Martha Case

Good Essays
Topics: Stock market, Stock
Martha Case
1. What was the basis of Martha Stewart’s reputation? In term of financial reputation, it will be on market share and stock price.

2. Why did MSO’s stock price decline due to Martha Stewart’s loss of reputation? Due to Martha’s fame and recognition of her show, many people therefore invested their money in the company. However, when Martha was accuse for insider trading which has went against her credibility, investor start to pull out from stock by selling away their stock. Added to that, investor are fearful and terrify that if she is convicted, she may lose her company to settle her debt and therefore, would rather pull out from the stock then to suffer any further losses.

3. Who is Martha Stewart’s target market? Her target market would be mostly for women who have time where they can dedicate their time into making of sumptuous meals.

4. What qualities were associated with the Martha Stewart brand, before the controversy? I would think that the qualities would be credibility, reliability, trustworthiness, and responsibility.

5. Which of these were affected by the accusations of insider trading, and how? How would you find out for sure? Because we all know that insider trading is prohibited where it has tarnished the qualities such as credibility, reliability, trustworthiness, and responsibility. It is unethical for such incident where it create unjust advantage for other’s market. I would think that in order to find out more, we can do an assessment on all the investors who pull out from the stock to determine what are the main reasons why they invested initially but pull out from the stock after that. This would give a clearer picture of what has happened.

6. What level of sales and profits would MSO have reached if Martha’s reputation had not been harmed? Refer to SEC or MSO websites for information on financial trends. I would estimate that the profits would be $592 million if Martha has

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