Cisco Systems Inc. Harvard Case Solution & Analysis

PROBLEM IDENTIFICATION

In the fiscal year 2007, Cisco Systems Inc.  had to provide professional analysis in order to assist in identifying the problems faced by the company. This was done to determine the performance of the Cisco Employee Connection that was the combination of two applications such as internet and intranet that provided the information to customers, partners, employees, and to the shareholders.

The problem that was considered to be the challenge for Cisco’s CEO, John Chambers was that he had to ensure that the Information Technology and Information Systems continually supported the Cisco while maintaining the aggressive growth strategy. John Chambers was in need of assistance in order to solve the above mentioned problem that how to take this challenge by maintaining the aggressive growth strategy.

Further the problem was that in case Cisco is strongly tied with the anyone technology that is not aligned with the market needs and trends, then Cisco will fail. To solve this problem, Cisco adopted the policies that were adopted by the market leading companies in other markets such as to target the market by dividing it in segments of end-users. This policy was adopted by the Hewlett-Packard, and General Electric’s policy that were the market leader either number one or two in any market the company entered and if there was no opportunity to be availed in order to become the market leader then it was better to exit from the market.

DATA COLLECTION

The data was provided is in the case of Cisco Systems Inc. for the analysis. The data was based on the historical information about the Cisco Systems Inc. This data consisted of the number of acquisitions made per year for the expansion and growth of the Cisco Systems Inc. along with the strategy that the company had adopted for acquisition and the purpose for making the acquisition. This had been done by changing the organizational structure and keeping those employees, who were part of the acquired companies and by improving the hiring criteria.

MODEL DEVELOPMENT

Businesses that wanted to grow and remain in growth for longer period of time of the business life cycle came to the point of making the decision that could be channeled for more growth in future. Cisco was striving to meet the needs of their customers by providing high quality information systems to place the orders for all kinds of customers with the specification they asked for. Cisco already understood that the major component for the revenue generation is the loyalty of customers and the quality services they provide. Cisco was providing that quality by hiring more and more employees and keeping the employees of the acquired companies along with the executive class personnel with it. To attract the skilled employees and professionals, Cisco was aggressively hiring new employees and retaining the existing employees as Cisco knew that it was hard to find experienced employees and that these employees could easily be lured out from the company by its competitors so as a result the company didn’t lay off employees, which were hired by the company acquired by the Cisco as a result of the aggressive growth strategy.

Cisco had adopted the policy to become the number one or number two leader of the market and that was the philosophy of the company. It was achieved as Cisco was hiring new employees around 300 to 350 employees per month and the company was holding employees that were part of the former company acquired by Cisco.

Furthermore, Cisco was expanding its product line by developing the platform for aligning all of its technology internally for the performance as employees’ performance would be achieved by providing the information in real time. It was due to the reason that the networking industry was growing exponentially and the forecasting was made that it would grow to $93 billion as compared to the 1997 market share, which was contributed as totaled in amount of $27 billion.

Cisco’s aggressive growth strategy was also backed by the reason that in network industry the routers were not the only product that was expanding but also another product was growing exponentially that was switches. On the other hand, Cisco decided to have a look outside as the product life cycles was less than the 18 months and it was because of the existence of the rapidly changes made in the market.

The networking technology was driven as to provide higher capacity and faster speed to transfer the data with more functional services as per the desire of customers to communicate with more people and transfer more data with fast speed. For this purpose, Cisco wanted to run its business globally and to communicate with its operations internally by using the intranet and to take orders from customers, Cisco wanted to align its customers with the company and with its merchants. The communication in this scenario also included the transaction between company’s customers and its merchants......................

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