...you improve Cisco’s acquisition selection and integration process? Re: Acquiring other companies is an important strategy for Cisco to rapidly offer new products, reach new markets, and grow revenue. Cisco strengths were its large scale production reaching to large customer base, good reputation, and good financing capabilities. However, unlike other networking companies Cisco doesn’t always develop new technologies on it own and have to rely on acquisition. Cisco acquisition selection should the meet criteria to ensure it meets its acquisition objectives- the companies should have compatible vision for industry and product perspective, share complementary culture, produce short and long term benefits to Cisco shareholders and company should be geographically located close to Cisco. While, for smother acquisition integration Cisco should setup consistent and adaptable product, personnel and manufacturing acquisition process and at the same time continually refine the process from the lessons learned. Q2. Does the Cisco’s process adequately address the challenges of the Summa Four acquisition? Re: Summa Four was a leading provider of programmable switches which will enable Cisco to offer value- added telephony applications to new and existing service providers. Due to the deregulation of the telecommunications industry, service providers were in a competitive race to develop and deliver these types of enhanced services to their customers. Cisco announced it would...
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...Problem definition Cisco Systems Inc. is one of the leading companies operating in the telecommunication industry. At the present moment, the company has a strong position in the world market and actively develops its business targeting at the wider implementation of new technologies. In fact, the company was traditionally oriented on the introduction of innovations and nowadays it is still focused on the development of new technologies which can improve the position of the company in the market and guarantee its leadership in the future. In such a situation, Cisco Systems Inc. develops its corporate strategy, which basically targets at the acquisition of smaller companies which a great potential and have developments which could be very perspective in the future. One of such companies is Summa Four, which Cisco Systems Inc. wants to acquire. In this respect, it should be said that the acquisition of the new company will inevitably pose certain difficulties Cisco Systems Inc. will have to overcome. Even though the company has a huge experience of acquisitions, since the company has launched the strategy of acquisition since the early 1990s, the acquisition of Summa Four is different from the acquisition of any other company Cisco Systems has ever bided for before. To put it more precisely, as a rule Cisco Systems Inc. acquired companies which were small and did not possess significant manufacturing facilities. Basically, such acquisitions were rather investment in the human...
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... Corporate Strategy Cisco System: New millennium – new acquisition strategy? 1. What was unique in the way Cisco managed its acquisitions in the 90’s? During the 90’s, Cisco has based its growth strategy mainly on acquisitions. From the first acquisition of the company called “Crescendo” in 1993, Cisco has bought more than 45 firms until 1999. Cisco can be considered as unique in its way of managing its acquisition deals because of the methodology that they have created and the kind of expertise that they have developed. The Cisco’s acquisition framework focuses on 2 main steps: targeting and integration. § Targeting: In order to enter in niches markets, to acquire a technology, to add a product to its range or to reinforce a specific process, Cisco’s strategy was based on the purchase of smaller and innovative companies. The selection process includes 6 main criteria: -‐ size; focus mainly on small companies, -‐ growth; fast growing companies, -‐ strategy; Cisco is looking for focused companies with a strong expertise, -‐ entrepreneurial spirit, -‐ similarity in culture, -‐ and geographical proximity especially for the largest targets. Cisco is looking for good fit, complementarity of visions, quick wins for shareholders and long terms wins for all stakeholders. § Integration According to Cisco’s management, post-acquisition integration is key to create value. Cisco’s integration process was focused on three goals: -‐ employee...
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...INTRODUCTION Cisco Systems was started by a team of husband and wife, Leonaid Bosack and Sandy J. Lerner in 1984. They developed the first specialized microcomputer that enable two or more networks communicate with each other by deciphering, translating and funnelling data between them. This microcomputer also called as “multi-protocol” router has opened up and boosted the functionality of the Internet world. Over the years, Cisco managed to become the spearhead in the data networking equipment market which saw the company provided and manufactured large-scale router that powered the Internet. As Cisco Systems grow and expand over the years, so did the company’s product portfolio. With routers and switches being the core products of the company, other products and services such as hubs, access products (connection for remote access), web scaling products and technologies, security products, InterWorks for SNA, IOS software and network management has slowly become a part of Cisco Systems product portfolio. This expansion of portfolio was made possible through the several acquisitions and partnerships. By 1998, Cisco managed to hold either number one or number two position in 14 of the 15 markets in which it competed. This has made Cisco the top choice among large companies to buy company’s line of products and services. This situation may also reflect from the strong financial growth of Cisco. From 1994 until 1998 Cisco’s total assets sky-rocketed from $1.1 billion to $8.9 billion...
