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http://www.forbes.com/forbes/2007/0416/064.html On The Cover/Top Stories Why Globalization is Good Robyn Meredith and Suzanne Hoppough 04.16.07 Multinationals are trashed as exploiters of the poorest people on the planet. Wrong, wrong, wrong. A ragtag army of save-the-world crusaders has spent years decrying multinational corporations as villains in the wave of globalization overwhelming the Third World. This ominous trend would fatten the rich, further impoverish and oppress the poor and crush local economies. The business-bashing group Public Citizen argued as much in a proclamation signed by almost 1,500 organizations in 89 countries in 1999. Whereupon hundreds of protesters rioted outside a conference of the World Trade Organization in Seattle, shattering windows, blocking traffic and confronting cops armed with tear gas and pepper spray. Six hundred people were arrested. Cut to 2007, and the numbers are in: The protesters and do-gooders are just plain wrong. It turns out globalization is good--and not just for the rich, but especially for the poor. The booming economies of India and China--the Elephant and the Dragon--have lifted 200 million people out of abject poverty in the 1990s as globalization took off, the International Monetary Fund says. Tens of millions more have catapulted themselves far ahead into the middle class. It's remarkable what a few container ships can do to make poor people better off. Certainly more than $2 trillion of foreign aid, which is roughly the amount (with an inflation adjustment) that the U.S. and Europe have poured into Africa and Asia over the past half-century.
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In the next eight years almost 1 billion people across Asia will take a Great Leap Forward into a new middle class. In China middle-class incomes are set to rise threefold, to $5,000, predicts Dominic Barton, a Shanghai managing partner for McKinsey & Co. As the Chindia revolution spreads, the ranks of the poor get smaller, not larger. In the 1990s, as Vietnam's economy grew 6% a year, the number of people living in poverty (42 million) fell 7% annually; in Uganda, when GDP growth passed 3%, the number fell 6% per year, says the World Bank. China unleashed its economy in 1978, seeding capitalism first among farmers newly freed to sell the fruits of their fields instead of handing the produce over to Communist Party collectives. Other reforms let the Chinese create 22 million new businesses that now employ 135 million people who otherwise would have remained peasants like the generations before them. Foreign direct investment, the very force so virulently opposed by the do-gooders, has helped drive China's gross domestic product to a more than tenfold increase since 1978. Since the reforms started, $600 billion has flooded into the country, $70 billion of it in the past year. Foreigners built hundreds of thousands of new factories as the Chinese government built the coal mines, power grid, airports and highways to supply them. As China built infrastructure, it created Special Economic Zones where foreign companies willing to build modern factories could hire cheap labor, go years without paying any taxes and leave it to
government to build the roads and other infrastructure they needed. All of that, in turn, drove China's exports from $970 million to $974 billion in three decades. Those container loads make Americans better off, too. You can get a Chinese DVD at Wal-Mart (nyse: WMT - news - people ) for $28, and after you do you will buy some $15 movies made in the U.S.A. Per-person income in China has climbed from $16 a year in 1978 to $2,000 now. Wages in factory boomtowns in southern China can run $4 a day--scandalously low in the eyes of the protesters, yet up from pennies a day a generation ago and far ahead of increases in living costs. Middle-class Chinese families now own TVs, live in new apartments and send their children to private schools. Millions of Chinese have traded in their bicycles for motorcycles or cars. McDonald's (nyse: MCD - news - people ) has signed a deal with Sinopec, the huge Chinese gasoline retailer, to build drive-through restaurants attached to gas stations on China's new roads. Today 254 Starbucks (nasdaq: SBUX - news - people ) stores serve coffee in the land of tea, including one at the Great Wall and another at the Forbidden Palace. (The latter is the target of protesters.) In Beijing 54 Starbucks shops thrive, peddling luxury lattes that cost up to $2.85 a cup and paying servers $6 for an 8-hour day. That looks exploitative until you peek inside a nearby Chinese-owned teahouse where the staff works a 12-hour day for $3.75. Says one woman, 23, who works for an international cargo shipper in Beijing: "My parents were both teachers when they were my age, and they earned 30 yuan [$3.70] a month. I earn 4,000 yuan ($500) a month, live comfortably and feel I have better opportunities than my parents did." Tony Ma, age 51, was an unwilling foot soldier in Mao's Cultural Revolution. During that dark period from 1966 to 1976 universities were closed, and he was sent at age 16 to work in a steel mill for $2 a month. He cut metal all day long for seven years and feared he might never escape. When colleges reopened, he landed a spot to study chemistry, transferred to the U.S., got a Ph.D. in biochemistry and signed on with Johnson & Johnson (nyse: JNJ - news - people ) at $45,000 a year. Later he returned to the land he fled and now