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After a short documentary piece about Martha's career, the 16 candidates enter the offices of Martha Stewart Living: Omnimedia. After they meet her and her two "sidekicks", Charles and Alexis, they must break up into two teams on their own. They determine that half of them have "creative" careers and half have "corporate" careers. The creative team name themselves "Matchstick" and the corporate team, "Primarius".



They're given their first task of creating a children's book based on a well-known fairy tale. Matchstick decides to do Hansel & Gretel in an urban setting, while Primarius recreated Jack & The Beanstalk with a couple different new twists. Primarius wins the task.


In the conference room, Jeff (Matchstick's project manager) chooses Jim and Dawn to be brought back, but ultimately, because of poor team skills and the wrong vision, Martha tells Jeff that he has to go.