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Cisco Systems: New Millenium – New acquisition strategy Essay

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The case deals with the acquisition plan implemented simply by Cisco, by providing some true samples. One of the most interesting point concerns just how Cisco acquired companies during 90s with 4 primary goals: a shared vision, shareholders’ pleasure, motivating useful for employees, investors, customers and partners and a perfect “chemistry” (P. 9).

Contrary to the global trend of big companies’ obtain, Cisco was involved in smaller sized companies, depending on selection requirements (presented below) which match the company’s needs and strategy: 5. Small businesses: the advantage is that those businesses are start-ups having new bothersome Ideas highly complementary with Cisco’s businesses. * Limited number of workers (but technicians as the best part of them): Cisco gives a huge importance to skilled people, because as they say, those individuals are the actual asset which in turn permits to enhance future industry shares, And so people retention becomes among acquisitions’ key goals (success driven with a very low yield compared with the industry). 2. Very pioneeringup-and-coming systems dedicated to fast growing: the need to expand by building part of Cisco is one of the inspiring arguments to have win-win transactions.

On the other hand, this sort of companies is definitely not risk adverse and promises future benefits for their owners. 2. Geographical distance: for significant acquisitions, it permits to shorten lost time and receive directly to the actual acquisition’s setup in order to share the distribution channels (cost reduction) and have the new product earlier. 5. Comparable civilizations and thoughts: since purchase leads to the integration of the obtained company towards the group, you ought to have the same vision of the future approach and civilizations which can be combined to obtain a coherent unit.

Previous, the company’s strength is located in its ability to decentralize making decisions by making a new business product at each acquisition, because the acquired company is known as as a expert in its domain name. This system lets to make attained company truly feel independent in the way it is maintained (less change management being processed). Carbonilla represents a benchmark while acquirer intended for the pioneeringup-and-coming firms which will aim to end up being acquired as it proposes a number of advantages regarding independency, persons treatment, product valorization etc, which kind part of the most critical criteria for acquisition.

Furthermore, in the last ten years, it elevated its elegance based on the personalized treatment provided for the new joiners and the restructuration by kind of technology that makes economies of scale and allows visitors to share their particular knowledge with their previous “internal competitors” and increase their abilities. So , when it comes to win-win marriage, Cisco obtain model can be a basis of evaluation for any potential acquired organization.