JOHNSON & JOHNSON’ S TYLENOL RESPONSE I S THE GOLD STANDARD
JOHNSON & JOHNSON’ S TYLENOL RESPONSE I S THE GOLD STANDARD
JOHNSON & JOHNSON’ S TYLENOL RESPONSE I S THE GOLD STANDARD INCRISIS MANAGEMENT
The Tylenol poisonings case put “crisis management” permanently into the management lexicon. The facts are legendary. In the fall of 1982, a murderer added 65 milligrams of cyanide to some Tylenol capsules while they were on store shelves. Seven people were killed, including three people in one family. Johnson & Johnson (J&J), makers of Tylenol, quickly recalled and destroyed 31 million capsules at an expense of about $100 million. James Burke, the company CEO, made numerous highprofile appearances in TV ads and in news conferences notifying consumers of the actions the company was taking. Tamper-resistant packaging was quickly introduced, and the sales of Tylenol swiftly snapped back to near precrisis sales levels. The perpetrator of this crime was never found. Many continue to hold the Tylenol case up as the classic response to a crisis. Experts argue that fessing up and taking corrective action quickly is the best form of crisis management. A major lesson to come out of the Tylenol crisis is that companies can take action quickly and effectively and prosper in spite of extreme adversity that befalls them. Even today, more than 25 years later, J&J’s response in the Tylenol scandal remains the gold standard in crisis management. The Tylenol case is still taught at the Harvard Business School and other business schools as a relevant lesson in effective crisis control.
1. Some say it was easy for J&J to take this action because the crisis did not originate within the company. Did this fact set the stage for the company’s quick recovery? Would things have been different had the company been at fault?
2. How is the Tylenol case similar to or different from Ford and Firestone’s linkage with dangerous tires or WorldCom, Tyco, Enron, and Health- South’s malfeasance, which resulted in company leaders being accused of scheming to enrich themselves at the injury of others?
3. Was J&J really being socially responsible or were they acting quickly in their own best financial interests? Does their motivation matter?
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