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Introduction

before the crisis happened the Tylenol has become a


popular business medicine product has increased with over one
hundred million users. the Tylenol became a popular drug
product in the business rose with over one hundred million
users. Tylenol is the one responsible for 19% of j & j corporate
in 1982.Tylenol also counted for 13% of j & j in a year and
increased income with 33% in a year of company’s growth,
Tylenol famous and well-known medicine that cures diseases,
there’s a lot of stands which Tylenol provide some kinds of
medicine like Anacin, Bayer, bufferin and Excedrin.
1982 passed here there was a tragedy that was not expected
that someone did not know and it replaced the package and
the Tylenol capsules with extra strength, cyanide laced in place
of Chicago. This is the poison that will kill anyone who buys
it.based on the problem j & j when McNeil consumer products
company who made a Tylenol they have no warning in the
circumstances they need to explain to what happened
Crisis need not strike a company purely as a result of its
own negligence or misadventure. Often, a situation is
created which cannot be blamed on the company - but
the company finds out pretty quickly that it takes a huge
amount of blame if it fumbles the ball in its response.

One of the classic tales of how a company can get it right


is that of Johnson & Johnson, and the company's
response to the Tylenol poisoning.

Executive summary
this research shows case analysis report about the crisis
in Johnson & Johnson Tylenol where the tragedy
happened that everyone did not expect, the big impact
was that their production went down and it stopped as
well as the confidence of each its consumers especially in
the area. along like the U.S, Chicago, immediately
learned that this crisis was devastating to every family
affected. and when it comes to our organization the crisis
in j & j Tylenol has caused great damage to every
company here our strength, opportunities to weakness,
threat how to solve this situation .The first part is to
make sure they are really addressing the crisis at hand.
Immediately after learning about the death they turned
to all media outlets to warn their consumers. The crisis
has been published in newspapers, in magazines, and on
TV. The scope of the event is endless. Reporters confirm
that J&J got their message to the public not to buy any
Tylenol because it could have been abused. Not only did
they go to all the media, they also circled cars and
shouted the message through a loudspeaker. The public
has heard, but J&J will not stop there.. However, the
company won praise for its quick and appropriate action.
sidestepped the position others have found themselves
in - of having been slow to act in the face of consumer
concern - they achieved the status of consumer
champion.
second part they want to try to reintroduce Tylenol back
to the market slowly to show that consumers are
comfortable with the company again. They decided they
needed to create a seal on the capsule to make sure
these pills were restless again. They designed a triple-
seal tamper-free cover to prevent this situation from
happening. The first seal is the box made more stable,
second there is a plastic lid on the top of the bottle, and
finally at the opening of the top, there is another plastic
lid that consumers need to open to get the real pills. This
invention not only allows the public to feel safer but it is
a model again for other companies like this. Once they
have fixed the real product they decide they need a way
to enable consumers to market and buy Tylenol. They
create a very strong bond with consumers and ultimately
that is one of the main reasons they are so successful.
Because J&J has been in contact with the police, FBI, and
Food and Drug Administration, they are seen as a
cooperative and trustworthy company. Not only are they
trusted by many, the way the media covers the story but
J&J in a good light. There is nothing wrong with telling
the news about the company. They ensured they
cooperated and ensured the safety and protections of
outstanding consumers across the country.

The enterprise
In this case Tylenol has an estimated 916 employees who
work and help how to grow their business they are
known and famous savior of various diseases we can
enjoy when the time comes to be a multinational
company Chicago Tylenol Murders is a series of
poisoning deaths resulting from drug dealing in the
Chicago metropolitan area in 1982. All victims took all
Tylenol-branded acetaminophen capsules linked of
potassium cyanide. A total of seven people died in the
original poisoning, with many deaths in subsequent
copying crimes. Unfortunately, at that point one
individual succeeded in lacing the drug with cyanide.
Seven people died as a result, and a widespread panic
ensued about how widespread the contamination might
be. By the end of the episode, everyone knew that
Tylenol was associated with the scare. The company's
market value fell by $1bn as a result.
When the same situation happened in 1986, the
company had learned its lessons well. It acted quickly
ordering that Tylenol should be recalled from every
outlet not just those in the state where it had been
tampered with. Not only that, but the company decided
the product would not be re-established on the shelves
until something had been done to provide better product
protection. As a result, Johnson & Johnson developed the
tamperproof packaging that would make it much more
difficult for a similar incident to capsules with extra
strength, cyanide laced in place of Chicago. This is the
poison that will kill anyone who buys it. In fact, there is
some evidence that it was rewarded by consumers who
were so reassured by the steps taken that they switched
from other painkillers to Tylenol.

SWOT ANALYSIS

Strength
Largest healthcare provider
J & J is operating in three segments: Consumer Products,
Pharmaceuticals, and Medical Devices and Diagnostics.
Johnson & Johnson Family of Companies for over 125
years has committed itself to caring for people. Johnson
and Johnson’s corporate structure is based on a
decentralized management philosophy due to which
there are low or no internal management conflict cases
in the company till now.
Extensive brand portfolio
Johnson & Johnson have strong presence within each
product categories. They have deep assortments & large
number of brands to choose from which is helping them
to occupy large shelf space of the stores resulting into
high visibility in the market.

branding trusted
Johnson & Johnson is a brand trusted by many medical
practitioners and parents around the world. Johnson and
Johnson’s increased focus on adapting business to local
markets helped them especially to consumer demand.