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...[pic] In response to Cisco System’s annual financial conference held December 4, 2009, and the current financial and economic situation of Cisco Systems, this memorandum analyzes the forces driving Cisco’s current resources, plan for growth, and competition. Cisco Systems competitors are primarily in the computer networking equipment industry. Cisco Systems competes in other industries as well including: server and mainframes, satellite and broadcast network equipment, and wireless telecommunications equipment. Three of Cisco System’s main competitors can be identified as Alcatel-Lucent, supplier of high-tech equipment; Hewlett-Packard, comprehensive provider of hardware, software and services; and Juniper Network, designer and provider of network infrastructure for public and private access networks. Cisco believes that if it does not have strong competitors, it is not in high growth markets. Cisco’s competition is fierce and reactionary. Evidenced by HP’s acquisition of 3Com Corporation, responding to Cisco acquiring all-in-one data center, Unified Computing. [i] Cisco holds a competitive advantage in the technology sector, staying comparatively lean when complexity increases. Cisco has good integration with suppliers; in fact, other companies, such as Solectron and Jabil, produce much of what Cisco “manufactures”. Much of what Cisco produces is shipped from suppliers to customers. [ii] Cisco’s competitive advantage also lies in its large scale, delivering...
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...Sandeep K Krishnan In an ideal merger, the newly created entity pools the best features of the two merging organizations. A well planned process built on the foundations of an open, honest and consistent communication strategy can pave the way. Mergers and acquisitions have become a common phenomenon in recent times. A merger of the size like HP-Compaq has implications for the workforce of these companies across the globe. Although the merging entities give a great deal of importance to financial matters and the outcomes, HR issues are the most neglected ones. Ironically studies show that most of the mergers fail to bring out the desired outcomes due to people related issues. The uncertainty brought out by poorly managed HR issues in mergers and acquisitions have been the major reason for these failures. The human resource issues in the mergers and acquisitions (M&A) can be classified in two phases the pre-merger phase and the post merger phase. Literature provides ample evidence of difference in between the human resource activities in the two stages: the pre-acquisition and post acquisition period. Due diligence is important in the first phase while integration issues take the front seat in the later. The pre acquisition period involves an assessment of the cultural and organizational differences, which will include the organizational cultures, role of leaders in the organization, life cycle of the organization, and the management styles. The mergers often prove to be traumatic...
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...Sandeep K Krishnan In an ideal merger, the newly created entity pools the best features of the two merging organizations. A well planned process built on the foundations of an open, honest and consistent communication strategy can pave the way. Mergers and acquisitions have become a common phenomenon in recent times. A merger of the size like HP-Compaq has implications for the workforce of these companies across the globe. Although the merging entities give a great deal of importance to financial matters and the outcomes, HR issues are the most neglected ones. Ironically studies show that most of the mergers fail to bring out the desired outcomes due to people related issues. The uncertainty brought out by poorly managed HR issues in mergers and acquisitions have been the major reason for these failures. The human resource issues in the mergers and acquisitions (M&A) can be classified in two phases the pre-merger phase and the post merger phase. Literature provides ample evidence of difference in between the human resource activities in the two stages: the pre-acquisition and post acquisition period. Due diligence is important in the first phase while integration issues take the front seat in the later. The pre acquisition period involves an assessment of the cultural and organizational differences, which will include the organizational cultures, role of leaders in the organization, life cycle of the organization, and the management styles. The mergers often prove to be traumatic...
