Free Essay

Johnson & Johnson Case

In: Business and Management

Submitted By SeanKhatib
Words 2469
Pages 10
Johnson & Johnson’s Quality Catastrophe
Individual Case Study Analysis

Johnson & Johnson is a multinational medical devices, pharmaceutical, and consumers packaged goods manufacturer founded in 1886. Until 2005, this corporation ranked at the top of Harris Interactive National Corporate Reputation survey, and was also ranked as the world’s most respected corporation by Barron’s Magazine. This global corporation is made up of 250 subsidiary companies with operations in over 57 countries and products sold in over 174 countries. Due to product recalls, fines for pharmaceutical marketing practices, litigation with shareholders, and other legal issues, Johnson & Johnson’s reputation has been adversely affected in recent years.
SWOT Analysis
Johnsons & Johnson is a corporation that has achieved economies of scale and scope. It has a strong global presence represented by over 250 subsidiary companies operating all over the globe. Overall, it has an excellent product portfolio and high quality offerings that satisfies consumer needs on a daily basis. This corporation has placed a huge emphasis on establishing a strong customer base, with recognition for brand loyalty and image. Johnson & Johnson has been a leader in pharmaceuticals and medical devices, which accounts for almost 80% of the corporation’s total revenues. One of its major strengths is the importance of the pharmaceutical and medical advances the company has contributed to society. Some contributions made by this global giant include immunology products that are used in the treatments of autoimmune disease like Crohn’s, Ulcerative Colitis, and rheumatoid arthritis, amongst other disorders. They have also been on the cutting edge in the development of key infectious disease products like Incivio used for hepatitis C, as well as Intelence and Prezista used in HIV treatment. Other strengths that this corporation holds is its place as one of the World’s Most Admired companies. In 2011, Johnson & Johnson was awarded the Humanitarian of the Year Award by the United Nations for its leading role in its Healthy Mother, Health Child initiative. Its brand presence in the form of advertising media and print media for its various products has contributed to the company being adored and trusted by mothers all over the world. Since the inception of the list some 26 years ago, Johnson & Johnson has been ranked amongst the “Top 100 Companies for Working Mothers”. Johnson and Johnson is a leader in necessary every day consumer products made available to the public with high quality brand recognition like those of Band-Aid, Neutrogena, Listerine, Baby Shampoo, Acuvue Lenses, Purell, and much more. Although Johnson & Johnson can make such important contributions to society, some of these contributions have become weaknesses to the company due to various reasons.
Maintaining such a global brand has many strengths and advantages, but being exposed to so many risky products can leave a corporation exposed to plenty of weaknesses. Maintaining a global brand can be problematic in many ways, one of which can be the oversight of retailers who may tarnish the reputation by selling expired products. Product recalls, which have plagued Johnson & Johnson, are also weaknesses to a global corporation of this size. One of the subsidiaries had to willingly recall 43 over-the-counter children’s medicines, including Benadryl, Tylenol, Motrin, and Zyrtec. In the article, we read about a former Marine Corps officer who had previously received hip replacement surgery. The ASR hip used, a product developed by one of Johnson & Johnson’s subsidiary companies DePuy, was being promoted as touch and durable, making it perfect for younger, physically active patients. These hips were eventually recalled because of the pain and discomfort it caused in over 90,000 patients around the world. Such recalls are worrisome to both customers and stakeholders, as they may be symptoms of a systematic quality-control problem at Johnson & Johnson. These are just a few examples of over 50 voluntary product recalls issued since the start of 2010. With all the problems the corporation has been facing in the past decade, I have concluded that the large size of the corporation may contribute to its weaknesses. Johnson & Johnson’s weaknesses also include a shrinking demand in its key products. The corporation is also facing strong pressure to reduce prices and preserve copyright expirations on many of its products. From its financials, the company’s major revenues also depend heavily on certain drugs like Risperdal, and antipsychotic medication, or CNS treatment medications. The pharmaceutical giant has a lot invested in what could be described as a small percentage of its overall operations. The Antipsychotic medication, Risperdal, has caused plenty of nightmares for Johnson & Johnson, as they have been found guilty in several US states for hiding what they knew about its adverse effects, in order to promote it to doctors and patients as better than cheaper generics. The company has also been investigated by the United States Department of Justice for the use of this medication, initially used for the treatment of schizophrenia, in the treatment of dementia through companies that supply pharmaceutical drugs to nursing homes. Johnson & Johnson has been exposed numerous times, leading to multiple investigations, large numbers of lawsuits, and litigation which seems to come with the territory when dealing with a large quantity of diverse products and subsidiaries.
