Tylenol Crisis

The Tylenol Crisis Student’s Name Institution Affiliation Course Title/Name Instructor’s Name Due Date Organizational Response and Learning from Catastrophe The Tylenol poisonings of 1982 represent a seminal event in corporate response to a crisis situation, as well as organizational learning. Johnson & Johnson, in managing the cyanide-laced Tylenol, influenced perceptions of the company and raised the standards by which other firms operate. In this paper, the Tylenol poisonings will be examined as an organizational event, with a focus on decision processes, organizational structure, and organizational learning under a situation of great ambiguity. Understanding the Tylenol Crisis In September 1982, seven people from the Chicago area died from consuming cyanide-laced Tylenol capsules. This led to panic throughout the nation. After the incident was investigated, it was determined that the tampering had occurred after the product was shipped from Johnson & Johnson’s factories. This led to the conclusion that the tampering was done by an outside party. Johnson & Johnson ended up recalling more than 31 million bottles of Tylenol from the market despite the expenses involved. Johnson & Johnson also used press conferences to inform the public of the measures being taken to rectify the situation which was the defining moment for Johnson & Johnson as it displayed its values by choosing to put the consumer first despite the potential damage to the business. Organizational Analysis The Johnson & Johnson case from 1982 provides an instance of dealing with uncertainty, the structure of the organization, and learning in the organization theory. Johnson & Johnson had a credo that emphasized the consumer and the general public. Its structure facilitated rapid decision-making at multiple levels so that the organization could quickly react to the situation without the delay of the chain of command. Thus, Johnson & Johnson’s decision to remove Tylenol from the market and to work with the press and the FDA to get the word out was an instance of proactive crisis communication by the organization (Olaniran et al., 2012). Johnson & Johnson also prov...