preview

Cisco

explanatory Essay
3243 words
3243 words
bookmark

Cisco Current Performance As a company Cisco Systems is still a powerhouse in their industry. It is the worldwide leader in networking for the Internet. Although they have broadened their product line tremendously since they first started, they still try to stick to the same business policies and plans that they had when they first started out. Cisco’s net sales for the last fiscal year were over eighteen billion dollars. This is an unbelievable amount of money for a company to generate if you consider this company is not even twenty-five years old. Of this eighteen billion dollars Cisco had a net income of 2.7 billion dollars. Their net sales and net income have grown ever year for the past five years by leaps and bounds. There nets sales grew over 64% percent from the 1999 fiscal year to the year 2000 fiscal. In the 1997 and 1998 fiscal years net sales grew by 69% and 74% respectively. The net income of the company grew in the last fiscal year by over 75%. In the two years previous to that the net sales of Cisco grew by 65% and 78% respectively. These numbers show the great leaps and bounds that Cisco is still growing by. This is due to the increase in the pursuit of sales in foreign countries. They are opening up new markets all over the world and the great move they made into China. These increases are also due to the growth in the breadth of products that Cisco is offering its customers. It has begun to offer video and voice capabilities in its products. This help to let its customers to use their networks to transfer both voice transmission and data. The sales of switch and routers also rose over the year to help improve these numbers. These components help to get people onto the Internet and join up networks. These are considered access products because they help to let companies and people gain access to networks. These sales grew in the 2000 fiscal period to help raise revenue. The only thing that threw off net income was the higher cost of in-process research and design costs. This is to look and research ways of improving existing products and creating new ones. This is the money the company uses to make sure that they stay on top of the market. Cisco, being a market leader, must make sure that they are always one. The price of Cisco stock has been performing pretty steadily over the la... ... middle of paper ... ...nd for awhile. This could be a problem because they do not have experience on their side. The only good thing for Lucent is that in a sense they are just another part of AT&T. Lucent has not had to suffer any really bad time except for the stock problems it is having now. Its inexperience may be a hindrance to it when it comes to companies that have been around a little longer and have experienced great changes in the market. Another weakness that Lucent has is its stock. It has been hit hard in the last year and has been on a downfall the last couple of months. It is now around eighteen dollars down from a year high of around 80 dollars. This is quite a dramatic hit and investors are worried. Lucent will have to deal with this situation and try and keep investors in with them. They have to make sure that everyone does not just jump boat and start to sink them even more. This is were people will have to trust in Lucent and believe that it is just a slump and that they will bounce back. Lucent also has a very good web site for its customers. They make it easy to navigate and there is a lot of information about the company on it. This will help them to attra.

In this essay, the author

  • Opines that cisco systems is still a powerhouse in their industry.
  • Explains cisco, being a market leader, keeps them on top of the market.
  • Explains that this money came mainly from interest on cash that they already had.
  • Explains how easily products can be upgraded, which is convenient and helpful.
  • Explains that it has to constantly be updated in order to make sure that they give their best.
  • Describes the benefits of switching between different levels of networks.
  • Explains that accessing information that they should not see or may cause trouble on the network.
  • Explains that they can make sure that only people that should be on their network are on and that trouble is avoided.
  • Explains that this software helps to fulfill the need of growing and the network will still be reliable.
  • Explains that lucent was born in 1996 from its parent company of at&t.
  • Explains that ascend's cisco products are also involved in cisco.
  • Explains that lucent has a very broad range of products that it sells this can challenge leadership.
  • Explains that lucent is relying heavily on a few major customers and would be in trouble if anything happened to them. they are trying to broaden their customer base through acquisitions of certain companies.
  • Explains cisco's product line has grown tremendously since they started, but they still stick to the same business policies and plans that they had when they first started out.
  • Analyzes how cisco's net sales and net income have grown every year for the past five years by leaps and bounds. net sales grew over 64% percent from the 1999 fiscal year to the year 2000 fiscal
  • Explains that cisco's growth is due to the growth in the pursuit of sales in foreign countries and the great move they made into china.
  • Explains that the higher cost of in-process research and design costs threw off net income.
  • Opines that the price of cisco stock has been performing pretty steadily over the last year. the market and technology and dot com companies have been taking a hit in the market.
  • Analyzes how the stock reacts to how other stocks of its type are also doing. people buy cisco stock depending on how it is doing compared to its major competition.
  • Explains that cisco has a 14.1% profit margin on their products. they get 11.84% returns on assets and 15.03% return on equity.
  • Opines that cisco acquires companies steadily to make the bottom line a little shadier. they can't gauge the growth that they are experiencing because of this.
  • Explains that cisco is making the move into different types of product lines but their main section is still networks.
  • Explains that research into data, voice, and video led to a huge increase in research costs.
  • Opines that a leader must be the trend setter and be out at the front of each new leap in technology.
  • Explains that cisco is making a big push into foreign markets at this time. the asian market is one of the emerging markets for networks and internet tools.
  • Explains cisco spent over one billion dollars more on sales and marketing this fiscal year than last.
  • Explains that cisco is making more money because of the fifty percent increase in interest and other incoming over the year.
  • Describes the products that can be used by themselves in order to connect on to networks as well as components that piece together.
  • Explains that cisco has a wide range of products to help them connect onto networks no matter where the network is in your house, business, school, or around the globe
  • Explains that cisco products are taking advantage of the ability to transfer data.
  • Explains that companies want to be able to have board meetings all over the world at the same time. cisco is making products that make this possible.
  • Explains that cisco's routers are the building block of any type of network. they help to move information from one network to another and tell the data which is the best route to travel.
  • Explains that cisco caters to this type of business need. they make products that will help the person working right out of their home.
  • Explains that cisco provides software to help you set up your website business, handle incoming orders, and make sure that private information sent by customers is actually safe.
  • Explains that cisco wants to become the company that a business can go to for all of its network needs. they want to be able to provide their customers with great service and great products.
  • Explains that lucent had the shadow of at&t over it to help it out. they had sales of last year of over 38 billion dollars.
  • Explains that bell labs is considered one of the best places of invention in the world.
  • Explains that lucent had 1,153 us patents in 1999, which was the ninth highest in the united states. this helps it stay at the head of the market which is very important in an industry such as this.
  • Opines that at&t will be a loyal customer to them which gives them an advantage because of the great amount of money that they will spend.
  • Opines that lucent is just another part of at&t. its inexperience may be a hindrance when it comes to companies that have been around longer.
  • Explains that lucent's stock has been hit hard in the last year and is now around eighteen dollars down from a year high of around 80 dollars.
Get Access