A Sustainable Competitive Advantage Essay

Operations Management is a key component in the success of any ï ¬ rm. The textbook  outlines ten critical areas to focus on for Operational Managers–many ï ¬ rms have developed these one or two of these areas into a competitive advantage. One ï ¬ rm, Anhueser-Busch/InBev has successfully incorporated all ten areas of focus and developed them into a legacy of quality and a sustainable competitive advantage. This focus on Operations Managemnt has lead to Ab/ InBev’s reputation for quality, and their continued dominance as a global brewery. Design of Goods The design of goods/services deï ¬ nes a ï ¬ rm, and sets them up for success (or failure) in  the market. In order to design a superior product, ï ¬ rms must ï ¬ rst understand their customer— what their needs and requirements are. Anheuser-Busch/InBev has focused on developing a diverse portfolio of global brands to satisfy a myriad of customer needs; a few of their more recently-developed beers are actually based on customer suggestions and recipes. The AB/ InBev portfolio ranges from low-cost products such as Busch (which focuses on a costleadership strategy), while domestic brands such as Budweiser and Bud Light are a force to be reckoned with in the North American markets. Other brands such as Hoeegarden and Leffe appeal to craft beer consumers as well as global markets (a differentiation strategy). By customizing products to various consumer tastes, they are able to obtain greater market share worldwide. AB/InBev’s original beer, Budweiser, was developed in the 1800s by the company’s  founder, Adolphus Busch set out to create a beer that balanced ï ¬â€šavor and refreshment— something that everyone could enjoy. This understanding of customer needs, combined with a commitment to quality and consistency still exist in the company today, which contributes to the overall sustainability of the company. Managing Quality As mentioned above, AB/InBev makes sure to incorporate quality into their individual  products—by meticulously managing their supply chain, they are able to control the overall quality of input as well as their products. Their commitment to tradition is the basis for their commitment to quality; many of the ingredients they use while brewing today’s beer come from the same lineage as the ingredients Adolphus Busch used back in the 1800s. Since AB/InBev directly owns the farms where the hops, rice and barley are grown, by ensuring the quality of the ingredients, they ensure quality and consistency in each batch of beer. AB/InBev offers quality to consumers by offering an extensive line of products—they  improved on their Lime-o-Rita line by offering additional ï ¬â€šavors. There is manufacturing based quality in their products—each batch of Budweiser is brewed to the same standards as the last, thus ensuring that each individual bottle tastes as good as the last. Process and Capacity Design By maintaining a process-focused strategy, AB/InBev has created a sustainable  competitive advantage—their unique lineup of products all revolve around the same quality ingredients. Fewer inputs (hops, rice, barley, etc.) all distill down to a variety of quality products that AB/InBev uses to meet their customer demands. This high volume, low variety production method allows for the efï ¬ ciency needed to produce the mass quantities of product that AB/InBev demands. A simple visit to the AB/InBev brewery creates a clear picture of their commitment to the  product-focused strategy—their facilities are designed speciï ¬ cally to accommodate the variety of products they have created. This speciï ¬ city and simplicity lead to lower variable costs per unit, higher equipment utilization, and overall easier production planning. Although switching  production lines between products can be a bit of a hassle, the specialization of labor reduces lead time and setup costs for each production run. Location Strategy The main headquarters of AB/InBev are currently located in St. Louis, Missouri, where  they were originally established in the early 1800s. Although the merger between AnheuserBusch and InBev in 2008 could have easily meant that  headquarters would be relocated, moving production elsewhere would have been incredibly costly. Because of the company’s long-standing residence in the Midwest, many suppliers are also located in the Midwest. Relocating the brewery would have not only increased shipping/handling costs of the various inputs, but also the campus that AB/InBev currently occupies is now owned outright by the company—attempting to build a new production facility would have been a signiï ¬ cant outlay of capital. The brewery in St. Louis is certainly a well-known landmark within the city, but it is not  the only brewery that AB/InBev owns and operates. Because the demand for AB/InBev products is so widespread, the brewery operates 12 different brewing and bottling plants throughout the United States. These locations help ensure the freshness and overall quality of the product delivered to various markets nationwide, as well as help reduce the costs of moving product from manufacturer to distributer. Layout Strategy! Because AB/InBev offers almost 200 unique products, layout strategy is incredibly  important in keeping the company competitive—efï ¬ cient and effective use of space ensures that things continue to run smoothly. At the brewery in St. Louis, a couple of different layouts can be seen. Silos at the  entrance to the campus store the various ingredients needed to brew the beers, while outlying buildings double as ofï ¬ ce space and storage of other components (such as bottles, cans, labels, etc.). By using a warehousing/storage layout for certain items, things that are used most commonly during production are close by, thus saving on shipping and handling costs. The beer that is brewed in St. Louis is bottled on-site. The bottling lines follow a  product-oriented layout—for example, glass bottles for Bud Light are run through one set of lines, while cans of Bud Light are run through a separate set of lines.

