This document compares Cisco and Amazon on various financial metrics. Cisco is a networking company founded in 1984 with $49 billion in annual revenue. It has strong R&D, a diverse business, and market leadership. Amazon has higher liquidity and activity ratios than Cisco, with faster inventory turnover and higher asset use. The document recommends Cisco focus on security, cloud, data-driven networking, and new business models. Overall, it provides an overview of the two companies and suggests areas for Cisco to improve competitiveness.

1. Management Consulting
Amazon Vs Cisco
Senthil Kumar R
2017 EMBA C

2. PART-1
About the matching Company-Cisco

3. About CISCO
Business Description Designs and manufactures networking components
Year Founded 1984
Headquarters San Jose , California
Employees 73,000
Major Competitors HP,ARISTA, DELL,Microsoft,F5,Riverbed
Revenue $49.33 billion
Primary Industry Switching and Routing

4. Evolve of CISCO
Golden Gate Bridge
SanfranCISCO
Digital Signal
The Human
Network
Tomorrow Starts
Here
1984 1996 2006 2013
Sandy Lerner & Leonard
Bosack
John Chambers John Chambers Charles Robbins

5. Values Vision Strategy
We create solutions
built on intelligent
networks that solve our
customers’ challenges.
Changing the Way We
Work, Live, Play, and
Learn.

6. SWOT
6
Strengths
 Known for its strong R & D division
 Geographically Diverse Business
 Economies of scale lower cost and increases
margin
 Diversified into many segments and tapping
sophisticated markets
 Market leading position brings many benefits
 Robust financial performance
 A culture that experiments produces better long
term values
Weakness
Opportunities
 .
 Expansion through Strategic Alliances and
Acquisitions
 Smart grid infrastructure could increase
demand
 Wi-Fi Home Calling and mobile broadband
 Data intensive applications
 Data Mining
Threats
 The use of cloud servers is lowering sales and
especially profits margins for cisco's core business.
Open Source Competitors
 High competitive rivalry
 Virtualization
 Declining storage networking market
 Weak presence in BPO technologies/markets compared
to global leaders

7. PART-2
Ratio Analysis Amazon Vs Cisco

8. LIQUDITY RATIO
Current Ratio
Amazon CISCO Ratio Acceptable
1.04 3.03 2:1
Quick Ratio
AMAZON CISCO Ratio Acceptable
1.04 2.92 1:1

9. ACTIVTY / TURNOVER RATIO
Inventory Turnover Ratio
Amazon CISCO
9.97 12.55
Asset Turnover Ratio
Amazon CISCO
1.66 0.38

10. Earning Per share
Amazon CISCO
$6.15 $1.90
Profitability RATIO
CISCO AMAZON

11. Recommendation to CISCO
 Strategy continuation on M&A
 Focus on Security
 Cloud and Virtual Network adoption
 Visibility and Data driven Networking
 New Business model

12. Thank You

13. Finance Statements
Income (In Millions) 2017
Revenue 177866
Cost of revenue 137183
Gross profit 40683
Operating expenses(In Millions) 2017
Sales, General and administrative 13743
Other operating expenses 22834
Total operating expenses 36577
Operating income 4106
Interest Expense 848
Other income (expense) 548
Income before income taxes 3806
Provision for income taxes 769
Other income -4
Net income from continuing operations 3033
Net income 3033
Operating Expense (In Millions) 2017

14. Balance Sheet - Amazon
Balance Sheet 2017
Total Current Assets 131310
Total Liabilities 103601

15. ACTIVTY / TURNOVER RATIO
Inventory Turnover Ratio
Cost of Goods Sold Average Stock
60197 57883
Amazon CISCO
9.97 12.55
Asset Turnover Ratio
Amazon CISCO
1.66 0.38