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...presGRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: EC-15 FEBRUARY 2000 CISCO SYSTEMS: A NOVEL APPROACH TO STRUCTURING ENTREPRENEURIAL VENTURES Mike Volpi, vice president of business development at Cisco Systems, was in his office in San Jose at Cisco’s headquarters on June 27, 1997. He was considering a set of strategic questions that he had faced many times since joining Cisco’s business development group in 1994. Volpi’s colleagues had recently identified a new networking opportunity in optical routers, and Volpi wondered how Cisco should pursue the opportunity. Should Cisco develop the product internally, or should they pursue external talent that was more familiar with the technology and market segment? If the external route was the best strategy to get the right product to market on time, should Cisco build its own external venture – or just acquire somebody outright? NETWORKING OPPORTUNITY: PIPELINKS For the previous two years, Cisco had been preaching about the promise of a multiservice network – a single network capable of transporting data, voice, and video. Cisco’s service provider customers agreed that network convergence would ultimately improve cost effectiveness and allow them to expand their service offerings. However, most service providers were saddled with huge investments in their existing circuit-based voice networks. This situation implied a market need for optical (Sonet/SDH) routers that leveraged the existing infrastructure while enabling...
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...Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry. Besides, to succeed its challenge Cisco in this industry, Huawei’s needed to show it pin-point company strategy on its capabilities and core competencies, generic competitive strategy framework and international strategy to against Cisco. Huawei’s Capabilities and Core Competencies Huawei’s Resources audit First of all, Huawei’s existing finance funds is large included working capital such as investment on more than US$370 million for its own Code-Division Multiple Access Technologies. On the other hand, Huawei’s have its “guanxi” relationship network to raising funds. For example the bank will give financial support and give favorable credit limit for the company. This showed Huawei’s have enough finance resource to supporting it strategy. Secondly, Huawei’s human resources own total 24,000 employee’s majority of staff have high education level such as bachelors, master or Phd. Furthermore, the overall standard of the staff training is higher because all new employees were put through intensive military-style training for few months. In addition, it affects the intangibles resources such as the morale...
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...Subject: Strategic paper - Cisco Category: Business and Money > Economics Asked by: k9queen-ga List Price: $60.00 |Posted: 02 Dec 2003 08:37 PST Expires: 01 Jan 2004 08:37 PST Question ID: 282626 | | |For the company CISCO, PLease give a SWOT analysis. Explain what | |their core competency is, do they have any forward/backward | |integration? What do they or are they trying to do to be competitive | |in the market? Etc. | |[pic] | |Request for Question Clarification by politicalguru-ga on 02 Dec 2003 08:52 PST | |Dear Queen, | | | |I found several ready-made SWOT analyses online. Would you like me to | |refer you to the sites where you could find them? ...
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...THE ART OF CYBER WAR — ASYMMETRIC PAYOFFS LEAD TO MORE SPENDING ON PROTECTION 151 As Physical Security Converges With IT Security and Becomes More Network-Based, Can Cisco Compete? Cisco recently introduced new video surveillance IP cameras and monitoring software targeted for small businesses. As corporate security technology and services become increasingly network-delivered and database-driven, the physical security market presents a compelling incremental growth opportunity for Cisco that we believe can exceed the billion dollar annual revenue threshold in the next 35 years. The physical security industry has been undergoing a paradigm shift toward convergence, whereby previously disjointed functions of IT security and physical security are experiencing greater formal cooperation. Organizations continue to implement more IP-based video surveillance cameras and building access controls both to upgrade capabilities and to reduce operational costs. Deploying IP-based security upgrades capabilities and reduces operational costs. Through the IP network a security system can assign priority to data and automatically discover new nodes such as IP cameras and control sensors, eliminating the time and effort of manual provisioning. Shifting building access controls from isolated networks to existing IP networks that house data, voice, and video can improve incident detection and assessment, authenticating both the user and device to provide efficient integrity checks. • Video...
