1982 Tylenol Crisis

Path-Goal Theory assumes that leaders are flexible and that they can change their style, as situations require. The theory proposes two contingency variables, such as environment and follower characteristics, that moderate the leader behavior-outcome relationship. The leader must consider follower’s valences, instrumentalities, expectancies, equity of rewards, and accuracy of role perceptions when assessing the requirements of his followers. Additionally, personal characteristics of subordinates determine how the environment and leader are interpreted. Effective leaders clarify the path to help their followers achieve organizational goals and facilitate the journey by reducing roadblocks and pitfalls. This approach assumes that there is one right way of achieving a goal and that the leader can see it while the followers can not. This casts the leader as the knowing person and the followers as dependent, thereby limiting the development of the follower. While the path-goal theory has some validity, Bass argues that better leaders integrate a task-oriented and relationship-oriented approach (Blake & Mouton, 1964) as well as demonstrate their ability to clarify the path to the goals (Bass, 1960, 1990). Furthermore, this transactional

In the early 1990’s many doctors were hesitant in prescribing narcotics because they were seen as harmful and habit forming. Purdue Pharma the creator of OxyContin changed the ways of the drug industry. Purdue changed the mindset of many physicians and family doctors inconveniencing them that the new to the market drug was revolutionary, with promises of quick pain relief that last up to 12 hours. With marketing adds like “Remember, effective relief just takes two” Purdue Pharma convinced doctors that it was virtually impossible to become addicted (HARRIET RYAN, 2016). The rise of OxyContin started in 1996. OxyContin

SAT2- Leadership Task 1 Lauren Hutcheson ID#: 282778 April 14, 2014 MBA – Healthcare Western Governors University

The case starts in October 1982, when seven people in Chicago died after taking Tylenol, which is a pain killer medicine produced by Johnson and Johnson's subsidiary McNeil. Three victims from these were members of one family who died one by one on the same day. The reason of their death was diagnosed as in take of the extra strength Tylenol capsules taken from the same bottle. Other three deaths were also reported in Chicago due to intake of Tylenol.

When J&J realized that their Tylenol capsules caused the deaths of four Chicagoans, they immediately initiated a recall of all Tylenol products, and spread the news by any means possible. Cars with sirens and loudspeakers drove through the city and suburbs of Chicago, urging residents to throw away any Tylenol capsules they might have. Schools were contacted, and they instructed students to bring all Tylenol products to the school nurse. News flashes were initiated to warn people of the Tylenol danger as well, and all stores were instructed to remove Tylenol products from their shelves. Removing the products was a gutsy move, not only because it was dangerous to the company by recalling so much products, but there was also a fear that the killer

To be a successful leader it is important to be proactive and goal oriented, to be able to distinguish important versus urgent such as patient care and the importance of medication errors within the workplace (Evans & M.L, 2015, p 1-17) It is important to also form a quality relationship and form traits with other leaders and followers to be able to give the best possible patient care, support and direct others to encourage all staff to seek help, to be able support goals or tasks that may need to be achieved (Evans & M.L, 2015, p 1-17). A leadership or management situation that could be changed in the work place is reducing medication errors by increasing the staff to patient ratios while also educating staff and working alongside all health care

According to Lewis (2006), crisis is “an interruption from previously normal state of functioning resulting in turmoil, instability, and a significant upheaval to a system” (p. 27). In other words, a crisis is a negative predictable or unpredictable event that affects the future trend of individuals, groups, organizations, and government. For instance, pharmaceutical company Johnson and Johnson had an unpredictable crisis in 1982 with its product Tylenol, which was laced with cyanide and led to several murders in Chicago. The events of this crisis could have changed the perception of Tylenol products. Another example of organizational crisis was the predictable 2012 Hurricane Sandy. Although companies of all sizes expected the Hurricane due to the weather forecasting, some areas in New York and New Jersey were affected worse than others. There were businesses that terminated operations for several business days. In addition to Hurricane Sandy being an organizational crisis, it was also a crisis for many families that lost power in their homes and a crisis for government departments such as FEMA (Federal Emergency Management Agency), and other agencies within local and state governments.

