Business Finance Homework Help

Need help with my Supply Chain question – I’m studying for my class.

Winning Back Lost Customers Is a Costly Challenge Perhaps the most famous case illustrating the enormous cost of win-ning back lost customers is that of the “Tylenol Murders.” Seven people in the Chicago area died suddenly after taking Tylenol cap-sules. An investigation revealed that the capsules had been laced with cyanide, a deadly poison. When the story ran on the nightly news programs, a nationwide panic ensued that caused Tylenol’s sales to plummet overnight. Many business analysts predicted that Tylenol’s manufacturer, Johnson & Johnson, would not survive the tragedy. Johnson & Johnson surprised the analysts by undertaking one of the most successful campaigns in history to win back customers. It worked, but the cost was huge. This case led not just Johnson & John-son but also all major drug manufacturers to develop the tamperproof bottle. Having done so, Johnson & Johnson undertook an intensive public relations campaign to win back the trust of its customers.

Discussion Questions Discuss the following questions in class or outside of class with your fellow students:

1. If the Tylenol incident were to happen today and you were a user of Tylenol, would Johnson & Johnson be able to win back your trust?

2. What would it take for Johnson & Johnson to win back your trust if one of the victims was a friend of yours?