Rebuilding the 'Martha Stewart' Brand
ICMR HOME | Case Studies Collection
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.
"Capitalising on the chronic insecurity of Americans in matters of taste, she (Martha Stewart) branded herself the ultimate authority on perfect living."
- The Economist in 2002. 1
"The case against Martha Stewart has to be seen against the background of the financial scandals of the last three or four years, and the public perception that the guilty parties are not being brought to justice. I think prosecutors in this case saw Martha Stewart as an opportunity to demonstrate that they are bringing people to justice, and it doesn't matter if they are prominent or influential or not."
- Lawrence White, professor of economics at Stern School of Business in New York, in 2004 2
"Many, many good people . . . have gone to prison - look at Nelson Mandela."
- Martha Stewart, founder of Martha Stewart Living Omnimedia, in 2004 3
The Long Road To Revival
Revenue also increased from $60.2 million to $84 million during the same period. Talking about the company's improved performance, Susan Lyne (Lyne), MSO's president and CEO said, "The results for the quarter show meaningful improvement in all areas of our business. Results outpaced expectations in every segment." 5
However, MSO's satisfaction was short-lived. When the company announced its first quarter 2006 results, MSO was back in the red. After it posted a profit in the last quarter of 2005, Wall Street analysts had predicted the company's return to profitability by the end of 2006. However, the $6.84 million loss on revenues of $61.8 million in the first quarter of 2006 seemed to put paid to their expectations.
1] "Cooking Martha's Goose," The Economist, September 12, 2002.
Case Studies Links:-
Short Case Studies,
Simplified Case Studies.
Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.
Business Reports Link:- Business Reports.
Books:- Text Books, Work Books, Case Study Volumes.
|Business Environment||Business Ethics||Business Reports||Business Strategy|
|Corporate Governance||Economics||Enterprise Risk Management||Finance|
|HRM||Innovation||Insurance||IT and Systems|
|Leadership and Entrepreneurship||Marketing||Miscellaneous||Operations|
|Project Management||Short Case Studies||Cases in other Languages||Free Case Studies|