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...
The recent proliferation of such incidents stained My Space's image. While the largest part of communication taking place through My Space is usually harmless, the incidents alarmed parents and thus created negative publicity. My Space responded fast with a plan of imposing harsher safety measures in order to provide protection to its users from stalkers and sexual predators. The campaign offers not only online protection, but also education to parents and
In addition the company should be well-informed of any and all potential threats, whether competition or vicious. Maintaining responsibility and showing it will be the recommended strategy for Johnson & Johnson - keep doing what it's doing. Grazier's Factors of Motivation Crisis management requires a solid team to create and implement strategies to drive an organization out of a current situation and an actual clear plan for the prevention of future
Tylenol Scandal 1982 How did the hospital or facility respond? Johnson & Johnson made a decision that would set a new standard for crisis involving product tampering (Hogue (2001), p. 1). Once the connection was made between the Tylenol capsules and the reported deaths, public announcements were made warning people about the consumption of the product. Johnson & Johnson was faced with the dilemma of the best way to deal with the
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,
Crisis communication is the official reaction to a business or industry situation that runs the risk of escalating intensity, falling under close media or government scrutiny, interfering with the normal operations of a business, jeopardizing the positive public image presently enjoyed by the company or its officers, and damaging a company's bottom line in any way. Usually falling under the domain of public relations, a crisis communication plan is essential
Crisis Management Argenti raises many sound points regarding the proper protocol during crisis management. The bulk of chapter ten demonstrates a sound understanding of how crises unfold, and how every crisis is different. While this is true, there are still strong areas of overlap among crises. "Few circumstances test a company's reputation or competency as severely as a crisis. Whether the impact is immediate or sustained over months and years, a
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