Table of ContentsExecutive summary.....................................................................................................................................1

Introduction.................................................................................................................................................2

Vision..........................................................................................................................................................3

Goal.............................................................................................................................................................3

Mission:.......................................................................................................................................................3

Swot analysis of Cisco systems...................................................................................................................4

Internal audit...............................................................................................................................................4

Strengths.................................................................................................................................................4

Weaknesses.............................................................................................................................................4

Internal Factor Evaluation Matrix (IFE)....................................................................................................5

Opportunities..........................................................................................................................................7

Threats.....................................................................................................................................................7

External factors evaluation matrix (EFE)..................................................................................................8

SWOT Matrix............................................................................................................................................10

Space matrix..........................................................................................................................................14

BCG ( Boston consulting group )Matrix..............................................................................................16

Quantitative Strategic Planning Matrix (QSPM)........................................................................................17

Strategic Alternatives..............................................................................................................................18

Advantages and disadvantages..................................................................................................................21

Recommend Specific Strategies for Cisco Inc.................................................................................24

Develop unified communication (UC)...............................................................................................24

Projected financial statement for recommended project............................................................................25

Recommend Specific Annual Objectives and Policies............................................................................26

Annual Objectives..................................................................................................................................26

Sustaining Policies:............................................................................................................................26

Recommend procedures for strategy review and evaluation......................................................................26

CISCO SYSTEMS INC. ACQUISITION INTEGRATION FOR MANUFACTURING

Executive summary

Cisco Systems was founded in 1984 by Leonard Bosack and Sandy Lerner, husband and wife computer scientists at Stanford University who invented a technology to link their disparate computer systems together. Bosack and Lerner developed the first “multi-protocol” router – a specialized microcomputer that sat between two or more networks and allowed them to “talk” to each other by deciphering, translating, and funneling data between them. Cisco’s technology opened up the potential of linking all of the world’s disparate computer networks.

In the past 15 years Cisco has acquired and integrated companies at a rate of approximately 8/ year. Cisco typically takes a “consume” approach to integrating acquired companies. Because of changing business conditions. Cisco has bought larger model. Cisco IT has adopted a new integration process. Called C5 (capture, consume, connect , combine, and consolidate).

Introduction

This report performs a strategic analysis on the Cisco system Inc. Cisco system is a information technology organization that provides network solution with potential of linking all of the worlds desperate computer network together This report develops the strategic analysis of Cisco systems through a focus on four foci of organizational analysis. The focus areas are

SWOT (strength, weakness, opportunity and threads) analysis Quantitative Strategic Planning Matrix (QSPM) Space matrix Boston consultant group (BCG)

Vision

To change the way people work, live, play and learn

Goal

Employee retention Follow-up on new product development and Return on investment.

Mission:

Cisco system inc, mission is to enable people(1) to make powerful connection(4) whether in business, education philanthropy or creativity.(3) Also by opening up the potential for linking all of the world’s disparate computer networks together in much the same way as different telephone network were liked around the world(5)( 3).They also strove to deliver wide range new products (2) expand it offering through internal and external(3) enhancing customers support(1) and increasing it presence around the world.(3) Cisco also believed in being open, honest, sensitive, and flexible his employees(6)(9)(7)

1. Customers

2. Products or Services

3. Market

4. Technology

5. Concerns for Sustainability ( Profits & Growths)

6. Philosophy (beliefs vs. Values)

7. Self-concept

8. Concerns for public image

9. Concerns for employees

Swot analysis of Cisco systems

Internal audit

Strengths

1. Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues

2. Experience management team that was leading key business process conversion tasks Intellectual

3. property Cisco focuses on developing and retaining it skill employees through training and high pay.

