Martha Stewart -"The Goddess of Domesticity"|Business Ethics|Case Study|Case Studies

Martha Stewart -"The Goddess of Domesticity"

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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.

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Case Details:


Case Code : BECG020 For delivery in electronic format: Rs. 300;
For delivery through Shipping & Handling Charges extra: Rs. 300 +Shipping & Handling Charges extra


Woman Entrepreneurs
Case Length : 13 Pages
Period : 1997 - 2001
Pub. Date : 2002
Teaching Note : Available
Organization : Martha Stewart, Imclone Systems Inc, Omnimedia Inc.
Industry : Publishing, Merchandizing, Television
Countries : USA


The case examines the career of Martha Stewart, a second generation Polish immigrant in America, who fashioned herself into a lifestyle and housekeeping expert. Her business empire which was named after her was involved in publishing, television shows, retail merchandizing and direct selling. In December 2001, she sold about 4000 shares of Imclone, a biotech company, a day before its share prices fell (due to FDA's rejection of its application for a new cancer drug). When news of this sale came to light in June 2002, she was suspected of making the sale on the basis of non public inside information. This controversy had a negative impact on her business. In this context, analysts questioned the wisdom of associating a company too closely with a person.

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Dangers of centering a company around a person who comes to represent its brand, impact of insider trading by the head of a public company


  Page No.
A Fallen Idol 1
The Foundations of the Empire 1
Martha's Empire 3
The Good and Bad of Martha 4
The Scandal and its Fallouts 6
Looking Ahead 9
Exhibits 11


Martha Stewart, second generation, Polish immigrant, America, lifestyle, housekeeping expert, business empire publishing, television shows, retail merchandizing, direct selling, December 2001, 4000 shares, Imclone, a biotech company, FDA, cancer drug, June 2002

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