1. Read the extract carefully and apply the problem-solution pattern of analysis to it.

Use numbers
only to refer to each answer. (5marks each)

at they had to handle. (4) Also the flow of information was not satisfactory for they were receiving the compliance side of a
at the front end which is a commercial and residential property management system. (10) The business now has a tailored

a) The starting situation presented in sentence number ----2----

----b) The problem presented in sentence number----3+4

----c) The underlying cause of the problem is presented in sentence number----6

----d) Solution has been proposed in sentence number----7

----e) Evaluation of the solution presented in sentence number----10

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https://www.coursehero.com/file/75025673/3-1doc/
 PART II ESSAY QUESTIONS 50 Marks

In about 300 words, write an essay analyzing the below case study using the SWOT
framework.

Johnson & Johnson Consumer Products, INC.

Johnson & Johnson is a household name in baby-care as well as medical products. Nearly every
family in the United States has in its house at least one product made by this company. Founded in
1885, Johnson & Johnson is currently an international enterprise, with 170 affiliated companies in
fifty-five countries. J&J enjoys a reputation for high-quality products and business integrity.
Consumers feel that they can trust J&J products. Trust is a big issue for a firm that makes
pharmaceuticals. Customers must believe that the products improve, not endanger, their health. J&J
makes a big thing of its credo statement, a four-paragraph guiding philosophy that outlines a
commitment to business integrity. According to its credo, the J&J company is required to place a
high priority on the needs of customers. Protecting customers is the company’s first concern.
All was well until J&J received news that its leading product, Tylenol capsules, had been
contaminated with lethal poison. In the United States, Tylenol and other mild pain relievers are sold
in the pharmacies and other stores over-the-counter, that is, without a doctor’s prescription. Mr.
David Clare, the president of J&J, said that someone had opened the capsules and poisoned them
with cyanide.
The fact that seven people in the Chicago area died when they took Extra-Strength Tylenol, a
common pain-relieving medicine made by J&J, shocked people all over the world. People all over
the world were horrified by the deaths of seven innocent people who took Tylenol capsules laced
with deadly cyanide. It seemed that anyone could have bought those deadly pills, and anyone could
have died from ingesting them. This element of randomness was particularly frightening.
After seven innocent people died from taking contaminated Tylenol, sales of the painkiller fell
dramatically. The non-aspirin drug’s share of the $1.2 billion painkiller market fell from 35 percent
to 7 percent. In a poll, a majority of Tylenol users said they probably would never return to the
capsule. But J&J responded to the frightening incident in a notable way. Its executives took a
decision that turned out to be not only ethical but profitable, too. Going against all odds, the
chairman of J&J decided to spend whatever millions it would cost to recall 31 million bottles of
Tylenol capsules from store shelves across the United States. The day after J&J learned that some of
its popular Tylenol capsules had been poisoned, the company started withdrawing 31 million bottles
of Tylenol from country. They were afraid that other bottles might have been tampered with. Official
at the Food and Drug Administration, the U.S. government agency that approves products for sale to
the public, feared that the recall would increase the panic already touched off by the poisoning

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deaths of seven Chicago-area residents who had taken capsules that had been laced with cyanide.
The FBI argued that such an expensive action would demonstrate to potential terrorists that they
could bring a $5.9 billion corporation to its knees. But J&J chairman’s decision prevailed, and his
move proved to be decisive in a remarkable and unparalleled win back of public confidence in his
company’s product… Tylenol regained more than 80 percent of the market share it held before the
still unsolved poisoning.
As a result of the seven deaths in Chicago, Illinois, J&J was able to play a significant role in
affecting positive changes in the U.S. pharmaceutical industry and in government regulation of that
industry. The company began redesigning the package to restore public confidence. Within twenty-
four hours, J&J had contacted many of the companies that would be involved in the redesign. By
the end of the week, J&J had decided that the new Tylenol bottle would have three barriers to
prevent tampering: a glued box, a ‘shrink’ neckband and an inner seal. To get Tylenol back on the
market, J&J spent $ 1 million on engravers to redesign 650 pieces of artwork for the product.
Cartons and sealing equipment cost more than $ 5 million during the first few weeks. By the fifth
week after the Chicago deaths, the first 500,000 units of the new tamper-resistant Tylenol package
were produced. While J&J led industry efforts to protect consumers, the Food and Drug
Administration began developing stronger packaging regulations. As a result, all capsules and liquid
drugs must now come in tamper-resistant packages. These guidelines do not only protect the
consumer but also the pharmaceutical companies such as J&J.
Four years after the first incident, another person died after taking poisoned Tylenol from so-called
tamper-resistant package. J&J is faced again with the problem of winning back the public trust. To
do this, it must get the media on its side.

