What are the broader implications for Johnson & Johnson about their approach to resolving quality issues like those at McNeil?

The independent culture and spirit of the widely dispersed and highly diversified company limited the ability to implement control and consistent quality standards.

Widely publicized recalls and litigation are distracting, consumer resources, and raise questions about the company generally.

Quality issues impact the reputation of the firm, and it is hard to maintain trust.

All of the answers are correct.