Analysis of Cisco Systems

In: Business and Management

Submitted By efar25
Words 1874
Pages 8
[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 increased production efficiencies, strong purchasing power, and greater brand prominence. Cisco’s scale correlates to its sustainable performance as a result of distinctive, difficult to replicate capabilities. Examples of Cisco’s distinctive capabilities include the convergence of its application platform, services framework, and network infrastructure. Highlighted at the Cisco…...

Similar Documents

Cisco Systems Architecture

...Cisco systems Architecture: ERP and Web-Enabled IT Case Introduction and Background and analysis of the Business Cisco Systems, a Global leading company that manufactures and markets Internet Protocol (IP) equipment, uses routers to send digital and voice data over the Internet. Founded in 1984 by three former Stanford University Students, Cisco first found early success by targeting Government agencies, Universities, and the Aerospace industry. In 1998, Cisco began targeting big businesses and other agencies. Cisco did their Initial Public Offering (IPO) in 1990. However, disagreement between founding partners led to two of the founding members parting ways with the company. In 1994, Cisco suffered another major setback: “Cisco’s legacy environment failed so dramatically that shortcomings of the existing systems could no long be ignored” (Nolan, 2005, p.4). However, after costly repairs and creating a brand new IT platform architecture, Cisco was able to recover and continued to move forward. Cisco immediately began expanding by acquiring smaller entities which expanded the company’s market share. In 1998, Cisco successfully reach the coveted $100 billion landmark. Over the next two years, Cisco continued to expand and “acquired more than 20 companies, including wireless network equipment maker Aironet. With a market capitalization exceeding $500 billion, Cisco enjoyed a turn as the world’s most valuable company in 2000” (Hoover, 2012, p.1.) Cisco’s product’s mix......

Words: 2344 - Pages: 10

Cisco Systems Inc. Analysis

...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......

Words: 2099 - Pages: 9

Cisco Systems Ethical Strategy

...Ethical Strategy Review of Cisco Systems ethical strategy, what they say, what they do, and how it impacts their stakeholders. 2010 Contents Introduction 3 Background Information 3 Cisco’s Ethical Strategy 6 Stated Ethical Strategy 6 Stakeholder Analysis 9 Employees 9 Customers 13 Government 15 Suppliers 17 Shareholders 18 Communities 20 Institutionalization of Ethics 21 Explicit Components 21 Implicit Components 22 Corporate Environmental Management 23 Environmental Policy 23 Environmental Management Systems (EMS) 24 Crisis Management Policy 25 Overall Evaluations and Conclusions 26 Recommendations 27 Works Cited 29 Appendix 32 Appendix A - Cisco Code of Business Conduct 33 Appendix B - Cisco Ethics Decision Tree 34 Appendix C – Cisco Systems Inc. Board of Directors 35 Appendix D – Cisco CSR Awards and Recognition 36 Appendix E – Cisco’s Supplier Code of Conduct 39 Appendix F – Cisco’s Supplier Ethics Policy 40 Introduction The purpose of this paper is to see how a Cisco integrates their ethical and socially responsible practices into their business. The paper will look at the company background, and history. It will then analyze the ethical strategy of the company by reviewing the stated ethical strategy, statements and documents that support that strategy and how the strategy impacts the major stakeholders of the company. An examination of how Cisco institutionalizes their ethics strategy into the......

Words: 11516 - Pages: 47

Cisco System

...Cisco Systems, Inc. - Organizational Behavior and Communication University of Phoenix Communication for Accountants COM/530 January 14, 2013 Abstract An organization’s espoused values are the mission, philosophy, vision, and value statements. These statements represent what the organization values and the enacted values show what the company does. This paper will show the alignment between the espoused values and the enacted values along with describing how the role of communication influences the perception and organizational culture and identify the role of conflict in group communication in Cisco Systems, Incorporated. Cisco Systems, Inc. - Organizational Behavior and Communication The values of an organization originate from the organization’s mission, philosophy, values, and vision statements. How the organization performs may be the same or different from its values. The intention of this paper is to establish if not only Cisco Systems’ espoused values align with its enacted values but also describe how the role of communication plays in the perception and organizational culture along with observing the role of conflict in group communication. Organizational Culture “Cisco Systems remains the world’s largest provider of the routers, switching systems and related hardware, and software and services needed to interconnect computers and make high-speed telecommunications possible” (Cisco System, Inc., 2010, p. 27). One reason Cisco Systems is at the top......

