Cisco Analysis

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#Introduction : Henry R. Luce, Creator of Time-Life Magazine Empire once quoted, “Business, more than any other occupation, is a continual dealing with the future; it is a continual calculation, an instinctive exercise in foresight”. (Henry R. Luce Quotes 2010). Fluidity is pertinent for any corporation’s business survival in order to keep competition in check and continue to remain profitable especially in the current global market where competition and increasing consumer demands are a challenge. The main objective of this proposal is to provide an appropriate analysis pertaining the operational challenges faced by Cisco Systems, an Internet networking icon in their business environment…show more content…
engineering, marketing etc) into specific teams to work on special projects on a temporary basis. (CRF Online Classrooms 2010) This in turn creates the possible need for an employee to have more than one superior to whom they would have to report to. (Global Security Glossary 2010) The matrix structure focuses upon a concoction of functional and divisional structures, where the formations of teams of these specialists are based upon the focus of their particular environment (i.e. products serviced/provided, market nature, geographical setting etc.) (Bartol et al. p 323) Cisco divided their workforce of approximately 68, 574 employees (Cisco Systems, Inc 2010) into boards and councils and thus formed 50 boards and councils with approximately 750 members. Each board and councils were supported by working groups (please refer Appendix C), a vast change in comparison of their previous organization comprised of three lines of businesses, geared for telecom operators, large enterprises and smaller businesses. (‘The world according to Chambers’, in Economist 2009, Issue 8646, Vol 392, pp 59-62) These working groups are set up based upon a set of rules which also governs how decisions should be made and evaluation of work should be carried out. John Chambers, CEO of Cisco advocates “aggressive stretch goals” ,however the matrix approach resulted in fatigue and decreased motivation among many employees who

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