Case Analysis: Corporate Governance at Martha Stewart Living Omnimedia: Not “A Good Thing”

Knowing how to analyze a case will help you attack virtually any business problem. A case study helps you learn by immersing you in a real-world business issues — and makes you a decision-maker. A case presents facts about a particular organization and you must focus on the most important facts and use the information to determine the best (of multiple alternatives) course(s) of action to deal with the problems you identify.

A case study analysis must not just summarize the case. It should identify key issues and problems, and outline and assess alternative courses of action.

In this case, you will look more closely at corporate governance. Specifically, you will learn that you need corporate governance in an organization along with how this controls different decisions. You will look also at the internal and external mechanisms.

In addition to the requirements for the analysis of a case study covered below, please specifically answer the following questions:

1. How did Stewart’s control of the board interfere with directors’ carrying out their fiduciary duties?
2. What changes in the makeup of the board would have improved governance?
3. How might changes in corporate bylaws have improved governance?

Required for the Analysis of a Case Study:

Provide a 4–6 page Case Study Analysis using the following format:

Format: Must include these headers

1. Title page
2. Company and Situation: Describe the Company and Situation
   • To begin your case study analysis, discuss the critical incidents that have contributed to the current position of the company. Here you must identify the most important facts surrounding the case .
   • Does the problem or challenge facing the company come from a changing environment, new opportunity, a declining market share, or inefficient internal or external business processes?
3. Strengths, Weaknesses and Alternatives: Identify Strengths and Weaknesses as well as Alternatives
   • Examine the value creation functions of the company and specify alternative courses of action.
   • List the courses of action the company can take to solve its problem or meet the challenge it faces. What changes to organizational processes would be required by each alternative? What management policy would be required to implement each alternative?

Remember, there is a difference between what an organization “should do” and what that organization actually “can do.” Some solutions are too expensive or operationally difficult to implement, and you should avoid solutions that are beyond the organization’s resources. Important: Identify the constraints that will limit the solutions available. Is each alternative executable given these constraints?

1. Implementations: Analyze Implementations This portion of the case study analysis requires that you identify and analyze the structure and control systems that the company is using to implement its business strategies. Evaluate organizational change, levels of hierarchy, employee rewards, conflicts, and other issues that are important to the company you are analyzing.
2. Recommendations: Make Recommendations The final part of your case study analysis should include your recommendations for the company. Every recommendation you make should be based on and supported by the context of your case study analysis, i.e., what you have already written.
3. Additional Questions: Answer the additional questions as shown below. Each question should be placed in bold as a header:
   1. How did Stewart’s control of the board interfere with directors’ carrying out their fiduciary duties?
   2. What changes in the makeup of the board would have improved governance?
   3. How might changes in corporate bylaws have improved governance?
4. References: Reference page

Access the case study template formatted in APA.

The case analysis should be a minimum of four pages, double-spaced. Check for correct spelling, grammar, punctuation, mechanics, and usage. Citations should use APA style.

Your analysis of this case and your written submission should reflect an understanding of the critical issues of the case; integrate the material covered in the text and present concise and well-reasoned justifications for the stance that you take.