:Answer Notes
Students are required to identify 6 strengths, 3 weaknesses, 1 opportunity, and 2 
.threats. Then to write an analytical text for the case study
Students are required to provide definitions for each SWOT factor by referring to


.(different relevant external resources (use the AOU e-library
.You may refer to session 5 for more information 

SWOT Framework for Johnson and Johnson Case Study

Strength Threat
1) Customers trust their products. 1) Extensive costs of withdrawing the Tylenol
2) High-quality products.
pills from the market and redesigning the
3) Protecting its customers is a major concern.
packaging.
4) Found in every household. 4) Losing their market share again.
5) Ethical actions when incidents take place.
6) Business integrity is always maintained.
Weakness Opportunity
1) Poison in Tylenol pills. 1) Developing a new and safe packaging for
2) Sales decreasing and losing customers.
3) Losing the trust of the public.
the Tylenol product.
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 The Tylenol Tragedy

Founded in 1886, Johnson & Johnson is an American multinational company that develops medical
devices, pharmaceutical products, baby-care items, and other consumer packaged goods in the
healthcare field (JNJ.N - Johnson & Johnson Profile | Reuters, n.d.). Almost every household owns a
J&J product; this proves that this company’s customers hold great trust, loyalty, and integrity
towards its products and services. However, one of its best-selling products, the Tylenol pain-killer,
has had two previous backlashes concerning poison that appears to be a hazardous if consumed. The
internal and external environment of J&J, also known as the SWOT analysis, are analyzed in this
essay to identify the company’s strengths, weaknesses, opportunities, and threats.

The company’s strengths are the internal qualities that propel it to achieve its goals and objectives.
J&J’s product aspects are wide-spread in every household, trusted by their customers, and superior
in quality. It is also crucial to mention the company’s relevance for its clientele’s demands and
aspirations, the ethical actions when incidents take place, and the commitment to business integrity.

The company’s weaknesses are the internal barriers that prevent the company from achieving its
desired goals. The crisis this company faced was one of its biggest weaknesses so far with the
aftermath of losing customers, decreasing sales, and decline of the public trust.

The company’s opportunities are the external factors that can facilitate the company’s success.
Johnson & Johnson can develop a new and safe packaging for the Tylenol product which could in
return payoff the consequences of this tragedy.

The company’s threats are the external factors that act as barriers to the company’s goals. The
company had to retrieve the Tylenol pills from the market and redesign the packaging, all with a
declining market share and crippling losses of over $1 million on the packaging alone.

In summary, the SWOT analysis is a valuable business tool that analyzes the company’s internal and
external environment; it can help in better decision-making, minimized risks, and maximized profits
(MindTools, n.d.). After evaluating Johnson & Johnson’s situation, the company proved itself before

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 with its previous Tylenol experience and I believe that it can rise again. However, the company
should work its best to restore and improve its state in the business world as well as avoiding
mishaps like this one with daily assessments of quality and safety-assurance inspections.

References:

Reuters.com. n.d. JNJ.N - Johnson & Johnson Profile | Reuters. [online] Available at:
<https://www.reuters.com/companies/JNJ.N> [Accessed 8 August 2020].

MindTools. n.d. SWOT Analysis: – How To Develop A Strategy For Success. [online]
Mindtools.com. Available at: <https://www.mindtools.com/pages/article/newTMC_05.htm>
[Accessed 8 August 2020].

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