Han Dynasty and China Essay

1 paragragh China experienced the fall, absence, and eventually the re-establishment of imperial authority while Confucianism prevailed through all levels of society from the period of 100-600 C. E. The history of China has often been a history of periods of political unity interrupted by periods of political division. During the classical period from 100 C. E. to 600 C. E. , the Chinese experienced the Han dynasty which was an initially strong and efficient dynasty, until it had a gradual decline and eventually collapsed. This led to a long period of chaos and finally reunification again. During this time of unification, division, and reunification, many cultural and political changes occurred while other cultural patterns and ideas persisted. 2nd China in 100 CE was under the Han rule which had begun in 202 BCE. Under the Han dynasty the rulers created an efficient and well governed empire. The Han expanded China hundreds of miles to the west, north, and south and had many innovations such as the expansion of the Great wall. The people followed the teachings and values of Confucianism. They were so strong that they have lasted throughout the centuries of Chinese history and is still well-known today. The Chinese civilization lived in a patriarchal society and Confucius teachings created a guide to how a good family should live. Patriarchy was a continuity for Chinese civilization during the classical period. Many of his beliefs and values survived and withstood many changes to come 3rd Towards 200 CE things began to change and the Han dynasty began to fall. It first began with the bureaucratic system, it was becoming more corrupt with unqualified officials, etc. , and the political structure of China started to fall apart. Peasants became poorer and diseases started to spread causing many to die. The nomads kept trying to invade and the unstable government didn’t do much to push them back. This ultimately led to the Han’s demise. 4th When the Han dynasty fell in 220 CE, China was left in a state of turmoil for about 300 years called the â€Å"Warring States Period. † At this time China’s cultural unity was endangered by the spread of Buddhism. Luckily for China’s streak of continuity, the three century period of chaos ended with the rise of the Song/Tang Dynasties, which would also revive Confucianism. This was also one of China’s continuities, the rising and falling of dynasties which remained in China’s history for centuries. During the Warring States period, the Great Wall became divided between kingdoms and was poorly defended so nomads invaded and overtook the northern plains. Trade and city life declined, technology ceased, and intellectuals wasted away. In 589 CE the Song Dynasty was created which began to revive the country which had been in turmoil for so long. Bureaucracy was reinstated which a scholar gentry administration. By the time the Song era ended China was well on its way to becoming a stable nation again. 5 During the classical era, the Chinese civilization underwent major changes in their government. Despite the nomadic invasions that occurred, they remained strong and united. This was probably because China had a very solid social and political system that was based off of Confucianism and rulers who unified the Chinese culture. The cause of change in China’s government in the classical era can be due to the weakened government plus the nomadic invasions being the final blow in destroying the Han dynasty. Confucianism kept China together, socially. Despite the many changes that took place between 100 C. E. to 600 C. E. , China always leveled out culturally and kept their cultural continuity due to Confucius and how his teachings united China.

Individual work Essay Example | Topics and Well Written Essays - 500 words

Individual work - Essay Example Service delivery industries’ success is dependent on customer satisfaction. Lack of respect and ethical impairment is also visible among the company staff. For instance, the hotel’s manager insults the disabled guest of being unable to get to the dance floor instead strategizing on the required changes for improving on service delivery. One of the possible means of addressing these issues is the assessment of the service quality for improving service delivery, identifying customer problems and ensuring satisfaction. The manager should also identify and target the service needs of clients in order to satisfy them. The staff members should always be able to handle all guests regardless of their age and gender. The client should establish a service culture through staff training. The management should not be focused on the number of guests they receive, but the quality of service they offer. The guest’s expectations can only be achieved if the challenges facing the employees are addressed adequately. Listening to the employees enables the management to identify and curb the challenges facing them. The new employees should be tested to prove their ethical qualifications. This ensures that the services being offered to customers are of high quality. Guests should not be discriminated under any consideration regar dless of their physical strengths or weaknesses. The client should include regulations capable of accommodating the emerging services. The client should also ensure that all the services offered conform to current changes in technology. For instance, the disabled guest could have accessed the dance floor if the necessary technology was available. Lack of prior booking by the guest is an indication of existence of poor marketing and inefficient awareness. This implies that the client should invest in promoting marketing and customer awareness. The main

Heat temperature and kinetic energy Essay Example | Topics and Well Written Essays - 750 words

Heat temperature and kinetic energy - Essay Example As particles of matter are in constant motion even in the coldest voids of space, there is always a measurable amount of heat energy produced. The continuous movements of the atoms and molecules within the body, where they randomly hit each other produce heat or thermal energy. Heat is also like work. It can never be contained within the body. Instead, it is energy in transit, transferring from one body into another. It can also transmit from the system to its environment or vice versa. Heat in the body can be of two forms: potential and kinetic energy (Smith, Van Ness, Abott, 2001). Heat always travels from a body with high temperature to a lower one. Temperature is the main driving force for heat transfer between bodies. According to (Killam, Daou, n.d ), atoms and molecules don’t travel with the same rate of speed. There is a certain range of energy in molecules that dictates their speed whether slow or fast. Temperature therefore is â€Å"the measure of the average heat o r thermal energy of the particles in a substance†. Temperature is measured through thermometers, using a uniform tube filled with alcohol, mercury or some other fluids. There is a reflected numerical values indicated for the degree of hotness and coldness of a certain object (Smith, Van Ness, Abott, 2001). Heat and temperature is closely related to each other. As observed, the presence of heat makes the temperature rise. However, they are not of the same thing. Heat is the energy produced due to the motion of molecules while temperature is the measurement of the energy produced by the body. Heat is dependent upon the rate of movement of the particles such as the number of particles in motion, their speed, mass and the type of particles within the body. Temperature, on the other hand is independent of these things. Heat caused the temperature to rise and the removal of heat cause the temperature to lower down. Object with higher temperature reveals that the molecules in that bo dy are moving with higher energy. To state it more clearly, â€Å"temperature is not energy, but a measure of it. Heat is energy† (Killam, Daou, n.d). Heat has effects to the body from which it is transferred. A certain body is capable of handling such heat energy. This is referred to as heat capacity. As defined by (Smith, Van Ness, Abott, 2001), the smaller the change in temperature within a body that is caused by the transfer of that given quantity of heat, there is greater capacity for it. There are two kinds of heat capacity that can be applied in homogenous fluids: heat capacity at constant volume and the heat capacity at constant pressure. Every type has certain conditions or properties that must be considered with relevance to their differences in volume and pressure. Heat capacity can also be further divided into three different terms: heat capacity, specific heat capacity and the molar heat capacity. According to Jorgensen (n.d), molar heat capacity is the required energy for one mole of substance to raise 1 degree Celcius. Specific heat is the measurement of energy that can raise a material with a certain mass into a difference of 1 degree in Centigrade. They are both intrinsic properties of a certain substance. They are not dependent on the quantity of material present. Heat capacity on the other hand, is an extensive property of