4. Strong financial position. Just 8 years Cisco’s market value topped the significant $100billoin mark reaching that mark faster than any company in history

5. Effective business strategy by using acquisition and partnership to gain access to new technologies.

6. Technology Leadership in website management told, dial-up and other access solutions, internet appliances.

7. Successful new product development that suited the need of his customers had led to it leadership in the industry

8. Growth in revenue.at a compound rate of 89% from $28million to $8.5billon9. Market share leadership through innovation and acquisition coupled with share price

increase10. Strong and well established business principle which include the importance of customer

satisfaction, time to market, and frugality

Weaknesses

1. Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing

2. Constant re-engineering of network engineers 3. cultural implication resulting from acquiring new companies 4. complexity of solving problem due to the large nature of the company and the need for

highly specialized personnel 5. limited skilled laborer6. Cisco relied heavily on outsourcing which sometime give irregularity 7. Mistake in production since Cisco sold many built-to order highly configurable product8. Implication of leveraging it sales and distribution channel on an acquired company

product volume

9. Functional areas like customer support, finance, information technology, still remain centralized as at mid 1998

10. Making mistake. since Cisco sells many built to order, highly configurable products, they were numerous opportunities to making mistake

Internal Factor Evaluation Matrix (IFE)

Strength Weight Rating Weighted score

1 Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues 0.05 3 0.15

2 Experience management team that was leading key business processes 0.05 3 0.15

3 Intellectual property. Cisco focus and developing and retaining it skill employees through training and high pay. 0.05 3 0.15

4 Strong financial position. Just 8 years Cisco’s market value topped the significant $100billoin mark reaching that mark faster than any company in history

0.07 4 0.28

5 Effective business strategy by using acquisition and partnership to gain access to new technologies. 0.06 4 0.24

6 Technology Leadership in website management told, dial-up and other access solutions, internet appliances.

0.064 0.24

7 Successful new product development that suited the need of his customers had led to it leadership in the industry 0.08

4 0.32

8 Market share leadership through innovation and acquisition coupled with share price increase 0.07

4 0.28

9 Growth in revenue at a compound rate of 89% from $28million to $8.5billon 0.08

4 0.32

10

Strong and well established business principle which include the importance of customer satisfaction, time to

0.03 3 0.09

market, and frugality

Weakness Weight Rating Weighted score

1 Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing

0.072 0.14

2 Constant re-engineering of network engineers which was time consuming

0.031 0.03

3 cultural implication resulting from acquiring new companies 0.02

1 0.02

4 complexity of solving problem due to the large nature of the company and the need for highly specialized personnel

0.04

2 0.08

5 Making mistake. since Cisco sells many built-to order, highly configurable products, They were numerous opportunities to making mistake

0.07 20.14

6 limited skilled laborer0.04

2 0.08

7 Mistake in production since Cisco sold many built-to order highly configurable product 0.06 2

0.12

8 Implication of leveraging it sales and distribution channel on an acquired company product volume 0.03 2

0.06

9 Slow move to decentralization 0.04 1 0.04TOTAL 1 48 2.93

Opportunities

1. Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed.

2. Increase in internet traffic between 1989-19983. significant changes in telecom equipment market due to rapid advance in technology 4. Growth in importance of the global internet and corporate intranets 5. Phone companies were beginning to replace their century old voice-only networks

with new networks capable of carrying voice, data and data 6. The crippling declines of Cisco’s main competitors such as IBM and WANG7. Cisco partnership with Microsoft a key figure in network solutions 8. Rapid increase in the financial market between 1989-19989. Sprint selected Cisco to be the primary supplier of it new data and telephone network

Threats

1. structural and technical changes in new companies acquired 2. Fierce competition due to the deregulation of the telecommunication industry.3. Limited suppliers pose risk of continuity 4. Consolidation in the US telecommunication industry could present a possible threat to

telecommunication industry including Cisco5. Growing demand for skill laborer in the in many companies 6. Cultural implications from acquired company 7. Employees of acquired company worry of input not being accepted 8. Hot job market in New England gives attractive alternatives for most of the experience

engineers.9. Potential risk of negative market reaction to VCO/4K

External factors evaluation matrix (EFE)