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...CASE: GS-66 DATE: 06/05/09 CISCO SYSTEMS, INC.: COLLABORATING ON NEW PRODUCT INTRODUCTION On November 13, 2007, more than 100 employees of Cisco Systems, Inc. assembled in classic Cisco fashion: they dialed in from multiple locations around the world for an important meeting. The purpose of the gathering was to get the green light from senior management to manufacture a new high-end router that would make the giant networking company more competitive in an age of surging Internet traffic.1 The project’s code name, Viking, said it all. The router for broadband service providers would break ground in power and speed, reminiscent of the Norse warriors and explorers of Europe during the eighth to eleventh centuries. The meeting represented a culmination of several years of development work by a cross-functional, global team of Cisco specialists in engineering, manufacturing, marketing and other areas. Just months earlier, in mid-2007, Cisco overhauled the project by sharply boosting the router’s speed and capacity. This would allow the company to leapfrog competitors and offer a low-cost, powerful new router platform for the next 10 to 15 years. That day in November, the Viking team was seeking an “execution commit” from senior management in manufacturing. If it got the go-ahead, Cisco would be ready to commit the resources to launch the new product. But the Cisco team knew it faced many challenges. The Viking project would be one of the company’s most complex...
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...Overview of Organization: The organization that I will be doing my project on is Rabit Resources LLC. Rabit is a publically held organization that is in the Upstream and Downstream segment of the Oil & Gas Industry. Rabit main processes are fractionation, wholesale and logistics. Rabit was formed in 2004 when it purchased two plants from Conoco Phillips. In late 2005 Rabit purchased the whole midstream division from Guilty Inc. With Rabit’s purchase of Guilty Midstream Services, Rabit went from a company with 150 employees to over 1500 employees overnight. With this they needed to create a cohesive environment for both of the employees, without having much turnover. During the whole process as Rabit met with the Guilty employees that were part of the sale, they had promised many things ranging from benefits, awards, employee relations and incentives. When the purchase was complete and the Guilty employees came over to Rabit it was realized that all of what Rabit’s management had said about the company and what they promised to do was inaccurate. Rabit’s management was not impressed with Guilty employees and treated them as if they had no clue what was going on. My career began at Guilty in 1999 and I was a part of the sale to Rabit. At Guilty I was in charge of the accounting for a few processing plants. When we moved to Rabit, our department became the Financial Accounting department which was in charge of the final product being produced...
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...How to Effectively Merge Employees Shane Santiff Shane.santiff@comcast.net GM 591 Leadership & Organization Behavior Hajar Sanders May 19, 2011 Overview of Organization: The organization that I will be doing my project on is Targa Resources LLC. Targa is a publically held organization that is in the Upstream and Downstream segment of the Oil & Gas Industry. Targa main processes are fractionation, wholesale and logistics. Targa was formed in 2004 when it purchased two plants from Conoco Phillips. In late 2005 Targa purchased the whole midstream division from Dynegy Inc. With Targa’s purchase of Dynegy Midstream Services, Targa went from a company with 150 employees to over 1500 employees overnight. With this they needed to create a cohesive environment for both of the employees, without having much turnover. During the whole process as Targa met with the Dynegy employees that were part of the sale, they had promised many things ranging from benefits, awards, employee relations and incentives. When the purchase was complete and the Dynegy employees came over to Targa it was realized that all of what Targa’s management had said about the company and what they promised to do was inaccurate. Targa’s management was not impressed with Dynegy employees and treated them as if they had no clue what was going on. My career began at Dynegy in 1999 and I was a part of the sale to Targa. At Dynegy I was in charge of the accounting for a...
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...Cisco Systems, Inc. is an American-based multinational corporation that designs and sells consumer electronics, networking and communications technology and services. Headquartered in San Jose, California, Cisco has more than 65,000 employees and annual revenue of US$40.0 billion as of 2010. By providing a highly connected workplace, an inclusive and diverse environment, comprehensive health and wellness programs, robust professional development opportunities, and competitive compensation and benefits, Cisco helps more than 70,000 Cisco employees multiply impact on the job and in their personal lives. | | Culture and Climate It is the shared beliefs and quality of interactions within and across organizational units: Open and trusting, internally competitive, operationally disciplined, and creative and entrepreneurial. Also called corporate culture, it's shown in: - the ways the organization conducts its business, treats its employees, customers, and the wider community, - the extent to which freedom is allowed in decision making, developing new ideas, and personal expression, - how power and information flow through its hierarchy, and how committed employees are towards collective objectives. Our values shape our Culture. These are Cisco’s values: Change the World, Focus intensively on customers, Make innovation happen, Win together, Respect and care for each other, Always do the right thing” Awards and Recognition In FY12 Cisco was included in Fortune magazine’s“100...
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