...the early years Tylenol was developed by McNeil Laboratories. It has as its active ingredient a generic compound that can be manufactured by most pharmaceutical companies: acetaminophen. After Johnson & Johnson acquired McNeil in 1959, it began aggressively to advertise the product—to health professionals—as an analgesic that was as effective as aspirin but easier on the stomach. By 1970, sales of Tylenol were growing about 20 to 30 percent annually, with projected sales to reach about $60 million by 1975. With the release of a number of studies in the early 1970s which questioned the wisdom of widespread dependency on aspirin as a pain-killer, the use of acetaminophen accelerated with Tylenol accounting for 90 percent of acetaminophen sales. Two-thirds of Tylenol users were introduced to the product by physicians. Others became familiar with it through hospitals, where it was used extensively—not necessarily because it was the medication of choice, but because it was generally less expensive than other analgesics and less interactive than aspirin. When a 1976 survey showed that consumers were generally aware that Tylenol was easier on their digestive system than other analgesics but felt that this benefit was achieved at a loss of efficacy to reduce pain, Johnson & Johnson introduced Extra-Strength Tylenol. Extra-Strength Tylenol became the first nonprescription analgesic to contain 500 mg of pain-killer per unit—the established industry dosage was 325 mg for regular...
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...ANNUAL REPORt 2011 Johnson & Johnson will continue to bring meaningful innovations to people around the world so they can live better and healthier lives. We are deeply committed and dedicated to the people who use our products, our employees, the communities in which we live and work, and you, our shareholders. Most important, we will never lose sight of who we are. ON tHE COVER Matt Cox, who has type 1 diabetes and uses the waterproof ANIMAS® VIBE™ insulin pump, swam an English Channel relay to raise money for the Juvenile Diabetes Research Foundation. Matt wants to show his son, Jack, who also has type 1 diabetes, that the condition need not hold him back in life. Read Matt’s story on page 16. CHAIRMAN’S LETTER To Our Shareholders hroughout our annual report this year, you’ll read the severe economic decline; the tightening of consumer about how Johnson & Johnson is bringing meaningful spending and health care budgets; over-the-counter (OTC) innovation to our patients and customers, and making product quality issues at McNeil Consumer Healthcare and a difference in their lives in a personal way—from the recall of the DePuy ASR™ Hip System. Brunhilde Wecker, who made a full recovery from her stroke Our company was severely tested. thanks to our new blood clot retrieval and removal device, In managing through this stretch, we relied heavily on the resolve to our own Bill Hait, an oncologist whose vision and insights of our people and on our time-tested business...
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...BUSINESS DECISION MAKING INTRODUCTION Johnson and Johnson is an American multinational company founded in Brunswick ,New Jersey in 1886 by American entrepreneur Robert Wood Johnson. It manufactures pharmaceuticals, medical devices and consumer products. J&J and its subsidiaries have operations in over 60 countries and sell their products in over 175 countries. Today, it employs 120,000 people worldwide. They are the world’s second largest manufacturer of health care products and the largest developer and manufacturer of medical treatment and diagnostic devices. Is the second revenue earner for the company, focuses on medical needs in cardiovascular, metabolism, immunology and oncology Medical Devices and Diagnostics Is actually the smallest division but include some of them most well know products Prescription Products Consumer Products EXECUTIVE SUMMARY Is the largest segment producing medical equipment, surgical systems and devices LISTERINE, NEOSPORIN, NEUTROGENA, SPLENDA, BAND-AIDS, TYLENOL,VISINE, ACUVUE, ONETOUCH, JOHNSON'S BABY PRODUCTS (LOTION, SOAP, SHAMPOO) COMPETITIVE ADVANTAGE Strong branding and customer loyalty Patient protection Diversification in research and development of new products A single focused business segment in healthcare Company structure / Management approach EXTERNAL & INTERNAL ENVIRONMENTS Consumer bargaining power Threat of entry Threat of substitutes Competition...