Opportunities Weight Rate

Rated score

1 Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed. 0.05

30.15

2 Increase in internet traffic between 1989-19980.05

3 0.15

3 significant changes in telecom equipment market due to rapid advance in technology

0.074 0.28

4 Growth in importance of the global internet and corporate intranets 0.07

4 0.28

5 Phone companies were beginning to replace their century old voice-only networks with new networks capable of carrying voice, data and data

0.05

2 0.10

6 The crippling declines of Cisco’s main competitors such as IBM AND WANG 0.06

3 0.18

7 Cisco partnership with Microsoft a key figure in network solutions 0.07

4 0.28

8 Rapid increase in the financial market between 1989-19980.08

4 0.32

9 Market share leadership through innovation and acquisition coupled with share price increase 0.08

4 0.32

Threats

Threats Weight

Rating Weighted score

1 structural and technical changes in new companies acquired as the companies complain of changes being force on them 0.04 2

0.08

2 Fierce competition due to the deregulation of the telecommunication industry

0.074 0.28

3 Limited supply pose risk of continuity 0.07

2 0.14

4 Consolidation in the US telecommunication industry could present a possible threat to telecommunication industry including Cisco

0.04

2 0.08

5 Growing demand for skill laborer in the in many companies 0.03

1 0.03

6 Cultural implications from acquired company 0.03

1 0.03

7 Employees of acquired company worry of input not being accepted

0.041 0.04

8 Hot job market in New England gives attractive alternatives for most of the experience engineers.

0.062 0.12

9 Potential risk of negative market reaction to VCO/4K 0.04 1 0.04Total 1 2.9

SWOT Matrix

Strengths Weaknesses

1).Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues

2). Experience management team that was leading key business process conversion tasks

3). intellectual property Cisco focus on developing and retaining it skill employees through training and high pay.

4). Strong financial position. Just 8 years Cisco’s market value topped the significant $100billoin mark reaching that mark faster than any company in history

5).Effective business strategy by using acquisition and partnership to gain access to new technologies.

6). Technology Leadership in website management told, dial-up and other access solutions, internet appliances.

7).Successful new product

1). Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing

2). Constant re-engineering of network engineers

3).cultural implication resulting from acquiring new companies

4).complexity of solving problem due to the large nature of the company and the need for highly specialized personnel

5).limited skilled laborer

6).Cisco relied heavily on outsourcing which sometime give irregularity

7).Implication of leveraging it sales and distribution channel

8).Functional areas like customer support, finance, information technology, still remain centralized as at mid 1998

9).Making mistake. since

development that suited the need of his customers had led to it leadership in the industry

8).Growth in revenue.at a compound rate of 89% from $28million to $8.5billon

9).Market share leadership through innovation and acquisition coupled with share price increase

10).Strong and well established business principle which include the importance of customer satisfaction, time to market, and frugality

Cisco sells many built to order, highly configurable products, they were numerous opportunities to making mistake

Opportunities S-O Strategies W-O Strategies

1).Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed.

2).Increase in internet traffic between 1989-1998

3). significant changes in telecom equipment market due to rapid advance in technology

4)Growth in importance of the global internet and corporate intranets

5).Phone companies were beginning to replace their century old voice-only networks with new networks capable of carrying voice, data and data

6).The crippling declines of Cisco’s main competitors such as IBM and WANG

7).Cisco partnership with Microsoft a key figure in network solutions

8). Rapid increase in the financial market between 1989-1998

9).Sprint selected Cisco to be the primary supplier of it new

1. Produce unified communication (S4,S3,S5 O1)

2. Increase their present in the world through advert and sales over the internet (S6,O2,O4)

3. Penetrations in to markets formerly served by IBM and WANG. (S1,S7,S9,S2,O6)

4. New Product development (S4,S5,S7,O5,O6)

5. Merger with sprint

(O9,S4,S8)

1).Use advance technology in production thereby limiting the risk of making mistake. (W8,O3)2) Acquire the skill laborer of IBM and WANG(W6,O6)3). Stabilize production method by using acquiring new technology.(W1,W2,O1)

data and telephone networkThreats S-T Strategies W-T Strategies

1). structural and technical changes in new companies acquired

2). Fierce competition due to the deregulation of the telecommunication industry.

