2. After the second incident, Johnson & Johnson recalled all Tylenol and the company then decided that they would not put this product back into the market until they could figure out how to keep this from happening once again. Johnson & Johnson then developed a packaging that was tamperproof, thus making it difficult for this incident to happen again.
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There we three entities that benefitted from this decision. The consumer benefitted from this because they could now be sure that the medication they were buying was safe, and they could be sure of this by looking at the package and now seeing that the package the medication was packaged in was not tampered with. This gave the consumer a sense of security. Johnson & Johnson also benefited from this decision. Although the cost may have been high originally, they could not start selling their product again, and this would start bringing in more revenue for the company. Consumers would now start buying from Johnson & Johnson instead of other companies because they knew that Johnson & Johnson’s product could now be trusted. Without other companies taking this action and providing a tamperproof packaging, this left them in a position where this incident could now happen to them. This also benefitted the shareholders. The initial drop in market value hurt the shareholders significantly, but now Johnson & Johnson made a major comeback, and stocks would start rising