Catering to a large number of consumer needs provides Johnson & Johnson with a lot of opportunities to expand both nationally and globally. A major opportunity that such a large scale corporation can have is its ability to procure smaller companies and increasing its broad brand presence. Johnson & Johnson also has the opportunity to increase market share by product development and product innovation globally. The corporations’ vast resources, both from a technological and logistical perspective, can allow for the development of more portable products for economy class consumers, thus increasing its outreach to underserved populations. Through increased research and development efforts, Johnson & Johnson can also tap in to the production of pharmaceuticals for deadly diseases and infections that have caused serious epidemics worldwide, like the current spread of Ebola in West Africa. Another opportunity can be to refocus and reach out to new consumers, by providing alternative products for lower prices. With such a large sized corporation, Johnson & Johnson can find ways to produce more affordable products to those who can’t afford the top brand names, limiting the amount of revenue that the competitors have taken away from them in certain markets.
In the wide variety of products the corporation holds, it has become much easier for competitors to provide alternative and substitute products at more affordable prices. When walking into any department store carrying Johnson & Johnson products, you can find its product placed on a shelf next to multiple competitors’ products that provide the same item at a lower price. However, this threat does not hold to just your everyday items at your local department or convenience store. The pharmaceutical division has become one of the most competitive markets around the globe. With many scientific and technological advances today, it has become a global race for who can cure the many existing terminal diseases. Johnson & Johnson competes with other large pharmaceutical corporations, like Pfizer and Roche Holding, for the development of effective treatments of serious illnesses like cancer. Competition in such sensitive areas can pose a large threat to a company, making it susceptible to a lot of negativities as a large number of drugs being released to treat such illness have been deemed unsuccessful for the most part. Also, as we have read excessively about Johnson & Johnson, with riskier items comes lawsuits and failures. Another threat to Johnson & Johnson is the multiple legal problems that it has faced over the years. This series of negativity has harmed the public opinion of the corporation, and with the large availability of news media to the public, increased awareness of these problems have threatened its operations. Subsidiary companies being mismanaged, guaranteeing unattainable promises, unable to compete with cheaper generics, and using unethical marketing strategies have placed a black cloud over the head of this global giant.
Environmental Scan Politics In a heavily regulated market, pharmaceutical companies have faced a tremendous amount of federal oversight, legislation, and government regulation. The politics on local, regional, national, or international scales can exert strong forces of businesses. Being that Johnson & Johnson operates worldwide, political developments that may affect the business must be continuously tracked. In the industry in which companies such as Johnson & Johnson operate, there is a large amount of political spending, lobbying, and contributions made to campaigns in order to place a favorable delegation in high office. According to Americans for Campaign Reform, pharmaceuticals have invested nearly $2 billion in campaign contributions and lobbying efforts. From 1990 to 2008, individuals, lobbyists, and political action committees in the industry have contributed $167 million to federal candidates. In 2008, members of the House and Senate received an average of $25,277 and $81,891, respectively, in political contributions. Apart from campaign funding, the pharmaceutical industry has also made contributions pegged to key legislation. Industry contributions rose to $29.6 million prior to Congressional approval of the Medicare Modernization Act of 2003, which featured the $400-$600 billion Medicare Part D prescriptions program. After the passing of the Medicare Modernization Act, 15 members of Congress, congressional staff, and federal officials involved in the passing of the bill accepted jobs as pharmaceutical lobbyists, including former Medicare director and the chair of the House Energy and Commerce Committee. Demographics This industry appeals to every single demographic in one way or another. Everyone from pediatric care all the way to geriatric care is in need of medication at some point or another, whether it be prescription or over-the-counter. Also, with the diverse amount of products produced by subsidiaries, large corporations such as Johnson & Johnson can cater to all demographics. However, with a large emphasis on the pharmaceutical industry, Johnson & Johnson serves and will continue to serve the largest generation on the planet, the baby boomers. The baby boomers are projected to require the most care in facilities like nursing homes, and a subsidiary of Johnson & Johnson is the largest provider of prescription medications to nursing homes across the nation. Corporations in this industry also possess access to demographics around the globe, as their products and operations are often found in various countries around the globe.
