Cisco Systems, Inc. Cisco’s networking hardware is a fundamental part of business, education, government and home communications. They have transformed how people communicate and collaborate over the Internet. An unexpected surge in demand for essential network products caught Cisco and its manufacturing partners off guard. Backorders and shortfalls abounded as sales attempted rebound, resulting in the new light of virtual inventory management. The Evolution of Cisco Cisco Systems – Company History 1984 – Cisco Systems is founded by computer scientists Len Bosack and Sandy Lerner. 1985 – Corporate logo developed and first system, Massbus-Ethernet is shipped. 1986 – Cisco launched its first routing innovation, AGS multi-protocol router. 1990 – Cisco stock goes public on NASDAQ. 1994 – Cisco is the first major supplier of the multi-protocol internetworking products to be awarded the ISO 9001 certification. 1997 – Cisco makes first appearance on Fortune 500 list at number 332. 1998 – Cisco is the first company to achieve market capitalization of $100 Billion in just 14 years. 2000 – Cisco is the most valuable company in the country. 2002 – Cisco shipped its one millionth IP telephone. Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Cisco hardware, software, and service offerings are used to create Internet solutions so that individuals, companies, and countries have easy access to information—regardless of differences in time and place. In addition, the company is recognized as a pioneer in using the Internet for its own business practices, offering consulting services to help other organizations around the world. The Problem Cisco ordered large quantities of supplies well in advance ... ... middle of paper ... .../news/networking/224701527/cisco-response-to-supply-chain-woes-lacking-say-partners.htm Kaihla, P. (n.d.). Inside cisco's $2 billion blunder. Retrieved from google.com website: https://www.google.com/url?q=http://old.ba.metu.edu.tr/~adil/BA-web/bus%2520press/BW-Inside%2520Cisco.doc&sa=U&ei=A7FfU7KoHIreyQHCm4DgBA&ved=0CEEQFjAE&usg=AFQjCNFosEILRokVWal_zdLXMDP2T5ggtg Lee, H. L. (2004, October). The Triple-A Supply Chain. Retrieved April 29, 2014, from ftp.software.ibm.com website: ftp://ftp.software.ibm.com/software/emea/dk/frontlines/Tripple_supply_chain_Havard.pdf Magal, S. R., PhD, & Word, J. (2009). Essentials of Business Processes and Information Systems. Hoboken, NJ: John Wiley & Sons. Supply Chain Management: An International Journal. (1996). Retrieved April 29, 2014, from emeraldinsight.com website: http://www.emeraldinsight.com/journals.htm?articleid=1464659
I recommend a strong buy on Cisco’s stock with a target price of $32.50, a 50% upside from its current price. Cisco has a solid competitive advantage, because there are not many strong competitors in the market. The other firms show a higher P/E ratio than Cisco because they have a lower market share. The company shows a constant growth. Cisco markets its products globally with the highest market shares than its competitors. The main risks for Cisco are worsening of economic conditions or exchange rates. The company has a good growth in sales, which will lead higher profits. The company also gives out an annualized dividend to its shareholders every year.
Cisco faces intense competition in the networking and communications equipment markets (Cisco Systems Inc. SWOT Analysis, 2013).Cisco also faces price competition from rival competitors in Asia, mainly in China. The company also faces competition from customers to which it licenses or supplies technology. The nature of networking requires partnerships; the company must cooperate and at the same time compete with many companies to achieve its objectives. The inability to effectively manage these complicated relationships with customers, suppliers, and strategic alliance partners may have an adverse effect on Cisco’s business. Intense competition will continue to impact Cisco’s operating results, financial condition and market shares of the company in the future (Cisco Systems, Inc. SWOT Analysis, 2013).
Cisco is one of Americas greatest corporate success stories. Since shipping it’s first product in 1986, The company has grown into a global market leader that holds No.1 or No.2 market share in almost every market section in which it participates. Cisco went public in 1990 on the nasdaq stock market with annual revenues at $69 million in that year. But now their revenues are at $12.2 billion in fiscal 1999. Their revenues in the last four quarters are shown in the figure below.
In the year 2000, Cisco Systems had delighted in forty-quarters characterized by a staggering growth. At some instance, it had outdone GE as a highly valued business globally. Cisco was faced with the fortunate challenge being unable to meet its demand. As a solution, it ventured into long-term obligations with its major component producers and manufacturing partners. In addition, it also built up its constituent inventories. Because of communication gaps amid the numerous levels of the company’s suppliers, triple, and double orders were implemented in order to lock in limited components in the boom. The company was entangled in a spiteful cycle of theatrically inflated sale estimates. Cisco never saw
During 2003-2007, cisco registered a top durable top line growth period. They take a strong ability to manufacture and design new products with how the new world processes information. They have strong strategic industry partners and they have a good customer relationship. Cisco is a company that focuses on their core competencies. When they monitor and manage more than 10,000 devices, it becomes time consuming. Even with these problems cisco systems does have many strength...
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Cisco System was incorporated as information technology organization which has become a leader in internet and networking industry. Cisco System was incorporated during the period of 1984 from the scientist of a university of Stanford, whose prime objective is to find an easier way to link various types of a computer system by developing a network protocol. During the period of 1986, the first system was shipped by Cisco and in current period it has transformed itself into a multi-national giant, having around seventy-two thousand employees and operating in more than one hundred and fifteen countries. In the current era, Cisco System is perceived as a foundation of networking system for small medium organization, internet service
Between 1991 through 1997, WorldCom spent almost $60 billion in acquiring these companies which also led to $41 billion in debt. WorldCom was one of the most successful companies at the height of the internet boom. Wall Street began to take notice of WorldCom and its CEO, Bernie Ebbers. “Wall Street investment banks, analysts and broker began to discover WorldCom’s value and make strong buy recommendations to investors” (Patra 173). As WorldCom’s stock rose, it became easier for the company to utilize stock to continue to purchase additional companies.
Cisco Systems, Inc. is a leader in networking for the internet, developing hardware, software, and services to help create internet solutions that make internet networks possible. Cisco was founded in 1984 by a small group of computer scientists from Stanford University. They are a worldwide company with headquarters in San Jose, California, Amsterdam Netherlands, and Singapore. Currently, they employ approximately 74,000 people throughout the world. Cisco operates on a set of values which include: change the world, intensely focus on customers, make innovation happen, win together, respect and care for each other, and always do the right thing.
Cisco certification is a accomplished scientific boost certificate skeleton which is feature with ongoing by Cisco company for advancing Cisco technology, cultivating the repercussion management design again designing troubleshooting personnel. Candidates burden help the prevailed Cisco certificates as valid combat of bread change or company qualification.
James Press, 2000). Furthermore, Cisco ventured into acquisitions strategically purchasing companies that would increase their technological advantage. Cisco’s main purpose is to “shape the future of the internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners” (The Network, 2016). In 2004, Cisco was part of Fortune’s magazine “100 Best Companies to Work For”. At number fifty-five (55) it provides employees with competitive compensation, LEED certified health centers, and convenient onsite child care centers.
In 1973, the U.S. Defense Advanced Research Projects Agency (DARPA) initiated a research program to investigate techniques and technologies for interlinking packet networks of various kinds. The objective was to develop communication protocols which would allow networked computers to communicate transparently across multiple, linked packet networks. This was called the Internetting project and the system of networks which emerged from the research was known as the "Internet." The system of protocols which was developed over the course of this research effort became known as the TCP/IP Protocol Suite, after the two initial protocols developed: Transmission Control Protocol (TCP) and Internet Protocol (IP). (I got my information for the history of the internet at www.isoc.org In 1986, the U.S. National Science Foundation (NSF) initiated the development of the NSFNET which, today, provides a major backbone communication service for the Internet. With its 45 megabit per second facilities, the NSFNET carries on the order of 12 billion packets per month between the networks it links. The National Aeronautics and Space Administration (NASA) and the U.S. Department of Energy contributed additional backbone facilities in the form of the NSINET and ESNET respectively. In Europe, major international backbones such as NORDUNET and others provide connectivity to over one hundred thousand computers on a large number of networks. Commercial network providers in the U.S. and Europe are beginning to offer Internet backbone and access support on a competitive basis to any interested parties.
Generally, a superior supply Chain is an important and unique source of competitive advantage. Its importance is especially illuminated in Multinational companies such as Toyota. Putting this into consideration, the question that now begs for an answer is whether Toyota’s supply chain is effectively serving the organization. Without a doubt, Toyota ha...
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Laudon C. & J. Laudon (2003: 5th edition) Essentials of Management Information Systems. London: Prentice Hall International Limited