James Burke: A Career in American Business (A) Case Analysis

James Burke: A Career in American Business (A)
CASE ANALYSIS
SUBMITTED BY
James Burke: A Career in American Business (A)
James History
1886- J&J a brief  James Edward Burke was born on February 28,
Incorporation
-New intro 1925, in Rutland, Vermont. And lived in
Brunswick, New 1940, Credo,
Jersey public and social Slingerlands, New York, a small town near
Albany. Father was a insurance and bond
salesman and an ex army personnel and his
mother intellectual ferment.
FOUNDERS
 Mother always encouraged him to engage in
James, Edward intellectual conversation
Mead, Robert
Wood Johnson  He attended Bethlehem Central High School till
ninth grade
 Vincentian Institute for further schooling
 College of the Holy Cross higher studies where he
James had spend his early child hood in a villages was undergoing Naval Training also during war
then moved to schools which are strict and time
disciplined then during college days he served  Harvard MBA was another mile stone in his life .
Navy as an ensign for one year .
HBS was changing its style Bruke was gifted with
Life at HBS
 
of education from virtual the companionship of
military academy to the exuberant and
real world academic
ambitious young
institute .
veterans. This shaped
 When Duke joined
college ,HBS introduced a his ideas to a great
new program, Elements of extend .This business
Administration which was school cleared all his
E.A. was divided into doubts of enterprises ,
“production, marketing, he was bit skeptical
finance, control, about enterprises as the
administrative practices, society and early
and public relationships
education and value
and responsibilities . It
focused on team work system and
promoting teamwork and environment forced him
effective action in business to consider enterprises
organizations as corrupt .
Comparison between Credo V1 and Credo V2
 Almost all significant points in Credo version #1 have been held the in Credo version #2.
 It can be noted here that some of the clauses are reworded without losing the essence of
its core concepts
 Order of a few credo points have been changed in version 2
 More emphasize was now given for customer centricity
 Wording “protecting the environment and natural resources” was included
 In 1979, the wordings ‘Responsibility to Dealers’ is replaced with ‘responsibility .

Suppliers and distributors must make fair profit’
WAS Composition  The competing
 The product was products
OF EVERY developed by McNeil  These are different
Laboratories, a
COMPETING pharmaceutical company forms of aspirin with
PRODUCT that had been acquired different
by Johnson & Johnson , composition for
SAME? earlier it was considered
example Anacin =SA
as a prescribed drug and
advertisement was made (aspirin) +caffeine
through mostly medical  Bufferin =aspirin
journal . Then company and an
made arrangements in
antacid ,Tylenol,
the advertisement
campaign and the Excerdrin, Other, all
product become the have different
prominent one in market compoitions
The Issue and FDA activities
Few deaths occurred in the  Though FDA didn’t asked for a
neighboring suburbs of full recall company did it . FDA
Chicago,due to some mysterious might have strong reasons to
cause, later it was found that do so as they are advising
victims had consumed Extra- cyanide presence for a
Strength Tylenol. And it was found medicine quality control and
that Cyanide,, had been placed their entire testing mechanism
into capsules of Extra-Strength failed to find th issue also .
Tylenol. When dig deep into the
issue it was found that as part of
Quality control
As James Burke, what action would you recommend?
 Recall millions of bottles, the entire range of products and replace
them as soon as possible.
 Implement tamper-resistant packaging to ensure there are no
safety slips
 Keeping the media and public well informed as to the correctives
taken
Was there support to James Burke’s decision?
 Yes- the product had re-gained 85% of its market share at the end
of the implementations. By the mid-1980s, Tylenol had
rebounded completely from the adversities it had faced.
 The customer confidence and goodwill Johnson & Johnson had

built up with Burke’s help also helped it in a second stint, to
overcome another poisoning incident in 1986-an event that
resulted in the replacement of capsules with caplets
WHO WAS JAMES BURKE RESPONSIBLE FOR AS A CEO AND
AS AN AMERICAN CITIZEN?
 He was responsible to its customers and then to employees, management,

communities, and stockholders-in that order.
 It became clear that value system had been vital to companies ability to
outperform the competition.
 The Tylenol crisis could have been a death blow to the brand and, potentially, the
company itself.
 Decisions by Burke and his team to recall millions of bottles and replace them in a
matter of weeks with pioneering tamper-resistant packaging while keeping the
media and public well informed, the product had regained 85 percent of its market
share. Tylenol had rebounded completely. The customer confidence and goodwill
Johnson & Johnson had built up also enabled it to overcome another poisoning
incident in 1986-an event that resulted in the replacement of capsules with caplets..
 Burke's forthrightness and quick action cost the company millions
but ultimately saved its reputation and preserved customer faith
in the Tylenol brand. Industry analysts consider his response a
model for corporate ethics and responsibility. Under Burke's lead
Johnson & Johnson grew to be one of the world's leading
manufacturers of consumer health-care products.
 He also made Johnson & Johnson one of the most employee-
friendly and well-respected companies in the country.

James Burke: A Career in American Business (A) Case Analysis

Uploaded by

Copyright:

Available Formats

James Burke: A Career in American Business (A) Case Analysis

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

James Burke: A Career in American Business (A) Case Analysis

Uploaded by

Copyright:

Available Formats

James Burke: A Career in American Business (A)

 Order of a few credo points have been changed in version 2

 More emphasize was now given for customer centricity

 Wording “protecting the environment and natural resources” was included

 In 1979, the wordings ‘Responsibility to Dealers’ is replaced with ‘responsibility .

 The customer confidence and goodwill Johnson & Johnson had

 He was responsible to its customers and then to employees, management,

You might also like