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Before The Tylenol Crisis

Satisfactory Essays

Introduction
In January 1886 a renowned family business, Johnson & Johnson was founded in New Brunswick, New Jersey, by Robert Wood Johnson along with his brothers James Wood Johnson and Edward Mead Johnson. These three recognized physicians were inspired at the time by Joseph Lister, who was a pioneer of antiseptic surgery, seized the opportunity and started the company. This Company was established at a time when sterile surgical practices were deficient in the medical field. The success of their medical products, including sterile sutures and dressing materials, allowed the young company to grow rapidly. Thus, Johnson and Johnson today emerged from a small company that made surgical dressings into a multinational pharmaceutical giant.
Case Summary
Based on a controversy in 1982 Johnson & Johnson, parent company of McNeil Consumer Products Company which makes …show more content…

However, immediately after the cyanide poisonings, its market share was drastically reduced to approximately 7 percent. Investigations at the time revealed that once the product reached the shelves, some of them were removed from the shelves, tampered and contaminated with deadly cyanide ingredients and then resealed, repackaged and replaced on the shelves by unscrupulous persons for motives unknown in pharmacies and grocery stores, causing the deaths. This crisis resulted in a recall of the Tylenol products on the market and Johnson & Johnson’s executives had to weigh several pressing issues for example, the loss in its market share that made it difficult for the company to take a decision in the cyanide crises. This recall could further seriously put a dent in the intangibles; that may lead to the loss of public confidence and damage to the brand. The competition in the analgesic market was fierce and as such competitors would try to make Tylenol’s loss their

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