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By group 10sankalprohanshriya

shishupalpooja

James burke

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James burke

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Early life

Born February 281925 inRutland,Vermont.

Burke solddaffodilis(type ofyellow flower) near

his home outsideAlbany.

He also soldChristmas trees andstrawberries door todoor.

I was a marketingperson beginning infourth grade, he

says.

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James Burke led thehealth-care giantJohnson & Johnson for13 years.

straightforwardnessand quick action -saved the companysreputation and

preserved customerfaith in the Tylenolbrand.

a model for corporateethics andresponsibility.

Under Burke's leadJohnson & Johnsongrew to be one of theworld's leadingmanufacturers ofconsumer health-careproducts

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Leadership styles

Truth telling-informed the customersabout the tampering.

Integrity-adhered to morals & credo

Managing Riskdeveloped newproducts

Ethical

Responsibletook whole responsibility

of Tylenol poisoning

Motivational leadership-extra pay forrecalling Tylenol bottles

enjoyed having differentviewpoints on board.

"My style is to encouragecontroversy and encouragepeople to say what they think,

always wanted hisemployees to fight for what

they believed in, without fearof repercussions

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Mistakes and risks In 1950-Burke

attempted to market

several cold careproducts for children. They all failed. He assumed he was

going to be fired

instead the chairmanGeneral Robert WoodJohnson told him-

Business is all aboutmaking decisions, and

you dont makedecisions withoutmaking mistakes. Dontmake that same mistakeagain, but please besure you make others.

I want to congratulateyou. Business is abouttaking risk. Keep doingit."

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New attempts In the 1960s -company's

first forays into

television advertising. began marketingTylenol, which hadpreviously beenavailable only to doctorsand hospitals.

As J & J's chairman andCEO from - 1976 to1989.

turned the company intoa $9 billion empire with

some 150 subsidiaries. made Johnson &Johnson one of themost employee-friendlyand well-respectedcompanies in the

country

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Tylenol Crisis 1982 -a crisis of monumental

proportions.

bottles of Tylenol tainted withcyanide. seven people killed inthe Chicago area.

Instead of covering up thestory, Burke quickly put out theword across the media, evenappearing on several televisionprograms.

Johnson & Johnson recalledsome 31 million bottles ofTylenolabout $100 millionworth of product.

Within 6 weeks -devised a planto put tamper-proof packagingon all Tylenol products.

Burke said at a pressconference- "we owe it tocustomers.

His bold move restored customerconfidence.

In 1 year Tylenol regained

90 %of its market share.The crisis was over, Burke wasable to turn his attention back todeveloping new products

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Old & new

bottles

the new caplet

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The Public hysteria

the Tylenol crisis led the news every

night on every station for six weeks Burke contacted the head of each

networks news division-for open

Information & accessibility

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Confidence

The recall decision, Burkesays, was a highlycontroversial one because it

was so expensive.

There were plenty of peoplewithin the company who feltthere was no possible way tosave the brand, that it wasthe end of Tylenol.

the press reports saidthe

company would neversurvive this incident

But burke hadconfidence in J&J and itsreputation, and alsoconfidence in the public to

respond to what was right.

in eight months of therecall, Tylenol had regained85% of its original

market share and a yearlater, 100%.

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Surveys done at the time showed that

J&Js quick response to the tragedyhelped to

re-establish consumer confidence in

both the brand and the company.

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The credo Burkes unique tool the company credo, which goes back to the founding ofJ&J in 1887.

The credo clearly states that thecompany is responsible first to itscustomers, then to its employees, thecommunity and the stockholders, in thatorder.

The credo is all about the consumer,

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De addiction

After retirementBurke extended hisideas about risk

taking to the world ofnon-profits thePartnership for aDrug-Free America.

As PDFA chairman,Burke tookmarketing risks once

again, just as he haddone with J&J.

In the late 1990s,the group ran someedgy TV ads against

drug abuse.

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burkes whole life was spent in marketing

He used the lessons of marketing to dealwith social issues

Used advertisements to change peoples

attitude behavior and towards drug usageand created awareness

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trust Burke emphasised a lot on trust

Trust can overcome all sorts of obstacles & buildcompanies that everyone can be proud of.

Trust has been an operative word in my life. Theword trust embodies almost everything you canstrive for that will help you to succeed.

No human relationship works without trust andsame is true for business especially businessesthat deal with the public.

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learnings

A leader needs to be honestand clear and opencommunication is important todevelop credibility.

Taking risks and makingmistakes and learning fromthem is important.

For people to believe in a

leader, he should be competentand have proven his worth tobe a leader

A leader should notonly think about profitsand business, but alsopeople.

A leader should beforward looking-imagine or discover adestination for thecompany or community.

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