Martha Stewart Living Omni media was incorporated in 1997 by Martha Stewart. She served under various position such as Chairwoman, president and Chief Executive Officer. She owned 96 percent of the firm’s controlling interest. This made her a major shareholder. The chief operating officer for the company was Lisser Garsh It conducted its business across various industries such as broadcasting, publishing, merchandising and internet. Therefore this made the firm become an umbrella for the various ventures belonging to Martha Stewart and operated under Merchandising and media. The main products for the business were: Home furniture, home decorating products, Martha Stewart living everyday food, Martha wedding s body and soul. After two years of operation the company decided to expand its capital base hence decided to borrow from the public. This form of borrowing made it necessary for it to be listed in the New York stock exchange in October 1999. The initial public offer for the company was 18 dollars. After some time the share price rose to 38 dollars which was a good indicator to most shareholders. Such an increment attracted even more investors as the reputation of the company had been boosted. None the less the firms going concern was guaranteed. However, in 2001 Martha Stewart engaged in the sale of her shares from the company. Despite being the majority shareholder she got involved in obstructing insider investigations which opened an ugly face of her life. This rendered her into forceful resignation as a result of insider trading. All along the scandal she was controlling the company. She was charged and sent to prison. Her scandal brought a lot of shocks to a healthy and stable firm that was gaining popularity each and every day. The business realized various changes such as the alteration of consumer preferences. The substitutes for the comm0oditeis produced my MSO carried the day. On the less given that the business operated in a perfectly competitive market there were free barriers entry and exit. This even made the situation worse as the level of competition got to another level. She was later released in 2005.
Over the years the company has been in operations and has managed to make significant changes that has impacted the society. This impact can be realized through creation of employment where man power is hired and remunerated in the quest to increase the productivity of the firm. As at the beginning of 2014 the employee base for the company was 406. This can realized through various books of accounts that the company has been able to post in the recent past. This financial statements include income statement, statement of financial position balance sheet and the statement of cash flows. All the statements have been deemed to represent a true and fair view of the status of the company. As at 2013 the asset base for the company was 148.367 million dollars. In 2013 the company reported a turnover of 160.675 million dollars. The income used for operations of the company that year was approximately 1.897 million dollars. The operating profit was 1.7 million US dollars. In the same year the financial statements revealed that the company had a total equity of 70.475 million dollars. This implied that the firms going concern was still on and had the ability to handle both the financial and business risk that the firm faced.
General External Environment.
There exists vast threats and opportunities that MSO is likely to subject itself. Looking at the general environment various factors will be put into play in order to ensure that all areas have been covered adequately. The factors majorly include political or legal factors, economic, socio cultural, technological, global and demographic.
Political or legal factors
In order for MSO to trade safely it was deemed to know what was legal and illegal. Though the problems that Martha Stewart faced were to be differentiated from the company, you realize that she was the brand of MSO. Therefore, this legal suit that she faced largely affected the consumer tastes and preferences. This implied that the company products were no longer ‘safe’ as the general public my perceive given the scandal that Martha was facing. Moreover, during her trial, there were various publications that claimed that Martha Stewart was never a go slow lady. The articles claimed that she was extremely demanding from her employees. Others raised alarm of how brutal and unkind she was to her employees. Such publications were forms of communication and they reached a large number of clients. They simply boosted the sales for the substitute products from the competitors of MSO. This form of advertising was impacting negatively on the revenue stream of Martha Stewart Living Omni media.
Socio cultural factors
It is evident that that Martha Stewart is an Influential figure in her society. When she leaves prison she gets back and decides to change the fallacy that had been implanted on people during her trial. This is done by her wearing a pongee made by her friend in jail. She realizes that she possess the ability to influence the market once more. The beliefs that people had about MSO made the firm loose its market base as the minds of most clients had been influenced negatively.
Martha Stewart Living Omni media
During Martha Stewart’s trial the share price in the New York Stock Market stumbled. This forced the company to change its move and drop her name to some of its product. The name Martha Stewart was removed from MSO every day food magazine. The same name was down played in Martha Stewart publications. This was in the quest to raise the value of its share in the NYSE market. The firm realized that the use of the same brand name made it suffer some big blows in the market. Some of the changes that the company made involved restructuring. This compelled a number of firms under the MSO umbrella to merge so that the value of the stock can be increased. The merger between Kmart and sears rendered the Martha Stewart home line products into sears outlet.
Advancement in technology was a critical factor in assessment of MSO. There various concerns relating to the technology as a general business environment. Some of the key issues of concern included; the rise in the automation in the business, increased risk of development in the company and the impacts of the technological scale that have existed within the firm.
The world has been made a global village. Similarly, MSO and its products do exist in that village. Any information regarding the company travels so fast through the internet and can influence the potential investors in either way depending on the nature of the information circulating.
Martha Stewart Living Omni media
The clientele of Martha Stewart Living Omni media runs across the globe. Various people do purchase the products from different quarters of the world. The products produced by MSO cut across all genders and races. There exist no discrimination in the nature of the products the company provides to its customers. Similarly, the firm has got a large employee base is represent different places.