This environment is extremely important for such large corporations as Johnson & Johnson to track, as it can change instantaneously. Johnson & Johnson’s continued expansion into the European Union, and other large markets provides evidence that the corporation needed to seek opportunities to remedy the effects of the economic crisis in America. It is important to predict when a corporation may face challenges, and Johnson & Johnson was able to do so well ahead of time in order to plan for its impact. Often times, predicting the economic environment can lead to the seizure of opportunities that may not be always available. Companies like Johnson & Johnson have been fortunate enough to not experience severe setbacks from the economic crisis, as medical products remain necessities even in periods of economic downturn. The passing of the affordable care act will contribute heavily to the success of these industries, as a larger number of people will soon have access to prescription drugs who may not have been able to afford them before.
The aging population across America will provide tremendous opportunities to the medical industry in the years to come. With the large baby boomer generation approaching the age where they begin to need a lot of care, a huge social and economic impact will be experienced globally. The influx of senior citizens will create huge demands throughout the different realms of medical care. Companies like Johnson & Johnson can expect to see an increase in sales across its pharmaceutical, medical devices, and diagnostics segments for many years to come. Also, a large part of the Johnson & Johnson culture is its appeal to mothers across the world. They have used this marketing strategy for such a long time that the generation with the largest purchasing power has grown attached to this trusted provider. There are a lot more social and cultural aspects that will affect this industry in both a negative and positive way. However, this industry remains vital to our society because it provides cures to illnesses, comfort to pain, replacement for lost limbs, and other remedies to make our everyday lives easier and better.
In Newsweek’s “Green Rankings”, Johnson & Johnson was ranked third amongst the United States largest companies for its continued effort to keep the company environmentally friendly. It is important for all companies in this industry to maintain environmentally friendly efforts, especially when tied in to the health and wellness categories. Johnson & Johnson agreed to change its packaging of plastic bottles in the manufacturing process, switching their packaging of liquids to non-polycarbonate containers. Industry leading corporations have also found ways of reducing water usage, waste production, and energy usage. Johnson & Johnson operates the largest solar power generator at its Spring House, Pennsylvania site.
Alternative Strategies There are a few alternative strategies that the Johnson & Johnson Corporation may implement in order to provide more reliable service and products. With the vast majority of subsidiary companies under their umbrella, it would be beneficial for the corporation to increase management oversight of the daily operations of their subsidiaries. This will allow for more control on what the smaller companies are doing and disallowing the Johnson & Johnson name to be tarnished. Secondly, the corporation is in the market for a large variety of products. With such a wide variety of products that hold significant importance, it leaves for a large margin of error. I believe that Johnson & Johnson needs to take more time and pay more attention to product research and development. In the pharmaceutical industry, companies are too occupied with being the first to develop a product that they are often left with low quality. I believe that the manufacturers of important illness curing medication and life altering devices should take more time developing the best products rather than worrying about strictly being first. Being first is often good for the company, but in the long run, being the best and most innovative will pay off better. Combined with the first alternative strategy, increased oversight and regulation means the subsidiary will not release a product that the corporation does not fully approve of. Finally, I believe that Johnson & Johnson needs to refocus and restructure the organization to what they once stood for. I believe that with all of the recent distractions, the corporation has lost sight of its vision and mission statement.

