Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Prepared By:
Arnab Chatterjee (19008)
Praveen Naraynan (19025), Varun Nayar (19103), Manik Mondal (19114) & Sphoorthy B.(19120)
In the mid 1950s Tylenol became a needed and popular substitute for aspirin for such conditions as flu and chicken pox, since aspirin was related to Reyes Syndrome (liver degeneration, brain edema, 20-30% fatality). McNeil, Johnson & Johnson subsidiaries has a painkiller called Tylenol. Large market: 100 million users, 17-18 per cent net earnings of Johnson & Johnson is generated by Tylenol, 37% market share of painkillers, outselling other top analgesics combined Tylenol became a product trusted by physicians and families alike. On 30 Sept 1982 CEO of McNeil receive a shocking news of seven people death after taking cyanide laced capsules.
Communication Strategy
CEO James Burke alerts about the danger & assigns team to discover the source: Formed 7-member strategy team. Efforts to stop the killings. Finding reasons for the killings. Provide protection & assistance to people How to save customers? And how to save the product? Withdrawal from Chicago and surrounding areas. Withdrawal from USA.
Stages enable the user to communicate clearly about change over time, adapt interventions to what is needed at each stage, & monitor progress across stages.
Stages also imply development from one stage to another; this enables changing outcomes at a later stage by intervening at an earlier one
The 4 Cs
When the Johnson & Johnson Company faced the Tylenol poisonings in 1982 they applied the Four Cs quite effectively. They relied on the value and strength of their culture credo which also identified the stakeholders. Four responsibilities: To the customers To the employees To the communities they serve To the stockholders
1. Replaced them with tamper-resistant caplets (triple safety seal within 6 months)
2. Incentives: free replacement of caplets for capsules, special coupons ($2.50 off) easily obtained
Strategies
Forgiveness: win forgiveness from stakeholders and create acceptance for the crisis. Sympathy: portray organization as unfair victim of attack by outside persons; willing to accept losses. Remediation: offer compensation for victims and families (counseling & financial assistance).
Rectification: take action to reduce recurrence (triple sealed & increased random inspection).
Effective leadership: clear, visible, consistent role-modeled message from beginning by CEO.
Employee Response
Strong family-oriented culture, we care about our employees
Open and current communication with employees; 4 video programs on the unfolding process
Emphasizing plant workers were innocent CEO speech in a week to employees, Were coming back (wearing buttons) Idle employees given tasks to keep involved & reduce rumoring and boredom Indications of market recovery bolster spirits Congruence and consistency in demonstrating the Credo
Consequences
J&J showed that they were not willing to risk public safety even at excessive cost J&J was viewed as a co-victim of the crime Stakeholder involvement and relationships is essential One must anticipate and prepared for crises; expect the unexpected Cynicism: Be aware that 75% of people dont believe companies take responsibility for crises or tell the truth No matter what you do in the beginning, in the end you will have to tell the truth React fast, openly and decisively 1983 Tylenol Bill by Congress made malicious tampering of consumer products a federal offense 1989 federal legislation to make consumer products tamper resistant
Lessons Learned
Report your own bad news dont wait for reporters to root it out. Speak with one voice. Gather facts and disseminate from one info center. Be accessible to the media so they wont go to other sources. Target communications to those most affected by the crisis, and can affect the media. If you cant discuss something, explain why.
Restoration of confidence
Realistic Approach.
Setting an example.
Work cited
"Tylenol Figure Is Convicted". The New York Times. Associated Press. 1984-01-15. http://www.nytimes.com/1984/01/15/us/tylenol-figure-is-convicted.html?sec=health. "Tragedy in Winnetka: the answers are few". Milwaukee Sentinel. 25 May 1988. http://news.google.ca/newspapers?id=mNkVAAAAIBAJ&sjid=8RIEAAAAIBAJ&pg=3227,6319355&dq=tylen ol+laurie+dann&hl=en. Kaplan, Tamara. "The Tylenol Crisis: How Effective Public Relations Saved Johnson & Johnson". The Pennsylvania State University. http://www.aerobiologicalengineering.com/wxk116/TylenolMurders/crisis.html. Atkinson, Rick. "The Tylenol Nightmare: How a Corporate Giant Fought Back." The Kansas City Times. November 12, 1982. Beck, Melinda, Mary Hagar, Ron LaBreque, Sylvester Monroe, Linda Prout. "The Tylenol Scare." Newsweek. October 11, 1982. Broom, Glen M., Allen H. Center, Scott M. Cutlip. Effective Public Relations, Seventh Edition. PrenticeHall Inc. 1994. Church, George J. "Copycats are on the Prowl." Time. November 8, 1982. Foster, Lawrence G. "The Johnson & Johnson Credo and the Tylenol Crisis." New Jersey Bell Journal. Volume 6, Number 1. 1983. Giges, Nancy. "New Tylenol Package in National Press Debut." Advertising Age Magazine. November 15, 1982. Goodman, Howard. "PR Effort Launches New Tylenol Package." The Kansas City Times. November 12, 1982. Johnson & Johnson. 'The Comeback." A Special Report From the Editors of Worldwide Publication of Johnson & Johnson Corporate Public Relations. 1982. Knight, Jerry. "Tylenol's Maker Shows How to Respond to Crisis." The Washington Post. October 11, 1982. Lewin, Tamar. "Tylenol Posts an Apparent Recovery." New York Times. December, 24, 1982. Tifft, Susan. "Poison Madness in the Midwest." Time. October 11, 1982. "Tylenol Murders." http://www.aerobiologicalengineering.com/wxk116/TyelenolMurders/