This happened on two occasions, the first in 1982 and the second in 1986. These episodes could have been devastating to the McNeil company by drastic decrease in consumption of the Tylenol products. The McNeil company rallied to the situation to counter this possible decrease in consumption. According to "Laurels: The National Business Hall of Fame", Tylenol's share in the one billion dollar analgesic market commanded thirty-five percent of the market before the 1982 incident. At the time of these episodes, consumer trust was damaged and market share decreased to seven percent. By February 1983, Tylenol had regained a twenty-four percent share of the market(Diary of an Amazing Comeback). In the 1990's, Tylenol again reached its thirty-five percent of the market which at this time accounted for a two billion dollar market(Laurels: The National Business Hall of Fame, Fortune). By regaining their share of the market, this demonstrated that the consumers had faith in the McNeil company's ability to produce safe and trustworthy products, i.e. Tylenol, for their comfort and happiness.

Tylenol, an over the counter prescription product from Johnson & Johnson, was one of the top brands in the analgesic market. Within the company, it was also a large income earner that commanded nearly 15% of the company’s total profits. That being the case, the 1982 crisis was not only a big blow to the brand, but also to the company as a whole. The crisis jeopardized the company’s existence; putting at risk a multi million investment which the investors had a lot of faith in. Irrespective of whether the crisis was due to malicious acts from ill motivated criminals or not, the company had to act swiftly to counter the legal issues which were ensuing and mitigate huge impending losses. It was really a trying moment for the top management of Johnson & Johnson and more so to the CEO, James Burke, who faced the toughest test of his managerial career during this time. Though the crisis was amicably solved, there were some legal issues that were imminent and some valuable lessons learnt from the episode.

The problematic issue for Bristol-Myers was to position its new aspirin drug to the potential customers and decide a good price which can not only make it acceptable by the customers, but also give a fair profit to the company. In other words, the company had to formulate an effective marketing and promotional strategy for its new drug, Datril. The company was not merely willing to establish its new brand in the analgesic market; the main issue was to establish this new brand in the presence of a strong competitor, Tylenol.

The market for acetaminophen was growing at a rate of 5:1 to that of aspirin. Studies had shown that the side-effects from acetaminophen were less than aspirin. Bristol-Myers could have used the change in consumer consumption pattern and the shifting demand between the 2 analgesic variants as a means for positioning Datril using an effective campaign strategy.

Johnson & Johnson was founded in 1886 by three brothers in America. It is a company that sells consumer packaged goods, medical devices and pharmaceuticals and has been one of the most trusted and well-respected brands around the world. Many families use their household products, from shampoos to drugs. The worldwide company should handle all business deals and services ethically. This report will look into how well Johnson & Johnson makes decisions in terms of the health and safety of consumers, honesty and its marketing strategies.

Pain medications can sometimes be harmful to a mother and her baby during pregnancy and delivery. Most doctors recommend not taking any medications during pregnancy unless absolutely necessary. It is not very realistic to expect every woman to go through nine months without taking any kind of medication. Fortunately, there are many safe medications to keep pain to a minimum. When it comes to over the counter pain relievers, acetaminophen, mainly known as Tylenol seems to be the one that doctors recommend most. As long as the correct dose is taken, this is a safe option for a headache or fever. One over the counter medication that should never be taken during pregnancy is ibuprofen. If ibuprofen is taken during the first trimester, it can increase

In 1982, Johnson & Johnson (J&J) faced a major crisis that had the potential to send the company into financial ruin. Tylenol, the country’s most successful over-the-counter product, with over one hundred million users, was under attack.

In a competitive market to which Johnson and Johnson operates, the smallest of errors can lead to consequences which can cut revenue. When large mistakes occur, millions of dollars are lost, and even worse, there is a loss of customer confidence. Johnson and Johnson has had numerous recalls in their consumer healthcare division recently, which rocked the organization’s once sound image, and diminished its profits. These recalls have hurt Johnson and Johnson’s stocks and cost the company about $900 million in sales last year (Rockoff, 2011).