Words: 1192 - Pages: 5

Cisco Systems

...isco Systems: The Supply Chain Story Cisco Systems Inc. is a worldwide computer networking company based out of San Jose, California. From Cisco’s beginning they as a company aimed to connect all members of the supply chain. Cisco’s initial product was the router, which contained an operating software called Internet Operating System (IOS). This product launched Cisco as a company and led to their future goal of a completely integrated supply chain. The first integration, a customer support site, came a year after the router was launched and it allowed customers to download and upgrade software as well as technical support through e-mail. This support center continued to grow through the early nineties and was eventually replaced by a customer support system on their website. The customer support system was continually added to and by 1995 it included; company and product information, technical and customer support, and most importantly it introduced the ability to sell products and services online. Cisco’s main desire behind this system was to streamline the process of customer support and allow the information to more easily utilized. In 1996, Cisco implemented another Internet application called “Networked Strategy,” this introduced online order entry and allowed the information to flow through Cisco’s supply chain. The order information was sent to Cisco’s ERP system which in turn sent it out to the various suppliers and manufacturers, allowing for a......

Words: 277 - Pages: 2

Cisco Systems

...1. Cisco systems 2.1 Income Statement Cisco Systems (CSCO) Income Statement | | | | | Fiscal year ends in July. USD -- millions except per share data. | 2009-07 | 2010-07 | 2011-07 | Dell 2011 | Revenue | 36117 | 40040 | 43218 | 61494 | Cost of revenue | 13023 | 14397 | 16682 | 50098 | Gross profit | 23094 | 25643 | 26536 | 11396 | Operating expenses | | | | | | Research and development | 5208 | 5273 | 5823 | 661 | | Sales, General and administrative | 9968 | 10715 | 11720 | 7302 | Total operating expenses | 15772 | 16479 | 18862 | 7963 | Operating income | 7322 | 9164 | 7674 | 3433 | | | | | | | Interest Expense | 346 | 623 | 628 | 199 | Other income (expense) | 717 | 874 | 779 | 116 | Income before taxes | 7693 | 9415 | 7825 | 3350 | Provision for income taxes | 1559 | 1648 | 1335 | 715 | Net income from continuing operations | 6134 | 7767 | 6490 | 2635 | Net income | 6134 | 7767 | 6490 | 2635 | Net income available to common shareholders | 6134 | 7767 | 6490 | 2635 | | | | | | | Earnings per share | | | | | | Basic | 1.05 | 1.36 | 1.17 | 1.36 | | Diluted | 1.05 | 1.33 | 1.17 | 1.35 | Weighted average shares outstanding | | | | | | Basic | 5828 | 5732 | 5529 | 1944 | | Diluted | 5857 | 5848 | 5563 | 1955 | | | | | | | 2.2 Balance Sheet | | | Cisco Systems (CSCO) Balance Sheet | | | | | Fiscal year ends in July. USD -- millions except per share data. | 2009-07...

Words: 2628 - Pages: 11

Cisco Systems

...Introduction Cisco is a worldwide leader in networking that transforms how people connect, communicate and collaborate. For the year 2012, Cisco reported its fourth quarter and fiscal year results for the period which ended on July 28, 2012 with net sales of $11.7 billion. Cisco was incorporated in December 1984 in California. Cisco’s stock ticker is CSCO. The stock was added to the Dow Jones Industrial Average on June 8, 2009, and is also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ 100 Index and the Russell 1000 Growth Stock Index. Cisco headquarters are located at: 170 West Tasman Dr. SAN JOSE, CA 95134-1706 United States +1-408-526-4000 (Phone) Executive Compensation Compensation for executives consists of three parts including the base salary, variable cash incentive awards, and long term equity based incentive awards. As the chart below displays, the base salary for John Chambers is set at $ 375,000 which is well below the 25th percentile and has remained unchanged since FY 2008. Cisco establishes base salaries at the beginning of the fiscal year based on the performance of the previous year. Performance measure and goals for determining annual cash incentive awards for the executives are pre-established in Code Section 162. The pre-established goals are established based on Cisco’s accomplishment of the financial performance goals, customer satisfaction criteria, and the individual executive’s contribution. Bonuses for all executive officers......

Words: 1100 - Pages: 5

Cisco Systems

...COMPANY CASE Cisco Systems: Solving Business Problems Through Collaboration 1. Discuss the nature of the market structure and the demand for Cisco’s products. The nature of the market structure and demand of Cisco Systems is its business market which contains fewer but larger companies. For Cisco Systems, this implies that even though they have fewer clients than other companies, they still have a good and profitable relationship with their clients. For the customers of Cisco Systems, this implies that they will receive better and faster service and products because they don’t have to compete for the attention and service of Cisco Systems. The business market is derived from final consumer demand which means Cisco Systems must know what the market demands from their business customers. For Cisco Systems, this implies that Cisco must depend on the final consumer market, in order for their customers to buy their supplies. This also means that Cisco Systems must also promote the products of their partner businesses in order to get the final customers attention and loyalty to their partners in order for them to get gain. For the customers of Cisco Systems, this implies that they would have to depend on their customers choices if they are willing to buy their product or not. The demand of the final customers would be the basis of the customers of Cisco Systems if they would ask for more supply from Cisco Systems or not. The business market’s demand is more inelastic,......