City Tourism Management and Marketing Research Paper

City Tourism Management and Marketing - Research Paper Example The London governing bodies has distinctive bodied identified with specific brand projection for the tourism promotion of London and its major attractions. The Greater London authority (GLA), The London Development authority and the Visit London campaign defined their working areas to collectively promote tourism in London. The GLA, the LDA and the visit London has formulated strategies keeping in view of the 2012 Olympics. The previous results show that the cities that hosted Olympics projected an increase in the tourism revenues and the tourist arrivals. The "Totally London" campaign was major success as the number of tourist arrivals has increased from the year 2003. An effective contingency management plans were drawn to cope with the adverse incidents like the SARS, the mad cow disease, the terrorist attacks at London. One of the largest tourism marketing campaign (Totally London) was rolled out in 2003 by the Mayor and London Tourist Board. The campaign entailed-national press advertsing, promotional offers and discounted holiday packages. The key target markets were USA and the European countries. The tourism in France has centuries of tradition with grandeur of the attractions imbibed in the country. The state governments were provided with the freedom to implement the policies suitable to their region. The central government has initiated many important decentralization programs to streamline the ground realities of developing tourism with key target on implementing regional plans locally. The French authorities organized programs like "experience the Parisian lifestyle" to elevate the perceptions regarding the Parisians and awareness campaigns to enhance the tourist experience (Arrogant paris on tourist charm offensive, 2007). The researcher has asserted more on the development of the rural areas and highway zones to generate revenue and create employment opportunities. The developments plans in the mountainous regions "Snow plans" in the 1960s' and 70 and establishing ski resorts along the sea banks were major initiatives. Dubai has strengthened its position as the tourism capital of the Gulf region working out rapid strides in the areas of real estate and the massive construction spree. The Government has been working on economic development of not entirely dependant on oil. The government was proactive in agressivley promoting Dubai as an dream destination in every sector. As a result of these initiatives there has been an incredible boost in the revenues of the tourism industry in UAE.The World Travel and Tourism Council(WTTC) in its global travel forecast has suggested that UAE's revenues from inbound tourism are likely to grow at 7.2% annually till 2015.The tourism sector revenues account for 15% of Dubai's GDP.Furthermore,over the last decade Dubai has evolved as a global hub, climbing fro the 26th to the 10th international hub in terms of the volume of international traffic. Airlines have taken advantage of the city's strategic location, attracting flyers on their way from Europe, Asia and Afric a. (khaleej times) City Infrastructure and Destination Appeal: The Dubai International Airport is one of the world's fastest growing airports. It registered a

HIMS650 Article Critique Assignment Example | Topics and Well Written Essays - 250 words

HIMS650 Article Critique - Assignment Example It is focused on figuring out the reasons for following problems in order to dive deeper. Qualitative research includes participations, observations, interviews and group discussions. Quantitative research is focused at the quantification of the data. With the help of quantitative research, different variables such as behaviors, opinions and attitudes can be assessed. Mixed research on the other hand is a mixture of both methods. The authors performed a quantitative research in the method. There are many advantages as well as disadvantages for selecting this method. Using the quantitative research helped the authors to evaluate the actual percentage of informed people in their area. They used statistics to reach their result and collected fast outcomes with the help of statistically valid random models. However, the disadvantage of this method is the limited ability of acquiring answers. For example, in the research, they focused on the survey collection of health workers at eight hospitals. It excluded out all the other departments which might have improved their research. The research could be carried out better with a mixed research method. It would help the authors evaluate why they received their results as provided. If they found that the results were lower than expected, a mixed research method could have helped them figure out the reason why the findings were lower than their expectations. Albano, L., Matuozzo, A., Marinelli, P., & Di Giuseppe, G. (2014). Knowledge, attitudes and behaviour of hospital health-care workers regarding influenza A/H1N1: A cross sectional survey. BMC Infectious Diseases, 14(1), 1-13.

Assessment Strategies Essay Example | Topics and Well Written Essays - 250 words

Assessment Strategies - Essay Example This makes it flexible for students who come from different backgrounds to attend classes at a time most convenient to them while they execute their duties in their workplace. Since the students have different learning styles, the course allows evaluators to come up with mechanisms of addressing needs of each and every student. Students with special needs are well taken care of, with evaluators being in a position to guide them accordingly. As opposed to the old system of education, educators are restructuring the learning models to cater for every potential learner. This is indispensable in that there has been improvement and democratic space in the education sector, and which broadens competence and experience in the contemporary world. Through innovations, students have diverse ways of learning that suits their needs. With this kind of trend, it is apparent that the future of education is bright and more professions will continue to be produced. This translates to a more developed

Questions in History Assignment Example | Topics and Well Written Essays - 750 words

