Johnson Tylenol Crisis Essay

A crisis often created by factors outside of the a companies control, and is usually not purely a result of a companies negligence. But even if the cause of the crisis is not the fault of the company, failure to properly solve the issue can cost a company greatly. A perfect example of a company of how improperly handling such a situation costs company is the Johnson and Johnson Tylenol crisis in 1982. At no fault of the company's an individual managed to lace their drug with cyanide, poor handling of the crisis cost seven people their lives and the company lost 1 billion in market value. When the same situation happened in 1986 the company had learned its lesson and handled the situation much batter. Acting quickly they insured the problem

Investor were harmed the greatest because they are the ones in it purely for profit. The investors put their money and trust into a company with the hopes they can make money and prevent events that cause a loss. Johnson and Johnson failed to prevent a loss in profit and hurt their investors. Johnson and Johnson were also harmed because they lost a large amount of product and potential sales. Even if Johnson and Johnson handled it well enough to mostly recover they still lost a large potential profit and a lot of short term investors lost a lot of money. It is unlikely that Johnson and Johnson gained more business from the crisis's end results then they lost because of it. I can't really say the consumer was harmed because the crisis, the paper specifies there were people killed in the 1982 event, but never specifies whether that happened in the 1986 crisis or not, so under the assumption that people were killed because of it, yes the consumers were harmed directly due to the crisis. Under the assumption that their were no deaths then the worst things that happened to the consumer is that they lost one of their choices in pain relievers for a short time, I don’t think that really counts as being harmed, if anything it’s just