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1 – 3 of 3The case opens with Martha Stewart's 2005 release from prison following her conviction for obstructing an insider-trading investigation of her 2001 sale of personal stock. The…
Abstract
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 personal stock. The scandal dealt a crippling blow to the powerful Martha Stewart brand and drove results at her namesake company, Martha Stewart Living Omnimedia (MSO), deep into the red. But as owner of more than 90 percent of MSO's voting shares, Stewart continued to control the company throughout the scandal.
The company faced significant external challenges, including changing consumer preferences and mounting competition in all of its markets. Ad rates were under pressure as advertisers began fragmenting spending across multiple platforms, including the Internet and social media, where MSO was weak. New competitors were luring readers from MSO's flagship publication, Martha Stewart Living. And in its second biggest business, merchandising, retailing juggernauts such as Walmart and Target were crushing MSO's most important sales channel, Kmart. Internal challenges loomed even larger, with numerous failures of governance while the company attempted a turnaround.
This case can be used to teach either corporate governance or turnarounds.
Students will learn:
How control of shareholder voting rights by a founding executive can undermine corporate governance
The importance of independent directors and board committees
How company bylaws affect corporate governance
How to recognize and respond to early signs of stagnation
How to avoid management actions that can make a crisis worse
How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization
How control of shareholder voting rights by a founding executive can undermine corporate governance
The importance of independent directors and board committees
How company bylaws affect corporate governance
How to recognize and respond to early signs of stagnation
How to avoid management actions that can make a crisis worse
How weaknesses in executive leadership can push a company into crisis and foster a culture that actively prevents strategic revitalization
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Susan Bosco and Diane M. Harvey
The saga of Market Basket took place over a period of months during which a significant upheaval occurred in the long-successful business. The turmoil drew in a broad range of…
Abstract
Synopsis
The saga of Market Basket took place over a period of months during which a significant upheaval occurred in the long-successful business. The turmoil drew in a broad range of stakeholders. In a rare chain of events, non-unionized workers and managers engineered a change in senior management of the company. Their willingness to sacrifice their livelihoods in support of one person exemplifies the impact that can be made by a single, authentic, leader. This case draws upon secondary sources which provide insight into broad panoply of business and organizational behavior issues. The primary focus of the case, however, is leadership.
Research methodology
This case was developed using secondary sources and court documents that reported on the events that precipitated the problems at Market Basket as well as the strike and aftermath.
Relevant courses and levels
Management principles, organizational behavior. All undergraduate class levels would be appropriate.
Theoretical bases
This case exemplifies these three major theories in a real-life situation: stakeholder theory, corporate culture theory, organizational commitment.
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Terence P. Curran, Linda L. Richardson and Andrea E. Smith-Hunter
This case presents an overview of the confectionary industry, a description of the Hershey Foods Corporation, and a look at the company's strategies and the impact of these…
Abstract
This case presents an overview of the confectionary industry, a description of the Hershey Foods Corporation, and a look at the company's strategies and the impact of these strategies. The case focuses on the unintended consequences that result from the implementation of dramatic new strategies for a company and what occurs in a company town that displays a very strong paternalistic culture. Some analysts had previously thought that Hershey's profitability and its close relationship with the town, the trust and the school made the company untouchable, but events proved otherwise.
After reading this case, the reader will feel compelled to answer the following questions. What is the best strategy for future growth of Hershey? How important is organizational culture on a corporation's strategic direction? Should the company indeed be sold to a larger corporation?