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Wania
1. It was an organisation and financial crisis/ Malevolence/ which resulted in further crisis.
7 people died/ they replaced around 31 Million new bottles/ the issue coated around 100 Million dollars to handle to situation/ 100,000 new articles related to the crisis published and due to which people panicked, police remained active and used loudspeakers/ the case remained unsolved/ the response was very rapid, fast and quick by the company/ police force helped in creating awareness.
2. The company tried it's best to help the victims who suffered from the crisis including all the patients/nurses/doctors/mothers and fathers who were the victims, who used the product and services of the company. The response was really rapid by the company to help the victims.
3. 1. Control: throughout the crisis they controlled and looked after everything effectively.
2. Command: the leader of the company James Burke was very active in giving the command as he made the decision and commanded to replace the new bottles of dollar 100 Million.
3. Compassion: they cared about all the costumers who suffered from the crisis, this shows their compassion in keeping up their businesses and allowed them to believe in them once again.
4. Communication: the leader James Burke communicated really well with everyone including all the customers, victims and the stakeholders/FDA.
4. Tylenol Bill-1983
All the bottles were to be sealed by the FDA in order to prevent tampering/contamination and to protect the products in the future.

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1. An organisational crisis
2. Well coordinated white collar crime.
3. Response was rapid.
4. All contaminated bottles were replaced creating awareness
4. Police force played a major role in the spreading of awareness of the crisis
4. Taking off the tylaonl products saved more human life and this was at the risk of the company
Question 2.
The company Credo is meeting the needs of patients, doctors, nurses,  mothers and fathers and all others who use the product and services. Producing high quality
Question 3
Control,  compassion, command and communication. Will explain verbally..
Question 4..

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- 7 death due to intake of cyanide poisoning

- Action taken by J&J, announce 1million dollar reward announced for the info about the person behind the act
- Existing bottles has been replaced

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1) Malevolence
- 7 deaths, consumption of contaminated tylenol capsules
-All tylenol bottles were recalled and replaced with new ones,
-The police spread news through loudspeakers,
-Bottles of tampered tylenol were brought from different stores and made from different places,
-financial cost was high for J&J
-There were copycats afterwards
-rumours such as White Collar Crime Syndicate surfaced
-J&J stocks dropped, J&J also had a large market share in the pharmaceutical industry
-There were 2 main suspects but both lack real evidence linking them to the crime
-still an unsolved case

2) "We believe our responsibility is to doctors, nurses & patients, to mothers and fathers of all others who use our products & services"

3) Command- involving FBI and forming a dedicated team by J&J Spokeperson, James Burke to find the source/cause
Control- recalling all products,
Compassion- supporting families of victims financially
Communication- J&J, Police, Newspapers, TV Coverage

4) -1983 Tylenol Bill
-Sealing on bottles from/by the FDA, to avoid tampering/contamination and to protect product

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1)it is the manmade crisis which states the facts like the total of 7 people died from which 3 of them were from same family, no evidence from the crime scene, both the bottles bought has the same control code of MC2880, The tylenol capsules were lace with cyanide, police force spread awareness, white collar crime, company has to suffer from 1 million dollar loss
2) they belive that is their reponsibility to meeting the needs of the patient , doctor, nusre, mother,father
3) command- involving government and FBI
Control - chicago police taking initives by spreading awareness in the the loudspeaker
Compassion: providing financial support for victims family
Communication police, johnson and johson, tv and newspaper

4) improve the product by sealing and provding pakage safety and  assurance by FDA

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1. Brand Terrorism/ Product Failure -Unsolved Crime, No fingerprints, No evidence who would have done it as civilians camera was not common back then, Various theories on how the product has been tampered, Committing a crime back then was so much easier XD, Many deaths, All the products were recalled, Pills were found expose to cyanide, Replace recalled bottle with new bottles, Precautions cost the companies around 100 million US Dollars

2. The company has strong corporate social responsibility policy as they fully take the responsibility and contact the authorities without making any delays, Even though this can be financially devastating for the company, but their actions create goodwill with the stakeholders, Putting the company in a positive light

3. Command- Contacting the government for cooperation, Recalled and replaced old bottles, Testing all the recalled bottles
Control- Chicago Police Department went throughout the city to warn the citizens through loud speakers, Offered 100,000 US Dollars for the information regarding to the criminal who tampered with the bottles
Compassion- All the actions taken by the company had shown compassion as company usually disclaim the connection between their products with the the murders
Communications- CPD, Newspapers, Radio, TV

4. Adding seals to all products, Improve product/ package safety, Tamper-proof packaging

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1. Malevolence / Brand Terrorism

2. 'We believe our first responsibility is to doctor,s nurses and patients, to mothers and fathers and all others who use our productsand services.'

3.

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1) Identifying the crisis
Identify the type of crisis and provide 10 important points based on the video provided about Tylenol crisis.

