1. Martha Stewart Living
Omnimedia
Allison Smidt
Organizational Behavior
10/23/2008

2. MSO HISTORY
• Martha started small in 1976 with a catering
business.
• In 1995 Martha Stewart’s company became an
incorporation called Martha Stewart Living
Omnimedia
• June of 2003f Martha Stewart was indicted on
nine counts of obstruction of justice due to the
investigation of the sale of IMClone System
shares (Ackman, 2004). She was also charged
with defrauding the investors of her own
company (Ackman, 2004).

3. MSO HISTORY
• In 2005 Martha was found guilty and
sentenced to five years in prison in which she
served significantly less time than that. While
half of her sentence was in prison the other
half was at home arrest (Ackman, 2004).
• Martha stepped down from her position as
chief executive officer, so the company could
re-organize and come up with a new plan.

4. RECCOMENDATIONS
• Find and create managers and leaders who have
the following characteristics: Trustworthy,
Courageous, charismatic, willing, and open to
communication.
• Financial restructuring
• Build a tall organizational structure
• Martha becomes a silent partner
• New training programs
• Selling the new organization.

5. Plan for Employee Relations
• Learn to handle the call volume and issues
employees are having.
• Employee relations needs to have a meeting
and or training session, to inform them of all
of the questions and concerns them will be
receiving. They then need to learn
techniques for calming upset employees
down and letting them know their jobs are
not at risk.

6. Plan for Communication
• Communicate all changes promptly
• Communicate the right information to the
media
• Communicate regularly amongst all
employees, to keep up with what is going on.

7. Plan for Leadership Credibility
• Maintain trustworthy, courageous,
charismatic, willing, and open
communication leadership.

8. References
Ackman, D. 2004. Martha Stewart Found Guilty.
Retrieved on October, 22, 2008 from
http://www.forbes.com/2004/03/05/cx_da_0305mar
.
American Academy of Achievement. 1995. Martha
Stewart. Retrieved on October 22, 2008 from
www.achievement.org.
Wikipedia, 2008. Martha Stewart. Retrieved on
October 22, 2008 from http://en.wikipedia.org.