Questions in History - Assignment Example very short period of time because by the end of like four months there was already the use of gas in vans as a form of automatic death with the aid of a senior commander named Herbert Lange (Fulbrook, 2001). In this article, the impacts of the ‘final solution’ have also been discussed i.e. impacts in the academic sector and the cultural effects of the same. The whole issue of brutally murdering the Jews and enclosing them in death camps is unimaginable and disturbed people’s minds such that even psychologists could not understand what could have been happening in the camps. Therefore, this left a great impact on the society because people lived in great fear of what would come next. In the academic sector, there have been many historical publications on dictatorship and such leaders and also on what happened during the killings of the European Jews. Many academic writers have also shown interest in how the Nazi concentration camps rose and also the Second World War; therefore these issues are still being taught in many learning institutions (Fulbrook, 2001). This happened between the years 1980 to 1990 and it tried to cover up the bad impression brought about by Nazism by trying to explain in a humane way. According to the holocaust, the Nazi concentration and death camps still existed just for a simple reason that the present people may remember what was happening in the past and not that they were sites for murder. However, the holocaust has faced much opposition from many historical analysts because they claim that it is difficult to understand such serious issues without the actual survivors. Furthermore, there is no common language that the survivors, if there were any, would use to pass the message whether in written or spoken form. Holocaust research is centred on information acquired from the actual victims of the final solution through video-taped testimonies and written literature (Fulbrook, 2001). The ‘final solution’ was accomplished by

Windows Server 2003 Essay Example | Topics and Well Written Essays - 1750 words

Windows Server 2003 - Essay Example They need to know and understand the benefit of upgrading to Windows Server 2003 so they can make the right decision. A company with an already stable system perhaps would wonder why I should upgrade my system when it seems fine and sufficient. Some will also probably ask why I should spend some more when I already have what we want. What's new What is the benefit Shall I gain from it Microsoft Windows Server 2003 for the comprehension of a typical user is simply an enhancement to Microsoft's previous server products such as NT 4.0 and Windows Server 2000. However, this latest operating system contains over 340 (Eurodata, 2004) improvements for Windows 2000 Server and the capability to handle different server functions that can significantly increase productivity and security that will give businesses added benefits. Similar to its predecessor, Server 2003 was built in the same tradition of strengths, superiority, and cost effectiveness to sustain business growth. In the real world, business are constantly changing, expanding, and seeking new ways to improve and support the demands of their organization. Growing organizations that are heavily relying on their computer network are looking for flexible and scalable systems that can greatly reduce their operating and administration cost. In addition, to ensure greater success, an organization wants real value on the ir investment and demand greater reliability and innovative functionalities with their server operating systems. Microsoft is much aware of these necessities and since the released of Windows 2000 Server substantially reviewed and studies all possible bugs and weak points to produce a much better operating system. According to Microsoft's Server 2003 White Paper (Microsoft, 2002), this operating systems provides various utilities, services, and features that could convince users to upgrade. One of the enticing new features of Server 2003 aside from being stable is its integrated platform that can be easily deploy and manage without security implications. This is to a certain extent viable considering the real world situation of company networks where combinations of Intranets and Internet are being used and continually being stretched to satisfy the organizations growing requirements. When an operating system is stable, it means more uptime and secured. This is exactly what Microsoft wants to sell; a fast, reliable, and secured platform with advanced connectivity that can provide a company gre ater competitive advantage in global marketplace (Eurodata, 2004). Improved Reliability, Windows Server 2003 provides device driver's resiliency that prevents defective drivers (that are known to be incompatible) that could unfavorably harm the server and holdup the company's operation. Furthermore, similar to XP, the Server 2003 is capable of device rollbacks (Ivens, 2003), restoration of last known good configuration, file protection, and application compatibility options. These features will ensure more uptime for the company network eliminating the possibility of system shutdown due to maintenance and restoration works (Microsoft, 2002). Improved Availability further fortifies network operational stability by

The Legal System and ADR Analysis Essay Example for Free

The Legal System and ADR Analysis Essay Alternative Dispute Resolution (ADR) refers to any means of settling disputes outside of the courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration. As burgeoning court queues, rising costs of litigation, and time delays continue to plague litigants, more states have begun experimenting with ADR programs. Some of these programs are voluntary; others are mandatory. While the two most common forms of ADR are arbitration and mediation, negotiation is almost always attempted first to resolve a dispute. It is the preeminent mode of dispute resolution. Negotiation allows the parties to meet in order to settle a dispute. The main advantage of this form of dispute settlement is that it allows the parties themselves to control the process and the solution. Mediation is also an informal alternative to litigation. Mediators are individuals trained in negotiations, who bring opposing parties together and attempt to work out a settlement or agreement that both parties accept or reject. Mediation is used for a wide gamut of case-types ranging from juvenile felonies to federal government negotiations with Native American Indian tribes. Mediation has also become a significant method for resolving disputes between investors and their stock brokers. Arbitration is a simplified version of a trial involving limited discovery and simplified rules of evidence. The arbitration is headed and decided by an arbitral panel. To comprise a panel, either both sides agree on one arbitrator, or each side selects one arbitrator and the two arbitrators elect the third. Arbitration hearings usually last between a few days to a  week, and the panel only meets for a few hours per day. The panel then deliberates and issues a written decision, or arbitral award. Opinions are not public record. Arbitration has long been used in labor, construction, and securities regulation, but is now gaining popularity in other business disputes. Title 9 of the U.S. Code establishes federal law supporting arbitration. It is based on Congresss plenary power over interstate commerce. Where Title 9 applies, its terms prevail over state law. There are, however, numerous state laws on ADR. Forty-nine states have adopted the 1956 version of the Uniform Arbitration Act as state law. The act was revised in 2000 and subsequently adopted by twelve states. The arbitration agreement and award is now enforceable under both state and federal law. In 1958, the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards was drafted to aid in the enforcement in domestic courts of awards granted in foreign countries. As of August 2007, there were 142 countries participating in the convention. In 1970, the United States joined the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Reference Robbins, S. P. Judge, T. A. (2011). Organizational behavior (14th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.

