a. Calculate the Du Pont ROI for each business division.
b. What does the analysis conducted in (a) tell you?
c. Comment on the common group expenses of $753 million. What type of costs do you think these expenses contain? Consider the type of corporate structure that Johnson & Johnson would have.
d. The operating profit of the consumer division is lower than that of the other two divisions and yet the assets under management are higher. Suggest how the consumer division could use a performance evaluation system to explore the reasons for this.
e. Explore the Johnson & Johnson 2010 annual report. Does the information you found there help you to conduct a better performance appraisal of Johnson & Johnson than using the Du Pont ROI alone?