Case Study Questions
1. Analyze the relationship between information system, Internet technology and Cisco's business strategy.
ANS: Is that Cisco uses information system as the key to their success as well as the internet technology.They make a business through internet so they use it as a driver to their business so that Cisco is considered as a model for the other companies.
2. To what extent is Cisco a digital firm?
ANS: It is one of the most valuable com[any on earth in early 2000.Reaching a valuation of billions and a stock price of more than 80 dollar per share.It is considered as digital firm because it is one in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediate. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.
3. How successful was Cisco's reliance on information system and the internet?
ANS: Cisco was very confident on what the information system they had and the internet technology that they use. They sell there products through internet,they purchase supplies, make reports,and submit forecast and inventory information through internet.They are so proud of it's use of the internet to drive there business and they promoted itself as a model for other companies.That if any company epitomized the digital firm, it was still Cisco.
4: Why did Cisco react so slowly to deteriorating economic conditions and declining sales in 2000?What management,organization,and technology factors influenced the way Cisco responded? Include evidence to support your analysis.
ANS: Because they relied on the past high sales and they never considered the possibility that their sales might actually decline.The CEO of Solectron Technology Solutions Business Unit, a company that produced networking parts for Cisco commented that"People see a shortage and inventively they forecast higher"and "salespeople don't want to be caught without supply by forecasting more sales than they expected.And M. Eric Johnson an Associate Professor of Business Administration at the Tuck School of Business and an expert in supply chains said that the Cisco's outsourcing business model ultimately worked against the company. And outsourcing model has "Done some wonderful things"they influenced Cisco to respond to their economic condition.
5:What do you think Chambers and Cisco could and should have done differently in 2000 and early 2001? Do you agree with Chamber's conclusion that the company had take the steps it did? Why or Why not?
ANS:
