James E. Burke, the CEO of Johnson & Johnson, oversaw the company's response to the 1982 Tylenol poisoning crisis in which 7 people died after taking cyanide-laced Tylenol capsules. In response, J&J recalled over 30 million bottles of Tylenol at a cost of $100 million and introduced new tamper-resistant packaging. Through decisive and customer-focused actions, J&J regained consumer trust and over 30% of the pain reliever market within a year, demonstrating how respecting customers and maintaining trust can help companies overcome crises.

3.  In 1982 witnessed a Tylenol poisoning murders
across Chicago in the USA . The panic , wide-
spread fear spread out very fast , but above all
was a best-ever response of Tylenol company
over poisoning murders to a major public .
 James E. Burke , the CEO of Tylenol producer
Johnson & Johnson died in the age of 87 . He
would be known for his strong , decisive , calm
and recognized as an excellent company being
able to overcome crisis . He is considered one of
the 10 best CEO according to Fortune magazine .

4. James E. Burke with an oversize model of
the Tylenol that replaced capsules.

5.  In 1982, seven people died
after taking capsules of Extra-
Strength Tylenol that had been
laced with cyanide.
 The level of cyanide was
claimed to be enough to cause
fatal doses .
 The pills were said to be
tampered when sold in the
drugstore and supermarket .
 As a result , J&J reputation was
in threat of being ruined .
 However , they did not shift
blame but to receive their
mistakes as not control it well
enough .

6.  On the afternoon of the
first deaths, the
company:
 Set up toll-free
numbers manned by
company employees (
hotline ) for assistance .
 Sent 450,000 telex
messages to doctors’
offices, hospitals and
trade groups.
 Stopped advertising .

7.  Less than one week after that ,
Tylenol spent $100 million to
recall 32 million bottles of
Tylenol capsules from store
shelves.
 FDA and FBI felt that a recall
would be an overreaction. But
J&J’s management put
customer safety ahead of their
financial concerns.
 The company also established
relations with the Chicago
Police Department, FDA and FBI
to maintain a role in searching
for the person responsible for
the deaths .
 Became the first company to
adopt new triple-sealtamper-
resistant packaging rules.

8.  Within months, J&J re-
introduced Tylenol capsules to
consumers. It distributed over
40 million $2.50 coupons
(enough to purchase a good-
size bottle) to compensate
customers who threw away
Tylenol during the scare. They
also created a new pricing
program that saved
consumers up to 25%.
 In a 1986 news conference,
Mr. Burke announced that
Johnson & Johnson would stop
selling over-the-counter
products in capsules, which
could be tampered with, and
switch to solid caplets.

9.  As the tough decisions were
being made by Mr. Burke
and his executive team,
many were skeptical. They
warned that the company's
reputation would never
recover.
 Less than a year after re-
launching Tylenol, J&J
regained a 30% share of the
market and once again
became the top-selling pain
reliever. Today, Tylenol
enjoys the highest ratings
for consumer confidence,
and is the most prescribed
over-the-counter pain
reliever.

10.  Finally , the decisions were
part of a wise plan to
salvage the reputation and
revenue of J&J, and return
Tylenol to commanding
market share. Even so, Mr.
Burke proved that
respecting each customer
can help the company .
 Maintaining trust among
customers helped J&J
overcome crisis, and in a
2003 Harvard Business
School profile, Mr. Burke
noted that “Nothing good
happens without trust. With
it, you can overcome all
sorts of obstacles.”