Hereditary Spherocytosis: Review of the Genetic Disorder

Hereditary Spherocytosis: Review of the Genetic Disorder Ginamar Galvan Abstract This review is on the studies of several scientists whom completed research on the genetic disorder, spherocytosis. Based on several articles in the literature, it was learned that spherocytosis is an inherited anemia caused by the dysfunction of the cell’s cytoskeleton. These articles provide information of hereditary spherocytosis comprising of the disorder on the molecular level and how the patient’s diagnosis is concluded using laboratory testing. Patients can be found to be affected on a certain level ranging from mild to severe. They are then prescribed remedial medical attention pertaining to their level. The research showed that a form of response is to undergo a splenectomy which can ease a patient’s ailment, but has been found to not correct the life span of erythrocytes unlike speculation that it did. Hereditary Spherocytosis: A Review on the Genetic Disorder Introduction Hereditary spherocytosis is an anemic disorder affecting the blood that causes erythrocytes to be produced as spheres while normal erythrocytes are shaped as concave disks. The spheroidal shape is caused by a loss of membrane surface relative to intracellular volume (Gallagher 2005). Spherocytosis is genetically based, meaning that it can be passed down from either parent who already encompasses the disorder. This disorder can be found in all racial classifications but is more prevalent in Caucasians (Oliveira et.al 2012). Spherocytosis in Northern Europe and North America have a 1 in 5000 births in reported incidences and is usually the cause of inherited chronic hemolysis (Huq et al., 2010 and Bolton-Maggs et al., 2004). In the reviewed literature, spherocytosis has been researched and discussed regarding various aspects of this disorder, including the functionality of erythrocytes and what occurs after diagnosis. Cellular Level of Spherocytosis In 1871, hereditary spherocytosis was first explained and the first splenectomy was also performed shortly after (Bolton-Maggs et al., 2004). Between family members, the expression of spherocytosis is somewhat similar but the degree of severity differs throughout. The cause of the irregular shape and lifespan of the erythrocytes is the defect of an element in the cytoskeleton which is made of proteins in which the vertical attachment of the proteins to the lipid bilayer membrane is affected and therefore it is weakened (Bolton-Maggs et al., 2004). Other elements that influence the shape of the cell includes problems with spectrin, ankyrin, band 3 and/or protein 4.2 and the severity of the disorder is influenced by how many of these proteins are affected (Bolton-Maggs et al., 2004). Sodium dodecyl sulfate-polyacrylamide gel electrophorese is used as to determine whether or not these proteins have deficiencies. The defects in the genes of spherocytosis are present in five genes in chromosomes 1, 8, 14, 15 and 17 (Oliveira et al., 2012). Dysfunctions of these genes affect the membrane of the red blood cell which can threaten the cytoskeleton which is meant to maintain the form and elasticity of the cell. When the cytoskeleton is infringed upon, the red cell becomes abnormally shaped and does not live as long as a normal healthy cell (Oliveira et al., 2012). According to the article, â€Å"Guidelines for diagnosis and management of hereditary spherocytosis†, a hundred and seventy-four individuals were recruited from a hundr ed and twenty-three families and spectrin-deficient pro-bands were a larger cause than any other protein defect in patients when compared to parents who were seemingly regular. Diagnosis of Spherocytosis Hereditary spherocytosis is usually diagnosed when the patient is a child who has a varying extent of anemia, jaundice, and splenomegaly (Bolton-Maggs et al., 2004). Family history is also very important when diagnosing because in most cases seventy-five percent of patients will have a family history of the disorder (Gallagher 2010). There are different varieties at which hereditary spherocytosis affects people and treatments can sometimes require blood transfusions. Complications may develop which include severe anemia which may cause growth delay, deferred sexual maturation, tumors, and skin ulcers and many of these patients are transfusion dependent (Gallagher 2010). The patients that participated in the clinical study at the Pediatric Hematology Center of Hospital das Clà ­nicas, Universidade Federal de Minas Gerais in the journal, â€Å"Clinical course of 63 children with hereditary spherocytosis: a retrospective study†, were followed for about 19 years and had scheduled follow ups for every three months or in some cases more often if it was deemed necessary. They were diagnosed based upon their clinical history, physical examination and tests done in the laboratory and family histories were studied. Patients were classified as mild, moderate or severe depending on their hemoglobin concentration, bilirubin concentration and reticulocyte count and were also screened by ultrasonography to see if they had cholelithiasis. Splenectomy happened when there is an increase in the size of the organ and hemoglobin is decreased while reticulocyte count increased. Ones that needed a spleen sequestration were given immunizations and penicillin. When hemoglobin and reticulocyte count both decreased the patient was categorized to be in aplastic crisis. Most patients have somewhat balanced hemolysis accompanied by slight to average anemia. Anemia can be asymptomatic except for some fatigue and jaundice occurs in patients about half of the time which is usually in association with viral infections (Gallagher 2010). When some patients’ erythrocytes are stressed, patients may notice symptoms because their body is compensating with amplified erythropoiesis for their hemolysis (Gallagher 2010). In the journal, â€Å"Guidelines for diagnosis and management of hereditary spherocytosis†, several laboratory tests were used for diagnosis which includes osmotic fragility, acidified glycerol lysis test, osmotic gradient ektacytometry, and eosin-5-maleimide binding. Osmotic fragility is affected by elevated reticulocyte count while acidified glycerol lysis test detects autoimmune hemolytic anemia, hereditary persistence of fetal haemoglobin, pyruvate kinase and glucose-6-phosphate dehydrogenase deficiency as well as chronic renal