Final Research Paper
Throughout this course, you have been working on your research paper on a company you have chosen. For this assignment, you will consolidate the parts of the assignment you wrote in Units II, V, and VI. In addition, you will add a new section that comprises content you have learned in this unit.
First, combine Parts I-III of your paper. Be sure to make any changes necessary based on feedback you have received. Make sure that you include an introduction and transitions so that these three parts read as one cohesive document.
Then, you will need to examine your firm’s working capital management. Look at the firm’s annual report and answer the following questions:
What is the firm’s cash position? Does the firm reflect positive cash balances for the last three years?
What methods does the firm use to ensure and maintain positive cash flows?
What methods of short-term financing does the firm use?
Conclude your paper with a final recommendation about whether or not this company would be a good investment for potential investors. Your finished paper must be a minimum of seven pages long, and you must use at least five sources (most of which were likely used in other units). At least one source must come from the CSU Online Library. Adhere to APA Style when creating citations and references for this assignment.
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Instructions Final Research Paper Throughout this course, you have been working on your research paper on a company you have chosen. For this assignment, you will consolidate the parts of the assi
Research Paper: Part I Columbia Southern University May 9, 2022 Research Paper: Part I Summary Johnson & Johnson (JNJ) is a Fortune 500 company specializing in developing medical equipment, pharmaceuticals, and consumer packaged goods. Additionally, the company is involved in the research and development, manufacture, and marketing of a range of health care goods. The company’s product is concerned with the health and well-being of people. Consumer products include infant care, oral care, cosmetics, over-the-counter pharmaceuticals, women’s health, and wound care (Johnson & Johnson n.d). Pharmaceutical category items are therapeutically focused on areas such as immunology, infectious diseases and vaccines, neuroscience, and others. The medical equipment area encompasses a wide variety of products utilized in orthopedics, surgery, interventional medicine, and diabetic treatment, among other services. The organization employs approximately 260 people in more than 60 locations, including the United States (Johnson & Johnson n.d). Distribution of items marketed in international markets is highly influenced by country- and culture-specific. Additionally, investment in this foreign market carries a higher risk of financial instability, restrictive policies, and political and legal system uncertainty. Banking Structure of the Firm in Terms of Current and Past Investment JNJ’s latest investments include a $6.5 billion acquisition of momenta pharmaceutical INC, a biotechnology company. The acquisition resulted in the company expanding its expertise in immune-mediated diseases and propelling growth into antibody-driven diseases (Johnson & Johnson n.d). JNJ acquired common stock from 142,092 shareholders in 2019. JNJ’s board of directors launched a $5.0 billion share repurchase program in 2018. In 2017, JNJ invested around $6.2 billion in goodwill following the acquisition of pharmaceutical company Actelion. This figure includes $1.7 billion from the first quarter of 2017 acquisition of AMO. This investments enable JNJ diversifies its product offerings in the medical equipment sector. Industry of the Firm JNJ is a pharmaceutical company specializing in the sale and marketing of pharmaceutical and medical device goods. JNJ competes in this business on both an internal and external level in terms of research and development of new and existing products and processes (Johnson & Johnson n.d). This industry necessitates a significant investment in ongoing research, development, and client acquisition. As a result, industry participants invest heavily in advertising, promotion, and acquisition. The purchased product diversifies the company’s product range and enables the company to enter new markets. Pfizer is a major competitor of JNJ. Relevant History of the Company JNJ began as a small surgical dressing manufacturing company. Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson created JNJ in 1886. The firm was founded following Joseph’s ground-breaking study on the nature of airborne germs and infectious diseases (Reed, 2020). Later on, the corporation developed sterilizing procedures and surgical dressings to develop a more successful post-operative sterilization method (Reed, 2020). Later that year, in 1887, the firm was incorporated. In 1888, the firm released two essential products: modern methods of antiseptic wound care, which served as the first widely accepted guide to treating injuries, and inventive ready-made first aid kits. Later on, the innovation gained traction among industrial workers and the general public. JNJ began manufacturing maternity and infant care products in 1894. The company achieved this by manufacturing baby powders, which are still offered today, and maternity kits designed to make childbirth more antiseptic and safe(Reed, 2020). JNJ has built a reputation for innovation and high-quality products since its inception. Today, JNJ is one of the pharmaceutical industry’s leading companies, having made significant contributions to the development of medicines, vaccines, and medical devices for various diseases. Current Structure it Capital by Identifying Banking relationship JNJ’s capital structure is currently comprised of both equity and debt. After fiscal years 2021 and 2020, the short-term borrowings total around 3.8 billion and $2.6 billion, respectively (Johnson & Johnson n.d). Long-term debts are estimated to be approximately $2.1 billion in 2021 and $1.8 billion in 2020. In 2021 and 2022, the commercial paper will be about $1.6 billion. In 2026, long-term debt will mature from $2,131 to $23,189 million. At the end of 2021, the aggregate share will be about 1.3 billion. References Johnson & Johnson (JNJ). (n.d). Sec Filing: Form 10k: Retrieved from https://johnsonandjohnson.gcs-web.com/static-files/462a9aaa-18e1-439a-a62a-7b297a9fa68a McGrail, S. (2020). Johnson & Johnson Completes $6.5B Pharma Acquisition Deal. Merger and Acquisition News: Retrieved from https://pharmanewsintel.com/news/johnson-johnson-completes-6.5b-pharma-acquisition-deal Reed, E. (2020, Feb 24). History of Johnson & Johnson: Timelines and Facts: The Street: Retrieved from https://www.thestreet.com/personal-finance/history-of-johnson-and-johnson