Decentralisation : A Strength
The McNeil name has been associated with the manufacturing and sale of pharmaceutical products since 1879, when Robert McNeil opened his first retail drug outlet in Pennsylvania. Growing as a producer of prescription pharmaceuticals, McNeil Laboratories, Inc. was incorporated in the U.S. in 1933, and became a member of the Johnson & Johnson family of companies in 1959. Mcneil Consumer Healthcare began operations in Canada in an existing administrative Johnson & Johnson facility in Guelph, Ontario in 1980. McNeil Consumer Healthcare (nonprescription pharmaceutical products) in Guelph, Ontario is member of the Johnson & Johnson family of companies in Canada. An important difference between Johnson & Johnson and most other companies—is the concept of decentralised management. Instead of operating as one large multi-billion dollar corporation, Johnson & Johnson is operated as 190 smaller companies, each focused on a specific medical or product franchise and/or geographic area, with each affiliate generating multiple options for growth. Through decentralisation we combine the advantages of being big with the agility and focus of smaller firms. Decentralisation enables each company to stay close to its customers, maintain short lines of communication with customers and employees, and accelerate the development of talent. The Johnson & Johnson - Merck Consumer Pharmaceuticals company also operates from our Woodlawn Road facility in Guelph.
Why Johnson & Johnson was operating in 190 other countries instead of operating as one large company?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → To combine the advantages of being big with the agility and focus of smaller firms
Option (1) To focus on larger firms along with a larger customer base — Incorrect. The group splits itself into smaller firms. It does not turn its focus to larger ones.
Option (2) To combine the advantages of being big with the focus on other firms — Incorrect. The passage speaks of the focus of smaller firms, meaning the attention each small unit gives to its own market. “Other firms” changes the meaning.
Option (3) To target as many customer as possible — Incorrect. Reaching the largest number of customers is not the reason the passage gives. It speaks of staying close to customers.
Option (4) To combine the advantages of being big with the agility and focus of smaller firms — Correct. Johnson & Johnson runs as 190 smaller companies, each focused on one product franchise or geographic area. The passage gives the reason: the group gets the advantages of being big together with the agility and focus of smaller firms. Agility means the ability to decide and act quickly, which a small unit close to its market can do, while the group keeps the strength of its size.
Note: It seems that there is a mistake in the original NTA paper, which prints “operating in 190 other countries” when it should read “operating as 190 smaller companies”. The passage says Johnson & Johnson “is operated as 190 smaller companies” and does not mention countries. Read the question as asking why Johnson & Johnson runs as 190 smaller companies instead of one large company. NCERT (2026-27 Edition): “Decentralisation : A Strength … An important difference between Johnson & Johnson and most other companies — is the concept of decentralised management. Instead of operating as one large multi-billion dollar corporation, Johnson & Johnson is operated as 190 smaller companies, each focused on a specific medical or product franchise and/or geographic area, with each affiliate generating multiple options for growth. Through decentralisation we combine the advantages of being big with the agility and focus of smaller firms. Decentralisation enables each company to sty close to its customer, maintain short lines of communication with customers and employees, and accelerate the development of talent. …” |