Abstracts » Business, general

How to drive an express train

Article Abstract:

Cisco Systems' John Chambers has seen his company grow from 3,000 employees to 30,000 and revenues go from $2 to $20 billion, in the 5 years he has been chief executive. He offers some insights on management of the third most-valuable company on earth with lessons learned the hard way from his time at IBM and Wang Laboratories.

Fiber Optics Systems & Equip, Executive changes & profiles, Communications equipment, not elsewhere classified, Fiber optic networks, Interview

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Behind Cisco's woes are some wounds of its own making. Company pushed to line up more parts, kept hiring even as its sales slowed

Article Abstract:

While Cisco Systems announces it is writing off $2.5 billion of fat inventory, CEO John Chambers has to be sobered by the plan to lay off 8,500 employees, after hiring about 5,000 at the beginning of the year. Cisco misread economical signs and furiously expanded, garnering the highest market capitalization of any company on earth. Cisco predicts sales to fall 30% this quarter. But last year, when computer network switches were in short supply, Cisco overreacted by buying more parts from contract manufacturers than were needed. Then, telecommunications companies began fading in investors eyes, particularly Nortel Networks. Other Cisco clients were going bankrupt. Now, Chambers admits to a more conservative strategy for the $19 billion-a-year giant. Chief Strategy Officer Michelangelo Volpi suggest it is hard for a company to turn quickly around after 15 years of phenomenal growth.

Communications Processors, Production management, Telecommunications Equipment, Communications Equipment Manufacturing, Communications servers, Telecommunications systems, Economic lag, Volpi, Michelangelo, Carter, Larry

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Motorola, Cisco Systems to work jointly on wireless services for the Internet

Article Abstract:

Cisco Systems will provide its backbone for computer-networking technology together with Motorola and its wireless equipment so that the two in tandem can make wireless Internet services possible on a mass market basis. Each company probably would have spent about $1 billion each in the next five years anyway; so spending it together makes sense for them.

Comment:

Company makes deal with Motorola so both can keep pace with new technologies

Strategic alliances, Communications Eqp ex Broadcast, Wireless communications, Telecommunications equipment, Abstract, Motorola Inc., MOT, Wireless communication systems

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