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  • Crisis of Johnson & Johnson

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    Sonal Agarwal
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    This document summarizes a crisis faced by Johnson & Johnson in 1982. [1] Seven people died after taking Tylenol capsules that had been tampered with and laced with cyanide. [2] The tampering occurred after the products reached store shelves. [3] Johnson & Johnson faced significant losses, with Tylenol's market share dropping from 37% to 7% and $665 million in total losses for the company from recalling products and loss of sales.

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    This document summarizes a crisis faced by Johnson & Johnson in 1982. [1] Seven people died after taking Tylenol capsules that had been tampered with and laced with cyanide. [2] The tampering occurred after the products reached store shelves. [3] Johnson & Johnson faced significant losses, with Tylenol's market share dropping from 37% to 7% and $665 million in total losses for the company from recalling products and loss of sales.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    8 views5 pages

    Crisis of Johnson & Johnson

    Uploaded by

    Sonal Agarwal
    This document summarizes a crisis faced by Johnson & Johnson in 1982. [1] Seven people died after taking Tylenol capsules that had been tampered with and laced with cyanide. [2] The tampering occurred after the products reached store shelves. [3] Johnson & Johnson faced significant losses, with Tylenol's market share dropping from 37% to 7% and $665 million in total losses for the company from recalling products and loss of sales.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Crisis of Johnson & Johnson.

    Jay Agarwal 01
    Divya Chauhan 02
    Vinod Gupta 07
    Varsha Kirodwal 19
    Radhika Majithia 21
    Shamidha Pandagle 24
    Nirbhay Punjabi 31
    Background:

     Johnson and Johnson was founded by three


    brothers Robert Wood Johnson , James Wood
    Johnson and Mead Johnson in the year 1886.
     Johnson and Johnson products fall in three man
    categories:

     Pharmaceuticals
     Medical devices & diagnostics
     Consumer health care
    Introduction

    • 1982, Tylenol leading painkiller sold by Johnson and


    Johnson was tempered with cyanide and 7 people died
    in US.
    • Reported that a unknown suspect put 65mg cyanide
    into Tylenol capsule and tempered occurred when
    product reached to the shelves.
    • Dr. Thomas kim , chief of Northwest community at the
    time of poisoning said “the victims never had a
    chance , death was certain within minutes”.
    Impact of the crisis

     In 1982,Tylenol was covering the 37% of market


    share with revenue of 1.2 million.
     After this incidents market share reduced to 7%.
     The company faces a loss of 100 million in
    calling back the product from shelves.
     The total loss faced by the company is
    $665million.
    Crisis management

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