3).Limited supply pose risk of continuity

4).Consolidation in the US telecommunication industry could present a possible threat to telecommunication industry including Cisco

5).Shortage of skill laborer in many companies

6) Cultural implications from acquired company

7).Employees of acquired company worry of input not being accepted

8).Hot job market in New England gives attractive alternatives for most of the experience engineers.

9).Potential risk of negative market reaction to VCO/4K

1).Continue producing new product and constant innovation to outbid competitors (T2,S3,S4,S5,S7,S9)2).Train and retain key employees of acquired company (T3,S2,S3)

Effective management of new company acquire (W3,W4,T6,T7)

Space matrix

Financial Strength (FS) Rating

1. Cisco revenue grow at a compound annual rate of 89% from $28million to $8.5 billion between 1989-1998

2. Cisco market value topped to a significant $100billion mark in just 8 years

3. Increase in net income of 76% from 1994-1998

4. Cisco return on asset increase by 15% from 1994-1998

4.0

3.0

4.0

2.0

13

Industrial Strength (IS)

1. Rapid increase in the financial market between 1989-1998

2. Crippling decline of some competitors like IBM3. Fierce competition due to the deregulation of the telecommunication

industry.4. Growth in importance of the global internet and corporate intranets

5

1.0

2.0

3.0

11

Competitive Advantage(CA)

1. By 1998 Cisco become number one or number two position in 14 of the 15 market it serve

2. Technology Leadership in website management told, dial-up and other access solutions, internet appliances.

3. Market share leadership through innovation and acquisition coupled with share price increase

4. Cisco offers customers and “end to end” network solution an option which many companies were actively considering

-1.0

-2.0

-1.0

-1.0

-6

Environmental stability(ES)

1. significant changes in telecom equipment market due to rapid advance in technology

2. Cisco partnership with Microsoft a key figure in network solutions thereby exerting competitive pressure

3. Government deregulation in the telecom industry

-1

-2.0

-5.0

4. Growing demand for unified -2.0

-10

FS average 13/4 = 3.25

IS average 11/4 = 2.75

CA average -6/4 = -1.5

ES average -10/4 = -2.5

DIRECTIONAL Vector Coordinate: X-axis:2.75+ ( -1.5) = 1.25

Y-axis: 3.25 + (-2.5) = 0.75

SPACE matrix tells us that our company should pursue an aggressive strategy. Our company has a strong competitive position it’s in a market with rapid growth. It needs to use its internal strengths to pursue the following strategies

Market Penetration Backward, Forward, Horizontal Integration Market Development Product Development Diversification (Related or Unrelated)

BCG ( Boston consulting group )Matrix

Quantitative Strategic Planning Matrix (QSPM)

Strategy 1: develop unified communication Strategy 2: merge with sprint through forward vertical integration

Strategic Alternatives

Key Internal Factors WeightStrategy 1

Strategy 2

Strengths AS TAS AS TAS

1. Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues

0.05 0 0 1 0.05

2. Experience management team that was leading key business process conversion tasks 0.05 2 0.10 1 0.05

3. Intellectual property, Cisco focuses on developing and retaining it skill employees through training and high pay.

0.05 2 0.10 2 0.1

4. Strong financial position. Just 8 years Cisco’s market value topped the significant $100billoin mark reaching that mark faster than any company in history

0.07 3 0.21 3 0.21

5. Effective business strategy by using acquisition and partnership to gain access to new technologies. 0.06 1 0.06 3 0.18

