The Fidelity Magellan Fund 1995 Case Study Analysis


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Background and Facts

The Fidelity Magellan Fund 1995 a workplace materials retailer for little and medium sized services has lately been associated with preparing for a merger with its rival House Deport, which has affected effectiveness levels in departmentswith the elderly supervisor involved in lawful difficulties put forth by the government Profession Payment. With the Marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the future. With obstacles in the kind of a prospective social adjustment and also reduced worker morale, the company needs a total reengineering effort at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing department of The Fidelity Magellan Fund 1995 is raising uncertainty in the workplace causing numerous challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions since Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention while doing so. Given the reality that the shop has a global visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to impact efficiency or critical goals. Federal Trade Commission's antitrust suit versus the merging took up beneficial time of the company's senior monitoring suggesting that 'political' factors can have significant effects for a worldwide company.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide situation suggest that The Fidelity Magellan Fund 1995 is growing in a setting where there is potential growth of companies. Truth that store customers are primarily looking for workplace supplies for house offices recommends that the market has a rising fad of business owners and house based companies.

Social factors: Social patterns in the economic climate show that consumers are searching for benefit along with appealing costs. Market research demonstrates how the client for The Fidelity Magellan Fund 1995 does not have understanding concerning finding options which can provide a combination of comfort and also inexpensive.

Technical factors: Innovation plays a vital role in The Fidelity Magellan Fund 1995's company technique specifically as the organization is piloting Technology facilities which would offer modern technology sales and also assistance in the kind of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Behavior issues can be seen in The Fidelity Magellan Fund 1995's case as highlighted in this section.

Uneasiness about cultural adjustment: There is apprehension about a cultural adjustment that would certainly take place once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with a lot of the personnel currently revealing discontent over this possible move. This expected modification has actually developed stress in the office which has actually been combined with the previous anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of personnel that can match the stressful setting of a fast-paced organization. Not just does this result in trouble in locating the ideal people, it puts anxiety on brand-new hires as can not stand up to the rate and also stress that the organization anticipates them to birth.

Double Reporting Lines: Newcomers locate this organizational society troublesome and hard to manage particularly as dotted line connections are implied to be weak generally as well as unbiased setting and also performance evaluation is still done by the strong line supervisor. This implies that novices might lose clarity about their particular duties as well as objectives specifically as populated line reporting does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had actually been speculated that the latter would take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified as well as suitable for the task however the truth that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Fear as well as insecurity can be recognized as two major problems that Lewis would be dealing with particularly as the merger has now be terminated and two senior execs of the advertising division would certainly be leaving. The whole obligation of the division would be dropping on Lewis's shoulders that would certainly not just supervise of brining about a cultural change yet would certainly likewise have to show herself in her brand-new duty.

Incompatible Administration Style of Leader: Lewis's administration style and also its incompatibility with the advertising department's role can additionally be seen as an OB challenge specifically as she has been used to handling concerns in the operations department where personnel are educated to focus on procedures as well as get them. The advertising and marketing department on the various other hand can be viewed as a group of people that are made use of to being supported by Krasnow that concentrated a lot more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental differences between three divisions, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the advertising mix can be identified as one more OB problem. The advertising department does not share the same vision as the other two departments pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not agree over the advertising mix allocation amongst one another either.

Fragmentation in Marketing Department: Fragmentation between the marketing and advertising divisions can be identified as another OB issue which could need further attention. The reality that the advertising and marketing areas in the marketing department are separated is stopping both divisions from getting from each various other's experience and knowledge. Assimilation of advertising with retailing and also operations would become more difficult if the advertising and marketing department itself is broken down which can be an additional possible OB issue.