failure. The osmotic gradient ektacytometry measures red cell deformability and the eosin-5-maleimide binding shows distinct histograms for red blood cells of spherocytosis. And in the journal, â€Å"Clinical course of 63 children with hereditary spherocytosis: a retrospective study†, the tests in the laboratory include the patient’s complete blood count, smear, reticulocyte count, concentration of bilirubin, positive osmotic fragility test and negative direct antiglobulin test. The osmotic fragility of the patients’ looked at the red blood cells in tubes that were washed in mixtures of increasing sodium chloride concentrations that were either put in incubation for 24 hours or not. Treatment of Spherocytosis There are ways to manage hereditary spherocytosis such as using folate therapy if the patient is severe, routine observation, frequent blood tests and in some cases splenectomy. Splenectomy can improve anemia in most patients including even the most severe. The splenectomy can be performed laproscopically and is the more preferred method because it causes less discomfort after the surgery, quicker recovery time, shorter hospitalization, and decreased costs. Splenectomy complications can occur including infection, bleeding and pancreatitis (Gallagher 2010). This operation used to be considered routine in hereditary spherocytosis patients but now is being reconsidered concerning the complications that can arise. The patients that usually receive a splenectomy are diagnosed to be severe or are older patients whose vital organs are inhibited vascularly (Gallagher 2010). Moderate patients possess more options and may not need a splenectomy. In â€Å"Clinical course of 63 children with hereditary spherocytosis: a retrospective study†, when patients were followed up, thirty-five patients needed transfusions and the need for them was more common in the severity group. Fourteen needed spleen sequestration, three had aplastic crisis, twenty-two had a splenectomy, seventeen developed cholelithiasis and ten had a cholecystectomy. Patients had different degrees of jaundice and anemia while most had some enlargement of the spleen. About 2/3 of the patients were anemic and seventy percent had splenomegaly. Patients that were classified as severe were younger and needed more blood transfusions than the other groups. A viral infection could lead to an overestimated severe classification because anemia level rises. All the patients were told and arranged to take folic acid. Does Splenetomy return Red Cell life span to normal? In some patients, anemia, reticulocytosis, and hyperbilirubinemia may disappear and cause some to infer that the patient no longer has problems with their red cell survival rate (Chapman 1968). Using a micro-hematocrit the hematocrit was determined, the reticulocytes were found in a methylene blue contained cover slip smear, and the red cell was counted by an electronic counter (Chapman 1968). The red cells that were being circulated were labeled with Diisopropyl fluorophosphates. DF32P were given to eleven patients that had a splenectomy two to twenty seven years before. The mean cellular hemoglobin content and concentration were higher in males than females. The concentration was of a normal degree in the females and above normal in all but one of the males (Chapman 1968). Mean red blood cell life spans were determined by the disappearance of radioactivity from the circulating blood by calculating linear regression. From the evidence the life span of the red blood cells seems to be somewhat dependent on age after their splenectomy. Patients that are within the same family do not show any consistency of the degree of spherocytosis expression. The red blood cell life span was averaged at about ninety-six days when normal life span is about one hundred twenty-three days (Chapman 1968). The range of life span between the patients ranged from seventy-six to one hundred eighteen days. From these results it is inferred that splenectomy does not repair red blood cell life span. Conclusion Hereditary spherocytosis is often identified in a patient’s childhood or early adult life, although, spherocytosis can be diagnosed at any age conditional to the entirety. This molecular disorder impacts their quality of life regarding aspects of treatment, finances, stress and recovery. As discoveries are made in this area of research, individuals will have a greater knowledge of spherocytosis and advancement in the treatment of this disorder including more options. References Bolton-Maggs, P. H. B., Stevens, R. F., Dodd, N. J., Lamont, G., Tittensor, P., KIng, M. -. (2004). Guidelines for the diagnosis and management of hereditary spherocytosis.British Journal of Haematology, (126), 455-474. Retrieved from http://www.bloodmed.com/contentimage/guidelines/2121.pdf Chapman, R. G. (1968). Red cell life span after splenectomy in hereditary spherocytosis.The Journal of Clinical Investigation,47(10), 2263–2267. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC297390/ Gallagher, P. (2005). Red Cell Membrane Disorders. Hematology 2005, 2005(1), 13-18. Retrieved , from http://asheducationbook.hematologylibrary.org/content/2005/1/13.long Huq, S., Pietroni, M. A. C., Rahman, H., Alam, M. T. (2010). Hereditary spherocytosis.J Health Popul Nutr.,28(1), 107-109. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2975852/ Oliveira, M. C. L. A., Fernandes, R. A. F., Rodrigues, C. L., Ribeiro, D. A., Giovanardi, M. F., Viana, M. B. (2012). Clinical course of 63 children with hereditary spherocytosis: a retrospective study.Rev Bras Hematol Hemoter,34(1), 9-13. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3459613/pdf/rbhh-34-009.pdf What Is The Importance Of Chelates In Biology? What Is The Importance Of Chelates In Biology? Chelation is the formation or presence of two or more separate bindings between a polydentate (multiple bonded) ligand and a single central atom. Usually these ligands are organic compounds, and are called chelants, chelators, chelating agents, or sequestering agents. The ligand forms a chelate complex with the substrate. Chelate complexes are contrasted with coordination complexes composed of monodentate ligands, which form only one bond with the central atom. The denticity of a central atom, of course, refers to the number of bonds formed by the central atom. Chelants, according to ASTM-A-380, are chemicals that form soluble, complex molecules with certain metal ions, inactivating the ions so that they cannot normally react with other elements or ions to produce precipitates or scale. The chelate effect. The chelate effect describes the enhanced affinity of chelating ligands for a metal ion compared to the affinity of a collection of similar nonchelating (monodentate) ligands for the same metal. Consider the two equilibria, in aqueous solution, between the copper(II) ion, Cu2+ and ethylenediamine (en) on the one hand and methylamine, MeNH2 on the other. Cu2+ + en [Cu(en)]2+ (1) Cu2+ + 2 MeNH2 [Cu(MeNH2)2]2+ (2) In (1) the bidentate ligand ethylene diamine forms a chelate complex with the copper ion. Chelation results in the formation of a five-membered ring. In (2) the bidentate ligand is replaced by two monodentate methylamine ligands of approximately the same donor power, meaning that the enthalpy of formation of Cu-N bonds is approximately the same in the two reactions. Under conditions of equal copper concentrations and when the concentration of methylamine is twice the concentration of ethylenediamine, the concentration of the complex (1) will be greater than the concentration of the complex (2). The effect increases with the number of chelate rings so the concentration of the EDTA complex, which has six chelate rings, is much much higher than a corresponding complex with two monodentate nitrogen donor ligands and four monodentate carboxylate ligands. Thus, the phenomenon of the chelate effect is a firmly established empirical fact. Cu2+ complexes with methylamine (left) and ethylenediamine (right) The thermodynamic approach to explaining the chelate effect considers the equilibrium constant for the reaction: the larger the equilibrium constant, the higher the concentration of the complex. Ethylene diamine tetra acetic acid, Widely abbreviated as EDTA is a polyamino carboxylic acid and a colourless, water-soluble solid. Its conjugate base is named ethylenediaminetetraacetate. It is widely used to dissolve scale. Its usefulness arises because of its role as a hexadentate (six-toothed) ligand and chelating agent, i.e. its ability to sequester metal ions such as Ca2+ and Fe3+. After being bound by EDTA, metal ions remain in solution but exhibit diminished reactivity. EDTA is produced as several salts, notably disodium EDTA and calcium disodium EDTA. EDTA is used to bind metal ions in chelation therapy, e.g., for mercury and lead poisoning. It is used in a similar manner to remove excess iron from the body. This therapy is used to treat the complication of repeated blood transfusions, as would be applied to treat thalassaemia. EDTA acts as a powerful antioxidant to prevent free radicals from injuring blood vessel walls. Dentists use EDTA solutions to remove inorganic debris (smear layer) and prepare root canals for obturation. It serves as a preservative (usually to enhance the action of another preservative such as benzalkonium chloride or thiomersal) in ocular preparations and eyedrops. In evaluating kidney function, the complex [Cr(edta)]- is administered intravenously and its filtration into the urine is monitored. This method is useful for evaluating glomerular filtration rate. EDTA is used extensively in the analysis of blood. It is an anticoagulant for blood samples for CBC/FBEs (complete blood count also known as full blood examination). Laboratory studies also suggest that EDTA chelation may prevent collection of platelets on the lining of the vessel [such as arteries] (which can otherwise lead to formation of blood clots, which itself is associated with atheromatous plaque formation or rupture, and thereby ultimately disrupts blood flow). These ideas are theoretical, and have so far been proven ineffective; however, a major clinical study of the effects of EDTA on coronary arteries is currently (2008) proceeding. EDTA played a role in the O.J. Simpson trial when the defense alleged that one of the blood samples collected from Simpsons estate was found to contain traces of the compound. In nature Virtually all biochemicals exhibit the ability to dissolve certain metal cations. Thus, proteins, polysaccharides, and polynucleic acids are excellent polydentate ligands for many metal ions. In addition to these adventitious chelators, several biomolecules are produced to specifically bind certain metals . Histidine, malate and phytochelatin are typical chelators used by plants. Histidine (abbreviated as His or H) is one of the 22 proteinogenic amino acids. In terms of nutrition, histidine is considered an essential amino acid in human infants. After reaching several years of age, humans begin to synthesize it, at which point it becomes a non-essential amino acid. Its codons are CAU and CAC. Histidine was first isolated by German physician Albrecht Kossel in 1896. Malic acid is an organic compound with the formula HO2CCH2CHOHCO2H. This carboxylic diacid is the active ingredient in many sour or tart foods. Malic acid is found mostly in unripe fruits. Malic acid has two stereoisomers, a left-handed L-enantiomer and a right-handed D-enantiomer, but only the L isomer exist naturally. The salts and esters of malic acid are known as malates. The malate anion is an intermediate in the citric acid cycle. Phytochelatins are oligomers of glutathione, produced by the enzyme phytochelatin synthase. They are found in plants, fungi, nematodes and all groups of algae including cyanobacteria. Phytochelatins act as chelators, and are important for heavy metal detoxification.They are abbreviated PC2 through PC11. A mutant Arabidopsis thaliana lacking phytochelatin synthase is very sensitive to cadmium, but it grows just as well as the wild-type plant at normal concentrations of zinc and copper, two essential metal ions, indicating that phytochelatin is only involved in resistance to metal poisoning. Phytochelatin seems to be transported into the vacuole of plants, so that the metal ions it carries are stored safely away from the proteins of the cytosol. In biochemistry and microbiology Virtually all metalloenzymes feature metals that are chelated, usually to peptides or cofactors and prosthetic groups. Such chelating agents include the porphyrin rings in hemoglobin and chlorophyll. Many microbial species produce water-soluble pigments that serve as chelating agents, termed siderophores. For example, species of Pseudomonas are known to secrete pycocyanin and pyoverdin that bind iron. Enterobactin, produced by E. coli, is the strongest chelating agent