"The case opens with Martha Stewart's 2005 release from prison following her conviction for obstructing an insider-trading investigation of her 2001 sale of private stock. The scandal was a crippling blow to the healthy brand Martha Stewart, deep in the red. However being the owner of 90% voting shares of MSO, Stewart persisted in controling the firm through the scandal. The company faced significant external challenges, including changing consumer tastes and building rivalry in all of its own markets.
Ad rates were under pressure as advertisers started fragmenting spending across multiple platforms, including social media, where MSO and the Internet were not strong. Readers were being lured by new opponents from MSO's main publication, Martha Stewart. And in its second biggest business, merchandising, retailing juggernauts for example Target and Walmart were beating Kmart, MSO's most important sales channel. Internal challenges were loitering with innumerable failures of government while the company tried a turn around. This case can be used to educate turnarounds or either corporate governance."
PUBLICATION DATE: March 13, 2014 PRODUCT #: KEL776-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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