Cisco Systems, Inc.

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Cisco Systems, Inc. was incorporated in 1984 in California’s Silicon Valley. The idea for this company came about when two Stanford University employees, a husband and wife, tried to figure out a way to stay connected throughout the day and had to overcome the technological inability to send e-mail from one building to another (“Cisco overview,” n.d.). The couple designed a multi-protocol router to communicate across campus (“Cisco overview,” n.d.). The company’s primary goal was to transform the way that people connected. Since its inception, the company has expanded its operations on a global scale, employs approximately 71,825 employees and identifies itself as “The Human Network” (Cisco Systems, Inc., 2011). A strategic audit of Cisco has revealed that the company has impressive financial performance, a well-established external and environment, and is able to identify opportunities and mitigate threats. However, there are some key strategic factors that must be addressed for Cisco to continue to be a trailblazer in its industry. Cisco’s financial performance for fiscal year 2011, revealed the company’s strengths as well as its weaknesses. Cisco has more than doubled its revenue since 2002, increasing from $18,915 to $43,218 in 2011 – up 8% from the previous year (“Cisco Systems, Inc.” n.d.). Additionally, the company used cash from operations to buy back stock and issued $658 million in dividends (Cisco Systems, Inc., 2011). The company also instituted cash dividends plan to pay shareholders quarterly (Cisco Systems, Inc., 2011). In 2011, Cisco was able to increase their research and development budget by $550,000 to expand their innovative efforts (Cisco Systems, Inc., 2011). However, Cisco did have some weak areas of ... ... middle of paper ... ... the-cloud.aspx Rao, L. (2011, April 12). Cisco to shut down flip video camera business; Will give pink slips to 550 employees. Tech Crunch. Retrieved from shut-down-flip-video-business-will-give-pink-slips-to-550-employees/ Simons, J. (1996). A new route to riches. U.S. News & World Report, 120(8), 58. Welcome to the Cisco blogs (n.d.). Cisco. Retrieved from Whitworth, B. (2011). Cisco celebrates open communication. Communication World, 28(4), 29. Wildstrom, S. H. (2009). Cisco pushes further into consumer territory. Businessweek Online, 15. Will Cisco's "telepresence" kill business travel? (2009, April 13). The Economist. Retrieved from _travel_dead

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