works for B.F. Goodrich (nyse: GR - news - people ) in Hong Kong. The young college grads in China today wouldn't bother immigrating to the U.S. for a job that pays $45,000, he says--because now they have better opportunities at home. Capitalism alone, however, isn't enough to remake Third World economies--globalism is the key. A big reason India trails behind its bigger neighbor to the northeast in lifting the lower classes is that, even after embracing capitalism, it kept barriers to the flow of capital from abroad. Thus 77% of Indians live on $2 a day or less, the Asian Development Bank says, down only nine percentage points from 1990. A third of the population is illiterate. In 1980 India had more of its population in urban centers than China did (23% versus 20% for China). But by 2005 China had 41% in cities, where wages are higher; India's urbanites had grown to only 29%. Freed of British colonial rule in 1947 and scarred by its paternalistic effects, India initially combined capitalism with economic isolationism. It thwarted foreign companies intent on investing there and hampered Indian firms trying to sell abroad. This hurt Indian consumers and local biz: A $100 Microsoft (nasdaq: MSFT - news - people ) operating system got slapped with duties that brought the price to $250 in India, putting imported software and computers further from reach for most people and businesses. Meanwhile, the government granted workers lavish job protections and imposed heavy taxes and regulations on employers. Government jobs usually were by rote and paid poorly, but they guaranteed lifetime employment. They also ensured economic stagnation. Financial crisis struck in 1991. Desperate for cash, India flew a planeload of gold reserves to London
and began, grudgingly, to open its economy. Import duties were lowered or eliminated, so India's consumers and companies could buy modern, foreign-made goods and gear. Overseas firms in many industries were allowed to own their subsidiaries in India for the first time since 1977. India all but banned foreign investment until 1991. Since then foreign companies have come back, but not yet on the scale seen in China. Foreign companies have invested $48 billion in India since 1991--$7.5 billion of that just in the last fiscal year--the same amount dumped into China every six weeks. By the mid-1990s the economy boomed and created millions of jobs. By the late 1990s U.S. tech companies began turning to India for software design, particularly in the Y2K crunch. The Indians proved capable and cheap, and the much- maligned offshoring boom began. Suddenly Indian software engineers were programming corporate America's computers. New college graduates were answering America's customer service phone calls. Builders hired construction workers to erect new high-rise buildings suddenly in demand as American and European firms rushed to hire Indian workers. The new college hires, whose older siblings had graduated without finding a job, tell of surpassing their parents' salaries within five years and of buying cell phones, then motorcycles, then cars and even houses by the time they were 30. All of that would have been impossible had India failed to add globalization to capitalism. Today, despite its still dilapidated airports and pothole-riddled highways, the lumbering Elephant now is in a trot, growing more than 7% annually for the last decade. In 2005, borrowing from the Chinese, India began a five-year, $150 billion plan to update its roads, airports, ports and electric plants. India is creating free trade zones, like those in China, to encourage exports of software, apparel, auto parts and more. S.B. Kutwal manages the assembly line where Tata Motors (nyse: TTM - news - people ) builds Safari SUVs ( click here for more). He remembers how, in the 1980s, people waited five years to buy a scooter and cars were only for the rich. "Since we've liberated the economy, lots of companies have started coming into India," says Kutwal. "People couldn't afford cars then. Now the buying power is coming." In Mumbai (formerly Bombay), Delhi, Bangalore and other big cities, shopping malls have sprung up, selling everything from Levi's jeans to Versace. India still has raggedy street touts, but when they tap on car windows at stoplights, instead of peddling cheap plastic toys, they sell to the new India: copies of Vogue and House & Garden magazines. Western restaurants are moving in, too: Domino's Pizza (nyse: DPZ - news - people ) and Ruby Tuesday (nyse: RI - news - people )'s have come to India, and 107 McDonald's have sprung up, serving veggie burgers in the land where cattle are sacred. None of this gives pause to an entity called International Forum on Globalization. The group declares that globalism's aim is to "benefit transnational corporations over workers; foreign investors over local businesses; and wealthy countries over developing nations. While promoters proclaim that this model is the rising tide that will lift all boats, citizen movements find that it is instead lifting only yachts." "The majority of people in rich and poor countries aren't better off" since the World Trade Organization formed in 1995 to promote global trade, asserts Christopher Slevin, deputy director of Global Trade Watch, an arm of Ralph Nader's Public Citizen. "The breadth of the opposition has grown. It's not just industrial and steel workers and people who care about animal rights. It includes high-tech workers and the offshoring of jobs, also the faith-based community."
