A CASE STUDY ON CISCO¶S ACQUISITION STRATEGY

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

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. ´ 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 .DETERMINING COMPATIBILITY An acquisition team . comprising of key members of all departments of Cisco.

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

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

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