6.Technology Leadership in website management told, dial-up and other access solutions, internet appliances

0.06 3 0.18 1 0.06

7.Successful new product development that suited the need of his customers had led to its leadership in the industry

0.08 4 0.32 2 0.16

8.Growth in revenue at a compound rate of 89% from $28million to $8.5billon 0.07 3 0.21 3 0.21

9.Market share leadership through innovation and acquisition coupled with share price increase 0.08 0 0 2 0.16

10.Strong and well established business principle which include the importance of customer satisfaction, time to market, and frugality

0.03 1 0.03 1 0.03

Weaknesses

1.Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing

0.07 3 0.21 3 0.21

2.Constant re-engineering of network engineers 0.03 0 0 0 0

3.cultural implication resulting from acquiring new companies 0.02 0 0 0 0

4.complexity of solving problem due to the large nature of the company and the need for highly specialized personnel

0.04 0 0 1 0.04

5.limited skilled laborer 0.07 3 0.21 4 0.28

6.Cisco relied heavily on outsourcing which sometime give irregularity 0.04 0 0 1 0.04

7.Mistake in production since Cisco sold many built-to order highly configurable product 0.06 2 0.12 1 0.06

8.Implication of leveraging it sales and distribution channel on an acquired company product volume 0.03 0 0 1 0.03

9.Functional areas like customer support, finance, information technology, still remain centralized as at mid 1998

0.04 0 0 1 0.04

SUBTOTAL 1.00

Key External FactorsWeight

Develop unified communication

Diversify production

Opportunities AS TAS AS TAS

1. Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed.

0.05 3 0.15 1 0.05

2.Increase in internet traffic between 1989-1998 0.05 0 0 1 0.05

3.significant changes in telecom equipment market due to rapid advance in technology

.

0.07 4 0.28 3 0.21

4.Growth in importance of the global internet and corporate intranets

0.07 1 0.07 3 0.21

5.Phone companies were beginning to replace their century old voice-only networks with new networks capable of carrying voice, data and data

0.05 3 0.15 4 0.2

6.The crippling declines of Cisco’s main competitors such as IBM and WANG.

0.06 1 0.06 3 0.18

7.Cisco partnership with Microsoft a key figure in network solutions 0.07 3 0.21 2 0.14

8.Rapid increase in the financial market between 1989-1998 0.08 3 0.24 3 0.24

9.Sprint selected Cisco to be the primary supplier of it new data and telephone network 0.08 2 0.16 2 0.16

Threats

1.structural and technical changes in new companies acquired 0.04 1 0.04 1 0.04

2. Fierce competition due to the deregulation of the telecommunication industry. 0.07 0 0 2 0.14

3.Limited suppliers pose risk of continuity 0.07 1 0.07 1 0.07

4.Consolidation in the US telecommunication industry could present a possible threat to telecommunication industry including Cisco

0.04 0 0 1 0.04

5.Growing demand for skill laborer in many companies 0.03 1 0.03 1 0.03

6.Cultural implications from acquired company 0.03 0 0 0 0

7.Employees of acquired company worry of input not being accepted 0.04 0 0 0 0

8.Hot job market in New England gives attractive alternatives for most of the experience engineers 0.06 1 0.06 1 0.06

9.Potential risk of negative market reaction to VCO/4K 0.04 0 0 0 0

SUBTOTAL 1.00

SUM TOTAL ATTRACTIVENESS SCORE 3.27 3.73

(Attractiveness Score: 1 = not acceptable; 2 = possibly acceptable; 3 = probably acceptable; 4 = most acceptable; 0 = not relevant)

Advantages and disadvantages

Develop unified communication (UC)

What is unified communication: in its broadest sense UC can encompass all forms of communications that are exchanged via the medium of the TCP/IP network to include other forms of communications such as Internet Protocol Television (IPTV) and Digital Signage Communications as they become an integrated part of the network communications deployment and may be directed as one to one communications or broadcast communications from one to many.

UC allows an individual to send a message on one medium and receive the same communication on another medium. For example, one can receive a voicemail message and choose to access it through e-mail or a cell phone. If the sender is online according to the presence information and currently accepts calls, the response can be sent immediately through text chat or video call. Otherwise, it may be sent as a non-real-time message that can be accessed through a variety of media.

Cisco with it strong financial position, high technology, efficient management team with high skill employee coming from different companies acquired do not only have the financial ability but also the skill needed to produce and market unified communication.

The high demand for unified communication also serve as a potential profit sources so is highly recommended cisco produce it. The advantages and disadvantages of producing unified communication are mention below

Advantage:

Gain competitive advantage through new product development: In today’s competitive world, companies do not compete on price or delivery alone. Introduction of new products or new product features has become a main source of competitive advantage. So developing unified communication which is new and in high demand can give Cisco that competitive advantage.

Retain existing customer base and increase profitability: unified communication will help cisco gain new customers, retain existing customers and increase profitability. Customer’s needs keeps changing with time. In order it retain current customers, cisco must constantly adapt to meet the changing requirements.

Retain market share: cisco can retain its current market share by introducing products with newer & improved features like unified which was in high demand. And thus sales is bound to increase generating large profit giving him large portion of the market

Improve brand awareness and confidence with his customers: many customers are brand loyal. With cisco introducing a new product (unified) that meet the need of customers, many will be become loyal to that brand and in effect loyal to the whole cisco brand

Raise the barriers to entry

cisco can raise new barriers to entry through new product development by constantly keep releasing new products at regular intervals, so that competitor cannot catch-up and this also discourages new entrants into the market who cannot meet the pace of production.

Disadvantage

Might cannibalize sales of previous product: Having a new product take sales away from an existing product is not usually an attractive situation for a firm. Like cisco introducing unified communication it might reduce the sales of other related product like data communication.

Would require expensive redesign of new product: unified communication needs extensive and expensive redesign of the overall engineering system which is which will not really be easy to implement. Also the cost of acquiring skill laborers and research and development cost are high which may not be easy to implement

Customers might not like the features of the new product: product development involves a risk of whether the consumers will like the new features that have been developed/added to the new/existing product.

Merging with sprint through forward vertical integration

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wire line communications services. its served more than 52 million customers at the end of 2011 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company.

Advantage: Reduce cost of leveraging it distribution channel and transport cost

Capture upstream profit that usually accrues only to sprint. Reduce competition. Cisco merging with sprint will give it the competitive advantage over it

competitor since sprint was a major consumer of network and communication products giving Cisco greater sales over his competitors

Lead expansion of core competencies in businesses: They would gain advantage in one of the world’s biggest consumer of network product which also has a good reputation for providing services that enhance customer satisfaction. Cisco will gain experience in developing lower cost and better products that enhance customer satisfactions

Increase public aware and confidence. Merging with one of the largest dealer of network equipment, this will increase Cisco public awareness and built confidence among his consumers of other product of the reliability and quality of Cisco products

Disadvantages Capacity balancing issues. For example cisco need to build excess upstream capacity to

ensure that it downstream operation( sprint) have sufficient supply under all condition Increase bureaucracy. Cisco already has complexity in solving problem due to it large

nature ( 25 different companies), merging with sprint will only worsen the situation Clashes of culture between cisco and sprint employees can occur, reducing the effectiveness. And the motivation for

work May need to make some workers redundant, especially at management levels this may have an effect on motivation.

Capacity balancing issues

Recommend Specific Strategies for Cisco Inc

Develop unified communication (UC)

Reasons:

Growing demand for unified communication solutions give a profit potential for cisco Inc.

Developing unified communication which is new and in high demand can give Cisco that competitive advantage.

Developing unified communication will help retain or increase cisco market share which he already has a huge market share

Developing unified communication will help cisco penetrate in different segment of the market that was not previously served.

