...Running Head: TYLENOL MURDERS Johnson & Johnson: The Tylenol Crisis of 1982 Since 1887 Johnson and Johnson had been a respected member of the health care industry providing millions of customers with a diverse line of products from surgical dressings and band aids to baby powder. It had built its reputation on providing surgeons with sterile dressing to use after surgery because infection was a major cause of death after surgical procedures. The company was also a pioneer in the corporate idea of decentralizing the structure of their business so each set of products were directed by their own subsidiary and each had autonomy from the main corporate center. A family run, publicly traded business, the company had always had been aware of its responsibility towards the public and its employees as well as its shareholders. In 1959 Johnson and Johnson acquired McNeil laboratories, maker of the prescription-only drug Tylenol. By 1980, Tylenol was responsible for 37 percent of the pain reliever market and was responsible for 33 percent of the company’s profit growth (Tifft, Griggs, 1982). That type of share of the market illustrates the presence Tylenol had in the industry and there was no end in sight. On the morning of September 29th Mary Kellerman was seen by her parents as having flu symptoms so they gave her Extra Strength Tylenol to combat her fever. She became sick within hours and died later that day. On...
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...The Tylenol case represents perhaps the worst sort of dilemma a company can face. Through no fault of its own, Johnson & Johnson was faced with the destruction of one of its most important brand names. An unknown assailant used the product to murder a number of people at random, and the story was one of the most widely covered events in media history. Within the first week it is estimated that more than 90 percent of the American public were aware of what had happened. This situation left the product in a very bad position - no one wanted to use Tylenol in case there had been some tampering with the product. Johnson & Johnson had done nothing to betray the public's trust in the company, or its products; yet that trust, a great deal of revenue, and a large market share segment were gone. One horrible event and the excessive media coverage that followed, put Johnson & Johnson in a position where it needed to salvage its image and revenues even though the company had done nothing wrong. Americans were bombarded with information about the Tylenol incident. The volume of information pertaining to the cyanide-induced deaths was incredible. The fact that the story received so much attention probably saved the lives of people who would have otherwise unwittingly taken cyanide-laced Tylenol and died. Consumer response immediately after the tragedies showed what the makers of Tylenol were up against as demand for all brands of pain relievers and sleeping aids dropped by 16...
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...Exxon Valdez and Tylenol Case Study DE LA SALLE UNIVERSITY - DASMARIÑAS Communication Arts Department Lawrence G. Rawl, chairman and chief executive of the Exxon Corpoation was in his kitchen sipping coffee when the phone rang and received the news regarding the spilling of crude oil into the frigid waters of Prince William Sound, just outside the harbor of Valdez, Alaska. What was about to happen was the worst environmental disaster in the history of the United States. These were the documented facts that media had portrayed across the United States and to the world: Exxon Valdez, a 978-foot tanker piloted by a captain whom later revealed to be drank, ran aground on a reef 25 miles southwest of the port of Valdez. The results caused a spill of 250,000 barrels, the largest spill ever in North America. The devastating results affects, 1,300 square miles of water, damaging some 600 miles of coastline and murdering as many as 4,000 Alaskan sea otters. The disaster also enshrined the name of Exxon in the all-time Public Relations Hall of Shame. (Seitel, 2000). According to the book, Exxon’s dilemma broke down into five categories. First was the hesitation of Mr. Rawl if he is going directly and personally to Alaska. In an interview Mr. Rawl has said, “We had concluded that there was simply too much for me to coordinate from New York. It wouldn’t have made any difference if I showed up and made a speech in the town forum. I wasn’t going to spend the summer there;...
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...Background Information JHONSON AND JHONSON: TYLENOL The image and reputation of a company is so important in order to gain the trust of the consumers. Crisis need not strike a company purely as a result of its own negligence or misadventure. Often, a situation is created which cannot be blamed on the company - but the company finds out pretty quickly that it takes a huge amount of blame if it fumbles the ball in its response. On September 30, 1892, Jhonson and Jhonson announced that three persons had died as a result of taking Tylenol capsules that had been laced with cyanide. Within the next two days, four additional deaths from the same cause were reported. All seven deaths occurred in the Chicago Area, but J & J recalled thirty-one million bottles of Tylenol from store shelves throughout the nation. The publicity surrounding this was unprecedented in American business history; in the print media alone, more than 125,000 stories appeared. Many business analysts said that no product could survive this, and they pronounced Tylenol dead as a product line. From the outset of crisis, J & J recognized the immediate and long-term stakes involved. Its strategy was based on maintaining high visibility and avoiding any appearance that the corporation was trying to duck responsibility. The incident involved four specific “publics” – the management at Johnson & Johnson, its employees, the consumers and the stores which were selling Tylenol. By communicating with the management...