Words: 1274 - Pages: 6

Cisco Systems Inc

...Cisco Systems Inc. INDIVIDUAL PROJECT REPORT Date Submitted November, 20, 2013 Table of Contents SUMMARY DESCRIPTION OF BUSINESS 0 Products and Services Offeered 0 Global Markets Currently Served 0 Corporate Structure and Leadership Resources and Competitive Position 0 COMPANY'S EXTERNAL ENVIRONMENT 0 Competitors in Top Five Countries Served 0 Marktst For Company and Rivals 0 Key Success Factors for Their Market 0 COMPANY'S COMPETITIVE POSITION 0 Competitive Position in Top Fice Countries 0 Basis for Current Competitive Position 0 Potential for Growth and Expansion 0 EXHIBITS 0 Information Sources Additional information Other Summary Description of Business Products and Services Offered Cisco offers a wide range of products and networking solutions designed for enterprises and small businesses across a variety of industries. Cisco services provide intelligent network technologies. Their products and services are made for small business, mid-size businesses, homes, and enterprises or large corporations. Cisco Systems is a leader in manufacturing network hardware used in computer networks. The company's specialty is making network connectors-routers, bridges and switches. They also design technologies and services for Internet communication. Cisco is known for network products that support more than one protocol. Protocols are standards or sets of instructions that regulate or enable a communication, data transfer or......

Words: 3949 - Pages: 16

Cisco System

...Cisco Systems, Inc. 2011 Annual Report Annual Report 2011 Letter to Shareholders To Our Shareholders, Fiscal 2011 was one of the most transformative years we have seen at Cisco. We prioritized, simplified, and took action to drive Cisco’s continued market leadership. We aggressively changed the way we do business to become a faster and more agile partner, with the goal continuing to be to increase our ability to deliver unique value to our shareholders, customers, partners, and employees. Throughout our transformation, we continued to execute as we grew fiscal year revenue to over $43 billion. More importantly, we laid the groundwork needed to position Cisco for the next stage of growth and profitability. We believe the network will continue to grow in importance and could become our customers’ most strategic information technology (IT) asset. We will continue to develop technologies, services, and software platforms that enable our customers to leverage the network to solve their greatest business challenges, which in turn will drive, in our view, greater customer and shareholder value for Cisco and also solidify our leadership position in an ever-evolving networkcentric world. In this current environment, we are fortunate to be a company built on a number of tremendous strengths. From a technology standpoint, innovation and customer support have remained Cisco hallmarks, and we have built the most trusted brand in networking, as evident by our continuing market......

Words: 77999 - Pages: 312

Cisco Systems

...* Cisco Systems, Inc. is an American multinational technology company headquartered in San Jose, California, that designs, manufactures, and sells networking equipment. It was founded in 1984; 31 years ago, in San Francisco by Leonard Bosack and Sandy Lerner. The Current CEO is Chuck Robbins and their Headquarters is in San Jose, California, US. They operate worldwide and provide Tech for many companies and public households. USP: Cisco Sys's experimentations yield new products and services that outpace competitive threats They have over 30 different products in markets such as: * Networking Devices * Network Management * Cisco IOS and NX-OS Software * Interface and Module * Optical networking * Storage area networks * Wireless, Telepresence, VOIP, Security * Datacentres In 2014 Cisco Systems, Inc. made US$ 47.142 billion in revenue (a drop from 2013) “The Human Network” This was a big effort by Cisco during the early to mid-2000’s to enter into and have a bigger presence in the household consumer market. Throughout the mid-2000s, Cisco also built a significant presence in India, establishing its Globalization Centre East in Bengaluru for $1 billion, and planning that 20% of Cisco's leaders would be based there. However, Cisco continued to be challenged by both domestic Alcatel-Lucent, Juniper Networks and overseas competitors Huawei. Due to lower-than-expected profit in 2011, Cisco was forced to reduce annual expenses by $1 billion...

