Who Is James Burke In The Tylenol Crisis

Q.1 – Briefly describe the dilemma presented in this case study. Who are the key players and what are some of the antecedents that have led to the present problem? Ans. When the best manager, takes certain actions which go against the core values of the company, it becomes really difficult for the management to make a fair judgement. They are stuck in a dilemma of what would be a better judgement. As a leader, it is very important to be fair and impartial to your team members. And so is the dilemma presented in the case, Bob’s Meltdown, Nicholas G. Carr. The key players in this case are1. Annette Innella 2. Robert Dunn 3. Jay Nguyen Annette Innella is the Vice President, Knowledge Management at Concord Machines. She was recently hired by

In order to discuss this case, it is also important to know about McNeil Consumer Healthcare, the subsidiary of Johnson & Johnson and the producers of famous medicine "Tylenol". Tylenol was their best selling product; it was very much trusted by their consumers and they also earned huge profits from its sales in United States.

Johnson & Johnson quickly became a leader in the healthcare field and by 1910 (when Robert died) the

The tragic deaths of seven people who died due to potassium cyanide-laced Tylenol capsules started as a disaster for Tylenol producer Johnson and Johnson. However, J&J communicated with their publics and the media proficiently, investigated their

for his ties to the automotive industry by creating stock programs in an attempt to keep

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.

As people, we all want to be understood by others. “When dealing with others, seek first to understand, then to be understood.” (Maxwell, 37) Finally, while trying to keep others’ needs in perspective, we do not want to be taken advantage of. When this happens it devalues you and the person you took advantage of. All of these will help give an individual the basic outlines of how to begin to look at “The Golden Rule.” To begin this process of adapting this “Golden Rule” lifestyle, the character of a person is the key to living a life of integrity and ethical excellence. A person’s character is more than just talk. People, who want to earn the respect of their peers and themselves, need to walk the talk. There are many things people do not get to choose, how tall they are or where they are born, but character is a choice that can be made by anyone. “Trust is essential when working with people. Character engenders trust.” (Maxwell 44) People tend to fall into three categories: those who don’t succeed, those who succeed temporarily, and those who remain successful. To have a quality character will help to remain successful throughout their lifetime. In the world today, we see examples in the media of people who do not act as ethically as they should. There are many reasons why people do not do the right thing. These reasons generally fall into five factors that someone compromises their ethics for. To begin with pressure is a major culprit. In our

The assumption that ‘it’s easy to be ethical’ assumes that individuals automatically know that they are facing an ethical dilemma and that they should simply choose to do the right thing. But decision makers may not always recognize that they are facing a moral issue. Rarely do decisions come with waving red flags. Dennis Gioia was recall coordinator at Ford Motor

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.

Collins illustrates a persuasive profile of what it takes to be the leader of not a good but a great organization in the modern day. He also demonstrates the development of successful organizations as a consequence of ethical behavior rather than despite

The infamous Tylenol murders began September 30, 1982 when the world discovered that extra-strength Tylenol was used to murder three people. Days later, new stories emerged with three more people dying from cyanide filled Tylenol capsules. From the public perspective things were clear, a product used to heal people was now killing people. While Johnson & Johnson were able to weather the storm and even rebound, fate issued them another potentially-fatal blow on February 10, 1986, when a women died from

The adage says “character is doing right when no one is looking.” That is the bottom line of leading by example, developing a character that will make the right decisions when no one is watching. This kind of integrity and character is indicative of most corporations’ culture.

1. How would you evaluate Astor in terms of his motive, his managerial ability, and his ethics? What lesson does his career teach about the relationship between virtue and success?