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CRITICAL SITUATION
IN AN ORGANISATION AND
MANAGERIAL SOLUTION.
THE TYLENOL TAMPER CRISIS,1982.
JOHNSON & JOHNSON'S TYLENOL
MEDICATION
THE TYLENOL CAPSULES
› Acetaminophen – drug name.
› A pain reliever.
› Usually used to treat conditions like headache, fevers, cold,
backache, muscle pains, etc.
› Was invented by McNeil Laboratories in 1955.
› Johnson and Johnson acquired this in 1959.
› It was made an over the counter drug.
What happened?
› By 1982, 15% of Johnson and Johnson’s profit was
contributed by Tylenol medication.
› It almost covered 35% of the “Analgesic over the counter
market” of the US.
› Analgesic – Drugs that relieve pain.
› At that point of time, when Tylenol was at its peak, an
individual has tampered with the packs and was
successful in lacing the drug with ‘cyanide’, a deadly
poison.
› There was a series of deaths in the Chicago Metropolitan Area.
› Mary Kellerman (12) was the first victim.
› Followed by Adam Janus (27), Stanley (25), and Theresa (19)
of the same family.
› Mary McFarland (31), Paula Prince (35), Mary Reiner (27).
› Are the seven victims who died in similar incidents.
› There were tests carried out that resulted in discovery of
cyanide in the medicine.
› The person responsible for the tampering was never found.
Aftermath
› Police held various enquiries about the murderer who
had planned and managed to acquire these medicine
bottles from various retail outlets and returning them
back.
› By the end of it, they found few more bottles
tampered and contaminated.
The Reaction
› James Burke, the chairman of J&J at that time, derived a
strategy.
› The primary questions in the minds were:
a. How to save the people?
b. And how to save the product?
› He formed a team of seven people to solve the problem.
Steps taken by J&J
› First action: To alert the customers across Chicago about the
issue.
› To inform them, not to resume using the product until there is
further information.
› Second action: To withdraw all the bottles of Tylenol from
stores of Chicago.
› When they found more tampered bottles, gave a National
Alert not to use it.
› Thirdly , the company created a toll free number for queries
about the Tylenol issue or anything related to the product.
› Had a major media coverage relating all problems about the
product and the strategies taken up to sort it out.
› People started viewing Tylenol as a victim of a crime.
› But, the company believed in “Open Communication” with the
public that actually made the company stand.
To New Possibilities
› The Tylenol tamper issue not only affected the Johnson &
Johnson company but all the drug manufacturing companies.
› It called for a change in the consumers’ mind.
› They started to pay heed to the package issues.
› They expected the product to be more trustable and safe.
› This made the company to reform the way we looked at the
packaging of a product.
Lessons Learnt
› J&J introduced their new ‘Triple Safety Seal’.
› It contained:
I. A glued box.
II. Plastic sear in the neck of bottle.
III. A foil seal over the mouth of the bottle.
› It was first company to invent “Tamper Resistant” packaging.
› It was done within six months from the withdrawal of the
product.
Crisis Managed Well
› The Tylenol crisis is considered as a success when a company
is confronted with a drastic situation.
› The company faced huge losses yet cared for the people’s
safety.
› That also supported in maintaining the goodwill of the
company.
› Most importantly, this issue led a way to ‘healthy packaging’
that has caused a huge reform.
THANK YOU!
Project Compiled By,
Kriththika.M.V,
RA1952001020012,
MBA I-A.

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Critical situation in an org and managerial solution

  • 1. CRITICAL SITUATION IN AN ORGANISATION AND MANAGERIAL SOLUTION.
  • 2. THE TYLENOL TAMPER CRISIS,1982. JOHNSON & JOHNSON'S TYLENOL MEDICATION
  • 3. THE TYLENOL CAPSULES › Acetaminophen – drug name. › A pain reliever. › Usually used to treat conditions like headache, fevers, cold, backache, muscle pains, etc. › Was invented by McNeil Laboratories in 1955. › Johnson and Johnson acquired this in 1959. › It was made an over the counter drug.
  • 4. What happened? › By 1982, 15% of Johnson and Johnson’s profit was contributed by Tylenol medication. › It almost covered 35% of the “Analgesic over the counter market” of the US. › Analgesic – Drugs that relieve pain. › At that point of time, when Tylenol was at its peak, an individual has tampered with the packs and was successful in lacing the drug with ‘cyanide’, a deadly poison.
  • 5. › There was a series of deaths in the Chicago Metropolitan Area. › Mary Kellerman (12) was the first victim. › Followed by Adam Janus (27), Stanley (25), and Theresa (19) of the same family. › Mary McFarland (31), Paula Prince (35), Mary Reiner (27). › Are the seven victims who died in similar incidents. › There were tests carried out that resulted in discovery of cyanide in the medicine. › The person responsible for the tampering was never found.
  • 6. Aftermath › Police held various enquiries about the murderer who had planned and managed to acquire these medicine bottles from various retail outlets and returning them back. › By the end of it, they found few more bottles tampered and contaminated.
  • 7. The Reaction › James Burke, the chairman of J&J at that time, derived a strategy. › The primary questions in the minds were: a. How to save the people? b. And how to save the product? › He formed a team of seven people to solve the problem.
  • 8. Steps taken by J&J › First action: To alert the customers across Chicago about the issue. › To inform them, not to resume using the product until there is further information. › Second action: To withdraw all the bottles of Tylenol from stores of Chicago. › When they found more tampered bottles, gave a National Alert not to use it.
  • 9. › Thirdly , the company created a toll free number for queries about the Tylenol issue or anything related to the product. › Had a major media coverage relating all problems about the product and the strategies taken up to sort it out. › People started viewing Tylenol as a victim of a crime. › But, the company believed in “Open Communication” with the public that actually made the company stand.
  • 10. To New Possibilities › The Tylenol tamper issue not only affected the Johnson & Johnson company but all the drug manufacturing companies. › It called for a change in the consumers’ mind. › They started to pay heed to the package issues. › They expected the product to be more trustable and safe. › This made the company to reform the way we looked at the packaging of a product.
  • 11. Lessons Learnt › J&J introduced their new ‘Triple Safety Seal’. › It contained: I. A glued box. II. Plastic sear in the neck of bottle. III. A foil seal over the mouth of the bottle. › It was first company to invent “Tamper Resistant” packaging. › It was done within six months from the withdrawal of the product.
  • 12. Crisis Managed Well › The Tylenol crisis is considered as a success when a company is confronted with a drastic situation. › The company faced huge losses yet cared for the people’s safety. › That also supported in maintaining the goodwill of the company. › Most importantly, this issue led a way to ‘healthy packaging’ that has caused a huge reform.
  • 13. THANK YOU! Project Compiled By, Kriththika.M.V, RA1952001020012, MBA I-A.