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Crises management in Penn state and Tylenol Scenarios

Akademische Arbeit 2019 7 Seiten

BWL - Unternehmensethik, Wirtschaftsethik

Leseprobe

CONTENTS

Abstract

Introduction

How did both Penn State and Tylenol handled the situation?

Lessons from the Penn State Crisis

Lessons from the Tylenol about crises management

REFERENCES

Abstract

Crises management now days is considered as a main factor for arising businesses, it is defined as the strategy used in case of an organization facing a downfall. In the twentieth century, many businesses went down due to no crises management activity. Likewise, a similar downfall occurred in the Penn state, Penn state officials were unable to handle the case of sexual allegations against former defensive coordinator Jerry Sandusky, because of their poor crises management. While on the other hand, the famous drug manufacturing company Johnson and Johnson, faced certain death penalty charges due to consumer using cyanide-laced capsules of increased-power Tylenol, but it regained its status back in two months. This research paper includes both of these scandals outcomes and what lessons shall be learnt from them.

Introduction

Back in 2011, Penn State’s Football program was being held but soon it got interrupted by the former defensive coordinator Jerry Sandusky being charged with sexual allegations (Ash, S. R., & Ross, D. K.,2004). The allegations consisted of harassing 8 boys for over 15-year, with that the school’s vice president for business and finance Gary Schultz and athletic director Tim Curley were arrested for failing to report the scandal to the police. This scandal became wild in the region and media (Rosanna M. Fiske, APR, Fellow PRSA,2011).

Johnson and Johnson was a famous drug manufacturing company and Tylenol was one of its best product spread throughout the United States. It was a famous pain relief capsule with millions of users and recommendations all around the region (Yehuda Weinraub, 2016). In 1982, at Chicago some people died after taking cyanide-laced capsules of increased-power Tylenol. Some mysterious man had entered the store and diluted the drug with cyanide, because of the deaths, the company was on the verge of closing. At that time, the company’s chairman made the wise decision of recalling the 31 million bottles of Tylenol capsules from the consumer market and offered a replacement product in safe packaging (Kovoor-Misra, S., & Nathan, M,2000).

How did both Penn State and Tylenol handled the situation?

In current situation the Penn State was unable to tackle the charges since it was against the main officials. While unable to resolve the issue, they took the wrong decision to release the statements of Spanier and Paterno, which increasingly enraged the public and media in the region (Darren Rovell, 2011). Spanier was in the favor to Support the two officials, which had failed to report the scandal, while Patterno claimed that he was shocked because of the charges placed on the coordinator (Roy Burton,2011). Which concluded that the school was being misled by the trustees.

Meanwhile in the case of Tylenol, the former chairman James Burke, became very popular and was recognized for his decision to immediately pull back the Tylenol capsules from the stores Ash, S. R., & Ross, D. K.,2004). It was costly for the company to pull back and resubmit the product, which lowered the company’s core value but soon after two months it regained its status in the market. Not just regaining the status back, it also reached new levels of success after this conduct of crises management (Judith Rehak, 2002).

Lessons from the Penn State Crisis The best way to ensure the problem to never happen is to take initiatives before the problem to happen. In case of Penn State, it had no strategy planned for crises like this to happen.

Firstly, the organizations should ensure that each operations are happening under the Ethical ways and ensure monitoring of each process. There should be a change in the infrastructure to evaluate the core understanding of each crisis.

Secondly, there should be an assessment test for Sports and Athletes staff and member. It will ensure that the best practices are being followed all around the organization, without any misconduct or behavior.

Lastly, be in touch with groups on the social media stages and also monitoring what people are talking about in online platforms, this can be help in many cases to know whats happening around us. Many people nowadays share every single thing happening in the society and best way to know whats trending is search via beefy hashtags and keywords in Twitter.

Lessons from the Tylenol about crises management How Johnson and Johnson carefully handled the 1982 Tylenol massacre is a great lesson for us and still holds its name in the history of crises management. The company’s decision is still a role model in the corporate sector as of today.

The Organization not only managed the issue professionally, also planned a long term Integration with the shareholders. Immediately after the blunder, the company redesigned its capsule containers and began re submitting all the products. Making wise decision in time is a lesson from it.

At the media conference, James Burke addressed the media, employees and shareholders, which left a positive remark all over the corporate sector. Soon after two months, the sale ratio increased and the Shareholders got their money back with huge profits. It is necessary to keep a good look and present the better version of an earlier product.

“Always prepare for the worst”, it is wise to be prepared for crises. We cannot know the company’s worth until it faces situation like these. Tylenol scandal proves that an organization should submit its miss conduct and act thoughtfully, if facing a crisis. Give client first priority and let everyone know by the actions taken, accept the situations and fix all the problems occurred. It is wise to prepare a long term plan, that will ensure profitable results in the future.

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Details

Seiten
7
Jahr
2019
ISBN (eBook)
9783346290694
Sprache
Englisch
Katalognummer
v944585
Note
A
Schlagworte
crises penn tylenol scenarios

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Titel: Crises management in Penn state and Tylenol Scenarios