Tylenol cyanide poisoning case study

Tylenol Case Analysis: Johnson and Johnson

In the contemporary world, taking responsibility and immediate action in the face of a huge crisis is a requirement for any U.S. corporation if they are to survive and maintain their market position and reputation. These types of organizations are expected to be socially responsible to their employees and the public not only if they are directly involved in a crisis involving their products or services, but also if there is an indirect association. In 1982 Johnson and Johnson was faced with this challenge. They were indirectly involved in a catastrophe which killed seven people because their leading pain killer Tylenol was tampered with and unassuming consumers became the victim of such an atrocity. The way in which Johnson and Jonson dealt with the situation is the basis or our case study. In fact, their response was remarkable and commendable. The outcome of this catastrophe created a new standard in "crisis management." The company was applauded for how they responded while prioritizing the consumer over their monetary losses. As a result, Johnson and Johnson recovered and within months after the crisis their markets share exceeded all expectations.

This paper discusses the entire case; dissect the elements of the case, symptoms, goals of the organization, management theory, diagnosis the barriers Johnson and Johnson, the media and the public viewed during the crisis, solutions proposed, action plans they used to overcome barriers, consequences to the plan, action plan to the larger context, external forces, implications for two directions of corporate integrity, and it will interpret the original case elements in light of the larger horizons of the era. Johnson and Johnson was seriously affected by the chain of events caused by this crisis, but how they handle this challenge, and how they moved through the process is the very reason they not only survived but are thriving today.

Elements of the Case - Company Facts- Johnson and Johnson firm incorporated in 1887. The firm provided sealed surgical dressing which was germ-free, wrapped and ready to be used. In the late 1880's this was considered modern medicine and for antiseptic treatment of wounds. Johnson and Johnson had subsidiaries in more than fifty countries worldwide. McNeil Consumer Products is a subsidiary of Johnson & Johnson developed the painkiller called Tylenol. As an oath to the public, Johnson and Johnson created a Credo statement, written in Robert Johnson in 1943, conveying and prioritizing their responsibility to their consumers. This statement is posted on their website today as "Our Credo Value" and demonstrates the emphasis on being socially responsible to everyone who uses their products.

Actual Crisis- on September 30, 1982 CEO, James Burke of McNeil was notified that seven people died from the Chicago area from cyanide laced Tylenol after ingesting the capsules. People died within minutes of taking the capsules. The perpetrator placed deadly cyanide into the Tylenol bottles. The nation was warned that there might be a connection between the deaths and Tylenol. Suddenly Johnson and Johnson was faced with explaining to the world how a well know product was suddenly killing people. In response to the information at hand, the Police in Chicago proactively led the charge to notify their communities. Three national television networks reported details on the evening news and they focused on 24-hour coverage, which was new at the time. The next day the Food and Drug Administration advised consumers to avoid the Tylenol capsules, "until the association with deaths had been be clarified" (Tifft, 18). Johnson and Johnson issued a public relations response immediately naming their number one priority: to aggressively protect any consumer from the potential hazards that may be present in any of their family of products.

Symptoms of the Problem -- Quickly, the crisis reached epic nationwide coverage. The panic that ensued, somewhat as the result of the twenty-four hour media coverage, fueled this panic into a frenzy. One hospital in Chicago, for instance, received 700 calls in one day; while Johnson and Johnson received averaged almost 150 calls per day. Across the country people were admitted into hospitals on suspicion of cyanide poisoning (Tifft, 18). Johnson and Johnson worked rapidly and decisively with the media to disseminate information. When the news spread, copycat criminals began to tamper with the products on the shelves of stores, which only deepened the crisis. Indeed, the FDA confirmed more tampering had taken place, but this did not actually reach the public until much later, the final figure actually 36 units (Church, 27). However, the Food and Drug Administration counted a total 270 incidences of possible product tampering (Kaplan, 1998).

As one would expect, Tylenol's sales and market share plummeted once the crisis was announced. Since Tylenol's name was tied to the tampered goods, they were held indirectly responsible for the deaths of at least seven people. J & J. needed to figure out how to deal with the crisis, protect the public and not inadvertently destroy the reputation of any of their products or even the brand itself. Thankfully, the decision was made to take complete responsibility for the issue and to aggressively and proactively assist in the arrest of the perpetrators and removal of tainted products from the store shelves. Next, the protection of the potential consumers at risk recognizing that not everyone may have heard the news once this crisis was made public. With the onslaught of death, and potentially more death to result, the public and experts felt that Tylenol could not recover from this horrible atrocity. The public also felt that the Tylenol product wasn't safe anymore -- market share continued to drop resulting in an unheard of single digit within a few weeks (Mitchell, 1989).