Cisco Case Study.docx - Introduction The California-based computer company Cisco Systems Inc surprises the industry observers by announcing its first

Cisco Case Study.docx - Introduction The California-based...

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Introduction: The California-based, computer company Cisco Systems Inc. surprises the industry observers by announcing its first eve negative earnings in more than a decade. Sales decreased by 30% forcing them to write off inventory worth $2.2 billion dollars and laid off 8,500 employees. The Market capitalization of the company was down to $154 billion dollars and per employee profit was down $240,000 from $700,000 the previous year. This bad situation occurred because Cisco face a couple problems. Known as “being the hardware maker that did not make hardware”, Cisco typically had products manufactured by contract manufacturers and send finished machines from the factory to buyers. Issues: The chain was structured to many, “like a pyramid” with the company in the center of it all. This led to a lot of communication gaps between different levels of production and thus lengthened the average ship time of products from two weeks to three to four weeks.
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  • Fall '16
  • Penny miguel

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