case study 915

read the case and answer questions based on the case

HBS Martha Stewart Case Assignment Questions

In what ways did Stewart’s control of shareholder voting rights disrupt the functioning of the board? How did her control of the board interfere with directors’ carrying out their fiduciary duties?
What changes in the makeup of the board would have improved governance?
How might changes in corporate bylaws have improved governance?

4. What situations might have been improved or avoided through better risk

management?

5. What are the advantages and disadvantages of having one person serve as both a

company’s dominant brand and its controlling shareholder?

6. In what ways did MSO fail to respond to competitive trends and changes in

consumer preferences? Why?

7. What might management have done to stabilize revenue and reassure investors after

Stewart’s legal troubles surfaced?

8. What were the internal and external symptoms of trouble in the years following

Stewart’s 2005 return to the company?