Cisco Case Analysis
Cisco has gone from a nimble technology innovator with huge market cap to one struggling to hold onto declining market share and maintain relevance. This paper outlines management strategies used during its ascent, problems facing the company recently and recommendations for the future.
(1) Cisco’s approach to its culture and structure was suitable to accomplish its strategy and deal with a competitive market. Because the networking industry is rapidly changing, Cisco needed to adapt to the changing market in order to become a leader and accomplish its strategy The way Cisco adapted to such a market was to implement an organic organizational structure that promoted creativity, openness and flexibility. The organic structure by nature is less formal, significantly decentralized in decision-making, and communication channels are both horizontal and vertical to keep up with rapid market changes (Francesco, 1998). Cisco’s organic structure is based on five core values: dedication to customer success, innovation and learning, partnerships, teamwork and doing less with more. Cisco found that to be successful, it had to meet its customers’ demands, as CEO Chambers stated: “We let the customers decide.” When the customer decides, the company must change along with their demands. Therefore, Cisco trusted its most important asset – its employees – to provide the necessary knowledge to continually adapt to the need for new technology. Employees were encouraged to “think out of the box” and not be afraid to make mistakes. Moreover, Chambers took pride in removing obstacles in the vertical communication channels, giving all employees the opportunity to know what was going on. Finally, he emphasized the absence of exclusionary terms such as “executives only.” Each example illustrates how Cisco adopted an organic structure to fit its strategy of rapid adaptation to a constantly changing market. In looking at the Giordano Holdings Ltd case, it
(1) Cisco’s approach to its culture and structure was suitable to accomplish its strategy and deal with a competitive market. Because the networking industry is rapidly changing, Cisco needed to adapt to the changing market in order to become a leader and accomplish its strategy The way Cisco adapted to such a market was to implement an organic organizational structure that promoted creativity, openness and flexibility. The organic structure by nature is less formal, significantly decentralized in decision-making, and communication channels are both horizontal and vertical to keep up with rapid market changes (Francesco, 1998). Cisco’s organic structure is based on five core values: dedication to customer success, innovation and learning, partnerships, teamwork and doing less with more. Cisco found that to be successful, it had to meet its customers’ demands, as CEO Chambers stated: “We let the customers decide.” When the customer decides, the company must change along with their demands. Therefore, Cisco trusted its most important asset – its employees – to provide the necessary knowledge to continually adapt to the need for new technology. Employees were encouraged to “think out of the box” and not be afraid to make mistakes. Moreover, Chambers took pride in removing obstacles in the vertical communication channels, giving all employees the opportunity to know what was going on. Finally, he emphasized the absence of exclusionary terms such as “executives only.” Each example illustrates how Cisco adopted an organic structure to fit its strategy of rapid adaptation to a constantly changing market. In looking at the Giordano Holdings Ltd case, it