Rebuilding the 'Martha Stewart' Brand
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
At her grandparents' house, where she spent summers, she learnt the science of canning and preserving. Her neighbors, who were retired bakers, helped her polish her baking skills. Meanwhile, she earned her pocket money by organizing birthday parties for neighboring children. These skills were to stand her in good stead in her later career as a lifestyle expert...
The Imclone Controversy
On December 27, 2001, Stewart sold 3,928 shares of Imclone, which was headed by Stewart's friend Sam Waksal (Waksal). It would have been a routine transaction had it not been made just a day before the US Food and Drug Administration (FDA) refused approval for Erbitux, a drug developed by the company to combat colorectal cancer.
The Trial and Imprisonment
The case went on trial in January 2004, after a long and cumbersome process of selecting neutral jurors. Apparently, Stewart's celebrity was such that it was difficult to find impartial jurors. Most of the American public were divided into two distinct camps - Martha fans and Martha haters.
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