Post on 06-Dec-2015
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CISCO SYSTEMS - THE SUPPLY CHAIN
STORY
Knowledge Management
Jennifer ForbesJinelle Adams
Nwakego IsikaNickkisha Farrell
Aminath Shayaan
Cisco Systems – Supply Chain Case Study
Overview The Organization – CISCO Systems Key Success Factors PEST Analysis SWOT Analysis Porters Five Forces Recommendations Conclusion
Cisco Systems – Supply Chain Case Study
Cisco Systems – Supply Chain Case Study
The Organization: Cisco Sys.
World leader in networking equipment for the Internet. Cisco aims to empower the Internet generation.
Transnational Public Company
Headquarters – San Jose, California, USA Number of Empoyees – 65, 545
Offices in the United States, Canada, European Markets, Emerging Markets, Asia Pacific, and Japan.(Cisco Annual Report, 2009).
Cisco Systems – Supply Chain Case Study
Core Competencies & Key Success Factors
Strong and strategic industry partners
Customer Relationship Management
Innovativeness
Ability to manufacture and design new products with new world processes
Cisco Systems – Supply Chain Case Study
PEST Analysis
Cisco Systems – Supply Chain Case Study
- UNFAVORABLE ECONOMIC CONDITIONS
- US ANTITRUST LAWS
- DIFFERING GEOPOLITICAL ENVIRONMENTS
- UNSTABLE GLOBAL ECONOMY:HESITANTANCY TO INVEST
- UNCERTAIN INVESTMENT
RETURNS
- EXCHANGE RATES
- CULTURAL DIVERSITY
- EMPLOYMENT AND UNEMPLOYMENT REGULATIONS & MEDIA VIEWS
- THE COMPANY BRAND, IMAGE
- PATENTS AND INTELLECTUAL PROPERTY
- COMPLEX INFORMATION SYSTEMS
- EMERGING TECHNOLOGICAL TRENDS
- RELIANCE ON THE INTERNET
P E
S T
Cisco Systems – Supply Chain Case Study
Porter’s Five Forces
Competitive Rivalry
DISPERSED SEGMENTS
NICHE PROVIDERS
RAPID PACE OF CHANGE
Buyer Power
ALTERNATIVE PRODUCTS
HIGH SWITCHING COSTS
TECHNOLOGIES ARE A NECESSITY
Threat of Substitutes
FEW COMPETING TECHNOLOGIES
MINIMAL ALTERNATIVES
HIGH SWITCHING COSTS
Mod Mod.
Barriers to Entry
EASE OF INTERNET BASED PROVIDERFEW START-UP ELEMENTS
TECHNOLOGICAL KNOW-HOWMERGERS/TAKEOVERS
Supplier Power
HIGH INDUSTRY DEPENDENCE
UNDIFFERENTIATED INPUTS
CISCO LINKS SUPPLIERS
Low Low
High
Cisco Systems – Supply Chain Case Study
SWOT Analysis• ADVANCE TECHNOLOGY• STRONG FINANCIAL POSITION• FLEXIBILITY• STRONG MANAGEMENT TEAM• MARKET SHARE LEADERSHIP• STRONG BRAND IMAGE
• OUTSOURCING TOO MANY BUSINESS PROCESSES
• STRONG RELIANCE ON TECH.
• HIGH PRICING
• DISRUPTIONS OF PROCESS
CAUSED BY ACQUISITIONS
• INFO. TECH INFRASTRUCTURE ATTACKS
• UNSUSTAINABLE PRODUCT GROSS MARGINS
• CYBER CRIME
• UNCERTAINTY OF GLOBAL ECONOMY
• THE GLOBAL FINANCIAL CRISIS (FUTURE INVESTMENTS)
• POOL OF EXPERT WORKERS IN THE INDIAN MARKET
• EXPANSION IN CHINA AS OTHER GLOBAL COMPANIES EXPAND TO THIS MARKET
STOW
Cisco Systems – Supply Chain Case Study
Recommendations Problem 1:
The Supply Chain Management Inefficiency
Cause (According to case)
Over reliance on complex technologies Pyramid Structure of Supply Chain (Reliance
on multitude of suppliers and manufacturers) Errors in Forecasting product demand
Result Billions of dollars lost on overstocking of
Inventory
Cisco Systems – Supply Chain Case Study
Recommendations
Continuous assessment of “mediating variables such as supplier performance and industry impacts”.
Solution : Supply chain Integration
Solution : Inventory Management & Outsourcing Principles
Decide on specific levels to include in supply chain integration process
Hence flattening of the pyramid structure of Supply Chain outlined in the case
Cisco Systems – Supply Chain Case Study
Recommendations
• Involvement of staff in making decisions (through structures and processes) which involve the sharing of authority and responsibility in the workplace
• Give Employees a Piece of the Pie without giving away the Bakery
• Shareholder Agreement to Supervise Process
• Added Benefits: productivity improvement such as service delivery, increased job satisfaction
Problem 2: HRM – Disgruntled Ex-Employees
Solution : Industrial Democracy
Cisco Systems – Supply Chain Case Study
Recommendations
• Employees will have direct access to customer information
• Better monitor customers changing needs and emerging trends.
Problem 3: CRM – Anticipating User Demands
Solution : Integration of HR and CRM Systems
Solution : Extension of CRM to Channel Partners
• Include Acquisitions in CRM
Cisco Systems – Supply Chain Case Study
Recommendations Problem 4: Security Attacks
Solution : Culture of Research and Development
Strategically choose locations of offices
Access cutting edge technology as these institutions have in the past, proven to be the ones pushing the boundaries of technological achievements.
Enrichment of Potential Job Recruitment and Selection Process
Cisco Systems – Supply Chain Case Study
Conclusion
Cisco Systems – Supply Chain Case Study
Streamlined SCM processes, through restructuring
(CIP) Continuous improvement processes will enable Cisco to be meticulous in combating external threats
Enhanced HR practices Revised CRM Strategic Execution of R&D
Cisco Systems – Supply Chain Case Study
Thank You!!! The End
Questions???
Cisco Systems – Supply Chain Case Study