Cisco Case Study

In: Business and Management

Submitted By Doossa
Words 478
Pages 2
Nicolas de Gonneville, Jeremy Lipszyc, Rayan Mekouar

Corporate Strategy

Cisco System: New millennium – new acquisition strategy?
1. What was unique in the way Cisco managed its acquisitions in the 90’s?

During the 90’s, Cisco has based its growth strategy mainly on acquisitions. From the first acquisition of the company called “Crescendo” in 1993, Cisco has bought more than 45 firms until 1999. Cisco can be considered as unique in its way of managing its acquisition deals because of the methodology that they have created and the kind of expertise that they have developed. The Cisco’s acquisition framework focuses on 2 main steps: targeting and integration. § Targeting:

In order to enter in niches markets, to acquire a technology, to add a product to its range or to reinforce a specific process, Cisco’s strategy was based on the purchase of smaller and innovative companies. The selection process includes 6 main criteria: -­‐ size; focus mainly on small companies, -­‐ growth; fast growing companies, -­‐ strategy; Cisco is looking for focused companies with a strong expertise, -­‐ entrepreneurial spirit, -­‐ similarity in culture, -­‐ and geographical proximity especially for the largest targets. Cisco is looking for good fit, complementarity of visions, quick wins for shareholders and long terms wins for all stakeholders. § Integration

According to Cisco’s management, post-acquisition integration is key to create value. Cisco’s integration process was focused on three goals: -­‐ employee retention; the very low turnover rates among acquired employees are evidences of success in integration, -­‐ follow-up on new product development; with inputs from marketing, engineering and manufacturing to support new product design, -­‐ return on investment; the goal is to generate in revenue what…...

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