How long have you been at Johnson & Johnson? Ive been in the law department at Johnson & Johnson for twenty-six years and am currently responsible for online training compliance, which I established here in 1999. Before 1999, I spent twothirds of my time doing mergers and acquisitions and a third doing FDA-regulatory work for our hightechnology medical products companies. I serve as U.S. Environmental Law Counsel, and Ive been serving on the board of the Association of Corporate Counsel (ACC) since 2007. What do you think of performance metrics and business plans? Im in favor of them. If you take a process apart and analyze it, its frequently possible to streamline the process and then automate it. Reasonable metrics permit you to measure improvements in productivity. The most successful automation projects have been preceded by mapping the existing process, re-engineering the process, and then automating that re-engineered process. There is a great deal of focus on metrics these days. I spoke at an ACC meeting in Seattle about creating business plans for law departments. Many lawyers feel they cant put together a strategic plan, because their responsibility is to react to the legal risks presented to the company, and its impossible to predict what those will be. Developing a business plan creates an opportunity to sit down with your colleagues on the business side and identify risks. You can discuss what theyre most worried about in terms of growing the business. A legal business plan can be a useful resource-allocation tool. You could do any one of a hundred things right now, and theres no guarantee that tasks selected at random would have the overall effect you want for the business. Having a strategic plan changes that. A strategic plan helps you identify which goals to focus on. At the end of the year, if you have an appropriate metric, you can measure what you did and how much progress you made. The challenge is to create the plan in a thoughtful way with plenty of client input. When you create a business plan, act on it, and measure your progress with metrics, you send a message to your business clients that you share their paradigm, that your plans reflect their needs, and that youre holding yourselves accountable. Its one thing to say something, and another thing to back up your words with actions. What is the relationship of the law department to the rest of the company? The best law departments have always been intimately involved in the business they support. The tradition of our law department since its founding in 1934, with Ken Perry, was based on a commitment to understand and participate in the business and be a partner. This is not to say we dont enforce limits. But after we tell them they cant follow a particular course, its part of our job to help them find a legal method of achieving their goals that is also consistent with Our Credo. Our Credo is the one- page statement of principles that has guided Johnson & Johnson since its initial publication in 1943.
The prior general counsel, Robert Fine, used to tell candidates during their interviews that at Johnson & Johnson we dont hire lawyers to practice law; we hire lawyers to drive our business in a legal and ethical manner. So the idea is for our lawyers to use their legal skills to find ways to help the business create value. That helps our lawyers to be seen as valuable business partners rather than impediments. In what ways do you communicate with the business side? We talk informally about services and whether or not they need more support. This kind of communication resulted in our law department growing from seventy lawyers in 1996 to over 280 lawyers today. That growth was a reaction to the demand from business leaders for more help in many areas. Communication is part of the planning process, even though it might occur informally early on and in a more structured way later. Its a very important part of helping business partners appreciate the value of what we do and thereby commit resources to a larger, more collaborative legal function. We also want to better understand the drivers of client operations and find ways to limit risks and liabilities and capitalize on opportunities. Were in the pharmaceutical and medical industries, which are heavily regulated. Lawyers who understand their clients business are in a better position to capitalize on the legal regimes in place or that could be put in place with the appropriate influencing of state or federal legislatures. How has globalization affected Johnson & Johnson and its law department? In the twenty-six years since 1982, Johnson & Johnson increased its worldwide sales from about $5 billion to over $60 billion and doubled its employees from 60,000 to 120,000. The law department went from forty lawyers in one office location to over 280 lawyers in forty-one offices around the world, including in Europe, China, Japan, Singapore, and India. How does the law department manage the workflow around the world? Our response is driven by how were staffed. In the U.S., we handle some litigation internally, but even litigation handled by outside counsel is closely overseen by our lawyers. Our ideal is to have a knowledgeable internal lawyer intimately involved with the cases and actively involved in shaping strategy, particularly in methodology, as well as in the assessment and review of budgets. We want to keep a close eye on what the case is costing us and what it might cost over a period of time. In Europe and Asia, we have fewer lawyers, so we have to rely more on outside counsel. But we also have much less litigation there. How do you see the size of law firms changing in the next decade? On the question of whether or not law firms will grow bigger, Im agnostic. A number of larger firms are in trouble, and I view the root cause to be the unworkability of the current paradigm over the long term. If youre a Skadden Arps or Cravath Swaine & Moore or Sullivan & Cromwell at the top of the food chain, you can have that paradigm. Other firms need to rethink the process by which they create value for their clients and enter into discussions with clients to make that work. The ACC Value Challenge (see www.acc.com) has advanced discussion and understanding by the outside-counsel community (as well as in-house counsel) of the costs built into the current system. Weve seen quite a few firms work with ACC and our members to address the issues of law-firm structure, practices and costs. Why is the paradigm unworkable?
