Relevant Information for Decision Making

Johnson & Johnson is an organization that has been around since the late 1800’s. In the lasts news Johnson & Johnson has been back in fourth in whether or not they should recall Motrin from shelves. This has been an ongoing process since May 2009, the decision to not recall the product ended in September 2010.

The House Oversight and Government Reform committee is known for its recall of millions of bottles of pediatric over the counter meds due to quality control issues. Citing internal Johnson & Johnson documents, the committee says this was a phantom recall, designed to mask the extent of the problem, which the company did not want publicized over fears that sales and its image would be damaged. The FDA played in shaping the decision making process. Bill Weldon the CEO of Johnson & Johnson denied any attempt to mislead the public, however he negotiated with the FDA not to conduct a formal recall for one type of Motrin made at a Puerto Rico facility, but instead would pursue a soft market withdrawal.

Johnson & Johnson had a crisis like this before in 1983 when extra strength Tylenol capsules were recall. They could project how severe losing Motrin would be based off of these numbers. The implication was that the FDA approved, in part, Johnson & Johnson’s conduct, which involved hiring contractors to purchase meds from other convenience stores. Three relevant cost would include, the money the organization uses to manufacture Motrin, the money that is used to advertise the product, and the money that they would losing by having a phantom recall on the product. Three non relevant cost would include, money spent on legal requirements, money spent on pulling product for Puerto Rico stores and not a national recal, and money on spent on negotiation process.

References

Johnson & Johnson website/Our Company section- http://www.jnj.com/connect/ http://www.wiley.com/college/man/schermerhorn332879/site/student/oc/page12.htm http://www.pharmalot.com/2010/09/johnson-johnson-tap-dances-around-congress/