This website uses cookies to ensure you have the best experience. Learn more

Codman & Shurtleff, Inc Essay

1765 words - 8 pages

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 ...view middle of the document...

They have a shared philosophy that guides the policies of each division. Per the case, those philosophies are “a basic belief in decentralized management, a sense of responsibility to our key constituents, and a desire to manage for the long term.”[ii] The case has made it very clear that short-term profits are not a focus of the divisions. To instill this philosophy throughout the employees, bonuses are not based on profits only. They are based on an overall performance over many years.

Another important attitude of Johnson & Johnson is that decentralization should not eliminate challenges and healthy conflicts from corporate headquarters. “Healthy conflict is about what is right, not who is right”[iii] is an important philosophy that they instill at the corporate and subsidiary levels. This statement says a great deal about Johnson & Johnson, as well as Codman & Shurtleff and the other subsidiaries. It is a company that doesn’t appear to be as political when an employee comes up with an idea or new strategy. It says that anyone can express his or her ideas and he or she will be taken seriously, rather than discarded before even considering the idea. It also says that the company will not allow itself to become stagnate, which could be detrimental to its existence. Today’s environment has become very complex; thus, the existence of companies is dependent upon new strategies and ideas. Instilling this philosophy throughout the organization will enable the company to thrive in its business.

Organizational Structure

The structure of Johnson & Johnson’s organization is of the divisional form. The diverse groups are divided into separate divisions. As a division of Johnson & Johnson, Codman & Shurtleff is completely autonomous, as are all of the other divisions of Johnson & Johnson. Because they are held accountable for their performance, the company must have a high degree of control. Key players in Codman & Shurtleff are Gus Fleites (vice president of Information and Control) and Roy Black (president).

Although Codman & Shurtleff is treated as an independent operating company, it still must report to the corporate headquarters. Stated in the case, Roy Black reports directly to Hebert Stolzer at Johnson & Johnson. He must sell the ideas and concepts to Johnson & Johnson. The five and ten-year plans are drawn from the bottom line and worked up to sales. Per the case, corporate is only interested in estimates for unit sales, sales revenue, net income and return on investment. The strategic plans must enable the company to reach these goals; therefore, a written plan of how the objectives would be met is a requirement.

Within Codman & Shurtleff, there is a functional structure, which includes the following departments: manufacturing, marketing, new business development, information and control, human resources, international, finance and research and development. Each department is expected to possess...

Other Papers Like Codman & Shurtleff, Inc

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Democratic Peace Theory

1852 words - 8 pages Intro: US Presidents have made it a goal during their term(s) in office to establish a good relationship with foreign countries and even try to improve upon existing connections with our allies. Some believe it is to prevent conflicts between the countries while others dispute that it is a threat assessment by the United States to pick and choose their friends and enemies. Preventing conflict between two democracies or countries that practice

Related Essays

Codman & Shurtleff Inc Essay

2610 words - 11 pages IntroductionThis paper will review the "Codman & Shurtleff, Inc.: Planning and Control System" case study found in the 2nd edition of " Accounting for Managers: Texts and Cases". The case illustrates a comprehensive formal planning and control system used in formulating and implementing strategy at Codman & Shurtleff, one of Johnson & Johnson's 155 subsidiaries. This paper will focus on the relationship between organizational

Audit Plan Of Johnson & Johnson

3373 words - 14 pages Nuerovascular * Codman & Shurtleff, Inc. * Lifescan, Inc * Animas Corporation * Veridex, LLC * Ortho-Clinical Diagnostics, Inc. * McNEIL-PPC, Inc. * McNeil Consumer Healthcare Division of McNEIL-PPC, Inc. * Johnson & Johnson Healthcare Products Division of McNEIL-PPC, Inc. * Ethicon * Neutrogena Corporation * McNeil Nutritionals, LLC. * OraPharma * OrthoDermatologics About thirty percent of

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging