Cisco’s Organizational Capabilities Essay

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BADM 590 Home Assignment 2 Cisco’s organizational capabilities Cisco’s capability in non-acquisition operations 1.Usage of acquisition and partnership Yue Wang Usage of acquisition and partnership is the inherent part of Cisco’s strategy. Many companies viewed looking to the outside for technological help as a sign of weakness, so this strategy was relatively unique in the high-tech world. However, Cisco takes advantage of this strategy and makes it work efficiently. 2.Structure of highly centralized organization Cisco was structured as a highly centralized organization from its beginning. Although Cisco had decentralized, most of the company’s functional areas still remained centralized. Compared to many start-up companies that decentralized too quickly, Cisco benefit a lot from the advantages of scale and control associated with a centralized organization. 3.Dependence on outsourcing The company outsourced many manufacturing activities, because investments in some activities generated lower returns relative to Cisco’s core business. Cisco’s capability in effective acquisitions 1.Employee retention Cisco went to great effort to retain the employees of acquired companies since they were critical to the success of the acquisition and succeeded to some extent. As we know, people don’t like changes, especially the ones they can’t predict. If they feel uncomfortable after the acquisition, they will leave the company. High employee turnover rate will lead to vest cost of training expense and reverse effect of working environment. 1 BADM 590 Home Assignment 2 2.Return on investment Yue Wang Cisco had the acquired company’s products appear on its price list on the day the deal closed so that Cisco’s sales force could immediately begin to sell the new products. I find it is a great method to raise the acquired company’s sales. If Cisco wants to use

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