History Johnson & Johnson is an American multinational medical device, pharmaceutical and consumer packaged goods manufacturer founded

in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500. Johnson & Johnson is headquartered in New Brunswick, New Jersey with the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson had worldwide pharmaceutical sales of $65 billion for the calendar year of 2011. Corporate Structure

Chairpersons and their Tenure: Robert Wood Johnson I 18871910 James Wood Johnson 19101932 Robert Wood Johnson II 19321963 Philip B. Hofmann 19631973 Richard B. Sellars 19731976 James E. Burke 19761989 Ralph S. Larsen 19892002 William C. Weldon 20022012 Alex Gorsky 2012Present

Board of Directors Current members of the board of directors of Johnson & Johnson are: Mary Sue Coleman James G. Cullen Dominic Caruso Michael M.E. Johns Ann Dibble Jordan Arnold G. Langbo Susan L. Lindquist Leo F. Mullin William Perez Christine A. Poon Steven S. Reinemund David Satcher William C. Weldon

Products Our Consumer segment includes a broad range of products used in the baby care, skin care, oral care, wound care and womens health care fields, as well as nutritional and over-the-counter pharmaceutical products, and wellness and prevention platforms. These products are marketed to the general public and sold to retail outlets and distributors throughout the world. The Consumer business relies on a research strategy equally rooted in technology and consumer insights, in keeping with our vision: BRINGING SCIENCE TO THE ART OF HEALTHY LIVING. Market Share Before the crisis, Tylenol was the most successful over-the-counter product in the United States with over one hundred million users. Tylenol was responsible for 19 percent of Johnson & Johnson's corporate profits during the first 3 quarters of 1982. Tylenol accounted for 13 percent of Johnson & Johnson's year-to-year sales growth and 33 percent of the company's year-to-year profit growth. Tylenol was the absolute leader in the painkiller field accounting for a 37 percent market share, outselling the next four leading painkillers combined, including Anacin, Bayer, Bufferin, and Excedrin. Had Tylenol been a corporate entity unto itself, profits would have placed it in the top half of the Fortune 500. J&J Case In October of 1982, Tylenol, the leading pain-killer medicine in the United States at the time, faced a tremendous crisis when seven people in Chicago were reported dead after taking extra-strength Tylenol capsules. It was reported that an unknown suspect/s put 65 milligrams of deadly cyanide into Tylenol capsules, 10,000 more than what is necessary to kill a human. The tampering occurred once the product reached the shelves. They were removed from the shelves, infected with cyanide and returned to the shelves. In 1982, Tylenol controlled 37 percent of its market with revenue of about $1.2 million. Immediately after the cyanide poisonings, its market share was reduced to seven percent Response of company after Incident Once the connection was made between the Tylenol capsules and the reported deaths, public announcements were made warning people about the consumption of the product. Johnson & Johnson was faced with the dilemma of the best way to deal with

the problem without destroying the reputation of the company and its most profitable product. Following one of our guidelines of protecting people first and property second, McNeil Consumer Products, a subsidiary of Johnson & Johnson, conducted an immediate product recall from the entire country which amounted to about 31 million bottles and a loss of more than $100 million dollars. Additionally, they halted all advertisement for the product. Although Johnson & Johnson knew they were not responsible for the tampering of the product, they assumed responsibility by ensuring public safety first and recalled all of their capsules from the market. In fact, in February of 1986, when a woman was reported dead from cyanide poisoning in Tylenol capsules, Johnson & Johnson permanently removed all of the capsules from the market. CSR (Effects on Share Value) Once the product was removed from the market, Johnson & Johnson had to come up with a campaign to re-introduce its product and restore confidence back to the consumer. 1) Tylenol products were re-introduced containing a triple-seal tamper resistant packaging. 2) In order to motivate consumers to buy the product, they offered a $2.50 off coupon on the purchase of their product. They were available in the newspapers as well as by calling a toll-free number. 3) To recover loss stock from the crisis, Johnson & Johnson made a new pricing program that gave consumers up to 25% off the purchase of the product. 4) Over 2250 sales people made presentations for the medical community to restore confidence on the product. Efroze: History: 1968Foundation of Efroze Chemical Industries (Pvt.) Ltd.Was laid in Karachi, Pakistan. 1973First Manufacturing Facility was set up on Haider AliRoad. 1978Manufacturing Facility moved to Korangi IndustrialArea, Karachi. 1980Manufacturing commenced for Bohreinger Manheim A German Research-Based Company. 1981First Blister Packaging Machine started its working. 1990International Marketing Division set into motion. 1997New Corporate Head Office building in Karachi.