Weakness.
Conflicting companies and partners:
The handling of large companies and partner companies
can create turmoil in the operation of the company,
Johnson and Johnson Company Companies for over 125
years have been committed to caring for people. Johnson
and Johnson's company structure is based on a
decentralized management philosophy where there have
been few or no internal cases of management conflict in
the company to date.
after discovering that the company did not look at
dozens of consumer complaints about each Item Tylenol
and other products. The company stood against its
enormous reputation as congressional legislators
exploded with the company’s ability and integrity.
Caring for the world, one person at a time… inspires and
unites the people of Johnson & Johnson. We welcome
research brought about by innovations, products and
services to promote the health and well-being of people.
Johnson and Johnson Family of Company employees
work with healthcare partners to handle the lives of
more than a billion people every day, worldwide.
consumer dissatisfaction
the demand for products has not decreased but there is
emerging dissatisfaction with Johnson Tylenol customers.
This can be seen in reviews on various on-line platforms.
Johnson Tylenol should focus on areas where it can
improve the customer buying and posting experience
lacks public relationship Johnson & Johnson Often
executives evade the press meeting. They interacted with
media only for advertising and marketing.

Opportunities
Extensive potential and opportunities
Johnson and Johnson are in a position to strategically
build a myriad of sales opportunities. Maximizing its
balance between pharmaceuticals, diagnostics, and
medical devices can result in increased revenue.
Changing lifestyle With the increasing rate of literacy
around the world there is an increase in concerns about
health and medical issues which in turn increases the
demand for medical products so J&J will also benefit
from it.
treats
negative side effects of product return –
Johnson and Johnson had the misfortune of
remembering more than 40 drugs. The company stands
to reach a reputation for its reputation, capability and
integrity.

Serious rivalry
Due to the strong competition providing a product
replacement J&J is more faced with it Also local players
who offer generic products also affect the business.
government regulations Government standards on
content and export and import tariffs play an important
role in the success of companies in industries where J&J
is not an exception.

Social Forces
Society’s culture and way of doing things impact the
culture of an organization in an environment. Shared
beliefs and attitudes of the population play a great role in
how marketers at Johnson & Johnson will understand the
customers of a given market and how they design the
marketing message for Drug Manufacturers - Major
industry consumers. Social forces of that leadership of
Johnson & Johnson should analyze how important the
rules and regulations in the company .
Cultural forces
It is essential that companies take into account the
lifestyles and culture of countries to which they are
considering exporting. This information can be used to
determine whether a product or service would be
considered essential, useful, a luxury or even undesirable
in a target country. Some products and services might
even be found culturally unacceptable.
Johnson & Johnson’s recall of Tylenol Extra Strength is
often cited as a beacon of success in business ethics. True
recently discussed additional insights from this famous
case with Mark Williams, a leader in the medical
diagnostics field who worked at Johnson & Johnson
during the crisis and recall decision. Williams shared with
us his insights about the importance of a values-driven
culture and strategy.
Technological Forces
Technology is fast disrupting various industries across the
board. A firm should not only do technological analysis of
the industry but also the speed at which technology
disrupts that industry. Slow speed will give more time
while fast speed of technological disruption may give a
firm little time to cope and be profitable. New technology
comes with change. The change might be small and one
affecting only a single sector while other changes might
be major and affecting every industry. Technology
changes are mostly large-scale. Many of these changes
have happened in the world of computers and others
have hit the business world hard.
They mostly result in the complete renovation of
processes or even the whole industry. They may increase
the productivity of workers and investments, promote
the interdependence of industries, allow new
technologies deployment and accelerate economic
activities.

Economic forces
The Macro environment factors such as – inflation rate,
savings rate, interest rate, foreign exchange rate and
economic cycle determine the aggregate demand and
aggregate investment in an economy. While micro
environment factors such as competition norms impact
the competitive advantage of the firm. Johnson &
Johnson can use country’s economic forces such as
growth rate, inflation & industry’s economic indicators
such as Drug Manufacturers - Major industry growth
rate, consumer spending etc. to forecast the growth
trajectory of not only --sectoryname-- sector but also
that of the organization.

Political forces / legal forces


Johnson & Johnson and most of the healthcare market,
political forces have far-reaching consequences for their
current and future business practices. With the passage
of the Affordable Care Act in 2010, Johnson & Johnson
and other pharmaceutical companies, were forced to
look at the products and work towards making those
products more affordable for lower income patients.
Since 2010, Johnson & Johnson has devoted more than
$50 billion to research and development to keep
products effective, but affordable . While there are
reports that Johnson & Johnson has profited greatly with
the passage of the ACA, the company has paid much
higher taxes and federal fees due to its passage The
company must also maintain constant compliance with
trade agreements between the United States and the
other countries where it does business. immediately
implement any changes to the trade agreement . The
company must be vigilant with changing policy and law
or they can potentially face huge fines and extra taxes.
Just like laws and regulations within the United States,
Johnson & Johnson must follow the laws and regulations
of the more than 250 other countries it operates in.The
company is also under the watchful eye of both the
United Nations as well as the European Union. The
United Nations, a joint agency of more than 160
individual countries, works together to maintain
international peace, security, promote a sustainable
environment, protect human rights, and deliver
humanitarian aid in times of crisis .Much like the UN, the
European Union works to provide the same peace and
security to the 28 states who belong to its union. The
Legal forces that Impact Johnson & Johnson In number of
countries, the legal framework and institutions are not
robust enough to protect the intellectual property rights
of an organization. A firm should carefully evaluate
before entering such markets as it can lead to theft of
organization’s secret sauce thus the overall competitive
edge.

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