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Cisco Systems, Inc.

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Q1. How would you improve Cisco’s acquisition selection and integration process? Re: Acquiring other companies is an important strategy for Cisco to rapidly offer new products, reach new markets, and grow revenue. Cisco strengths were its large scale production reaching to large customer base, good reputation, and good financing capabilities. However, unlike other networking companies Cisco doesn’t always develop new technologies on it own and have to rely on acquisition. Cisco acquisition selection should the meet criteria to ensure it meets its acquisition objectives- the companies should have compatible vision for industry and product perspective, share complementary culture, produce short and long term benefits to Cisco shareholders and company should be geographically located close to Cisco. While, for smother acquisition integration Cisco should setup consistent and adaptable product, personnel and manufacturing acquisition process and at the same time continually refine the process from the lessons learned. Q2. Does the Cisco’s process adequately address the challenges of the Summa Four acquisition? Re: Summa Four was a leading provider of programmable switches which will enable Cisco to offer value- added telephony applications to new and existing service providers. Due to the deregulation of the telecommunications industry, service providers were in a competitive race to develop and deliver these types of enhanced services to their customers. Cisco announced it would acquire the Manchester, New Hampshire—based company in July 1998. Summa Four Acquisition -project Alpha was setup at the time of the acquisition. Regardless of all the challenges of Summa four acquisitions Cisco implemented acquisition strategies for successful and smooth integration. Cisco mandatory and situation integration steps overcome major Summa four integration issue- supplier problem -alternate suppliers and vertical integration; materials resource planning system (MRP) integration issue- run systems parallel and phase integration and finally manufacturing integration issue– empower summa employees and Cisco takes back set.

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