2) What is Johnson & Johnson's company credo?

3) What are the FOUR C's used by Johnson & Johnson to overcome the crisis and elaborate each step used.

4) Explain how the Tylenol crisis has put an impact to the pharmaceutical industry all over the world.

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Q1)
Identify the type of crisis

Crisis of Malevolence led to many other crises as mentioned below.

Product/Service Failure : The Product to be served was tampered with and led to a product and service failure.

Medical : People died and the product and brand in question is related to pharmaceuticals.

Brand Terrorism : J&J lost a lot of their brand value.

Rumors : As said in the video, many rumors arose from many news articles i.e, fake news (but not a social media crisis).

Financial Crisis : J&J lost a lot of money, and only took off after igniting social responsibility values of the company and gaining credibility.

https://www.cbsnews.com/news/magic-number-tylenol-recall-cost-jj-665m-in-lost-sales/

Corporate/Legal : Many legal battles ensued after the crisis.

https://www.nytimes.com/1982/10/14/us/legal-battle-over-who-is-liable-for-the-tylenol-deaths-news-analysis.html

Ten Important Points From the Video

1. 7 People aged 12-35 (3 from the same family) ingested poisoned (Potassium Cyanide) Tylenol pills, and later died.

2. J&J recalled over 31 Million bottles of Tylenol and replaced the recalled bottles with new bottles.

3. $100K reward to anyone with information and cost J&J over 100 Million dollars to manage the issue.

4. More than 100,000 news articles on the crisis was spread and people panicked.

5. The victims who died got the Tylenol from different stores with different production plants.

6. 10 Million recalled pills were tested and only 50 capsules were found to contain cyanide across 8 bottles, 5 belonged to the victims - 2 sent back in the recall and 1 bottle was on a shelf.

7. There is a possibility of a white collar crime syndicate as J&J’s Tylenol market fell. Stocks plummeted from 35% to 8%.

8. Surveillance cameras were uncommon and police suggest that someone just went to the shops, grabbed the bottles and put the poisoned pills one day before the first death occurred as Cyanide would eat through the capsules. The investigation found three main suspects.

9. FDA and J&J created the tamper-proof seals for security.

10. This is an UNSOLVED CASE.

Q2)
J&J's Company Credo

James Burke, CEO of Johnson & Johnson during the Tylenol crisis emphasised the value if the J&J credo - dated to 1887.

Company Credo: ‘The company is responsible first to its customers, then to its employees, the community and the stockholders, in that order’.

Chairman Robert Wood Johnson stated that the credo states, “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers. And all others who use our products and services”

J&J’s company credo is “all about the consumer” (James Burke).

According to James Burke, “the credo made it very clear at that point exactly what we were all about. It gave me the ammunition I needed to persuade shareholders and others to spend the $100 million on the recall. The credo helped sell it.”

https://knowledge.wharton.upenn.edu/article/tylenol-and-the-legacy-of-jjs-james-burke/#:~:text=Burke%20died%20last%20week%20at,sold%20in%20five%20Chicago%20stores.&text=%E2%80%9CThe%20credo%20is%20all%20about,what%20we%20were%20all%20about.

Q3)
4 C's used by J&J

1. Control : J&J controlled it's resources and monitored the situation effectively. They were very much in control of their narrative throughout the crisis.

2. Command :  There was a clear identifiable person in charge. James Burke was in command as he made the decision to recall and replace $100Million worth of Tylenol. He was the one leading the company.

3. Communication :  James Burke not only was in communication with the community, the people affected but also with law enforcement, FDA and the company's stakeholders. The communication proved to be quite effective.

4. Compassion : Compassion was the factor that allowed the company to make a comeback. It showed that the company cared about the community, its consumers, that the company followed their credo, and allowed the people to trust the company once again.

Q4)
The impact of the Tylenol crisis on the pharmaceutical industry

The Tylenol crisis paved the way for the FDA and J&J to create tamper-proof packaging. This change happened in about a month after the crisis emerged. In 1983, the Federal Anti-Tampering Bill was introduced and made it a felony to tamper with medicines.

https://www.congress.gov/bill/97th-congress/senate-bill/3048

This new change in safety of the packaging had short-term and long-term ripple effects throughout the pharmaceutical industry.

Short-term impact : The pharmaceutical industry experienced significant negative abnormal returns during the introduction of new FDA regulations requiring tamper-proof packaging. J&J alone had losses of $2.3 billion to its stockholders. On average pharmaceutical firms had a loss of $310 million per firm. These losses were mostly due to the costs related to the packaging regulations.
https://www.jstor.org/stable/2331372

Long-term impact : J&J made a comeback. It was no longer accepted in the industry for product failure situations to have anything less than complete recall of the products in question. Pharmaceutical industry had made their products safer for the entire world.

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You guys should have watched the Tylenol video below before our tutorial class today. Let's discuss!