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...DE LA SALLE UNIVERSITY - DASMARIÑAS Communication Arts Department Lawrence G. Rawl, chairman and chief executive of the Exxon Corpoation was in his kitchen sipping coffee when the phone rang and received the news regarding the spilling of crude oil into the frigid waters of Prince William Sound, just outside the harbor of Valdez, Alaska. What was about to happen was the worst environmental disaster in the history of the United States. These were the documented facts that media had portrayed across the United States and to the world: Exxon Valdez, a 978-foot tanker piloted by a captain whom later revealed to be drank, ran aground on a reef 25 miles southwest of the port of Valdez. The results caused a spill of 250,000 barrels, the largest spill ever in North America. The devastating results affects, 1,300 square miles of water, damaging some 600 miles of coastline and murdering as many as 4,000 Alaskan sea otters. The disaster also enshrined the name of Exxon in the all-time Public Relations Hall of Shame. (Seitel, 2000). According to the book, Exxon’s dilemma broke down into five categories. First was the hesitation of Mr. Rawl if he is going directly and personally to Alaska. In an interview Mr. Rawl has said, “We had concluded that there was simply too much for me to coordinate from New York. It wouldn’t have made any difference if I showed up and made a speech in the town forum. I wasn’t going to spend the summer there; I had other things to do”...
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...unethical decisions history has demonstrated that a company tends to have more long term success when the leadership makes ethical decisions. A prime example is when Johnson & Johnson’s CEO in the 1980s made a series of ethical decisions that contributed to the success of the company. During the Tylenol crisis James E. Burke made decisions that cost the company a substantial amount of money in the short term to protect the public’s safety. In the long term Johnson & Johnson’s productivity increased and it is still a profitable company today. A CEO’s decision making skills often have a direct impact on the success or failure of a company. Although there are many examples of unscrupulous business practices across industries this paper will examine a case where a CEO acted ethically. Specifically, it will discuss the impact of former CEO James E. Burke’s leadership decisions on his company Johnson & Johnson in the 1980s. Both the financial impact and the ethical impact of his decisions will be analyzed. James E. Burke’s heroic decision is a classic example of ethical leadership in action. In late September 1982 a twelve year old girl died after taking Tylenol painkillers (Fletcher , 2009) Later that day a postal worker died after taking the same drug (Fletcher, 2009). In less than a week seven people died and the only thing that linked them is that each of them had taken extra strength Tylenol(Fletcher, 2009). Investigators found that the Tylenol had been laced with...
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...“OTC” The Ideal Choice Abstract: This paper will focus on comparing the positives and negatives of taking 3 OTC painkillers, Motrin, Tylenol, and Bayer, and will determine which of these is the safest, most beneficial, OTC painkiller. Sources include FDA Reports, a research study, manufacturer’s information and other medical documentation. Nikkos Jackson GE117 Composition 1 It’s 3:15a.m., and you just woke up with a pounding headache. You are running a slight fever, and all you want to do is go to bed. You go into your bathroom cabinet to retrieve some medicine, and in front of you sit Motrin, Tylenol, and Bayer. Which do you choose? What will eliminate all of your symptoms? What is the safest OTC pain reliever that you can take? These are just a few of the questions you may have when deciding which OTC pain reliever is the right choice for you. Although, Motrin, Tylenol, and Bayer serve similar purposes, there are many differences in each drug that makes them affect your body differently, including active ingredients, dosages, and side effects. Motrin is a general use pain reliever and fever reducer. This drug is intended to relieve fever, minor aches and pains throughout the body, as well as headache pain. The active ingredient in Motrin is Ibuprofen. This pain reliever is taken orally, and comes in several different forms. The original form is a tablet, but there have been other forms introduced such as the capsule, and gel capsule. It is recommended that this drug...