Heres just one example. Many firms will bring in large numbers of first-year associates, because they realize that fifty percent of them will leave the firm in two years. Wouldnt it be better to hire fewer associates and create an environment to encourage them to remain? The associates punch their tickets and leave, and this high turnover results in costly retraining, not to mention client frustration. So how do you do this? Thats a good discussion to have, and thats what the ACC is focused on. Accountants, architects and other professionals find ways to price engagements for doing something and create value their clients want. The last holdouts are lawyers. How will the role of general counsel change in the near future? It will become more proactive and more focused on planned reduction of risks. For example, we developed an enhanced approach to compliance training. We visited with over 6,000 senior leaders over the course of about four years in an attempt to be more proactive. We wanted to help them identify the areas of risk in their businesses and learn to ask for help from us to plan and work around them. In a sense, we wanted our law department to become less like a group of firefighters running to put out the next fire and more like collaborators with our businesspeople to be the designers and builders of fireproof buildings. Its an application of process re-engineering. You attempt to design the opportunity for error out of the business process to the maximum extent possible. The result may not be perfect, but it is generally a great improvement on the process it replaced. After the process has been set, we encourage continuous improvement, refinement, and efforts to help people remain vigilant to the risks they face.
http://www.computerworld.com/s/article/101731/Globalization_propels_product_life_cycle_man agement_efforts
countries. "PLM has evolved from an engineering-centric concept to a strategic enterprise type of initiative," said Marc Halpern, an analyst at Gartner Inc. "In many ways, PLM today is where ERP was 10 years ago." Just as ERP systems integrated disparate functions such as finance, inventory management and material requirements planning, PLM tools are being used to tie together tasks such as product design, authoring of engineering documents and management of product and configuration data, Halpern said. Linde AG, a Weisbaden, Germany-based engineering and manufacturing company, is using a consolidated product data management system to enable collaboration among its distributed development teams. The company is evaluating the system to see if it can also be used for real-time project management, said Andre Scholtz, head of technical systems at Linde's materials handling group. Trane, a Piscataway, N.J.-based unit of American Standard Cos. that makes air conditioning systems, is currently implementing PLM technology as part of a broader effort to improve its materials reuse and configuration management processes. The company hopes to increase employee productivity and reduce the time it takes to bring products to market, said Trane CIO David Gregory. "It's really about getting smarter about how you do things," he said.
http://findarticles.com/p/articles/mi_m0CYZ/is_2_34/ai_n27265538/
Annual Report
The group's existing Failure to identify Each business The group's investment activities are well new business areas prepares a ten year in RD has increased placed to deliver good may impact the strategic plan to during the year by growth over the ability of the group to review demand in 18.1 million to 109.8 coming years. New continue to grow in existing markets million. business areas could the long term. and potential new help to sustain the opportunities. The new team has been group's growth established with the beyond that period. The group remit of identifying continues to invest new business areas in research for with significant long new products and term growth potential technologies. that are consistent with the group's existing Following the core competencies. ten year strategy review, a new team has been established to review larger scale potential opportunities. The group's strategy is A successful The group has The only significant based upon organic acquisition requires clearly defined acquisition made growth. However, significant criteria for suitableduring the year was the acquisitions may help management attention acquisition targets purchase of Intercat, to accelerate the on its integration. and substantial Inc. in November achievement of This diversion of due diligence is (Berlin: NBXB.BE strategic goals. The management could carried out before news) 2010. This has realisation of adversely impact the any acquisition is strengthened the anticipated benefits rest of the business. made. group's position in the depends upon the In addition, an petroleum refining performance of unsuccessful A dedicated team catalyst market and has acquired businesses integration of the a clear fit with our is appointed to after acquisition and acquired business Process Technologies manage the their successful could result in the integration process business. The integration into the failure to realise the and regular integration is going group. expected benefits and monitoring of the well but it is too early hence impact the performance of to assess whether the group's results. newly acquired business will realise the anticipated businesses is benefits. carried out.
Approximately 50% A curtailment in The group of the group's revenue environmental maintains a is driven by legislation around the diverse product environmental world could limit the portfolio. legislation, group's growth particularly legislation potential and Forthcoming over emissions from undermine profit changes in light and heavy duty margins. emissions vehicles. Further regulations are tightening of global well understood emissions legislation and our products generally requires are designed to improved meet these technological increased solutions and the requirements. extension of emissions legislation to new Profit margins applications can create can be maintained opportunities for the with ongoing group. improvements in technology to reduce the cost and improve the effectiveness of our products. Regular reviews are undertaken to monitor areas of new potential legislation.
There has been no material change in emissions regulations in any of the group's major markets.
Technological Johnson Matthey Failure to keep up change operates in highly with changes in the competitive markets market place could in which technology is result in a lack of a key to success. competitive products Constant product and erosion of innovation is critical margins and / or loss to maintain of market share. competitive advantage.
