Tylenol Crisis Management One of the Most

Tylenol Crisis Management

One of the most famous business-related crises ever to strike modern industry was that of the Tylenol scandal of 1982. It changed the way over-the-counter painkillers were packaged in America for all time, ushering in the creation of tamper-proof seals. It also has become a paradigmatic way for companies to respond to crises. The crisis occurred when it was revealed that "during the fall of 1982, for reasons not known, a malevolent person or persons, presumably unknown, replaced Tylenol Extra-Strength capsules with cyanide-laced capsules, resealed the packages, and deposited them on the shelves of at least a half-dozen or so pharmacies, and food stores in the Chicago area. The poison capsules were purchased, and seven unsuspecting people died a horrible death" (Analysis case study, n.d., DoD).

Stakeholders

The most obvious stakeholders were that of Johnson & Johnson, who sold Tylenol, and investors and employees with a strong personal interest in maintaining the health of the company. "Tylenol was responsible for 19% of Johnson & Johnson's corporate profits during the first 3 quarters of 1982" (Analysis case study, n.d., DoD). Consumers also had an interest in ensuring that Tylenol was a safe product. At the time, it was an extremely popular drug: it was the most successful OTC pill on the market and more than one million people used Tylenol. For people who were allergic to aspirin, being able to use Tylenol was particularly useful.

Response

Rather than stonewalling or denying responsibility, Johnson & Johnson put consumer safety first and foremost. It told its consumers not to consume any more Tylenol, withdrew all Tylenol from stores, and issued an immediate recall. The company's actions proved to be justified when two more contaminated bottles were found in the Chicago area. The company CEO went on 60 Minutes and other trusted news programs to convey his concern and determination to protect consumers. Six months after the crisis, Tylenol created entirely new packaging for the product: "a glued box, a plastic sear over the neck of the bottle, and a foil seal over the mouth of the bottle" (Analysis case study, n.d., DoD).

Evaluation