43059 - JOHNSON AND JOHNSON TYLENOL TRAGEDY Compiled by...

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JOHNSON AND JOHNSON TYLENOL TRAGEDY Compiled by: Student name Course date Johnson and Johnson Tylenol tragedy The Johnson and Johnson Tylenol tragedy occurred during the fall of 1982 when seven people reportedly died after taking the extra-strength Tylenol capsules. Investigations found that these tablets contained cyanide, put after they had reached the shelves. Before the tragedy, Tylenol was ranked as the leading brand in pain-relief, with a 37% market share and revenues of approximately $1 billion dollars. The Tylenol line of products was estimated to generate about 8% of the total Johnson and Johnson’s sales. The market share and the revenue dropped drastically after this crisis, as well as the company’s stock. The central issues in this case study are how to handle the crisis efficiently without affecting the image and revenue of the company while ensuring the consumer is protected from the danger posed by the poisoned capsules. In addition, they have the responsibility of ensuring the user feels assured that something is being done to eliminate the threat. Therefore, these decisions are the responsibility of the public relations office and the chairperson of the
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2 company who represents the board and the company. Factors to be taken into account are the
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