The group There has been no continues to invest major change in the in its products risk profile during the through research year. and development. There is constant innovation and development in cooperation with our key customers. The group invests in its people to ensure
that it maintains a high level of relevant scientific expertise. MARKET Global (Chicago Options: ^RGITRUSD news) political and economic conditions The global nature of A sustained period of The group The group's strong the group's business economic weakness maintains a performance this year exposes it to risk in our markets could balanced portfolio reflects the continuing arising from have a material of businesses to recovery of its economic, political adverse effect upon reduce the impact businesses since the and legislative change the group's results. of a change to any recession in the group's in the countries in The group has no one market. developed markets. which we operate. influence upon changes in inflation, Management The political unrest in interest rates or other monitors the the Middle East could economic factors performance of disrupt our Process affecting its business. our businesses Technologies In addition, the across the world at businesses. There has, possibility of political both business and however, been no unrest and legal or group level. material impact in the regulatory changes current year and any also exist in countries potential long term in which the group impact is still operates. unknown. The group has well The group has high established long term market shares in relationships with many of the Some of the No significant changes group's key have arisen in this risk. relationships are supported by long term
Commercial relationships
a number of markets in which it customers and operates. The suppliers. Maintaining deterioration in contracts, notably good the group's the relationship with, relationship with relationships with or ultimately the loss Anglo Platinum (Berlin: RPHA.BE customers and of, a key - news) . suppliers enables the customer or supplier group to enhance the could have a material A broad customer base is quality of service to impact maintained to its customers. on the group's results. prevent the group from becoming unduly dependent on any
single customer. Industry developments and market shares are constantly monitored. We actively manage our customer relationships at all levels to ensure a high quality of service. FINANCIAL Movements in The group uses a Raw material prices The cost of The most significant raw material variety of raw can fluctuate precious metals change since last year prices materials, including significantly and have that are used as concerns rare earth precious metals, in its an impact on Johnson raw materials in materials. Supply products. In some Matthey's results. the group's constraints have circumstances, in the products is resulted in price rises short term it may not generally passed for these commodities, be possible to pass on directly on to which have exposed higher raw material customers and any the group to reduced prices to our price exposure is margins on some customers. In hedged. products although addition, higher prices these were not material that are passed on to Innovation that to the group's results. our customers could allows ongoing Going forward, the result in substitution group is reviewing its thrifting of or replacement of our precious metals in supply arrangements products with cheaper our products limits with customers to alternatives. identify the most cost the impact of higher prices on effective solutions for both them and Johnson our customers. Matthey. Pension schemeThe group operates a funding number of defined benefit pension schemes. In some cases, the schemes' actuaries have estimated that actuarial deficits exist Actuarial deficits could be adversely affected by changes in interest rates, the market values of investments, as well as inflation and increasing longevity The performance The deficit on the of the group's group's principal pension schemes defined benefit pension are regularly scheme in the UK was reviewed by both 60.6 million in the company and 2010/11, compared to the trustees of the 156.9 million last schemes, taking year.
and in those cases the of the schemes' actuarial and group has agreed members. A further investment advice deficit recovery plans. increase in actuarial as applicable. deficits could result in increased costs to Where possible, meet the pension appropriate schemes' liabilities. pension scheme assets are held to match movements in the schemes' liabilities. OPERATIONAL Changes to In common with Changes made to health, safety, similar manufacturing applicable laws, environment companies, the group regulations or and other operates in an standards could regulations and environment that is adversely impact the standards subject to numerous group's health, safety and manufacturing environmental laws, capability or indeed, regulations and the marketability of standards. our products. The group The registration carries out regular deadline for REACH internal reviews to phase I came into ensure compliance effect from 1st with group December 2010 and policies and the group materially applicable laws, met the requirements regulations and for its qualifying standards. products. The group is also reviewing its products containing Changes in vanadium, primarily in legislation are its Colour carefully monitored and if Technologies business, to identify potential required, the composition of ouralternatives in the event of any tightening products is of regulations in this amended to comply with latest area. legislation.
Availability of The group uses many Disruption to the Although most As mentioned above, raw materials raw materials within supply of raw of the world's the supply of rare earth its manufacturing materials, most platinum is mined materials has been processes. Several raw notably platinum in South Africa, constrained during the materials are available group metals, rare the group has year although this has from only a limited earths or narcotic raw access to world only had a price impact number of countries materials, could markets for on the group and has and / or suppliers. adversely affect the platinum and other not affected our ability group's profit. This precious metals to manufacture. No may be due to and is not other material changes increased prices or dependent on any to raw material supply because our ability to one source for have arisen. manufacture and obtaining supplies. supply product to
Appropriate sourcing arrangements are in place for other key raw materials to ensure that the group is not dependent on any one supplier. Where possible the group enters into long term supply arrangements to limit the exposure to significant movements in raw material prices.
Recruitment The group relies upon and retention of its ability to recruit, high quality train and develop staff employees around the world with the necessary range of skills and experience to meet its stated objectives.