Similar Documents

Premium Essay

Johnson & Johnson Case Study

...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...

Words: 503 - Pages: 3

Free Essay

Tylenol Crisis of 1982

...September 30, 2015 Abstract In this paper I talked about the Johnson and Johnson Tylenol case of 1832. I explained the case and defended Johnson and Johnson’s ethical decision. I learned that this case paved the way for companies to start recalling their products if there is something wrong with them. Tylenol crisis of 1982 Johnson and Johnson’s Tylenol product had become one of the most successful over the counter product in the United States. Then mysterious deaths all around the US were being linked to Tylenol. Johnson and Johnson was faced with the ethical decision whether or not they should have a recall on their product or not. Many companies have been put in the ethical decision of right and wrong before. Johnson and Johnson decided that the best decision they could make was to recall their product from the market. Even though this decision may have set Johnson and Johnson back in the short term, eventually they were able to come back even stronger in the long term. Johnson and Johnson’s Tylenol was cashing in 19 percent of its profits. Tylenol was becoming one of the most successful products ever. The fall of 1982 comes around and there are reports of deaths that doctors are relating to Tylenol. Many Tylenol bottles were reported tampered with. Somebody had replaced the pills in a Tylenol bottle with cyanide-laced capsules. These pills were killing people. These deaths put the pressure on Johnson and Johnson to fix what had happened. It might not have been......

Words: 1084 - Pages: 5

Premium Essay

Suplly Deman Chihuahua

...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......

Words: 1373 - Pages: 6

Free Essay

Management Crisis

... 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...

Words: 2345 - Pages: 10

Premium Essay

Quality Control Failures at Johnson & Johnson

...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......

Words: 702 - Pages: 3

Free Essay

Tylenol Case Study

...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......

Words: 541 - Pages: 3

Premium Essay

Tylenol Murders

...Tylenol Murder Case Your name University Class Instructor Date Introduction This paper will discuss the effectiveness of the communication between organization and its intended publics in the Tylenol Murder Case. Communication starts with us. When we set out to communicate with others, we first have to address that we, too, are human beings, with thoughts, feelings, beliefs, attitudes, prejudices and 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......

Words: 584 - Pages: 3

Free Essay


...Johnson & Johnson Quality Analysis BSOP588 Quality Management Aug 2013 Introduction Johnson & Johnson manufactures health care products and pharmaceuticals along with providing related health services for consumers. The company sells products such as hair, skin care and acetaminophen products, surgical and diagnostic equipment worldwide. Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Some of the company’s better known consumer products are Tylenol medications, Johnson's baby products, the Band-Aid line, Neutrogena beauty products and Acuvue contact lenses. Three brothers, Robert, James and Edward Johnson, found Johnson & Johnson in New Brunswick, New Jersey in 1886 ( The brother’s company published "Modern Methods of Antiseptic Wound Treatment," in 1886; the book became one of the standard teaching texts for antiseptic surgery ( Two years later Johnson & Johnson pioneered the first commercial first aid kits, the kits were designed to help railroad workers, but soon branched out to treating all forms of standard injuries ( Johnson & Johnson later launches maternity kits to make childbirth safer for mothers and babies. The attention to new mothers and their babies lead Johnson & Johnson to the Company's successful baby care business. Johnson & Johnson is headquartered at New Brunswick, New Jersey and has more than 275 operating......

Words: 2389 - Pages: 10

Premium Essay

Johnson & Johnson

...Accounting 461-Project No.1 Part I JOHNSON & JOHNSON Corporation HISTORY Johnson & Johnson is an American multinational medical device, pharmaceutical and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500. Johnson & Johnson consistently ranks at the top of Harris Interactive National Corporate Reputation Survey,[2] ranking as the world's most respected company by Barron’s Magazine,[3] and was the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U.S. State Department for its funding of international education programs.[4] The corporation's headquarters is located in New Brunswick, New Jersey, United States with the consumer division being located in Skillman, New Jersey. “The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries.” Johnson & Johnson had worldwide pharmaceutical sales of $65 billion for the calendar year of 2011.[7] Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand lines of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses. In 2012, Johnson & Johnson announced that they will start to fund the......