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...Ethics: Tylenol Recall Case of 1982 Developing high-quality business ethics is a crucial step in avoiding, resolving and preventing ethical problems. If companies focus on exceeding the standard expectations for ethical situations, they will be more likely to hold on to their current customers and might even attract new clientele. The Chicago Tylenol Recall is the perfect example of how the corrective actions a company takes may be able to save the reputation and restore the image it has worked hard to create. Johnson & Johnson was faced with a situation that was not necessarily theirs to blame. Someone, that was not associated with the company, had been tampering with the over-the-counter medicine. However, Tylenol took certain measures to illustrate to their consumers they were a trustworthy company that cares about their customers’ safety. The methods Johnson & Johnson used to handle the crisis had both positives and negatives, but overall, the company was able to regain the company’s image and become one of the most popular medications. 1. History and Background of Case In 1982, Chicago was hit by a string of deaths caused by tainted cyanide-filled capsules of Tylenol. Someone had been filling Extra-Strength Tylenol capsules with cyanide and returning them to drug-store shelves (Tift and Griggs). By October of 1982, seven people had been killed by the poison-laced capsules (Meadows). This caused a wave of panic in the city, state, and country as it involved...
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...I. Background Information/ Additional Perspectives A. Exxon Valdez Oil Spill March 24, 1989 marked the date of the largest oil tanker spill in the history of United States as the tanker Exxon Valdez spilled 11 million gallons of oil into Alaska’s Prince William Sound. This incident put Exxon into a crisis as it made the Alaskan region into a worldwide symbol of environmental chaos. The enormity of the ecological ruin and the phenomenal task of cleanup caught the attention of the many nations. Many workers and volunteers flooded the area for its restoration which required extensive labor and $2.1 billion of Exxon funding. The crisis is blamed to the following reasons: the faults were Exxon’s inadequate equipments on the ship and the insufficient number of trained members. Another thing is that a crew was unable to maneuver the ship properly due to exhaustion with work aboard. It was also traced that Captain Joseph Hazelwood was under the influence of alcohol which was the reason why he cannot give proper instructions to the staff. Hazelwood's activities in town and on the ship are the main focuses of the investigation. This also became the basis of widespread media sensation. Indeed, Exxon’s reputation suffered severely. Some Public Relation Practitioners said that Exxon seriously worsened the damage to the public due to its slow and insufficient responses. Exxon also failed to establish itself as a company concerned about the problems it had caused....
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...are in a great crisis. Crisis need not strike a company purely as a result of its own negligence or misadventure. Often, a situation is created which cannot be blamed on the company - but the company finds out pretty quickly that it takes a huge amount of blame if it fumbles the ball in its response. One perfect example of this is that of Johnson & Johnson, and their response to the Tylenol poisoning back in the year 1982 when the company’s Tylenol medication commanded 35 per cent of the US over-the-counter analgesic market. Unfortunately, one individual succeeded at lacing the medication with cyanide. This caused the death of seven people which resulted into a nationwide panic about how widespread the said contamination may be. In the end of that certain incident, everyone knew that Tylenol was associated with the scare and J&J’s market value fell by one billion dollars as a result. History repeated for Johnson & Johnson. The incident reenacted itself in 1986, but the company has learned its lesson and is not willing to suffer the same consequences. It acted rapidly and recalled every Tylenol products from every market – not just those which are in the affected state. Not only that, the company also stated that the product would not be re-established on the market until something had been done to provide better product protection. Thus, Johnson & Johnson developed the “tamperproof” packaging that would make it difficult for a similar incident to occur in the future. Another...
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...Running header: Johnson & Johnson Johnson & Johnson: The Tylenol Crisis Renita Edwards Virginia College MGT3410 Mike Aday 3/20/2008 Outline I) Brief history of Tylenol crisis II) Recalling the product from points of view a) Economic point of view b) Legal point of view c) Moral point of view III) Benefit from the company’s credo and mission statements a) Johnson & Johnson b) Bristol- Myers Squibb c) Merck Corporation d) Bridgestone Tires IV) Conclusion Johnson & Johnson: The Tylenol Crisis Brief History During the fall of 1982, on September 30, Johnson & Johnson CEO James Burke received the horrible information that several deaths had occurred. The deaths of seven people were a result of them taking cyanide-laced capsules of Extra Strength Tylenol. This information captivated the nation’s attention. Before this happen Johnson& Johnson “had captured over 35 percent of the $ 1 billion analgesic market- over three times the market share of it’s nearest competitor.” (Boatright, 2007) Tylenol was actually dominating the analgesic market; this product was making a lot of money for Johnson & Johnson. The cyanide was placed into the capsules of the Extra Strength Tylenol, the capsules were easy to lace because they could be pulled apart and put back together again and no one not know it. James Burke and staff found out that “the tampering had...