The lack of an appropriately skilled workforce could adversely impact the group's ability to perform in line with expectations.
The group has a low level of voluntary employee turnover. A triennial review of executive remuneration Global training has recently been and management completed to ensure that our executive development processes are in remuneration packages are competitive. Global place. graduate recruitment Regular reviews processes are being of management reviewed in 2011/12. succession plans are carried out. Global remuneration policies are in place to ensure appropriate rewards to motivate and retain staff.
Security
On any given day the group has significant quantities of high value precious metals
The value of any precious metal process losses could be material to the
The group has There has been no highly developed evidence of any security, assay and material losses in the other process year and the group's
or highly regulated group and any loss of controls. security processes substances on site and a highly regulated remain robust. in transit, the security substance could result Annual security of which is critical. in the removal of our audits are carried licence to operate. In out across the addition, in both group. cases there remains the possibility of theft Insurance or fraud. (Euronext: SIN.NX - news) cover is maintained for losses from theft or fraud. Intellectual property The group operates in Failure to establish The group has There has been no markets in which the the group's established change in the year. generation and intellectual property policies for application of rights or to identify registering patents technology and know third parties' and for monitoring how can give intellectual property its existing patent competitive rights could portfolio and those advantage. The undermine the group's of third parties. protection of that competitive intellectual property advantage. A substantial allows that advantage Alternatively, not part of the group's to be maintained. noting the expiration intellectual Careful monitoring of of patents held by property is know competitors' third parties could how and this is intellectual property is mean the loss of protected through required to ensure that potential business non-disclosure breaches of their opportunities. agreements and rights are not made by other legal the group. measures.
Statement of Directors' Responsibilities in Respect of the Annual Report and Accounts The directors are responsible for preparing the annual report and the group and parent company accounts in accordance with applicable law and regulations. Company law requires the directors to prepare group and parent company accounts for each financial year. Under that law they are required to prepare the group accounts in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and applicable law and have elected to prepare the parent company accounts on the same basis. Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company and of their profit or loss for that period. In preparing each of the group and parent company accounts, the directors are required to: select suitable accounting policies and then apply them consistently;
make judgments and estimates that are reasonable and prudent; state whether they have been prepared in accordance with IFRS as adopted by the EU; and prepare the accounts on the going concern basis unless it is inappropriate to presume that the group and the parent company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company's transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its accounts comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities. Under applicable law and regulations the directors are also responsible for preparing a directors' report, directors' Remuneration Report and Corporate Governance statement that comply with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the UK governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. Responsibility Statement of the Directors in Respect of the Annual Report and Accounts Each of the directors as at the date of the Annual Report and Accounts, whose names and functions are set out below, states that to the best of his or her knowledge: the group and parent company accounts, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole; and the management report (which comprises the Report of the Directors) includes a fair review of the development and performance of the business and the position of the company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. The names and functions of the directors of Johnson Matthey Plc are as follows: Sir John Banham Chairman N A P Carson A M Fergsuon Chief Executive Non-executive Director
Sir Thomas HarrisNon-executive Director R J MacLeod L C Pentz M J Roney W F Sandford Group Finance Director Executive Director, Environmental Technologies Non-executive Director Executive Director, Precious Metal Products
This responsibility statement was approved by the Board of Directors on 1st June 2011 and was signed on its behalf by Sir John Banham.
http://www.forbes.com/2010/04/20/johnson-health-care-markets-equities-pharmaceuticals.html
Health care and consumer products firm reports decline in U.S. business, but its overseas segment is humming
Johnson & Johnson beat analyst expectations, but the company's U.S. business is lagging behind its international growth. Earnings for the first quarter rose 28.6% to $4.5 billion, or $1.62 per share, from the $3.5 billion, or $1.26 per share, reported in the corresponding period a year ago. Sales were up just 4% to $15.6 billion, from $15 billion. Wall Street thought less of Johnson & Johnson ( JNJ - news - people ), expecting it to only produce earnings of $1.27 per share, though it correctly predicted its total sales. Shares of the New Brunswick, N.J.-based health care firm slipped 0.2%, or 13 cents, to $65.90, in early trading, after rallying 1.6% Monday heading into the morning report.. The companys stock has been a laggard in 2010, gaining just 2.3% compared to the 6.5% advance for the Dow Jones industrial average of which it is a member. Other big names in the health care sector such as Merck ( MRK - news - people ), Pfizer ( PFE - news - people ) and Abbott Laboratories ( ABT - news - people ) were mixed. Overall the industry, as measured by the Health Care SPDR ( XLV - news - people ) exchange-traded fund, rose 0.2%, or 7 cents, to $31.96. Johnson & Johnson highlighted a number of skin care products, along with an over-the-counter allergy treatment, womens sanitary products and international sales of Listerine, as contributors to the quarter's operational results. Chief Executive William Weldon called the quarter's results solid," and said the company is well positioned for future growth." While it managed to top expectations, there was a distinct performance discrepancy between is domestic and international business. Internationally, sales grew 14.3% to $8.0 billion, from $7.0 billion, while Johnson & Johnson saw its U.S. businesses contract 4.9% to $7.7 billion, from $8.1 billion. In fact, each region outside of the U.S. experienced double-digit sales growth. The biggest decrease in the U.S. came from the pharmaceutical segment, which slid 13.5% to $3.2 billion, from $3.7 billion. The drop was particularly uncomfortable as the segment is its largest domestically but has been hurt by generic competition. The problem is the firm hasnt been discovering enough new drugs, and buying the rights from smaller companies remains an expensive proposition. Johnson & Johnson is undergoing a unique--and challenging--period in its history. In 2009 the firm reported its first annual sales decline since the Depression and offered a weak 2010 earnings outlook. The company also recently commenced the largest restructuring plan in its history and is still smarting from the Tylenol recall it undertook six months ago.
