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Johnson Johnson

Accounts Payable Shared Services Case Study

In the world of automation, every firm is striving to use this technology to make their business more efficient. However, the transition to the new system does not come without risks. This can range from a small loss of productivity, or turn into out right failure.

The latter is what Johnson and Johnson experienced in the case of their shared service effort.

Upon the evaluation of the facts, the following recommendations have been reasoned to help Johnson and Johnson correct the implementation of the shared services, or other similar projects. It has been determined that phasing out the old systems and not informing the employees about losing their jobs would be the two successful alternatives. These alternatives are reasoned in the following paragraphs through, the use of The Value Facet Analysis.

The culture making Johnson and Johnson successful is through its practice of a strong decentralized management. With the shared services, the processes are going to be done at a centralized location, rather than at there own facilities. Therefore, if the shared services were implemented successful the firm would be operating aga


Like Johnson and Johnson, the competitors are driven by the desire to increase their profits. If they find out that Johnson and Johnson cannot accommodate its customers, they may step in and steal Johnson and Johnson's customers. If this were to occur, the Value Over Time for the competition would increase and Johnson and Johnson's would not. To ensure that this does not happen, the alternatives of phasing out the old system and not telling the employees about potential job loss should be implemented. By doing this, accounts receivable and purchasing will not have problems; thus, keeping the customers happy. In addition, the market share will be unaffected in the end.



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Approximate Word count = 1025
Approximate Pages = 4 (250 words per page double spaced)


  

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