Cisco: Early If Not Elegant (a)

26 Pages Posted: 21 Oct 2008

See all articles by L. J. Bourgeois

L. J. Bourgeois

University of Virginia - Darden School of Business

Gerry Yemen

University of Virginia - Darden School of Business

Sayan Chatterjee

Case Western Reserve University - Weatherhead School of Management

Abstract

Its unique integration process had worked well for Cisco from 1994 until 2001, when its buying spree ended, causing public speculation that the firm had overshopped. Yet in early 2002, the CEO of Cisco announced that he would acquire eight or ten companies that year. This case examines Cisco's postmerger integration (PMI) strategy. Students will discover how Cisco realizes value from its acquisitions and challenged to consider how Cisco's PMI strategy reflects its corporate strategy and culture.

Excerpt

UVA-BP-0446

Rev. Mar. 24, 2014

CISCO: EARLY IF NOT ELEGANT (A)

Kate DCamp, senior VP of HR at Cisco Systems, Inc., was a key player in the company strategy—acquire, acquire, acquire. DCamp joined Cisco in May 2000 and was instrumental in tailoring an integration process unique to each acquisition. From the day an intended purchase was announced, human resources and business development teams traveled to the acquired company's headquarters to check it out. The day after the deal closed, DCamp's department would hit the firm with tailor-made orientation programs. Cisco's approach had worked well between 1994 and 2001 with more than 90 acquisitions. In late 2001, however, the Silicon Valley dot-com boom plunged, and Cisco's buying spree stopped. Yet in early 2002, CEO John Chambers announced that he still intended to acquire eight or ten companies that year.

DCamp thought about how fortunes had reversed and wondered what new postmerger integration challenges the firm would face.

. . .

Keywords: Mergers and acquisitions, information services department, human resources management

Suggested Citation

Bourgeois, L. Jay and Yemen, Gerry and Chatterjee, Sayan, Cisco: Early If Not Elegant (a). Darden Case No. UVA-BP-0446. Available at SSRN: https://ssrn.com/abstract=907938

L. Jay Bourgeois (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4833 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm

Gerry Yemen

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Sayan Chatterjee

Case Western Reserve University - Weatherhead School of Management ( email )

10900 Euclid Ave.
Cleveland, OH 44106-7235
United States

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