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The crisis cost the company more than US$100 million, but Tylenol regained 100% of the market share it had before the crisis. The Tylenol murderer was never found, (though later James Lewis was a prime suspect [10]) and a US$100,000 reward offered by Johnson & Johnson remained unclaimed as of 2023. [11] [12] [13]
His actions became a prominent case of successful crisis management, and have served as a standard case study for numerous business practices. [6] [7] [8] In 2000, he was one of few CEOs to be awarded the Presidential Medal of Freedom. [9] In 2003, Fortune magazine named Burke as one of the greatest CEOs in history. [10]
During Burke's tenure, he managed the 1982 Tylenol tampering incident. It became a case study on crisis management. Under his leadership, the company recalled 31 million bottles of Tylenol, relaunched the product with a triple tamper-evident seal, and urged consumers not to use if tampered with.
Crisis management is the process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders. [1] The study of crisis management originated with large-scale industrial and environmental disasters in the 1980s.
Tylenol capsules laced with cyanide that were sold in the Chicago suburbs were linked to the deaths of seven people in 1982, leading to a nationwide panic. Tylenol murders: New Efforts to Solve ...
The court hearing that case rejected a claim of liability, stating that the recall "was not caused by liability for the seven deaths; it was at best merely related to the seven deaths in that they served as notice to the plaintiff that the Tylenol remaining on the shelves was potentially harmful." [53]
Medications in the recall included liquid versions of Tylenol, Tylenol Plus, Motrin, Zyrtec, and Benadryl. The products were recalled after it was determined that they "may not fully meet the required manufacturing specifications". [1] [2] The recall affected at least 12 countries. [1]
Stella Maudine Nickell (née Stephenson; born August 7, 1943) is an American woman who was sentenced to 90 years in prison for product tampering after she poisoned Excedrin capsules with lethal cyanide, resulting in the deaths of her husband Bruce Nickell and Sue Snow, a stranger.