Words: 480 - Pages: 2

Cisco Systems

...Cisco Case Study 1) What are the challenges and risks faced by technology companies in new product introduction? The challenges and risks faced by technology companies in NPI (New Product Introduction) are the rapid changes of the technology industry, low cost pressure and fulfillment of local and global requirements. Some of the challenges faced by any company are the ability to have the technical expertise and knowhow of market trends. The industry of technology is rapidly changing as it introduces new technology every day. Time is key for technology companies, as they can spend a lot of money developing products, and by the time it launches, they are not sure if the product will be successful. An example of time to market pressure was Cisco’s Viking project. Cisco was developing the Viking project, which is a router that would let broadband service providers consolidate their data, voice, video and mobile traffic in a single box. After four years of development, they had to redesign the project one year before it launched due to the changes of the customers’ requirements and market transitions. Cisco reviewed the customers’ needs and realized that the original development would not meet the escalating needs of service providers. By fall 2007, Cisco completely redesigned the product for increases speed and capacity. At the same time, there was a huge marketing transition happening. The explosion of video happened faster than anyone could have expected due to the......

Words: 432 - Pages: 2

Cisco System

...COMPANY Case Cisco Systems: Solving Business Problems Through Collaboration Perhaps you’ve heard of Cisco Systems. It’s the company that runs those catchy “Human Network” ads. It also produces those familiar Linksys wireless Internet routers and owns Pure Digital Technologies, the company that makes the trendy Flip video cameras. But most of what Cisco sells is not for regular consumers like you and me. Cisco is a tried and true B-to-B company. In fact, it earned honors as BtoB magazine’s 2009 “marketer of the year.” Three-quarters of Cisco’s sales are in routers, switches, and advanced network technologies—the things that keep data moving around cyberspace 24/7. But over the past decade, in addition to all that hardware, Cisco has pioneered the next generation of Internet networking tools, from cybersecurity to set-top boxes to videoconferencing. But this story is about much more than just a tech giant that makes equipment and software that companies need to run their Internet and intranet activities. It’s about a forward-thinking firm that has transitioned from a manufacturer to a leadership consultancy. To make that happen, Cisco has perfected one major concept that seems to drive both its own business and its interactions with customer organizations—collaboration. Cisco is all about collaborating with its clients in order to help those clients better collaborate employees, suppliers, partners, and customers. COLLABORATION WITHIN AND WITHOUT John Chambers......

Words: 2003 - Pages: 9

Cisco Analysis

...Cisco Systems [pic] Networking the Internet Revolution Brandi Martin brandi@ucsc.edu Table of Contents Paper Objective Section 1: The Network Equipment Industry A. Industry Profile B. Competitive Strategies within the Industry C. Porter Model Evaluation of Industry Forces D. Globalization of the Industry E. Importance of Information Technology to the Industry Section II: Company Perspective: An Analysis of Cisco Systems A. Cisco Company Profile B. Market and Financial Performance C. The Competitive Strategy D. Significance of Information Technologies E. Strengths and Weaknesses of Cisco Section III: A. Strategic Option Generator B. Roles, Roles and Relationships C. Redefine/Define D. Significance of Telecommunications E. Success Factor Profile Section IV: A Final Analysis of the Success of Cisco Systems A. Success of Business Strategy and Information Technology Use to Date B. The Effective Position of Cisco for the Future Objective of Paper The purpose of this paper is to provide an analysis of Cisco System’s primary business strategies and its utilization of information technologies to achieve a competitive advantage in the network equipment industry. The paper is divided into four sections, starting with a broad industry analysis, then narrowing to concentrate on Cisco Systems Inc.,......

Words: 15753 - Pages: 64

Case Study Cisco Systems

...Case Study: Cisco Systems Cisco systems has developed a quality approach to satisfy his customers. The approach is published at: http://www.cisco.com/web/about/ac50/ac208/about_cisco_approach_to_quality_customer_success.html# customer needs Approach to Quality Executive Message |Dedication to customer success is a core value that affects everything Cisco does. We recognize that we must earn the right every day to continue to | |serve our customers. It is this understanding that drives our belief that Cisco's quality mission includes building and maintaining strong customer | |relationships and customer listening systems that in turn arm us with information to drive behaviors and change that increases customer value in our | |products, support and systems. Cisco's customer focus culture permeates every layer of the company, from CEO John Chambers to each individual | |contributor. | | | |Customer satisfaction is so important at Cisco that it is a direct and explicit component of employee compensation. We set yearly business objectives | |around customer satisfaction goals and initiatives. ...

Words: 3836 - Pages: 16

Höchster Preis | MIDORI Gaming Stuhl Drehstuhl Sportsitz Chefsessel Bürostuhl Racing inkl. Kissen | Science Medicine (1930-Now)