 1998Toll Manufacturing commenced for Otsuka PakistanLtd. A Japanese ResearchBased Company. 1999 2ndState-of-the-Art manufacturing plant was set up inKorangi Industrial Area, Karachi. 2000Certification of ISO 9002-1994 by SGS EuropeanQuality Institute E.E.S.Y. 2003Certification of ISO 9001-2000 2007Certification of ISO 17025.FPCCI Special Merit Export Trophy Award, third in a row for 2006-2007. 2008First in-House Bio-Equivalence Study.Completed on Metcon. Corporate Structure - Muhammad Abdullah Feroz (Managing Director, Efroze) Products: The Consumer segment includes a broad range of products used in the health related medicines, as well as nutritional and over-the-counter pharmaceutical products, and wellness and prevention platforms. These products are marketed to the general public and sold to retail outlets and distributors throughout the world. There are almost 135 products worldwide. But after incident Isotab was banned in Pakistan as well as all exporting countries. Efroze Case: During late January 2012, a fake medicine crisis at the Punjab Institute of Cardiology (PIC) hospital in the Lahore claimed the lives of over 100 heart patients. According to various reports, the incident involved patients who had been receiving treatment at the hospital and had been prescribed with counterfeit antihypertensive medicines. The spurious medicines triggered a serious adverse reaction by depositing itself in the bone marrow and ending the body's resistance. The generation of white blood cells stopped in the body. Among the symptoms of the disease were a severe chest infection, change in skin color/pigmentation, low platelet count and blood vomiting. Suspect drugs include Isotab (isosorbide nitrate), lipitor (atorvastatin calcium), cardiovestin (simvastatin), alfagril (clopidogrel), concort (amlodipine), and soloprin (aspirin). The medicines were being distributed by the hospital free of charge mainly to poor people. The total number of people who may be at risk after taking medicine from the hospital may be as high as 46,000 according to one report. In midJanuary 2012, several cardiac patients registered with the Punjab Institute of Cardiology (PIC) started showing up at different public and private hospitals in Lahore suffering from a sudden drop in platelets and white blood cells and bleeding from different parts

of the body. The doctors initially took the symptoms as that of dengue outbreak that had hit the city in the last fall. However, it was soon realized that the symptoms were seen in a PIC cohort and were more consistent of a drug reaction. As a result, the Department of Health constituted a high-powered committee to probe the incident. Conclusion: After analyzing both cases we got to know that there is a lot of difference between U.S base Jonson and Jonson and Pakistan base Efroze. Following we analyses them individually. Corporate Governance Concern at Efroze: As we found that management tactics not in the favor of shareholder. Efroze is the real example of bad governance. As Efroze director declare in a press release after reviewing the report of WHO. He admits that the batch of Isotab produce for PIC contained Pyrimethamine. He also told that the reason in September 2011 some material was stolen from their warehouse and this might be used in adulterating the batch of medicine. He further said that only this particular batch was spurious and the rest of the medicn did not have any issue. Analysis: Here in this case we can see the bad governance of the Efroze. As they got to know that their specific batch which is supplied to the PIC is affected. They have to come with media campaign to give awareness to the public. They have to recall all the medicn from the market without considering that how much cost they have to bare. It will put a good image of the company or they become a socially responsible firm by doing this action. Even the have a good example of Johnson & Johnson back in 1982. Corporate Governance at Johnsons & Johnsons: J & J is the best example of good corporate governance. J&J superior management have the courage to accept the responsibility and mistake. As in this case we can see that their best selling product Tylenol was contaminated due to improper packaging material. When the knew the reason they immediately take the action and recall the 31 million botals of Tylenol from the market which cause them 100 million. After this incident their market share pluched to 7% from 37%. But after two months of relaunch their market share clime back to 30%. In result company survive with their best selling product. The decion of the management is really in the favour of the shareholder. The common stock which costed $1000 back in 1982 before the incident in know $22062 today. This shows that

shareholder value is continuesly increasing after recovering from this incident. This is just because of good corporate governance of J & J.