memo on Martha Stewart case

memo on Martha Stewart case - Stewart as a person, people...

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Memo TO: Charles A. Koppelman From: Terrance Mbagwu Date: October 13, 2011 Subject: Martha Stewart Living Onimedia Inc. This memo examines some of the issues MSO is facing regarding the value of its stock. It will recommend possible solutions to these issues. The memo will also identify the root of the problem. Martha Stewart: The Person and the Professional Prior to the insider-trading incident, Martha Stewart was portrayed as the average everyday woman. She built a very successful brand that was based on her name. This directly tied the company to her as a person. This has been one of the keys to her success. The average American woman could indentify with her and her products. Her company caters to the homemaker. Martha Stewarts brand reputation has been negatively affected by the scandal and this, most likely, is the reason for the declining value of MSO’s stock. The Company’s Problem The insider-trading scandal that happened in 2002 has impacted MSO in a very negative way. Due to the fact that the company brand is built around Martha
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Unformatted text preview: Stewart as a person, people may not have as much faith in the company. What Stewart did is considered unethical and illegal in that business world and that kind of behavior discourages people to invest in the company. This is the most important issue that needs to be resolved. Solutions to the Problem Here are some recommendations that can help rebuild the Martha Stewart brand • The company should participate in character-building activities such as charity and non-profit organizations. • Martha Stewart could personally admit to the unethical behavior and apologize to her investors. This may help restore faith in the company and regain the public’s trust. • Create an alternative name for the company. This would minimize the direct link to Martha Stewarts character. In this memo I have covered the problems that your company is facing. The memo also recommends some possible strategies for getting back on track. I hope this can be beneficial to your company’s rebound....
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This note was uploaded on 01/16/2012 for the course COMM 3020 taught by Professor Janefitzgibbon during the Fall '11 term at Wayne State University.

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