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There was a point in time where kingdoms were the all powerful voice, kingdoms like the Roman Empire. Times changed and it became countries like Russia or the United States. Now times have changed once again although we still have laws and regulations that are enforced with countries businesses, companies and corporations have the international voice now. Especially here in the U.S. where even the sky is not a limit for a business to expand. It is because of this that people look up to corporations to see how they are doing and what they have to say. The problem is that people run businesses. People are not perfect, even if they are big CEO's.
Martha Stewart is one of these CEO's that in recent times has run into problems. She is the CEO of the company she created Martha Stewart Living Omnimedia Inc. worth as of June 00, $6. It consists of a multi-platform franchise, which includes a TV show, her magazine, a variety of retail endeavors such as bed sheets, garden tools, etc., website and books. "Martha Stewart is America's domestic goddess, offering the last word on everything from serving a dinner for 80 to growing peas". Stewart was viewed as "the housewife to die for". Everyone wanted more of her and her products. She is a success story to many especially women. She can be compared and in some ways even surpass Opera. Her success has called the attention of more publishers, business partners and consumers.
Early in the year Stewart had a considerable amount of stock in a company called Imclone Systems Inc. A day before the company publicly announced that regulators had rejected its cancer drug; Erbitux Stewart sold her stock in that company. On June 1, 00 Martha Stewart was charged with illegal trading on inside information. Whether this is true or not is still being investigated. I cannot make a judgment on which no one has the full details. In this country it is innocent until proven guilty yet this allegation has created a great repercussion on Martha Stewart Living Omnimedia Inc. Stewart says that she started selling when she saw that the family of Imclone were selling. If she did commit this "crime" then she is fully responsible for her actions and the outcome of them. If she did not use inside information to trade then she might as well have because the result would have been the same either way.
Her company has suffered create loses. Her stock value has diminished as much as 5% percent in the first month of the investigation. People were scared of the scandal and quickly moving away to prevent there stock to become another penny stock company like Enron. This makes the stock value to lower more and more. Over the next few months Stewart found herself defending her image by all means including investing in advertising with a new commercial and making public appearances. Her image is the only thing that can save her company. Was once her strong hold is now her vulnerability.
Martha Stewart Living Omnimedia Inc. although is not what it used to be does not seem to be going under. Maybe we can attribute this to the way the company dealing with the scandal. They carry on like there is no problem. No major partnerships have been broken. Maybe this is because if the other companies such as Kmart were to break away they would suffer even more loses. Kmart and other companies have become reliant on the sales they make off of Martha's products.
It certainly seems like this CEO will beat these turbulent times and move on, even thought they have considered removing her from being the CEO. In my opinion there are going to be fewer and fewer companies that are based on one celebrity. What would happen if she got hurt or unable to carry on in regular business? We cannot rely on any one person because no one is perfect and we all make mistakes along the way.
Empire not much affected, yet, by cloud over Martha Stewart
The New York Times
June 5,00
Leslie Kaufman
Pushy, Nasty -- so very Martha
The Times (London)
June 6, 00
Christopher Byron
Martha Stewart's insider trading continues
MSNBC
August 6, 00
Dan Abrams
Is this the bottom of the rose?
USA Today
September ,00
Maria Puente
Martha and Kmart hold fast, for now
The New York Times
October , 00
Constance L. Hays
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