http://www.nytimes.com/1998/07/22/business/international-business-johnson-johnson-to-buymedical-device-maker.html
http://www.businessteacher.org.uk/business-resources/swot-analysis-database/johnson-johnsonswot-analysis/
determined. Technological developments with bio-tech concepts will potentially move the traditional pharmaceutical methods out of the market place in the long term although there is an economical argument that this form of development can be segregated to run alongside traditional methods and complement as opposed to replace.
Locations in Asia
Here are a few of the places we're proud to call home. CHINA
Shanghai Johnson Ltd. 932 New Jin Qiao Road Pudong, Shanghai 201206 PEOPLE'S REPUBLIC OF CHINA Established 1987 Nearest Major City Shanghai Currency RMB Language Mandarin
HONG KONG
Johnson Co., Ltd. Yamashita-cho SSK Building 22 Yamashita-cho, Naka-ku Yokohama 231-0023 Japan www.johnson.co.jp Established 1981 Nearest Major City Yokohama & Tokyo Currency Yen Language Japanese KOREA
Korea Johnson Co., Ltd.
6th Floor, Ssangbong Bldg. 638-13, Shinsa-dong Kangnam-ku, Seoul 135-120 KOREA www.koreajohnson.co.kr Established 1972 Nearest Major City Seoul Currency Won Language Korean MALAYSIA
Kamiy nasa inyong tahanan at kabahayanan ... Were at home in your neighborhood.
S.C. Johnson & Son, Inc. 6371 Estrella Street Guadalupe Viejo Makati City 1200 PHILIPPINES www.scjohnson.com.ph Established 1957 Nearest Major City Manila Currency Peso Language Filipino SAUDI ARABIA
Saudi Johnson Co. Ltd. P.O. Box 16339 Jeddah 21464 SAUDI ARABIA Established 1981 Nearest Major City Jeddah Currency Saudi Riyal Language Arabic SINGAPORE
Singapore 119866 REPUBLIC OF SINGAPORE Established 1966 Nearest Major City Singapore Currency Dollar Language Mandarin, English TAIWAN
S.C. Johnson & Son Taiwan, Ltd. 2F, 421 Fu-Jing Street, Taipei 10588, TAIWAN REPUBLIC OF CHINA Established 1979 Nearest Major City Taipei Currency New Taiwan Dollars Language Mandarin THAILAND
S.C. Johnson & Son, Ltd. 59/1 Soi Sukhumvit 16 (Sammitr), Sukhumvit Road, Kwaeng Klongtoey, Khet Klongtoey Bangkok 10110 THAILAND Established 1968 Nearest Major City Bangkok Currency Baht Language Thai
S. C. Johnson Co. Ltd.(Branch). Dubai Airport Free Zone, West Wing 2 Office 213 P.O. Box 54397 Dubai, United Arab Emirates Established 2000 Nearest Major City Dubai Currency Arab Emirates Dirham (AED) Language Arabic VIETNAM
Locations in Africa
Here are a few of the places we're proud to call home. East Africa - Kenya
We're at home in your neighborhood ... Tuko nawe nyumbani na mtaani wako
S C Johnson and Son East Africa Ltd. P.O. Box 18373 - 00500 Panari Sky Centre, Mombassa Road Nairobi, KENYA Established 1968 Nearest Major City Nairobi Currency Shilling Language English, Swahili
EGYPT
Johnson Wax (Egypt) Co. Cairo Belbies Road, 11.5 KM P.O. Box: 5603 Heliopolis Cairo, Egypt Established 1979
Nearest Major City Cairo Currency Egyptian Pound Language Arabic GHANA
SCJ Wax Ltd. Maghreb 6 rue najib Mahfoud 5eme Etage Quartier Gauthier Casablanca 2000, Morocco Established 2000 Nearest Major City Casablanca Currency Dirham Language Arabic NIGERIA
Were at home in your neighbourhood ... Ons is tuis in jou buurt ... Siyingxenye yomphakathi wangakini ukwenza impilo yakho ibengcono Re ba le loko la losika la lona go dira bophelo ba lona botoka
S.C. Johnson & Son of South Africa Private Bag X08 Fairland 2030 SOUTH AFRICA Established 1960 Nearest Major City Johannesburg Currency Rand Language 11 Official Languages
NEW ZEALAND
Locations in Europe
Here are a few of the places we're proud to call home. Austria
Belarus
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SC Johnson Belarus Zagorodny Alley 3 No. 4a, Room 21 Minsk 220036, Belarus Established 2009 Nearest Major City Minsk Currency Belarusian Ruble Language Belarusian, Russian BELGIUM
Nous sommes au coeur de votre quotidien ... We zijn thuis in uw buurt ... In Ihrer Nhe sind wir zuhause.