Attract customers for cisco Inc. which will result in an increase in sale not just of unified communication but also of other product produce by cisco

Estimated Cost and profit for the projected yearPrior Year Projected year as at December 31st

1996 (000 $) 1997 (000 $) 1998 (000 $)Sales of product $10000 $15000 $15000EXPENSES INCURED:Soft ware development cost 500 600 600Re-engineering on network equipment 100 70 70Salaries, of extra skill laborers 500 500 500Depreciation and amortization 50 50 50Other expenses 50 20 50 Total expenses 1200 1240 1270INCOME BEFORE INCOME TAX 8800 13760 13730PROVISION FOR INCOME TAXES

3080 4816 4806

NET INCOME 5720 $8944 $8924NET INCOME PER SHARE, BASIC

$.80 $.90 $.60

NET INCOME PER SHARE, DILUTED

$.59 $.82 $.25

Projected financial statement for recommended project

Prior Year 2006

Projected Year 2007 2008 2009

Assets Intangible assetsProperty, plant and equipmentInvestment in associatesOther receivables and financial assets

13,351 39,809 187 387

13,400 39,900 200 400

13,500 40,000 250 500

13,800 41,000 300 560

Total Non-Current Assets 54,070 53,900 54,250 55,660

InventoriesTrade receivablesCurrent tax receivablesOther receivables and financial assetsCash

12,248 5,497 449 28,436 4,512

12,360 5,500 460 28,500 4,550

12,400 5,650 480 28,800 4,580

12,500 5,700 550 29,950 4,650

Total Current Assets 51,142 51,370 51,910 53,350Total Assets 105,212 105,270 106,160 109,010

Liabilities Non-current financial liabilitiesOther non-current liabilitiesDeferred tax liabilitiesNon-current tax payablesNon-current provisions

1,995 834 2,528 398 4,997

2,000 850 2,530 400 5,000

2,100 900 2,550 500 5,100

2,350 920 2,600 550 5,260

Total Non-Current Liabilities 12,277 10,780 11,150 11,680

Current financial liabilitiesTrade payablesOther current liabilitiesCurrent tax payablesCurrent provisions

5,331 19,168 3,153 1,945 4,997

5,350 19,180 3,160 2,000 5,050

5,400 19,200 3,200 2,100 5,100

5,55019,300 3,500 2,150 5,200

Total Current Liabilities 34,594 34,740 35,000 35,700

EquityShare capitalShare premiumReserves

16,709 1,578 39,961

17,000 1,750 41,000

17,100 1,870 41,040

17,250 2,00042,380

Total equity 58,321 59,750 60,010 61,630

Total equity and liabilities 105,212 105,270 106,160 109,010

Recommend Specific Annual Objectives and Policies

Annual Objectives

To keep increase sales at a minimum rate of 15% by reviewing and structuring their marketing strategy and to update unified as new changes present

Sustaining Policies:

Ensuring that they deal with all their consumers and potential customers fairly and ethically and in accordance with their procurement policy.

Encouraging the appraisal and monitoring of our employee’ performance to ensure that their sustainability risks, including Health and Safety, ethical, environmental, social and economic impacts are understood and managed,

Ensuring that any alternatives are given due cost benefit consideration prior to awardInforming our customers of more sustainable alternatives

Recommend procedures for strategy review and evaluation

It is far more imperative for every company to review their strategy and evaluate their them. The best strategy can be used in the graph shown below.

Take Corrective Actions

YESDo significant differences occur?

NO

Measure Organizational Performance Compare planned to actual progress toward meeting stated objectives.

YESDo significant differences occur?

NO

Review underlying based on strategyPrepare revised Internal Factor Evaluation Matrix Prepare revised External Factor Evaluation Matrix

Compare revised to existing Internal Factor Compare revised to existing External FactorEvaluation Matrix Evaluation matrix

Continue present course