and remain loyal to them‚ even during difficult periods. In 1982‚ Johnson & Johnson spent over $100 million dollars recalling Tylenol‚ its best-selling product‚ after someone tampered with bottles of the painkiller. The company followed its credo‚ a set of ethical organizational values‚ and the result was a boost in consumer confidence‚ despite the contamination scare. Society benefits from business ethics because ethical companies recognize their social responsibilities. Build Customer Loyalty
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Johnson‚ namely Tylenol. Tylenol has captured 8% of analgesic market‚ which implies that Tylenol has been dominating the Acetaminophen market. Tylenol‚ compared to Aspirin type pain relievers‚ had a very different approach in targeting its market. Since acetaminophen was first considered as a prescription-only drugs‚ Tylenol was advertised only to the trade and to the medical profession. As a result‚ doctors were recommending Tylenol to patients. Although the price of Tylenol was almost double
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Economists are of the view that the social responsibility of business should be limited to its economic duty. Discuss. In broad terms‚ social responsibility is an ethical theory that an entity‚ be it a company or an individual has an obligation to conduct its activities to benefit society at large. Carroll‚ in his 1991 article "The Pyramid of Corporate Social Responsibility‚ identifies four areas that make up a corporate social responsibility pyramid: legal‚ economic‚ ethical and philanthropic
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Stockton College of New Jersey Whiton S. Paine The Richard Stockton College of New Jersey ABSTRACT For several decades‚ Johnson & Johnson has been the exemplar of superb ethical behavior in light of the prompt actions it undertook during the 1982 Tylenol cyanide poisoning incident. Now several decades later‚ J&J’s Consumer Product Division has put the company and . its reputation in jeopardy by its slow and ineffective response to a series of ongoing problems. ineffective This article provides an
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................... 1 Limitations…………………………………………………………………………………….. 1 Background……………………………………………………………………………………… 1 Corporate Credo…………………………………………………………………………. 2 Problems…………………………………………………………………………………………. 3 Police Investigation of Chicago Tylenol Murders…………………………………………... 3 Johnson & Johnson’s Response……………………………………………………………….. 4 Johnson & Johnson’s Policy after the Close of Case…………………………...………….... 4 Illustration…………………………………………………………………………………….. 5 Evaluation of Resolution……………………………………………………………………
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My recommendation to Marvin Koslow is to follow the first approach of pricing Datril at par with Tylenol ($2.85 retail price‚ $1.69 trade cost)‚ leveraging Bristol-Myers’ brand name‚ and positioning Datril as an analgesic with similar relief effects to the those of the already successful‚ aspirin-based Bufferin and Excedin‚ but more gentle on the stomach‚ and without the side effects of aspirin. By doing so‚ Datril will primarily target aspirin users‚ specifically those from Bufferin’s and Excedin’s
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market. Two main options are available (1) whether to promote Datril as a direct point of sale towards the consumer or (2) to adopt the traditional and more conservative route as that of Tylenol and promote Datril towards the trade only. Ultimately‚ to establish a price point that allows Datril to compete with Tylenol given like functionality. The company should target aspirin users through direct marketing and position Datril as an effective functional alternative given the absence of side effects
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should target both Tylenol Users and Aspirin Users. On one hand‚ it should explain to customers that Datril’s effect is identical to Tylenol and use low-price promotion. On the other hand‚ it should leverage Bristal-Myers’s name to facilitate its market penetration. Generally‚ it should focus on advertisement and promotion. 2) What are the pros and cons of targeting Tylenol Users? Pros: Datril is a substitute of Tylenol‚ but compared to Tylenol‚ it’s cheaper. Besides‚ Tylenol almost controls the
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the video BP doesn_t want you to see mp4_small (2).3gpp News‚ Tylenol. (1982). Tylenol News 1982_medium.mp4. Retrieved from: http:///www.youtube.com.Tylenol News 1982_medium.mp4 Petroleum‚ British. (2013). BP Energy Outlook 2030 America’s Energy Future. Retrieved from: http://www.youtube.com/watch?v=2B3dLWv7HNs&feature=player_detailpage Tylenol‚ News Clip. (1982). Tylenol News Clip. Retrieved from: http:///www.youtube .com.News Clip Tylenol
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reference to the ethical issues related to the corporate and personal decision-makings surrounding the Tylenol product recalls‚ and the reputation of the brand name. This paper will focus on the rebound tactics Johnson & Johnson along with their advertising company‚ Compton Advertising‚ took in efforts to recover from such devastation. Tylenol’s Crisis In 1982‚ Tylenol discovered that their Tylenol Extra Strength capsules been tampered with subjected to a Cyanide-lace poison‚ which took the lives
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