The Fidelity Magellan Fund 1995 Analysis

Various concepts have actually been used to explain the circumstances to obtain further clarity about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are easy and also careless, have little aspiration and also stand up to modification. The scenario at The Fidelity Magellan Fund 1995 is not entirely complying with Theory X, it can be seen that new hires are discovering this setting rather stressful which might eventually lead to a better inclination of the administration towards Theory X. Even while analyzing Lewis's management design, concept X may have been ideal in the operations division to some level yet the Advertising and marketing department would need reliance on Theory Y in order to obtain the imagination and creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's problem concerning bringing harmony in between the advertising and marketing division is concerned, this would originally result in conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, throughout the first phase of team advancement, individuals might not bond, as they are active finding their place in the team. By integrating the advertising and marketing division's work, there might coincide first separate which can bring about the second phase of 'storming' where the groups test each other. It is just throughout the third phase or 'norming' when they would come with each other to share suggestions before the team can bring about synergy in the fourth stage 'doing'.

When people are presented with adjustment, they go into stage one as well as so there might be feelings like despair, unpredictability, stress, rage, anxiety, denial and disorientation.The scenario at the marketing department of The Fidelity Magellan Fund 1995 is similar so Lewis can obtain comfortable with the concept that it is not phenomenal behavior. It is throughout this stage that Lewis will have to provide advice to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis get included in the division a year prior to his real separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue related to insecurity at the work environment has been set off first of all by the modification in management as well as second of all by the fact that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the significance of 'protection needs as being a lower degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel protected and unharmed' is at the second degree of needs. Prior to an employee can be made to develop psychologically, he needs to have his 'Physical 'and 'Safety and security' requires met. This suggests that unless the personnel are made to really feel secure regarding their present work status in The Fidelity Magellan Fund 1995 they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Fidelity Magellan Fund 1995 Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to understand exactly how to cope with the present scenario available. The adhering to three alternatives have actually been suggested to aid Lewis take care of the business challenges in the marketing department. Each of these choices has actually been proposed for alleviating the transition required to bring the advertising division in accordance with the demands of the marketplace and for making the social adjustment that would follow once the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Production features. Integration of Advertising with Procedures.

Assessment of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house advertising firm of The Fidelity Magellan Fund 1995 is currently toughness for the organization in terms of conserving up on expenses associated with advertising and marketing and promotion. Given that no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the marketing feature, this is a desirable possibility for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has proficiency in business-to-business marketing together with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The benefit of this technique is that it will incorporate both features while decreasing the demand for working with an extra resource for advertising and marketing. Lewis would be heading the advertising department and in any case her substitute would certainly be required for the current role that she is doing. The drawback of this alternative is that external hiring might produce animosity from interior personnel that may be looking at the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Provided the affordable stress as well as top quality job called for from the ad agency, it is advised that Lewis should allow the manufacturing device to be a different function from the marketing system. Because many ad agency had these 2 functions as different devices, it makes more feeling to follow the standard. In addition to this, both features may be able to concentrate on their core activates more effectively. Nonetheless, the negative aspect of this approach would be that additional costs would need to be birthed for establishing different manufacturing features. A manufacturing head might have to be hired which might increase expenses for the organization.

Combination of Marketing with Procedures: Given that Lewis is currently taking treatment of the marketing and procedures departments at the same time; it makes sense to incorporate the 2 features given that she has actually been successfully taking treatment of both ends. The reality that Lewis has to adjust her monitoring style for the marketing division suggests that these two divisions would certainly be culturally varied.


An evaluation of the 3 alternatives shows that combination of advertising and marketing and also operations would certainly not be a possible step due to the vast differences in between the two divisions despite the truth that presently Lewis is managing both. While splitting up of the production function may have been a favorable relocation for the advertising and marketing department, the truth that it would certainly indicate putting a third feature under Lewis's wing means this need to be avoided.

Action Strategy.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

Judith Shapiro will be employed to take Lewis's location as SVP of advertising and marketing.

Production function will certainly remain part of marketing under advertising and marketing function.

Lewis will divide herself from operations.

A democratic management design with employee empowerment will be utilized in advertising and marketing department.

Open door policy and emphasis on cross departmental interaction will certainly be focused on eliminating disharmony.

Contingency plan.

If the assimilation does not work out as prepared, a contingency plan would adhere to which would separate the production feature from the marketing function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will most definitely be separated by putting it under an SVP production.