Term Paper on "Tylenol Crisis the Case Chicago, Illinois"
Term Paper 3 pages (1052 words) Sources: 1+
[EXCERPT] . . . .
Tylenol CrisisThe Case
Chicago, Illinois, was the setting for one of the greatest and most responded to consumer emergencies in the United States. In the fall of 1982, seven people died after taking Extra Strength Tylenol that they had bought over the counter (Science News, 1982). The response was rapid, and Tylenol's parent company, Johnson & Johnson, pulled all Tylenol off the shelves across the country before the eighth death could occur (Ruquet, 2004). An examination of the incident after it was recognized unveiled that someone, still unknown to this day, had tainted the capsules with cyanide.
The reaction from this tragic event was immediate and profound with the United States Food and Drug Administration. Within months, all companies selling any type of cosmetic, over the counter, or medicinal product were required by federal law to include tamper resistant packaging on all products. In addition, they were required to include a statement on the packing stating that any sign of tampering should be considered for contamination (Science News, 1982).
The cost of the crisis was monstrous for Johnson & Johnson. By the end of the year, the cost of pulling products off shelves for destruction was figured at $100 million, with another $50 million of loss figured from lost sales (Edwards, 1999). Overall the total amount of company devaluation was figured to be about $3 billion by the end of the same year. The diversity of the product line of the company allowed it to survive in the long-term, however. In the 2005 fiscal year, Johnson & Johnson reported net earnings of over $10 billion (Johnson & Johnson 2006 Annual Re
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Group Recommendations
The results of the Tylenol contamination crisis were drastic for Johnson & Johnson. Instead of simply pulling items off the shelves and destroying the products, the company could have taken many more and different measures post-incident. Since the product being sold is a medicine, the company could have heightened the urgency of the response and not put the items back on the shelves, even with the new FDA law-regulated tamper resistant packaging. Instead, the product could have been kept behind the counter, only dispensed by a physician. That way whatever standards by which pharmacists are required to abide would be followed also for Tylenol. In order to get the product to the pharmacy itself, the amount of agencies through which the products pass until the final destination could have been drastically reduced, meaning fewer distributors and retailers.
Another option that could have been considered for Johnson & Johnson was a name change. Still today, people who lived in the 1980s remember the great commotion caused by this event. However as a result of the great public relations responses of Johnson & Johnson they were able to maintain the company as well as the product's credibility (Simola, 2005, 180). Nonetheless, the scars will remain and there must be some loss still as a result.
The best way to prevent this crisis from occurring in the future is to do exactly what they are supposed to do per the Food and Drug Administration. Continuing to improve the packaging of the product… READ MORE
Quoted Instructions for "Tylenol Crisis the Case Chicago, Illinois" Assignment:
“this group project your small group will study the Tylenol Product Contamination case study. Use the AIU Library or various national newspapers to respond to the questions identified below. Most national newspapers make their archives available over the Internet.
Individual Portion: students should use the Internet, Library and their course materials to research the history of the Tylenol Product Contamination case. Assign one of the following questions to each group member. Note, if you have more than 6 members in your small group, you may assign more than one small group member top a respective question.
Part 1: In terms of the Tylenol Product Contamination case (this response should be one full page in length):
What was the basis for the crisis?
Were there any policy decisions that led to the crisis?
How was the crisis managed?
How was the crisis resolved?
What were the short-term effects for the firm?
Have there been any long-term effects?
Part 2: Group Portion: Review each others’ analysis and discuss the following (this response should be one full page in length):
Based on the short and long-term effects of the crisis, what could the company have done differently to either avoid or better manage the crisis?
How can the company prevent this type of crisis from happening in the future?
Come to a consensus on the second issue. Be sure to submit your final consensus in a Microsoft Word document.
Part 3: Group Portion--Application of the principles found in the Grazier article (this response should be 3-4 paragraphs in length).
Grazier has identified six key ingredients that must be present to create highly motivated teams. Read his article entitled Team Motivation at this link:
"Team Motivation," (http://www.teambuildinginc.com/article_teammotivation.htm). Then, based on the Tylenol Product Contamination case, write a 3-4 paragraph response addressing the following issues:
Select two principles found in the Grazier article, and discuss whether or not they were employed by Tylenol, when this criss occurred. Then discuss your opinion of how they reflect good concepts for effective management.
Describe some specific techniques used by Tylenol that helped to diffuse the crisis. Explain how these techniques are consistent with the principles you selected.
How to Reference "Tylenol Crisis the Case Chicago, Illinois" Term Paper in a Bibliography
“Tylenol Crisis the Case Chicago, Illinois.” A1-TermPaper.com, 2006, https://www.a1-termpaper.com/topics/essay/tylenol-crisis-case-chicago/630618. Accessed 6 Jul 2024.
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