a

2.  over one hundred million users
 leader in the painkiller field

3.  29/9/1982 : Mary Kellerman (Elk Grove Village,
Illinois)
 Adam, Stanley, Theresa Janus( Arlington Heights
city)
 Mary Reiner ( Winfield,Illinois)
 Paula Prince (Chicago)
 Mary McFarland (Elmhurst, Illinois)

4.  Consider of doctor
Thomas Kim (Northwest
Community Hospital) and
John B. Sullivan (Rocky
Mountain Center
poisoning)
 link between victims
65 milligrams of
cyanide

5.  the United States, especially in Chicago and the
surrounding suburbs
 Telephone line of hospital in Chicago overload
because of calls
 Too many people in hospital => Overload

6.  Perpetrator has poured poison into the capsules at
drug stores
 Thousands bottles were taken to check for
tracing cyanide
 $ 1,000 reward for providing information of the
terrorist

8.  The terrorist could have
held a grudge against
the producers of
Tylenol or those stores
 Potassium cyanide :
gold and silver mining,
fertilizer production,
film processing or
chemical manufacturing

9.  48-year-old amateur chemist
 released on a $6,000 bond
 James W. Lewis.
 Photographs and wanted
posters
 was arrested and taken into
custody for questioning
 denied the accusation
 did not have evidence
 he was released

11.  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 .

13.  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 .

14.  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 .

15.  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.

16.  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.

17.  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.

18.  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.”

20.  Reason: The norm of packaging wasn’t
safe.
 Lessons:
 Changing standards of packaging.
 Using the Company’s quality stamps
at joints between lids and body of bottle.
 Producing capsules in tablets for
retail.

23. Why did J&J Company become the
target of Tylenol man?
Indirect reasons: mistakes in
leadership

24. Mistakes in leadership
Quality-systemUsing human
resources
Good chances
for rivals

25.  Decreasing salary strongly.
 Experienced employees were changed.
 Over 50% seasonal staff.
=> discontent in internal.
Quality-system

26. Lessons
 Consolidating staff
 Policy for staff
 Changing quality-system