Words: 1824 - Pages: 8

Premium Essay

J&J Johnson and Johnson

...Johnson & Johnson study case Written by Bernd Muxel Table of content SWOT Johnson & Johnson…………………………………....…..…………………..….3 Market situation………………………………………………………..………………... 3 What to do in the Future……………………………………………………..……..…….4 List of literature……………………………………………..……………………..…….4 SWOT Johnson & Johnson Johnson and Johnson is known as the largest and most extensive healthcare producer on the planet. The company has divisions straight through consumer markets, pharmaceutical and professional medical markets. This means they have a wide variety of products to serve the people around the world. This variety allows Johnson and Johnson to have a great product diversification and not focus just on one product. The pharmaceutical, Medical Devices & Diagnostics and Consumer Health division try to act independent, this allows a greater range of choice when It comes to the decision process. One of the strength is that Johnson & Johnson has a sustainable marketing arsenal, they can fall back upon a network of affiliates, which dispose a lot of expertise in sales and marketing as in some therapy areas. The company always tries to attract joint venture possibilities, with its global sales force. Johnson & Johnson also maintained a robust financial position by utilizing cash reserves to finance timely corporate acquisitions. ( The company possesses a global sales force which proves a strong global market. The sales......

Words: 966 - Pages: 4

Premium Essay

Case Study Tylenol

...Colby Joe Carver 10/16/15 PR Case Study 1. Tylenol is a elite corporate company that had a couple issues with its products of pain medication with people tampering with its products. This caused people to die in the first case and the second case of these events. The first case someone was putting cyanide in the capsules in the Chicago distribution center and it wasn’t found to be at where they make the medicine. With the public then very skeptical on Tylenol and its products they had to make something to gain the customers trust back. They came out with a new packaging bottle. It featured the triple safety seal on its packages so no one could tamper with them. If one was unbroken then it was urged to not use the product. The second case was about another woman dying in New York after taking Tylenol. The company then sprang into action again by halting all production. They then decided to come out with the caplets instead of capsules because it was easier for people to tamper with the capsules vs. the caplets. 2. This case study is the primary story that has helped many businesses around the world deal with similar problems within their own companies. The way Tylenol and Johnson & Johnson handled these issues is paramount to how they should’ve been handled. Even President Reagan said that they have their deepest appreciation for living up to the highest ideals of corporate responsibility and grace under pressure. Today this case study is the threshold of how to...

Words: 877 - Pages: 4

Premium Essay

Crisis the door to seize the products and shut them down (Amme, 2004). Could have The Triad Group avoided such a big scandal? Maybe not as the problems had started awhile back but what if the company had followed protocols. The first stage was no comment. Throughout the recalls and seizing of the products the Triad executives and spokesperson would decline to comment on the situation. Although the FDA (Food and Drug Administration) commented that the seizing of the products was to prevent the company from distributing any more products, Triad did not come forward. The best thing that the company could have done was to communicate throughout the crisis. Johnson and Johnson is 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. Time usually plays a crucial part in the investigations but not during the crisis. Even though there are things that can’t be said or that are pending, communicate what you do know and as...

Words: 343 - Pages: 2

Premium Essay

Supply Chain Analysis

...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......

Words: 1300 - Pages: 6

Free Essay

Tylenol Lawsuit

...Johnson & Johnson Tylenol Lawsuit BUS670 – Legal Environment of Business 5-28-2012 Abstract There have been several lawsuits brought against Johnson & Johnson Company in the past years. There was a wrongful death case filed by the parents of a 2 month old that died after taking Concentrated Tylenol Infant Drops. When we talk about a wrongful death case, someone’s life was taken resulting from the willful or negligent act of another person or persons. After this case was filed against Johnson & Johnson, the FDA started working with the company to address its systemic quality issues (Dooren, 2010). According to the Food and Drug Administration’s Principal Deputy Commissioner, over the last several years, they have had growing concerns about the quality of the company’s manufacturing process. Johnson & Johnson Tylenol Lawsuit There was a wrongful death lawsuit filed by the parents of a 2 month old that died after taking Concentrated Tylenol Infant Drops and there was a recall of children’s Tylenol. The Food and Drug Administration (FDA) analyzed that the use of prescription and over-the-counter cough and cold medicines in children younger than 6 years of age had been tied to serious side effects, even death (Dooren, 2007). Cough and cold products are made by several manufacturers including a unit of Johnson & Johnson. Some cold products are marketed as “infant” drops. Most product labels......

Words: 1171 - Pages: 5

Free Essay

Annual Report

...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......

Words: 55630 - Pages: 223