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...Johnson and Johnson Supply Chain Case Analysis Table of Contents I. Executive Summary…………………………………….3 II. Backgound / History……………………………………4 III. Supply Chain Analysis…………………………………5 IV. Recommendations………………………………………7 V. Work Cited………………………………………………8 I. Executive Summary Johnson and Johnson is a medical devices, pharmaceutical and consumer packaged goods manufacture founded in 1886. They are U.S. multinational company, who is listed among the Fortune 500. Johnson and Johnson Credo is a statement of their values and responsibilities that was written over 60 years ago. It articulates their responsibilities to customers, employees, communities and shareholders. There philosophy and core values are centered and desired to provide the safest and most reliable products and services to their customers. Johnson and Johnson offer’s a diverse business. A business that is a leader and offers many medical devices, pharmaceutical and consumer packaged goods that dominate over their competitor’s. There forecast show’s growth despite them facing challenges. They have successfully employed strategies to differentiate themselves that helps them distinguish themselves from its competitors. Johnson and Johnson does not have control over external supply chain, but are committed to ensure operations on their behalf are consistent with their values. With an annual spending being about $30 billion, they are able to leverage their purchasing power and set expectation...
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...Accounting 461-Project No.1 Part I JOHNSON & JOHNSON Corporation HISTORY Johnson & Johnson is an American multinational medical device, pharmaceutical and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500. Johnson & Johnson consistently ranks at the top of Harris Interactive National Corporate Reputation Survey,[2] ranking as the world's most respected company by Barron’s Magazine,[3] and was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U.S. State Department for its funding of international education programs.[4] The corporation's headquarters is located in New Brunswick, New Jersey, United States with the consumer division being located in Skillman, New Jersey. “The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries.” Johnson & Johnson had worldwide pharmaceutical sales of $65 billion for the calendar year of 2011.[7] Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand lines of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses. In 2012, Johnson & Johnson announced that they will start to fund the therapeutic...
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... 1/9 I. Background Information/ Additional Perspectives Johnson & Johnson: Tylenol Tylenol known as a kind of pain reliever also known as Acetaminophen and it may be used even without physician’s prescription. This pain reliever became controversial when an issue involving seven death people, cyanide, and Johnson & Johnson broke out on September 1982. In print, more than 125, 000 stories appeared describing the said issue. Johnson & Johnson is well-known industry in terms of health, medical devices, biological studies and pharmaceutical field. Way back on1960’s , Tylenol ended the almost a score dominance of P&G’s Crest toothpaste after being recognized as biggest-selling item in drug, food, and mass merchandising outlets. Focusing with the 1982 Johnson & Johnson’s Tylenol issue, many business analysts predicted that the said issue would be detrimental for Johnson & Johnson’s perception from the public. In print media alone, 125,000 stories published regarding the Tylenol issue. Due to that eventuality, Johnson & Johnson decided to recoil the product within just six months to reclaim 30 % of the market. In spite of being sensational, suspects 2/9 had not been caught. Good thing for Johnson & Johnson was they able to adopt the principle of “consumer first, before anything else.” giving emphasis on the welfare of their consumers. In that view, the Tylenol issue did not put them to death but to credibility and eligibility to the eyes of the...
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...I. SUMMARY AND SYNTHESIS On March 24, 1989, residents near the waters of Prince William Sound awoke to the catastrophe brought by the tanker Exxon Valdez spilling more than 10 million gallons of crude oil. This incident caught the attention of the public and received many and different criticisms. Eight of eleven cargo tanks were ruptured during the incident. ARLIS or Alaska Resources Library and Information Services with the help of Exxon Valdez Oil Spill Trustee Council released a collection of materials on Exxon Valdez Oil Spill. It included the following information: * The crude oil spread approximately 1, 300 miles. 200 miles were heavily oiled. The impact was obvious while the remaining 1, 100 miles were lightly or very lightly oiled. * Aerial observations were used to determine the size of the oil spill to give immediate response and clean-up activities. It includes the estimation of the thickness and volume of oil on the water. * Exxon spent more than $2.5 billion on clean-up expenses. * Caption Joseph Hazelwood was the captain of the ship, a senior officer. He was convicted of a misdemeanour charge of negligent discharge of oil, fined $50, 00 and sentenced to 1, 000 hours of community service. * Exxon was fined $150 million, it was the largest fine imposed for an environmental crime. The court forgave $125 million in acknowledging Exxon’s cooperation in cleaning up the spill. During the clean-up, Exxon hired thousands of workers through several...
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