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Rationale of Cisco’s corporate level and business level strategies

This part will focus on the Identification and discussion the rationale of Cisco’s corporate level and business level strategies from the perspective of diversification strategy and strategy positioning.

Diversification strategy

Various methods are adopted by Cisco for the development of its products. For Cisco, it faces is a $200 billion network equipment market. His business scope covers almost every part of the network construction, composition of the Internet and data transfer of routers, switches, and so on almost all controlled by the Cisco network equipment market. Due to network information was doubled every four months, you need to update, faster network transmission equipment support, this means that Cisco's market continues to expand, so that the Cisco's market has become the most popular and fastest growing companies. Describe the development of the network quickly is earth day, has one thousand online, as equipment suppliers, must master new and high technology, continuous innovation, however, there is no one by one all technical invention, Cisco CEO John Chambers that inventions are the best way to spend money to buy. He thinks that the ideal way is to buy the new company are developing new products, it can be launched in the next 6 to 12 months an outstanding new product, and then through existing distribution channels of Cisco, quickly to the market. In 1996, Cisco is through this method, as a network switch market leader.

Strategy positioning

Cisco positions its strategy to some major products rather than all the products (David, 2009, p.78). Cisco systems has become recognized as the global networking solutions of the leading manufacturers, the solution is offered by the hundreds of thousands of companies from all over the world, universities, enterprises and government departments to establish the basis of the Internet, users throughout the telecommunications, finance, service, retail and other industries as well as government and education institutions and so on. At the same time, Cisco systems are to establish a network backbone, nearly 80% of the information on the Internet traffic through the Cisco products. Cisco has become a network leader of no doubt. Cisco systems with more than 35000 employees and the turnover is more than $2004 in 22 billion.

Reason for why Cisco’s organizational structure is critical to its strategy execution

This part concentrates on the explanation why Cisco’s organizational structure is critical to its strategy execution.

Feature of matrix structure used in Cisco

Matrix organization structure generally (Balaban et al., 2010, pp.25-35) refers to the company and the organization of personnel organization form, compared with traditional tree structure. Matrix organization in Cisco is under the function type organization condition of an organization, for some special task, and set up project team is responsible for, the project team and the original organization coordination, on the pattern has the type of line cross, is the matrix organization. On the organizational structure, it is the functional departments and according to the products (project) of groups joined together to form a matrix, a manager with both the original functions of the organization and business contacts, and joined in the work of the project team. Functions are fixed organization, the project team is a temporary organization, and completes the task is automatically dissolved, after its members back to the original department. http://www.51due.net/writing/essay/sample1241.html

Figure 1. Matrix Organization in Cisco

Impact on matrix structure to the coordinated team work in Cisco

The matrix structure is helpful to the coordinated team work in Cisco. Matrix organization system was to improve linear transverse connection is poor, the faults of inelastic and formed a kind of organizational form (Gamble et al., 2013, p.89  Its characteristic in around a specialized task to set up cross-functional departments specialized agencies, such as to form a special product project team to work in the new product development, in the research, design, test, manufacture different stages, sent by the related departments to participate in, trying to do how to coordinate the activities of the relevant departments to ensure the completion of the task. This form of organizational structure is fixed, change of personnel is the need to who, who will come, can leave after the completion of the task. The project team and head is a temporary organization and commissioned. After the completion of the task is dissolved, and return to the original unit work for the related personnel. Therefore, the organizational structure is very suitable for horizontal collaboration and research projects.

Impact on matrix structure to the work execution in Cisco

The matrix structure is aided to the work execution in Cisco as below. First, it can combine the enterprise's horizontal and vertical relations, which is advantageous to the collaborative production. Second, it is beneficial to giving full attention to the advantages of the individual, gather many a long time, improve the quality of the project, improve labor productivity　(Thompson & Martin, 2010, p.90). Last but not least, the combination of irregular personnel for information exchange can increase the chance of learning from each other, and improve the level of professional management. A simple matrix structure is improved in practice. Many divisions in Cisco changed the matrix organization to more effective coordination of multiple projects, such as Differentiated Matrix organization.

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