S.C. Johnson Wax Benelux N.V./S.A. Noordzone Noordkustlaan 16 (B) 1702 Groot-Bijgaarden (Dilbeek) Brussels BELGIUM www.scjohnson.be Established 1946 Nearest Major City Brussels Currency Euro Language French, Dutch, German BULGARIA
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Representative Office of SC Johnson SRL Romania SC Johnson Bulgaria 1, Rusalja Str. 1113, Sofia BULGARIA www.scjohnsonwax.bg Established 1992
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S.C. Johnson Company Limited 63 Pericleous Street 2021 Strovolos P.O. Box 23874 1687 Nicosia Cyprus Established 1981 Nearest Major City Nicosia Currency Euro Language Greek CZECH REPUBLIC
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S.C. Johnson Hellas LTD Fragokklisias 7 151 25 Maroussi Athens - Greece Established 1965 Nearest Major City Athens Currency Euro Language Greek HUNGARY
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S. C. Johnson Israel Ltd. 12 Hamelacha Street
New Industrial Area Rosh Haayin 48091 Israel Established 2005 Nearest Major City Tel Aviv Currency Israeli shekel Language Hebrew, Arabic ITALY
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SC Johnson Kazakhstan 81 Abylai Khan Avenue 1st Floor Almaty 050091 KAZAKHSTAN www.scjohnson-cis.com Established 2009 Nearest Major City Almaty Currency Tenge Language Kazakh, Russian
NETHERLANDS
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SC Johnson Russia
Country Park Business Center Panfilova str. No.19/1, Floor 16 Khimki 141407 Moscow, Russia www.scjohnson-cis.com Established 1998 Nearest Major City Moscow Currency Ruble Language Russian Serbia
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S.C. Johnson Italy SrL Predstavnitvo Beograd Supilova 18 11000 Beograd, Serbia Established 1998 Nearest Major City Belgrade Currency Dinar (RSD) Language Serbian SLOVAK REPUBLIC
Swedish SWITZERLAND
Wir sind berall zu Hause ... Votre maison est notre domaine ... Siamo di casa nei tuoi paraggi.
SC Johnson A.G. Riedstrasse 14 Postfach 612 CH-8953 Dietikon ZH SWITZERLAND www.scjohnson.ch Established 1960 Nearest Major City Zurich Currency Swiss Franc Language German, French, Italian Switzerland (Headquarters)
Wir sind berall zu Hause ... Votre maison est notre domaine ... Siamo di casa nei tuoi paraggi ... Were at home in your neighborhood
S. C. Johnson Europe Srl ZA La Pice 8 1180 Rolle / Switzerland Established 2008 Nearest Major City Geneva Currency Swiss Franc Language German, French, Italian, English TURKEY
Istanbul TURKEY www.scjohnson.com.tr Established 1985 Nearest Major City Istanbul Currency Turkish Lira Language Turkish UKRAINE
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S.C. Johnson Ukraine 19-B Moskovskiy Ave. 04073 Kiev UKRAINE www.scjohnson-cis.com Established 1990 Nearest Major City Kiev Currency Hryvnia Language Ukranian UNITED KINGDOM
Were at home in your neighborhood ... Nous sommes prsents chez vous.
S. C. Johnson & Son, Limited 1 Webster Street Brantford, Ontario CANADA N3T 5R1 www.scjohnson.ca Established 1920 Nearest Major City Toronto Currency Dollar Language English, French
PUERTO RICO
B1687AFB Pablo Podest Provincia de Buenos Aires ARGENTINA www.johnson.com.ar Established 1958 Nearest Major City Buenos Aires Currency Peso Language Spanish
BRAZIL
COSTA RICA Established 1969 Nearest Major City San Jose Currency Colon Language Spanish ECUADOR
Spanish VENEZUELA