A CASE STUDY ON CISCO¶S ACQUISITION STRATEGY

´ Initially they designed Internet Operating System (IOS). ´ had a net loss of US $1 billion for year 2000-01. CISCO delivered first Router ´ acquired 71 companies between 1993-2000. ´ . ´ focused on TECHNOLOGY DRIVEN to CUSTOMER DRIVEN ´ In march 1986.INTRODUCTION TO CISCO Founded in late 1984 in California.

ELEMENTS OF CISCO¶S CULTURE Empowerment ´ Drive Change ´ Teamwork ´ Customer success ´ Quality team ´ .

CISCO¶S ACQUISITION STRATEGY Similar business vision ‡ Its short term success ‡ Its long term strategy ‡ Chemistry of the people with Cisco·s ‡ Its geographic proximity to Cisco ‡ .

WHICH COMPANY TO ACQUIRE ? Values & culture of the company fit with those of Cisco. ´ Company should be adventurous. ´ Mutual consent of the two companies for the merger was thus absolutely critical to the success of the deal. ´ .

was instituted. comprising of key members of all departments of Cisco.DETERMINING COMPATIBILITY An acquisition team . ´ Team·s task was to study: ´ « The technological aspects of the potential company « Company·s financial records « Company·s knowledge pool « The way the management functioned .

SUCCESS MANTRA Why we bought? ´ How we bought? ´ How we integrated? ´ .

found that the acquired companies were not working well.LOOPHOLES IN STRATEGY Very risky ´ Mostly acquired start-ups that were yet to come out with a product. ´ So CISCO change its acquisition strategy. management dept. ´ . ´ By late 2000.

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