Despite the conviction of Martha Stewart this afternoon, her company, Martha Stewart Living Omnimedia, is in good hands and should be able to weather the storm, according to James S. O鈥橰ourke, a 91吃瓜 professor who specializes in corporate communications and public relations.p. Stewart鈥檚 personal fate will depend in large part on the sentence that awaits her. Whether she goes to prison or not, however, O鈥橰ourke believes she can return to the company, though not as chief executive or as a director.
鈥淪he鈥檒l never serve as the director of a publicly traded company again,鈥� said O鈥橰ourke, professor of management and director of the Fanning Center for Business Communication. 鈥淏ut she鈥檚 still Martha Stewart and, for all her flaws, she has a wonderful sense of taste and an instinct for the finer things in life. She鈥檚 shown, time and again, that she can design, develop, and deliver what American homemakers aspire to.鈥�
If Stewart receives a prison sentence, O鈥橰ourke believes that, once served, she likely will be eager to jump back into the daily grind of recipe review, photo selection, and project management.
鈥淚 suspect, at least initially, she鈥檒l welcome the challenge and the opportunity to rehabilitate her image,鈥� he said. 鈥淭he more important question is whether she鈥檒l be content to work in the shadows, distancing herself personally from day-to-day issues as the brand matures. After a number of years, her value to the company may be more akin to that of corporate founders Dave Thomas of Wendy鈥檚 or Gordon Hartunian of ABC 奥补谤别丑辞耻蝉别.鈥�
As for her company, O鈥橰ourke says it is "basically in good hands. Sharon Patrick, Ms. Stewart鈥檚 longtime friend and confidant, will continue to serve as chief executive officer, while Lauren Stanich will direct the company鈥檚 publishing division, and Margaret Roach will continue as editor-in-chief of her magazines. The company has good external advice, including the counsel of Arthur Martinez, former chairman and CEO of Sears, and George Sard, a widely respected and very bright public relations executive.
鈥淭he central problem for the company is really one of branding alliances on the one hand and a sluggish economy on the other. KMart is MSO鈥檚 (the company鈥檚 NYSE trading symbol) chief retailer and they鈥檙e in dismal shape. If they don鈥檛 survive, or if MSO elects not to renew the company鈥檚 contracts, other retailers will be waiting in the wings, including Sears Roebuck&Company, Kohl鈥檚, and, perhaps, Target. Sears Canada is already on board.鈥�
In the end, O鈥橰ourke says, "Martha Stewart Living Omnimedia, Inc. is much more than Martha Stewart. And, properly managed, that firm will continue to do well in the near term, if only because Ms. Stewart has so many loyal fans and followers in the United States and abroad. As with other design brands, however, the company鈥檚 ability to succeed in the long term is dependent on the creativity and leadership of it management, as well as the market鈥檚 response to their products.
O鈥橰ourke pointed to the House of Chanel, Bill Blass, Versace and others that have survived in the absence of their founders. But he hastened to add that 鈥淢artha Stewart is different, primarily because it鈥檚 not about gowns, eye wear, neckties, or shoes. It鈥檚 about a lifestyle. It鈥檚 about emulating the style of a woman who 鈥� at one time 鈥� seemed to have it all. Once she鈥檚 paid her debt to society, the safest thing for Martha to do is keep her head down, keep designing, and begin demonstrating a kinder, gentler side to her personality and her firm. Some charitable work and regular deposits in the community goodwill bank certainly wouldn鈥檛 hurt.鈥�
Contact: Professor James S. O鈥橰ourke is available for further comment at 574-631-8397 (office) or 574-272-1773 (home). The following comments are for use in whole or part.
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