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Strategic Plan of company (Cisco inc. )

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Cisco: Organization overview
Cisco Systems is a large multinational organization that produces computer networking products
and services. The Linksys brand of consumer networking products is also an owned subsidiary of
Cisco Systems.
Cisco Systems is undoubtedly best known for their line of network routers. These products range
from basic consumer routers under the Linksys brand to top-end routers that help form the
backbone of the Internet. Besides routers, Cisco Systems produces numerous other types of
network equipment including VPN, storage, and video conferencing systems.
Cisco's network certification program is world recognized. Popular Cisco certifications include
the CCNP, CCNA and CCIE. These programs are intended to recognize knowledge and
experience in computer networking, particularly in routing and switching. Students and
professionals may seek to take certifications from Cisco Systems to improve their skills and
Cisco Press ( publishes certification study titles and other reference books for
Cisco Systems.
Cisco ended recently with a market capitalisation of $ 579.2 billion, slightly ahead of
Microsoft's $ 578.2 billion . Shares of Cisco closed up 1-9/16 at a record 79-3/8 while Microsoft
eased 3/16 to 111-11/16. Both stocks trade on the Nasdaq.(Cisco ,Product,2013)
Cisco stock has continued to climb steadily through the year, gaining one-third in value. Shares
of computer software giant Microsoft -- which topped the market cap chart for a long time --
have languished amid concerns over the government's pending anti-trust case, easing 10 per cent
from its peak. Some analysts see Microsoft being hampered by the terms of any upcoming
settlement, and are starting to make Cisco their core holding among large capitalisation
technology stocks.
Microsoft, while still a strong generator of corporate profits, generates much of its income from
desktop applications and operating systems. While the Internet has boosted demand for
Microsoft's products, Cisco, whose routers carry most of the traffic running over the network, is
seen as a bigger beneficiary of its growth and its earnings gains have far outpaced Microsoft in
recent quarters. Cisco Systems, the biggest maker of equipment that powers the Internet, will
become for the Internet what Microsoft Corp, the biggest software company, was for the personal
The Cisco’s Strategy team's charter continues to evolve to support the role of Corporate
Development and the Chief Strategy Officer responsibilities. To achieve this, the Strategy team:
Drives the ongoing development and coordination of Cisco's corporate strategy.

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Develops an ongoing agenda of strategy issues and opportunities for Cisco to help define
and implement actions that create competitive advantage and drive Cisco's long term
Partners with Cisco's senior leadership team, business unit, functional and theater leaders
to drive key strategic initiatives, address critical business challenges, and develop and
execute strategies that drive opportunities in Cisco's businesses.
Develops and disseminates thought leadership.
Creates a center of excellence for strategic skill sets, tools and capabilities.
Cisco Systems designs, manufactures, and sells Internet Protocol (IP)-based networking and
other products related to the communications and IT industry and provides services associated
with these products and their use. The company has been making active acquisitions as part of its
growth strategy. Inorganic growth enhances the company's investors' confidence and ability to
serve customers by pursuing cross selling opportunities. However, intense competition may
affect operating results, financial condition and market shares of the company in the coming
Inorganic growth strategy enhances investors' confidence
The company has been making active acquisitions as part of its growth strategy. Over the last
five years, Cisco has made significant investments in acquiring complementary companies,
products, services and technologies.Recently, the company acquired nine companies including
Navini Networks, Securent, Cognio, BroadWare Technologies, WebEx, NeoPath Networks,
Reactivity, Utah Street Networks and Tivella. Similarly in 2008, the company acquired four
companies including Jabber, PostPath, Pure Networks and Nuova Systems.
In addition, the company witnessed strong growth across all its segments. During FY2010, the
switches segment grew 12% to $13,568 million, while the advanced technologies segment
recorded revenues of $9,639 million, an increase of 6% over 2009. The router division recorded
revenues of $6,574 million, an increase of 4.2% over 2009, whereas the others products revenues
grew by 64.1% to $2,639 million. The services segment grew 9.1% to $7,620 million, compared
to $6.986 million in 2009. Strong financial performance paves the way for pursuing further
inorganic growth strategies, and also improves the investors' confidence and enhances brand

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High dependence on US and Canada makes it vulnerable to country specific risks
Cisco lacks geographic diversification of its revenues. The company is highly dependent on the
US and Canada for majority of its revenues. In FY2010, the company earned about 54.3% of its
revenues from the US and Canada. The US and Canada operations have historically accounted
for a large portion of the company's total revenues, contributing 53.6% and 53.7% for the 2009
and 2008, respectively.
The company has presence in many regions outside the US, including European markets,
emerging markets, Asia Pacific and Japan. But these regions collectively accounted for only
45.7% of the total revenues in FY2010. In terms of revenue generated by geographies, the
company derived 20.1%,10.9%, 10.9%, and 3.8% of total revenues from European markets,
emerging markets, Asia Pacificand Japan, respectively.
High dependence on the US and Canada makes Cisco vulnerable to country specific risks and
limits growth opportunities.
Supply chain issues leading to delays in order fulfillments.
Cisco is significantly dependent on its suppliers and contract manufacturers for certain
Due to its outsourced manufacturing strategy, Cisco has limited control on the delivery schedules
and has suffered component shortages due to manufacturing process issues. In FY2010, Cisco
experienced longer than normal lead times on several of its products and continues to face delays
in some of its component suppliers. Any persistent shortages in supplies due to capacity issues or
manufacturing process issues will alter the price of these products. In such a situation, the
company may not be able to source required components in adequate quantities.
The company has presence in the cloud infrastructure market. The company has introduced
technology innovations across its entire data center business advantage portfolio integrating its
Unified Fabric, Unified Computing, and Unified Network Services into a holistic data center
fabric to deliver applications across any location, within the data center, across data centers, or to
the cloud. Cisco's Nexus supports both multiprotocol label switching (MPLS) for Layer 3 virtual
private networks (VPNs) for highly secure, cloud-ready network infrastructure. The Cisco
TelePresence exchange system enables service providers to develop and deliver a broad portfolio
of cloud-based managed and hosted telepresence services for next-generation cloud-based
business telepresence solutions.
During FY2010, Cisco and EMC, together with VMware, formed the Virtual Computing
Environment (VCE) coalition and deployed Vblock Infrastructure packages to enable data center
virtualization and a transition to private cloud infrastructures. Similarly, Cisco’s investment in
Acadia Enterprises,a joint venture with EMC, VMware and Intel, is designed to offer new
delivery models for cloud computing solutions.

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