TOCK z
1
000
100÷
1
85=1.1746
0÷100*1
%
00= 10%
$
85
$
10
1
000
$435000
Total
$451000
$
100
1
.11%
PORTFOLIO ASSESSMENT ANALYSIS
Total dividends received =
$24000
6
PORTFOLIO ASSESSMENT ANALYSIS
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Major Stock Index
Johnson & Johnson has three stocks that perform individually and differently. There are
three different elements in the company portfolio; each behaves as an individual item. Stock x
reaches 1000 items in total. The cost of each item is $100 per share; the purchasing price of the
stock x, therefore, becomes $100,000. In the market, each item of the 1000 items fetches a
selling price of $111. All the stock x is sold at the total cost of $111,000. When compared
against a major stock index, the price of one item per share is high in Johnson & Johnson’s. The
dividend for the stock received in that year is $6.
For stocky, 1000 total items belong to the category of this stock. Each product per share
goes for $250; this is the purchasing price of each component in the stock. The total purchasing
price of the stock is $250,000. All the elements in stocky fetch a selling price of $240, which is
marked as a loss for this particular stock. The products are sold at a total cost of $240,000, which
PORTFOLIO ASSESSMENT ANALYSIS
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goes the company register a loss of $10,000. This price, when compared with the major Stock
Index, is lower per share. The total dividends received in the year are $8.
The third stock is known as stock z; it also comprises 1000 items in total. Each item has a
purchasing price of $85; thus, the total purchasing price of the total stock is $85,000. When sold,
each item goes for $100. This indicates a profit to the company whereby when compared against
the major stock index, the company registers a profit from the sale of the products in stock z.
Generally, the total purchasing price is outweighed by the total selling price from the three
stocks. The total buying price registered to be $435,000, while the selling price registered equals
$451,000. Thus the total dividends for the three types of stocks are $24,000.
C
Critiques in Johnson & Johnson’s Company
Johnson & Johnson’s company has been recently in the limelight with ethical issues
scandals, especially with its invention of the Covid-19 vaccine. In the United States of America,
the Food and Drug Administration (FDA) has sent some warnings. Whereby FDA associates
immunization with the emergence of new neurological conditions. Which so far have affected
more than 100 US citizens (James et al., 2019). FDA states that the benefits of the vaccine to the
public are outweighed by the health risks it predisposes to the users. The company product
known as talcum powder has been linked to allergy cause ovarian cancer in other news. A dozen
women have reportedly accused the company of this. The court ruled in their favor making the
company part get away with these allegations with a total cost of $2 billion. Finally, although the
company has been recognized globally, there have been cases associated with the Covid-19
vaccine. Six people in the US reported having blood clots after taking the company’s vaccine
shots.
PORTFOLIO ASSESSMENT ANALYSIS
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Critiques in the Bayer Company
Bayer’s company rewarded Liberty Medical Supply in 1998 and 2002, one of the biggest
diabetic distributors of direct-to-patient. An estimation of 2.5million dollars to transform its
patients to Bayer’s distributors. The apparent kickbacks were founded on patients whose freedom
achievement changed to Bayer distributor and concealed as salary for marketing. In
supplementary, Bayer waged kickbacks of estimated 375,000 dollars to 10 extra diabetic
distributors to switch patients to Bayer’s distributors. The company is currently disturbed
concerning the continent-wide investigation by European experts into anti-competitive measures
among medicine organizations. The Chief Executive Healthcare also leads the therapeutic
industry and federation association.
D
Risks involved in Johnson & Johnson
The risks that arise for security experts to increase extra planning for a broad range of
possible security develop and scenario, execute and implement strategies that align to the
recognized dangers for every necessary facility. A solo therapeutic organization can attend
several countries and cross numerous continents with district function and design.
The risks that have risen from the current Beta are supply chain disruption. After drug
prescriptions leave processing facilities, they usually pass through several retail and wholesale
medicine suppliers before eventually getting to the local hospital or pharmacy. Though the
handling and shipping of the medicines happen under protection, often and controlled local
conditions, each step in the therapeutic distributor’s chain offers a chance for changing or
interruptions from criminals. The current Beta has gone to the extent of protecting the drug
supply chain by introducing advanced security actions that label persons’ bottles of drugs with
PORTFOLIO ASSESSMENT ANALYSIS
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slight electromagnetic marks referred to as radio frequencies recognitions labels. It permits
medicine producers and whole sell suppliers to additional close goods as they progress through
the supply chain.
The other risk is counterfeit medicines regarded as a severe public health threat supported
by criminals with low safety and health need a joint private-public sector reply. The fake drug
business is more profitable than the sedative market, with the world Health Organization
approximating that imitating costs the world pharmacy industry (Lundgren & McMakin,2018).
With that in consideration, it’s rising that most pharmaceutical organizations trust that prohibited
utilization of their product name on the counterfeit goods hovers the organization’s honesty that
they are trying to symbolize. As extra therapeutics are being traded through the internet, the
concern is simply getting poorer.
Conclusion
In conclusion, the recent investment has successfully delivered differentiated drugs and
created a transformational pipeline and therapeutic business prioritization investment. Johnson &
Johnson has three stocks that perform individually and differently. There are three different
elements in the company portfolio; each behaves as an individual item. Stock x reaches 1000
items in total. The total buying price registered to be $435,000, while the selling price registered
equals $451,000. Thus the total dividends for the three types of stocks are $24,000. Johnson &
Johnson’s company has been recently in the limelight with ethical issues scandals, especially
with its invention of the Covid-19 vaccine.
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References
Brown, C., & Nwagbara, U. (Eds.). (2018). Corporate Social Responsibility and Strategic Market
Positioning for Organizational Success. IGI Global.
James, M. M. A., Kee, D. M. H., Xian, T. H., Han, K. C., Cheng, K. K., & Alshammari, M. S.
(2019). Johnson & Johnson’s product safety issues and ways the company can address those
issues. Asia Pacific Journal of Management and Education (APJME), 2(3), 7-18.
Lundgren, R. E., & McMakin, A. H. (2018). Risk communication: A handbook for
communicating environmental, safety, and health risks. John Wiley & Sons.

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