Presented By: Leeanne Hearon Allan Lin Ken Ngo Jose Olivas Matt Straub Victoria Santos

1. Presented By:Leeanne HearonAllan Lin Ken NgoJose OlivasMatt StraubVictoria Santos Presented By:

2. The World Leader in Internet Networking Technologies. “To shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors and ecosystem partners.”

3. Timeline 1980’s Founded in Atherton California in 1984 by Stanford computer scientists Len Bosack and Sandy Lerner. Corporate headquarters were moved to Menlo Park, the first employee was hired, and the first router was shipped in 1986. Toward the end of the decade, Cisco engineers designed the Multiport Communications Interface and the Internet Gateway Protocol. 1990’s Cisco became a publicly traded company on the NASDAQ under the ticker symbol CSCO Revenues grew from $69 million to over $18 billion by the end of the decade. Cisco Now In 2000, Cisco became the most valuable company in the world in terms of market capital. Cisco employs nearly 35,000 people in more than 10,000 locations throughout the world. At the end of fiscal year 2004, Cisco report revenues of $22 billion

4. Corporate Leadership President and CEO, John Chambers • Came to Cisco in 1991 as a Senior VP and was promoted to CEO in 1995. • He served on President Clinton’s Trade Policy Committee and currently serves on President Bush’s National Infrastructure Advisory Council. • In 1999, on ABC’s news program 20/20, Mr. Chambers was introduced as “the best boss in America.”

5. Chief Technology Officer, Charles Giancarlo • Developer of Cisco’s merger and acquisition strategies. • Prominent figure is Cisco’s alliances with IBM, Accenture, Sprint, and Microsoft. • Chief Development Officer, Mario Mazzola • Mr. Mazzola heads Cisco’s R&D division and manages all of engineering. • Key figure in Cisco’s data convergence strategy. • Chief Financial Officer, Dennis Powell • Mr. Powell is instrumental in insuring that Cisco Systems is up to the Security and Exchange Commissions specifications. • Senior VP of Operations, Processes, and Systems, Randy Pond • Led the implementation of Enterprise Resource Planning at Cisco

6. Cisco’s Cutting Edge Technology • -Release 5.0 • -Cisco ONS 153310-CL • -New ASAP • -Cisco ONS 15305 SDH • -DS-3 Solutions

7. Cisco’s Products are: • -Economical decision • -Easily integraed with other Cisco products • -Allows customers to deploy an end-to-end  carrier-class ethernet network • -Platforms can be managed by Cisco transport managers • -New products help provide lower first cost and reduce cost of capital

8. Growth Factors • -Internet • -Increased data traffic • -Developments in telecommunication • -E-business • -Increased need for communication through bandwidth • -Global competition

9. Advantage of using Cisco Products • -Has been producing network products for over 20 years • -New products are just an extension to their existing ones, and little adaptation is needed • --Original platforms developed had ability to deliver many communication services (not old phone system) • -More efficient and flexible than competitors

10. Economic Standing of Cisco • In 2nd quarter of 2004 sales increased by 14.5% • Annual sales for 2004 were $22,045.00 million • Cisco has 34,501 employees • Cisco has a total of $35,850,000,000 in assets • Cisco has a total of $8,431,000,000 in liabilities. • Currently Routers & Switches account for the majority of sales.

11. Cisco’s Customers • Cisco’s customers are mainly large organizations, service providers, and small/medium sized business. Further Cisco has a wide diversity of products.

12. 3Com ADC Telecommunications Alcatel Avaya Avici Systems Belkin Brocade Communications Systems Caspian Networks Check Point Software Chiaro CIENA Dell D-Link ECI Telecom Enterasys Ericsson Extreme Networks Force10 Foundry Networks Fujitsu Hewlett-Packard Huawei Technologies Intel IBM Juniper Networks Lucent Marconi McDATA Microsoft Motorola MRV Communications NEC NETGEAR Nokia Nortel Networks Novell Redback Networks Riverstone Networks Siemens Information Communications Sycamore Networks Cisco’s Competitors Although Nortel and Lucent Technologies are Cisco’s greatest competitors, there are other competitors that Cisco has to worry about as threats to their company. These other competitors include but are not limited to: Source: Hoovers Database)

13. 1984 Cisco was founded 1987 $1.5 million in sales 1989 $28 million in sales 1990 Cisco Systems goes Public 1994 Revenue surpasses the $1 billion mark 1997 Cisco broke into the Fortune 500 2001 Cisco has acquired more than 80 companies 2004 Cisco acquires Latitude for $80 million Cisco grown continuously by acquiring its competitors. These acquisitions have hurt Cisco’s bottom line, lowering profits. With the acquisitions Cisco is able to maintain a wide variety of network products, and continue to expand their product line. In early 2000s, Cisco Systems was the company with the 3rd highest market value worldwide. Historic Financial Performance

14. Porter’s Model • Threat of New Entrants –capital to invest, alliances with other companies, trust • Power of Suppliers – Cisco Systems has various suppliers. Some of their major suppliers are Marven, Broadcom, Agilent, and Xilinx. • Power of Buyers – Cisco Systems has a diverse group of buyers. Cisco has customers in about 115 countries. Approximately 50% of the sales are in America, and another 50% are international. • Availability of Substitutes – Although Cisco is the third networking communications provider, it has gained a reputation of being the leader in network technologies. It would be costly to switch to a substitue. • Competitive Rivalry – Because of Cisco’s strategies they have been able to not only remain competitive, and also profitable. Cisco has acquired many of its competitors. Lucent and Nortel are the only two companies ahead of Cisco Systems.

15. Competitive Strategies • Human Resources • Social contract • Corporate Culture & Values • Rewards and benefits • Role of contigents

16. Cisco uses its own products as an example to its customers. Once the CIO for Cisco, Brad Boston, said "As Cisco finds more efficient ways of using its own products and breaks new ground with advanced technologies; we are actively sharing this information with our customers."

17. Elimination of Process • Cisco has borrowed a technique from the Japanese called "Keiretsu. • Orders from the web go directly to the contractors and each customer. • Cisco is basically a paperless company until the payment, in the form of check arrives.

18. In 1996, Cisco began using its own internal network to make international calls. This idea has saved Cisco $30,000 a month in telephone calls to Japan. Cisco replaced its traditional Private Branch Exchange systems with Cisco CallManager systems company-wide. However, the plan to extend CallManager capability to remote field offices was not economically practicable. Cisco IT opted for centralized call processing. Internal Network Cisco Solution Enhancement

19. Cisco is one of the first companies to use the extranet. The "Cisco Connection On line" is the strongest link between Cisco and its customers. Cisco uses alliances to manage its competition. Extranet Alliance

20. Propose future adjustments to Cisco’s IT System

21. Why Cisco can benefit from changes • Growth International is going to require Cisco to have its IT system to continually grow to accommodate the size of the company. • Changes will allow Cisco to continue to be a leader

22. Expanding the bandwidth • Expansion of the bandwidth will help Cisco continue to grow without interruptions of business practices. • Bigger bandwidths are quicker and can support more people

23. Teleconferencing • Cisco should continue to teleconference and make it a standard way of communicating with sites outside of the central office. • Teleconferencing saves time and money

24. Group Software • Group meetings can be held online so not everyone has to be in the same location • Allows anonymousness so people can contribute to the meeting with out being judged on their input

25. Supply Chain Management • Continue to update the system and keep system complete • Helps keep stakeholders involved in the company