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...BUSINESS DECISION MAKING INTRODUCTION Johnson and Johnson is an American multinational company founded in Brunswick ,New Jersey in 1886 by American entrepreneur Robert Wood Johnson. It manufactures pharmaceuticals, medical devices and consumer products. J&J and its subsidiaries have operations in over 60 countries and sell their products in over 175 countries. Today, it employs 120,000 people worldwide. They are the world’s second largest manufacturer of health care products and the largest developer and manufacturer of medical treatment and diagnostic devices. EXECUTIVE SUMMARY Consumer Products Prescription Products Medical Devices and Diagnostics Is actually the smallest division but include some of them most well know products Is the second revenue earner for the company, focuses on medical needs in cardiovascular, metabolism, immunology and oncology Is the largest segment producing medical equipment, surgical systems and devices LISTERINE, NEOSPORIN, NEUTROGENA, SPLENDA, BAND-AIDS, TYLENOL,VISINE, ACUVUE, ONETOUCH, JOHNSON'S BABY PRODUCTS (LOTION, SOAP, SHAMPOO) COMPETITIVE ADVANTAGE Strong branding and customer loyalty Patient protection Diversification in research and development of new products A single focused business segment in healthcare Company structure / Management approach EXTERNAL & INTERNAL ENVIRONMENTS Consumer bargaining power Threat of entry Threat of substitutes Competition / Rivalry • The largest risk is the...
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...Tylenol Ethics Paper MGT/498 Tylenol Ethics Paper Johnson & Johnson companies reside in over 57 countries all across the world. This company consists of 250 sister companies. “Our Family of Companies is organized into several business segments comprised of franchises and therapeutic categories (Johnson & Johnson Services, Inc., 2013)”. Johnson & Johnson is broke up into three main segments which include healthcare consumer, pharmaceuticals, and medical device and diagnostics. During 1982 Johnson & Johnson accidently “replaced Tylenol Extra-Strength capsules with cyanide-laced capsules, resealed the packages, and deposited them on the shelves of at least a half-dozen or so pharmacies and food stores in the Chicago area. The poison capsules were purchased, and seven unsuspecting people died a horrible death. Johnson & Johnson, parent company of McNeil Consumer Products Company which makes Tylenol, suddenly, and with no warning, had to explain to the world why its trusted product was suddenly killing people (Johnson & Johnson Services, Inc., 2013)”. Johnson & Johnson was informed of this mistake by a Chicago news reporter. The news reporter told Johnson & Johnson that the medical examiner in Chicago “had just given a press conference people were dying from poisoned Tylenol (Johnson & Johnson Services, Inc., 2013)”. Johnson & Johnson remedially formed a seven-member strategy team to figure out how they...
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...1. Johnson & Johnson was founded in 1885 and is based in New Brunswick, New Jersey and it’s industry is Drug Manufacturers. Johnson & Johnson along with its subsidiaries, researches, develops, manufactures and sells various products in the health care field worldwide. It operates in three different segments which are consumer, pharmaceutical and medical devices. The consumer segment offers baby care products under the Johnson S brand name; Oral care products which is under the Listerine brand name; Skin products under the Aveeno, Clean & Clear, Dabao, Johnson S Adult, Le Petite Marseillais, Lubriderm, Neutrogena, and RoC brand names; Women’s health product like the sanitary pads under the Stayfree and Carefree, and o.b. tampon brand names; wound care products which includes adhesive bandages and first aid products under the Band-Aid and Neosporin brand anmes; and nutritional products which comprises of no calorie sweetener under the Splenda brand name. This segment also offers over the counter medicines which includes acetaminophen products under the Tylenol brand name; cold, flue, and allergy products under the Sudafed brand name. Also allergy products under under the Benadryl and Zyrtec brand names are included; ibuprofen products under the Motrin IB brand name; and heartburn products under the Repcid brand name. In the Pharmaceutical segment, it provides various products in the areas of immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic...
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...Johnson & Johnson Over the years Johnson & Johnson has grown substantially due to strategic acquisitions expanding in a wide range of product lines such as Neutrogena in 1994, DePuy in 1998 and Pfizer in 2006. Currently holding over 250 different businesses separated into three divisions: Pharmaceuticals, Medical Devices & Diagnostics, and Consumer products. Historically such divisions have thrived through the decentralized, entrepreneurship culture (Dess, Lumpkin, Eisner, & McNamara, 2014). Nonetheless, impediments such as numerous product recalls, detrimental litigations has now placed Johnson and Johnson’s reputation in jeopardy. Subsidiary McNeil Consumer Healthcare has had a long history of product recalls, mostly know for the biggest children’s drug recall however coming out with little impact on the corporate reputation. Strong company ethical behaviour was the key to the smooth mergence. Johnson & Johnson showed them prepared to bear the short-term cost in the name of consumer safety. Strongly establishing a basis for trust within customers. On the other hand DePuy’s Orthopaedics unit hip replacement recall, has left not only over 10,000 lawsuits in the US, but has tarnished the name of such a trusted brand (Dess et al, 2014). Incubuses a slow ineffective response to series of problems that predominant in poor quality control inside some of the manufacturing plants. An unsuccessful corrective action plan needed to counter consumers‘ complaints and growing...
