Essay about Cisco Case Study

812 Words Nov 30th, 2010 4 Pages
Cisco Case Study
1. Identify what you believe are the most important elements (criteria, processes, specific actions, etc.) of Cisco’s approach to selecting and integrating acquisitions. For each of the elements you have identified, describe why it is important? (What is its purpose)?
As we know, Cisco is a high-tech IT Corporation and also a strategic buyer, in other words; it is interested in making a profit by managing any potential IT business for an extended period by separate subsidiary or merger in to Cisco. Hence, Cisco has its own criteria for screening and intergrading acquisitions. In terms of selecting, I found “IT industry” (market segment), “complementary technology or products which can be supported by Cisco’s
…show more content…
Cisco could establish plans and timetable for plant and the resources available.

2. How would you improve Cisco’s acquisition and selection process? What is missing?
Basic on the analysis above, I think Cisco had followed basic structures of M&A. However, there were several shortages. First of all, the timeline is too shot. Usually, it takes 6 to 10 months to finish integration but 90 days in Cisco. Although speed is important to realize cost savings and retain key employees, highly complex operations must be integrated in a more deliberate and systematic fashion to minimize long-term problems. Secondly, Cisco tends to focus on technology and not enough on the people and processes that will use it. Cisco has MRP system for part and materials but doesn’t have human resource data system. Thirdly, Cisco ignored the financial situation of the acquirers. AS a result, Cisco might overpay for the deals and underestimate the risk of the deals. Fourthly, Cisco might need to improve its communication plans with employees, customers and suppliers. Cisco did provide bonus to employees and evaluate suppliers. But, it ignored the importance of communications. Fifthly, the geographical criteria of Cisco are limit. Cisco might need to expand its location standard to maintain its competence. Finally, the benchmark Cisco used was basic on itself but not the industry standard. It will be a potential problem because Cisco might fail by ignoring the competitors.

3.

More about Essay about Cisco Case Study

Open Document