Tylenol poisoning

Extra Strength TYLENOL over one hundred million users

leader in the painkiller field

The first victims 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)

Consider of doctor Thomas Kim (Northwest Community Hospital) and John B. Sullivan (Rocky Mountain Center poisoning)

link between victims

65 milligrams of cyanide

Widespread fear swept throughout the country 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

Discovery of investigation police

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

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

The suspects 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

Talented leadership during Tylenol murders crisis

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 .

Talented leadership over Tylenol poisoning murders crisis :

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

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 .

1.Be honest :

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 .

2 .Be decisive :

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.

3. Be responsible :

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.

4. Be respectful:

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.

5. Be in good behavior :

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.”

Result :

Problems and Lessons

Direct reason and lessons Indirect reasons and lessons

Direct reason and lessons

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.

Tylenol Triple-Sealed Safety

Indirect reasons and lessons Why did J&J Company become the

target of Tylenol man? Indirect reasons: mistakes in

leadership

Mistakes in leadership

Quality-system Using human resources

Good chances for rivals

Mistakes in Using Human Resources Decreasing salary strongly. Experienced employees were changed. Over 50% seasonal staff.

=> discontent in internal.Quality-system

Lessons Consolidating staff Policy for staff Changing quality-system

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