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Case Study: The Rise and Fall of Queen Martha

The public relations saga of Martha Stewart, one of the nation's and the world's best known business icons, is a case for the ages.

Martha Stewart, at least temporarily, lost everything -her position, her company, her investment assets, her reputation, and her freedom- primarily because she failed to listen to common sense public relations advice. Even five years later, having returned to TV and again making deals with Home Depot and others, Martha hadn't fully regained the popularity she once enjoyed.

While she was never charged with insider trading, she was charged-and convicted-of lying to federal prosecutors.

What Martha Stewart should have done upon being confronted by the Feds was acknowledge that she lied, explain that she panicked upon being faced with a crime, and plead for mercy in the court of public opinion.

Instead, Martha chose to listen to her lawyers, who counseled her to keep quiet and let them handle matters in court. They did, she lost, and the Martha case became a cautionary tale for anyone faced with crisis to listen to savvy public relations counsel.

1-How would you characterize Martha Stewart's initial public relations response to the charges against her?

2-What key public relations principle did Martha Stewart violate?

3- Had you been advising her, what public relations strategy and tactics would you have recommended?

4- How important, from a public relations perspective, was her decision to go to jail early?

5- What public relations strategy should Stewart adopt now?

6- Should she acknowledge that she made mistake?

Operation Management, Management Studies

  • Category:- Operation Management
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