Executive management of Johnson & Johnson, with the support and approval of the Board of Directors, has set the fundamental strategic direction of the Company to remain a broadly-based human health care company for the consumer, pharmaceutical and medical device and diagnostics markets. Strategic planning is guided by the ethical principles embodied in Our Credo, unifying our people worldwide behind a set of common values and providing a constant reminder of the Company's responsibilities to all of its constituents.

With over 250 operating companies located in 60 countries throughout the world, Johnson & Johnson is organized on the principle of decentralized management. Each international company is, with some exceptions, managed by citizens of the country where it is located. Senior management groups at U.S. and international operating companies are each responsible for their own strategic plans.

On an on-going basis throughout the year, at meetings of the Board and Committees of the Board, management of the Company and Board members discuss the strategic direction and major developments of the Company's various businesses. The process is an interactive/on-going dialogue which provides the Directors with insight into the activities and direction of the Company's businesses.