Custom «Johnson and Johnson Company» Essay Paper Sample
Johnson and Johnson Company in China and NUK German Company have been facing similar problems. They have had a decrease in sales because of poor quality products. The Johnson and Johnson Company in China have been on the spotlight and have caused health scares because of its baby powder being infected with harmful chemicals. This has led to a decrease in sales since the Chinese authorities have given the company an all clear. NUK baby powder had carcinogen which is asbestos. The powder has had a massive product recall leading to low sales. Chan (2009) in an article in Beijing Youth daily called on mums to avoid too much baby powder on their kids. She further mentioned that the Korean Food and Drug Safety Administration discovered that thirty types of baby powder including Germany's NUK baby powder contain asbestos. As a result of the bad effects of the baby powder, China conducted a supervision to investigate baby powders sold domestically and in businesses around Beijing. According to statistics by ifeng.com online poll 64.8% of the respondents thought that Johnson and Johnson products were poisonous (Chan, 2009).
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These problems usually have an impact on the social, legal and ethical and political environments. For instance the Johnson & Johnson was threatened with a lawsuit in China because of their impure baby products. Socially consumers of the company's product protested because of the sub standard, less quality goods and because some children died and others injured. The management argued that their products were safe and the trace levels of some of these elements resulted from production processes and were not added intentionally. The company claimed that their levels were lower than those set by the regulatory agencies in china (Xinhua, 2009). The law suits against these companies usually lead to the company paying a lot of money for damages done. This also leads to low sales since people can no longer trust any products by the companies and even new products invented by the company will be not lead to high sales. Such issues also become matters of political concerns and many leaders seek to establish whether the claims are true. If such claims are true such a multinational company operations may be cancelled leading to closure of the company division in the country.
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This is usually a challenge for most businesses since most of these incidences involving sub standard goods or harmful products often lead to low sales and some companies eventually close down. Products that do not meet the manufacturing specifications often affect the consumers negatively. The traces of asbestos in NUK baby powder are cancer risk factors. This effect on the consumers' leads to loss of credibility hence such manufacturing companies should ensure that there is a routine inspection on a manufacturing facility. Johnson and Johnson upon realization of its product defect called for a comprehensive quality assessment across its manufacturing operations. McNeil Consumer Healthcare a subsidiary of Johnson and Johnson recalled over the counter children medicines used for treating allergies and colds because they did not meet quality standard (Aljazeera, 2010). This shows that the company is facing a major company which needs to be addressed because it may lead to unemployment in case the company goes under.
NUK Company also suffered from similar legal, social, political and environmental consequences. This has led to the company adopting strict measures in ensuring that their goods are of a high quality. This has led to increase of sales which had declined as a result of the infected baby powder. The company has seen strict testing procedure for testing their products so that customers can rest assured of their children's' safety.
Companies are usually at a risk of experiencing decreased sales if the quality of their products decline, companies thus should always be aware of this since a little mistake may lead to a huge loss for the company in terms of customers, profits and credibility.