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...Johnson and Johnson Supply Chain Case Analysis Table of Contents I. Executive Summary…………………………………….3 II. Backgound / History……………………………………4 III. Supply Chain Analysis…………………………………5 IV. Recommendations………………………………………7 V. Work Cited………………………………………………8 I. Executive Summary Johnson and Johnson is a medical devices, pharmaceutical and consumer packaged goods manufacture founded in 1886. They are U.S. multinational company, who is listed among the Fortune 500. Johnson and Johnson Credo is a statement of their values and responsibilities that was written over 60 years ago. It articulates their responsibilities to customers, employees, communities and shareholders. There philosophy and core values are centered and desired to provide the safest and most reliable products and services to their customers. Johnson and Johnson offer’s a diverse business. A business that is a leader and offers many medical devices, pharmaceutical and consumer packaged goods that dominate over their competitor’s. There forecast show’s growth despite them facing challenges. They have successfully employed strategies to differentiate themselves that helps them distinguish themselves from its competitors. Johnson and Johnson does not have control over external supply chain, but are committed to ensure operations on their behalf are consistent with their values. With an annual spending being about $30 billion, they are able to leverage their purchasing power and set expectation...
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...PROPOSAL OUTLINE Annette M Daniels 1. THE PAINFUL TRUTH OF A COMPANY’S PURSUIT OF QUALITY 2. Johnson and Johnson 3. Johnson & Johnson was organized in the State of New Jersey in 1886. Today they employee approximately 115,000 people worldwide. Johnson & Johnson has more than 250 companies located in 57 countries around the world. From these 250 companies they Manufacture and sell health care products. The Family of Companies is organized into several business segments comprised of franchises and therapeutic categories. * Consumer Health Care The Consumer segment includes a broad range of consumer health and personal care products in the beauty, baby, oral care and women’s health categories, as well as nutritional products and over-the-counter medicines and wellness and prevention platforms. * Medical Devices & Diagnostics The Medical Devices & Diagnostics segment focuses on technologies, solutions and services in the fields of cardiovascular disease, diabetes care, orthopedics, vision care, wound care, aesthetics, sports medicine, infection prevention, minimally invasive surgery, and diagnostics. * Pharmaceuticals It includes products in the anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and urology and virology fields. * Many of Johnson and Johnson’s businesses and facilities have been certified to meet International Organization for...
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...Paper Johnson and Johnson (JNJ) began in the late 1880s as a family owned and operated business geared toward the health care and first aid of individuals. In their first 20 years of operation, Johnson and Johnson built a solid domestic business and were among the first responders to the 1906 San Francisco Earthquake. Currently, Johnson and Johnson span the globe with more than 250 locations in 57 countries ("Johnson and Johnson Company Structure", 2011). In JNJ’s century plus experience and business operations, adjusting and adapting the functions of management to meet operational goals and public demands is a testament to their longevity. From their worldwide expansion, innovations in healthcare, business ethics, contributions to technology, to their community diversity, JNJ provides a “How to Succeed in Business” guide for others to follow. Internal and external factors involved in technology affect management’s efficiency in planning, organizing, leading and controlling. The new advances in technology have provided new production techniques and new ways to manage and communicate such as telecommuting and robotic manufacturing. The technology of computers has increased productivity and performance. Management is able to watch and learn what the competitors are doing and improve the efficiency in decision making. There are also threats involved with technology when ensuring the most up to date technology and developments are used. Johnson and Johnson’s...
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...allegations of misconduct, but while some of these may seem small, every crisis has the potential to damage the reputation of a company. Regardless of the severity of the situation, crises pose a serious threat to companies – not only to their reputation but their fiscal health as well. When Odwalla’s apple juice was thought to be the cause of an outbreak of E. coli bacteria, the company lost a third of its market value. The same allegation against Jack in the Box restaurant in 1993 caused the hamburger chain’s stock price to fall from $14 a share to nearly $3 a share. On the other hand, some companies emerge from crises unscathed in the eyes of consumers and investors. Johnson and Johnson is one such company. After it was discovered that its Tylenol capsules had been laced with cyanide, Johnson and Johnson reacted in such an effective way that the case is now well-documented as an example of successful crisis management. The factor that determines how a company will withstand a crisis is its ability to respond to the crisis. “The public forgives accidents, but it doesn’t forgive a corporation if its response to the public is inadequate.” Once a crisis occurs, the company is suddenly a target for the media, who are acting on behalf of the public to find out the answers to the important questions...
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...manufactured by McNeil Consumer Healthcare, a subsidiary of Johnson & Johnson. The product was laced with cyanide. At the time Johnson & Johnson claimed no responsibility of the poisoning tablets but it did recall all its products from shelves of drug stores and supermarkets and replaced the capsule drug with tablets. The company came very openly and declared that they would never sell unsafe products to its customer. Johnson & Johnson at the time was praised in the media for the way they handled the recall and the company became a model for how to handle an ethical crisis. If we see the recent challenges that are happening to Johnson & Johnson is hard to believe that the company’s statement that gave back almost 30 years ago has not held true, the statement followed: “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. In meeting their needs everything we do must be of high quality”. Below I will go through several lawsuits that Johnson & Johnson was faced in 2011 that made the company announced recently that it had recorded 3.3 billion charges and special items for fourth quarter 2011 in order to provide a reserve for probable losses from product liability lawsuits. All the lawsuits have in common the fact that all of them are manufacturing-quality errors. 1. On December 21, 2011 was announced that Johnson & Johnson must face a lawsuit claiming it misled investors about...
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...preferences. Tylenol Murder The Johnson and Johnson Company had a number of publics to satisfy in the Tylenol case, external and internal. The internals were the employees, management, shareholders/stakeholders, and suppliers and distributors as well as the retailers. Externally the media, public buyers, watchdog groups, law enforcement agencies and government agencies all had to be informed and kept apprised of the steps taken to alleviate the problems and concerns. The company was very successful in keeping all informed and moving at the fastest speed possible to help resolve the situation and the dangers involved. It was not only the internal workers that made their living and profits from the Tylenol products, but the external groups that bought the product, approved the product, or investigated the criminal activities associated with the product that needed ongoing information as each different crime was committed. For the company, the swift actions and varied actions helped to maintain and even enhance the reputation of the company. The company used the media to great effect to get the word out about the misinformation that was being dispersed. The company quickly reversed information that got out about not using cyanide in the plant. They used the information from law enforcement to contain panic about the area where the crimes happened. They used the chairman to invoke the confidence in the company. Johnson and Johnson also put up a large...
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...JOHNSON & JOHNSON AND THE TYLENOL POISONING A bottle of Tylenol is a common feature of any medicine cabinet as a safe and reliable painkiller, but in the fall of 1982, this household brand was driven to the point of near extinction along with the fortunes of parent company Johnson & Johnson as a result of a product tampering case that has never been solved. On September 29, 1982, seven people in the Chicago area died after taking Extra-Strength Tylenol capsules that had been laced with cyanide. Investigators later determined that the bottles of Tylenol had been purchased or shoplifted from seven or eight drugstores and supermarkets and then replaced on shelves after the capsules in the bottle had been removed, emptied of their acetaminophen powder, and filled with cyanide. The motive for the killings was never established, although a grudge against Johnson & Johnson or the retail chains selling the brand was suspected. A man called James Lewis attempted to profit from the event by sending an extortion letter to Johnson & Johnson, presumably inspired by the $100,000 reward the company had posted, but the police dismissed him as a serious suspect. He was jailed for 13 years for the extortion but never charged with the murders. The response of Johnson & Johnson to the potential destruction of its most profitable product line has since become business legend and is taught today as a classic case study in crisis management at universities all over the world. Company chairman James...
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...Tylenol Case Study Johnson & Johnson recognized the issue with the Tylenol crisis was a severe crisis situation because of the six deaths that occurred from using Tylenol. The management staff and CEO, James Burke initially viewed the crisis as a serious situation, but felt the incident did not occur at their production facility. Nevertheless, the contamination were related to their Tylenol brand name. So they knew the nation was in a panic because of the tainted Tylenol capsules, and took full responsibility for the safety of customers. Johnson and Johnson faced two options as a results of the crisis. James Burke formed a team and advised them to address two questions to resolve the critical issues and respond to the public concerns, first “How do we protect the safety of the people?” and second “How do we save the Tylenol brand name?” Their first reaction was to notify customers across the nation to stop the use the Tylenol product until further investigation had been determined regarding the tampering of the product. The company ceased the production of making the product as well as pulling Tylenol from the shelves in Chicago area first, then eventually across the nation. The company knew this would cause a decrease in their profit because Tylenol had been one of their most successful product which had increased their sales to an enormous profit of 17 percent. The company understood their first priority was to protect the people. They uses a 1-800 hotline for customers...
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