Ba401 Cisco Inc,.Acquisition


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Ba401 Cisco Inc,.Acquisition

  1. 1.
  2. 2. Cisco Corporate Overview<br />Husband and wife Leonard Bosack and Sandy Lerner, both working for Stanford University, wanted to link disperate computer networks on campus together,so they develop the first “multiprotocal”.<br />Cisco’s technologies open up the potential to link disperate networks all the world<br />
  3. 3. Cisco Corporate Overview(2)<br />With an early foothold in the data networking networking equipment market,Ciscobecome the market leader<br />Company’s product line had expanded to include a broad range of other networking solutions to offer customers an “end-to-end” network solution<br />Routers and Switches are still Cisco’s core product<br />
  4. 4. Cisco Corporate Overview(3)<br />In 1996 Cisco entered the $250billion telecom equipment market, which was in significant change<br />Historically there had been 3 type of network<br />Phone network for translating voice<br />Computer network for transmitting data<br />Broadcast network for transmitting video<br /><ul><li>Advance in digitalization make it possible to transmit all three over one network</li></li></ul><li>Cisco Corporate Overview(4)<br />Cisco was competing with many rivals but Cisco scored a victory when Sprint select Cisco to be the supplier of its new data and telephone network.<br />Cisco went public in 1990,closing its first day of trading with a market value of $222 million.<br />Just 8 years later, Cisco’s market value topped the significant $100 billion mark, reaching that mark faster than any company in history and stripping Microsoft of the previous record of 11 years.<br />
  5. 5. Business strategy<br />
  6. 6. Business strategy(2)<br />An inherent part of Cisco’s strategy was using acquisition and partnership to gain access to new technologies<br />
  7. 7. Cisco’s Manufacturing Philisophy and Organization<br />Structured as a highly centralized organization.<br />Only engineering and marketing were decentralized at the business unit level<br />Cisco own and operated three manufacturing facilities in San Jose.<br />Tasman<br />Walsh<br />Silver Creek<br />
  8. 8. Cisco’s Manufacturing Philisophy and Organization(2)<br />Cisco’s heavily dependent on outsourcing. It would keep only the core business and outsource everything else to alliance partners<br />About 25percent of Cisco’s revenue and 50 percent of its unit volume was from external factories<br />Cisco did supply them to make sure that they met Cisco’s standards<br />
  9. 9. Cisco’s acquisition strategy<br />
  10. 10. Employee Retention<br />Cisco itself was the combination of 25 different organizations.<br />Cisco specifics of the transition plan to the needs of the acquired company’s employees. co’s HR professionals went to great lengths to tailor<br />After the acquisition closed, Cisco’s HR team wouldspend another six to sevens on-site executing the transition plan.<br />For the employees of the acquired firm, working for Cisco required a number of significant changes to their compensation.<br />
  11. 11. Employee Retention(2)<br />Every redundant person had the opportunity to apply for any Cisco job opening world-wide over 300-600job openings available atany one time<br />Employee turnover rate for acquisitions wasonly 8 percent, the same level as for Cisco’s long-term employees <br />About one in five Cisco employees and one-third of Cisco’s top management positions were filled by people who had come from acquired companies.<br />
  12. 12. New product development<br />Cisco’s new product introduction(NPI) process required both technical expertise and management talent<br />Cisco found that the most effective way to do was for the acquired company to adopt Cisco’s cross-functional, systematic NPI process<br />
  13. 13. Return on investment<br />With Cisco’s powerful sales organization and third party distributors,they can sell the acquired company’s product in two-to five times ramp up in the acquired company’s volume<br />This is the key driver behind the significant groth in cisco’s revenue<br />
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  15. 15. Type of acquisitions<br />
  16. 16. Cisco’s acquisition integration process<br />Before agreeing to the term of an acquisition, Cisco conduct thorough due diligence on the company<br />After the acquisition had closed, Cisco would move forward with postacquicitionprocess <br />Use “scenario planning”<br />
  17. 17. Manufactoring Integration team<br />To manage the postacquisition process was to appoint one of the senior managers in the acquired company as the integration team leader<br />Cisco also had developed the “buddy system” approach. The buddy system involved appointing an experienced Cisco employee to be the “manager of the intangibles” in the acquired company, and swapping a handful of Cisco employees with employees from the acquired company. Both the manager of intangibles and the on-site Cisco staff would assist employees from the acquired company with questions regarding how to access information and get things done within the Cisco organization.<br />
  18. 18. Mandatory integration steps<br />
  19. 19. The summa four acquisition<br />Summa Four is a leading provider of programmable switches which will enable Cisco to offer value- added telephony applications to new and existing service providers as well as extending these services to IP (Internet Protocol) networks, which were able to transmit voice, data, and video.<br />
  20. 20. Summa four product line<br />
  21. 21. Summa four organization<br />Project Alpha was still in the development phase at the time of the acquisition, and over a year away from product launch Key reason behind Cisco’s interest in Summa Four<br />In September of 1998, the idea of being acquired by Cisco was still very new to Summa Four’s employees, but their exciting. <br />
  22. 22. Summa four organization(2)<br />Summa Four’s plant compared favorably to many of the other plants that Cisco had acquired. However, the plant used a homegrown, PC- based test system that was far less automated than Cisco’s Autotest system. <br />Summa four purchased approximately 5,000 individual parts from 250 suppliers, 85 of whom were new to Cisco<br />
  23. 23. Member<br />น.ส. อมรรัตน์ ธาระ 5002610227<br />น.ส. พลอยจันทร์ ถมกระจ่าง 5002680287<br />น.ส. นาราพันธ์ พงศ์พัทธพันธ์ 5002680634<br />นาย ณัฐกรณ์ เฉลยจิตรธรรม 5002683182<br />