Abstract

The case describes the acquisition strategy of the US based networking giant Cisco Systems (Cisco), a company that by 2003 had acquired 80 companies. The case explains the methodology adopted by Cisco to acquire companies. This included evaluating the target company, determining its compatibility with Cisco and integrating the acquired company's operations with Cisco. The case also examines the measures taken by Cisco to integrate the cultures of the acquired companies with that of Cisco. The case also discusses the flaws in Cisco's acquisition strategy that led the company into financial problems in 2001. Finally, the case describes the revision made by Cisco in its acquisition strategy and the progress made by the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Acquisition, corporate mergers and their strategic implications.

Keywords

Reacquisition strategy, US, networking, Cisco Systems, Cisco, 2003, compatibility, Cisco, operations, cultures, acquisition strategy, financial problems