Management of Johnson & Johnson desperately needs astrategic plan to save its Tylenol[1]business, but first somebackground. According to Johnson & Johnson,

Johnson & Johnson has been a part of people's lives for 128years and a valuable part of their investments for approximately 70years. Founded in 1886, we listed our shares on the New York StockExchange for public investors in 1944.

During our history, we have built the most comprehensive base ofhealthcare businesses in the world, generating approximately 70percent of our revenues from No. 1 or No. 2 global leadershippositions in our respective markets.

Our consistent performance has enabled us to deliver anexceptional track record of growth that few, if any, companies canclaim: 30 consecutive years of adjusted earnings increases; and 52consecutive years of dividend increases.[2]

In 2013, the company had revenue of $71.3 billion[3]mostly fromhealthcare, such as skin-care products, nutritional products,over-the-counter and prescription pharmaceuticals, medical devices,and diagnostic tools.  Johnson & Johnson products arefound in virtually every home, hospital, operating room anddoctor’s office in 188 countries worldwide.

In 1955, McNeil Laboratories introduced Tylenol, the first painreliever without aspirin.  The product was so successfulregionally that Johnson & Johnson acquired the company in 1959to expand the business globally.

This morning, Amazon announced the acquisition of a smallpharmaceutical company which had secretly developed and patented apain reviver which is much more effective thanTylenol.  Although Tylenol has an excellent reputation,Johnson & Johnson cannot reformulate it.  Managementneeds a new strategy to combat Amazon and save the Tylenolbusiness. Help them by answering the 13 questions starting on thefollowing page.

1.     Describe two (no more!)important opportunities and two (no more!) important threats facingJohnson & Johnson’s Tylenol business, including the individualcombination of strengths/weaknesses and external factors creatingeach.  (10 points)?