“The risks and rewards to organizations of openness are illustrated by recent cases of crisis management run amuck and done well by highly visible corporations. In the 1980’s, Johnson and Johnson created the case study benchmark for crisis management with its handling of the Tylenol product contamination issue. Highly visible leadership and wide-open communication allowed the company to quickly rebuild customer trust in the Tylenol brand” (Patrick F. Bassett) Long-Term Effects:
The Tylenol case created the following long term effects:
•On the part of Johnson and Johnson the manufacturer, they learnt a very expensive lesson of forming detailed guidelines within the organization for crisis management responsibilities and several plans were implemented for the prevention of such occurrences in the future. •Though the company had to spend millions of dollars on this issue, in the long term it could get back the public image which is vitally important for a multi product company like Johnson and Johnson. •The case brought into practice not only by Johnson and Johnson bur all other pharmaceutical companies to adopt a triple – seal tamper – proof packaging that has been made the industry standard. Company’s Action:
It is difficult to imagine how else should have Johnson and Johnson reacted at the time of the crisis except the following ways: •Recalling all the products whether contaminated or not.
•Alerting all the customers by all available media including toll-free hotlines. •Appearance of the chairman of the company on the television to publicize the company’s response and action taken by it to combat the emergency. •Making public relations programmes to address the issues and concerns all the internal and external stakeholders. Future Course of Action:
As far as the action for the future is concerned apart from the action already taken of ensuring the product protection by tamper proof packing the company should...