Q1.

) Provide a complete flow diagram for all annual planning and control processes described in the
case?

A1.)
Five- and Ten-year plans at J&J

Financial Planning at J&J

 Budget revisions and reviews

Q2.) What are the strength and weakness of J&J planning and control system?

A2.) Strengths of J&J planning and control system

 Every company has autonomy in developing their own strategies and plans according to the
objectives and mission
 Planning in advance for 5 and 10 years ahead has future readiness and changing them
according to the market situations will help to stay ahead in the competitive environment
 Innovative ideas will be emerged and can be incorporated to the strategy if the options are
viable
 Goals are set by the companies which will be realistic and achievable
 Bottom up basis approach for creating profit plans will help in identifying the root cause for
the distortions
 Managers will be readily reviewing all the work and try to increase the efficiency and
effectiveness
 Feedback system in place which helps in clarifying any objections

Weakness of J&J planning and control system

 Flexibility to apply the changes to the system is not prominent as it has to get green signal
from the top management
 Processes are not standardised which might create issues in the lower level of management
 Coordination is the biggest issue among companies, some companies might have same
target segment which will lead to inefficiency in resources utilised
 Emphasis is not given on the solution to the problem rather suggestions are given to change
the strategy
 Goals or objectives might not be clearly communicated to grass root level of each subsidiary
 Remuneration based on this might cause a problem as they will be more target-oriented
leaving behind the objectives and goals set
 Ineffective controlling due to diversity and complexity in the process and control system