The Investigation of Cisco Systems - Essay Example

ORG The current investigation is concerned with the company of interest, Cisco Systems. This company operates in the dynamic and change centered IT industry, in which the new ideas of tomorrow frequently become yesterday’s ideas. Cisco is focused upon as an organizational agent of change within a new economy which operates on information and access to technology. Cisco can also be seen from a marketing, employee recruiting and training (HRM), staffing, and planning perspective, as the current report demonstrates. Organization of interest Cisco faces unique opportunities to market itself as an agent of change, because the company re-engineered its IT infrastructure in both back office and front office applications, for the worker as well as for the customer. Change is often seen as positive by consumers in an economic crisis or bad situation. Back end and front end changes are visible in the company. The company used Microsoft and other programs, and in creating change went towards an open unitary architecture. Cisco’s financial success led the company to spend $100B, which the company put into IT changes which were generally successful. Much of the extant information available about successful IT companies like Cisco is biased towards the company as a strong leader, innovator, and survivor of the dot-com bubble, but there is still little mention of employee dissatisfaction on a mass scale that is organized, and this is another indicator that solutions based on customer attenuation are preferable in this environment. One of the reasons for this could be that IT companies like Cisco tend to be very selective in accepting employees, hiring in many cases only about five percent of applicants. Another solution for proposal could be the company’s employee-centered human resources strategies, which can be integrated with the aforementioned focus on dynamism. The continued application and implementation of marketing enhancements is not just a domestic concern, but, as shown in both the Cisco and other cases, is also a global concern. Marketing management is a major force in the setting of business, as seen in many real examples, and overseas management is also very important to many companies in this sector or industry. This can be a threat in the external environment because this applies to good as well as bad marketing management scenarios. Most companies are going to have a few inefficient managers, and some of these managers may occupy overseas posts. There is also danger of dissonance between the way an overseas manager does business within a certain country and the way this style of doing business is perceived by the centralized power structure of the company. “With John Chambers as CEO… (it was) necessary to further decentralize Cisco; he would place the emphasis on delegation of responsibility, teamwork, and trust. He created five departments with a VP/general manager to lead each” (Lasky, 2002). In terms of providing a strong management culture, the role of the CEO is essential to Cisco Systems. “He believes all the key players are aggressive, technologically strong, and very focused on the customer. Mr. Chambers does not seek the limelight and does not enjoy public speaking. He is energetic, and has a powerful personal reason for wanting to get the word out about Cisco” (Lasky, 2002). In terms of how the economic crisis specifically has affected the production of Cisco Systems, current information on the company indicates that the company retains service dominance (Cisco, 2009). It is difficult to predict the future, based only on the educated guesses of the present situation. However, some confidently predict that the future will be one in which the recession in the US will either stabilize, or inflation will become predominant. Depending on these variables, anything could happen. In the marketing sector, specifically, it may be harder t recover from certain losses than in other departments and sectors; however, one must see the organization as it is aligned with what is perceived by some to be a new economy for marketing, in which IT companies like Cisco have unique opportunities. This economy, compared to old-style economies, is more based on information, knowledge, and service, rather than adhering to traditional organizational paradigms. One author also highlights the nature of change and technology as they intersect with the new economy, as well as discussing issues of globalization and international trade regulation and deregulation as they are associated with the new economy: “The new economy is a technological revolution involving the information and communication technologies and which affects almost all aspects of the economy, business, and our personal lives. The economic or management problems it raises are not radically new, and even less so from an ethical viewpoint” (Argandona, 2003). The author goes on to posit that although the underlying ethics of the situation may not be such a focus of change, there is still value to paying particular attention to marketing moves amidst the technological revolution of what the author perceives to be the new economy. That is, Argandona’s main intent in the article is assessing the challenges that come with the new economy from a perspective of technological change, globalization, and marketing implications. It is also important to understand that Argandona is not just talking about technological change when he defines the new economy, but is also talking about the ways in which information has changed in the organizational environment. That is, the author highlights aspects of a knowledge-based economy as being the main force of organizational and global economic change in a systemic manner. “Strictly speaking, the new economy expresses the impact of the technological revolution developed around information and communications, first in the industry that produces ICT goods and services; second, in the industries that use these goods as production capital; and third, in the other industries and in the economy as a whole. However, the key to the new economy is not in the silicon chips but knowledge” (Argandona, 2003). This is true of staffing as well. As this represents a significant change in the external business environment, it is recommended by HR and accounting that, despite the initially slow reception of changes in performance based standards practice, immutability in terms of the law provokes and predicts a strong and lasting change that is better taken advantage of proactively than looked at and reacted to passively. This is why companies must continue to put forth organizational change and programs that are change-dynamic and effective according to balanced scorecard. Many companies in the present circumstances of accounting standards are taking the initiative to change internal policies in a way that embraces a change-affective attitude towards accountability and ethics. “Because the evaluation of internal controls has, historically, been the responsibility of the auditor, new questions have arisen regarding the role that auditors can play in assisting management to fulfill its responsibilities to assess and report on internal controls” (Garrison et al., 2008). At Cisco Systems, this impetus can dovetail with honing in on what the employee really needs, and giving it to them. “The Employee Relations team acts as the internal consulting group to all levels of employees and management on a broad range of issues. This group ensures that our business principles are upheld and provides conflict resolution” (Garrison et al, 2008). Principles are important, but so is giving the employees what they want. In the optimal future, it is hoped that the organization takes on the most modern position in a change affective market. Cloud computing represents modernization, and it also represents a drive towards keeping the public organization more accountable and cost effective. The cloud in cloud computing refers to the internet, which forms a metaphor for the shapeless mass that surrounds the network. In other words, the network is a symbol of what it represents, connected by the metaphor of the cloud. “Typical cloud computing providers deliver common business applications online which are accessed from another web service or software like a web browser while the software and data are stored on servers” (More, 2010). The government, if it is going to install cloud computing as a platform for the future, needs to create reliable services through new data centers which can be build around the servers needed, providing those using the public organization’s web resources with a one stop access point for all their needs. Cisco should take these and other future staffing opportunities in mind. The company also uses specialized services: “With Cisco EPM your organization can centrally administer, enforce, and audit sophisticated authorization policies regardless of vendor, platform, or operating system. The result is better, more controlled, and highly secure access to applications and content for both enterprise employees and their collaborative communities” (Cisco, 2010). Charts REFERENCE Argandona, A. (2003). The new economy: Ethical issues. Journal of Business Ethics 44(1). Garrison, Noreen and Brewer (2008). Managerial Accounting. New York: McGraw- Hill. Lasky, Diane (2002). Cisco Systems: Bridging Technology. http://gcconline.georgian.edu/business_review/cisco.htm. Cisco (2010). http://www.aironet.info/en/US/products/ps9519/Products_Sub_Category_Home.html Cisco leads market share (2009). http://blogs.cisco.com/sp/comments/cisco_leads_managed_services_market_share Read More