1982 Tylenol Crisis: Johnson & Johnson's Fight for Survival - Essay Sample

Introduction

The Johnson & Johnson Corporation in 1982 encountered a major crisis that almost sent the firm into economic devastation. The corporation's and nation's most purchased painkiller, Tylenol was under crisis (Weinraub n.p). Tylenol Extra-Strength capsules seals were tampered with and substituted with poisonous cyanide-laced capsules. The tampered painkillers were then sealed again, shelved and sold to consumers. As a result, seven people died for consuming these poisonous drugs. This paper provides a discussion of the approach that Johnson & Johnson would have applied to the crisis in the modern-day.

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Methodology When Designing the Recommended Solutions

In creating the right solution for the problem, Johnson & Johnson needs to take two important considerations based on how to ensure maximum protection to their customers and saving the product in the market. One of the approaches towards implementing these considerations is identifying the correct communication channels to reach a wide range of people across the nation. The firm must develop an understanding of crisis communication before, during, and after the crisis to determine the possible responses to the public as well as to the shareholders (Fearn-Banks 6). In countering the issue, the company needs to use the media to alert users across the country not to use Tylenols with immediate effect. The company should be able to identify the right timing and the right communication channels to help manage the situation within the shortest time possible.

In ensuring effective communication, the company could also incorporate emergency response strategies. By implementing forgiveness strategies, the firm will be in an excellent position to win a public apology and create acceptance after the crisis. The sympathy strategy will help create an image to the public that Johnson and Johnson are not guilty, and it was just a target of a wicked crime (DiersLawson &Augustine 8). The remediation approach, the company will offer compensation to the victims of the crisis through counseling and financial assistance. On the other hand, employing a rectification strategy will ensure that the company takes relevant action to prevent a repetition of such a crisis (DiersLawson &Augustine 11).

Recommended Solutions

One of the solutions to the problem would be using the different media channels to communicate to the consumers. Some of the channels to be used could include social media platforms, print media, radio, and TVs for advertising and creating public relations meant to communicate strategies to manage the crisis. Consumers should be informed not to use Tylenol products until the extent of tampering is established (Fearn-Banks 6). Additionally, the company could use alternative communication channels, including a hot-line to create a bond with the consumers. The consumers can call to inquire about their safety, and the company could provide a timely response. The company could stop the production and advertisement of this painkiller as well as withdrawing the stock from the shelves across the nation. Withdrawal of all Tylenol from the market will be a solution to ensure no possible risks is posed to the public irrespective of the high costs the company may suffer.

The company could also collaborate with public relations organizations to report on the safety concerns and issues both for all the stakeholders. In this case, the company management could hold press conferences and schedule a live television coverage to provide regular updates on the progress made towards countering the crisis. The organization would need to introduce a cost-free communication line for news outlets to obtain daily update memos.

On the higher end, Johnson & Johnson would need to re-introduce the product as well as introduce new tamper-resistant package system (Fearn-Banks 9). The packaging could include multiple-seal packs with a fastened outer casing, a plastic seal, and a tightened cap on bottle's opening. These will ensure maximum safety in the future.

Shortcomings to Recommended Solutions

Johnson and Johnson Company will encounter a challenge in efforts to prove its innocence, especially to the victims of the crisis. Those affected by the disaster are most likely to avoid using the Tylenol product ever gain despite the measures put forward by the company. The negative image created by the crisis is expected to affect the market share, which alternatively translates to reduced revenues and a lower position among the fortune 500.

Since the company had not established an active public affairs program with the media, it would face some obstacles in trying to counter this challenge. Most of the media channels such as the print media could be preaching on the negativity of the company in regards to addressing the problem. Trying to develop a positive relationship with the media, especially at the time of crisis would be quite hard, and the company may be forced to respond to the crisis in alternative procedures. The media is also likely to criticize Johnson and Johnson on the approach used to address the crisis, thus magnifying the crisis.

Conclusion

Organizations must develop effective public relations communications. Public relations are crucial for a company to establish practical emergency management approaches to help identify and shape public views. Public relation will also provide the enterprise the roadmap and realize the suitable program of action towards public understanding

Works Cited

Fearn-Banks, Kathleen. Crisis communications: A casebook approach. Routledge, 2016.

DiersLawson, Audra, and Augustine Pang. "Did BP atone for its transgressions? Expanding theory on 'ethical apology' in crisis communication." Journal of Contingencies and Crisis Management 24.3 (2016): 148-161.

Weinraub, Yehuda. "The Tylenol Crisis Could Teach Us About Crises Management." The Jerusalem Post | JPost.com, 16 Aug. 2016, www.jpost.com/Opinion/The-Tylenol-Crisis-could-teach-us-about-crises-management-464274.