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Cisco Systems - The Supply Chain Story"Networked manufacturing processes have enabled Cisco to manufacture new world products with new world processes, resulting in a competitive advantage for Cisco and enhanced satisfaction for Cisco customers." - Carl Redfield, Senior Vice President, Manufacturing and Worldwide Logistics, Cisco Systems, in 2000. A Company in TroubleIn August 2001, the San Jose, California based, computer-networking company Cisco Systems Inc (Cisco) surprised industry observers by announcing its first ever negative earnings in more than a decade. In the third quarter of fiscal 2001, the company's sales had decreased by 30%. Cisco had to write off inventory worth $ 2.2 billion and lay off 8,500 people. By the end of 2001, the market capitalization of the company was down to $ 154 billion and per employee profit was $ 240,000 (down from $ 700,000 in 2000).
Cisco – The Networked Supply ChainCisco was founded in 1984 by a group of computer scientists at Stanford. They designed an operating software called IOS (Internet Operating System) that could route streams of data from one computer to another. The software was loaded into a box containing microprocessors specially designed for routing. This was the router, a machine that made Cisco a hugely successful venture over the next two decades (Refer Table I for details of Cisco's growth).
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