known. Porphyrins are a group of organic compounds of which many occur in nature. One of the best-known porphyrins is heme, the pigment in red blood cells. Heme is a cofactor of the protein hemoglobin. They are heterocyclic macrocycles composed of four modified pyrrole subunits interconnected at their ÃŽÂ ± carbon atoms via methine bridges (=CH-). Porphyrins are aromatic Hemoglobin (also spelled haemoglobin and abbreviated Hb or Hgb) is the iron-containing oxygen-transport metalloprotein in the red blood cells of vertebrates and the tissues of some invertebrates. Hemoglobin in the blood is what transports oxygen from the lungs or gills to the rest of the body (i.e. the tissues) where it releases the oxygen for cell use. In mammals the protein makes up about 97% of the red blood cells dry content, and around 35% of the total content (including water). Hemoglobin has an oxygen binding capacity between 1.36 and 1.37 ml O2 per gram of hemoglobin, which increases the total blood oxygen capacity seventyfold. Hemoglobin is involved in the transport of other gases: it carries some of the bodys respiratory carbon dioxide (about 10% of the total) as carbaminohemoglobin, in which CO2 is bound to the globin protein. The molecule also carries the important regulatory molecule nitric oxide bound to a globin protein thiol group, releasing it at the same time as oxygen. Heme group Chlorophyll (also chlorophyl) is a green pigment found in almost all plants, algae, and cyanobacteria. Chlorophyll absorbs light most strongly in the blue portion of the electromagnetic spectrum, followed by the red portion. However, it is a poor absorber of green and near-green portions of the spectrum, hence the green color of chlorophyll-containing tissues. Chlorophyll was first isolated by Joseph Bienaimà © Caventou and Pierre Joseph Pelletier in 1817. In geology In earth science, chemical weathering is attributed to organic chelating agents, e.g. peptides and sugars, that extract metal ions from minerals and rocks. Most metal complexes in the environment and in nature are bound in some form of chelate ring, e.g. with a humic acid or a protein. Thus, metal chelates are relevant to the mobilization of metals in the soil, the uptake and the accumulation of metals into plants and micro-organisms. Selective chelation of heavy metals is relevant to bioremediation, e.g. removal of 137Cs from radioactive waste. Applications Chelators are used in chemical analysis, as water softeners, and are ingredients in many commercial products such as shampoos and food preservatives. Citric acid is used to soften water in soaps and laundry detergents. A common synthetic chelator is EDTA. Phosphonates are also well known chelating agents. Chelators are used in water treatment programs and specifically in steam engineering, e.g., boiler water treatment system: Chelant Water Treatment system. Heavy metal detoxification. Chelation therapy is the use of chelating agents to detoxify poisonous metal agents such as mercury, arsenic, and lead by converting them to a chemically inert form that can be excreted without further interaction with the body, and was approved by the U.S. Food and Drug Administration in 1991. In alternative medicine, chelation is used as a treatment for autism, though this practice is controversial due to no scientific plausibility, lack of FDA approval, and its potentially deadly side-effects. Though they can be beneficial in cases of heavy metal poisoning, chelating agents can also be dangerous. The U.S. CDC reports that use of disodium EDTA instead of calcium EDTA has resulted in fatalities due to hypocalcemia. Other medical applications Antibiotic drugs of the tetracycline family are chelators of Ca2+ and Mg2+ ions. EDTA is also used in root canal treatment as a way to irrigate the canal. EDTA softens the dentin facilitating access to the entire canal length and to remove the smear layer formed during instrumentation. Chelate complexes of gadolinium are often used as contrast agents in MRI scans. Copper-64 is a radioactive nuclide of copper which has unique decay properties making it useful in nuclear medicine for both imaging and therapy. 64Cu-ATSM (diacetyl-bis(N4-methylthiosemicarbazone)) has been shown to increase the survival time of tumor-bearing animals with no acute toxicity. Areas of low oxygen retention have been shown to be resistant to radiotherapy because hypoxia reduces the lethal effects of ionizing radiation. 64Cu was believed to kill these cells because of its unique decay properties. In this experiment, animal models having colorectal tumors with and without induced hypoxia were administered Cu-ATSM. Cu-ATSM is preferentially taken up by hypoxic cells over normoxic cells. The results demonstrated that this compound increased survival of the tumor bearing hamsters compared with controls. In the control groups, death due to tumor burden occurred within 4 weeks while animals with a dose greater than 6 mCi of the radioisotope tumor growth was inhibited and survival increased. The results also suggested that multiple doses and a single dose of 10 mCi were equally effective while the multiple dose regimen i s safer for non-target tissue. Radiotherapy of cancer cells using 64Cu can be applied in medical research and clinical practice. The advantages of radiotherapy with beta emitters of this energy are that there is enough to do substantial damage to the target cells but the mean range in tissue is less than a millimeter so non target tissues are unlikely to be harmed. In addition, 64Cu is a positron emitter making it a viable PET imaging radionuclide which can give real time images of the physiological processes in the system. These abilities in conjunction enable accurate monitoring of drug distribution and biokinetics simultaneously. Radiotherapeutic efficacy of Copper-64 depends highly upon the radioligand delivery to the target cells, so the development of bifunctional chelates is central to development of 64Cus potential as a radiopharmaceutical. With sufficient development, 64Cu is likely to become a central element in nuclear medicine in the years to come. A preliminary study of the bio availability of iron- and zinc-glycine chelates Groups of rats were fed diets containing marginal levels of Fe and Zn as glycine chelates (tradename Chelazome, Albion Laboratories, Verona, New Jersey, USA), or the same level of mineral as ferrous sulphate or zinc carbonate. The Fe diets were fed to weanling rats for 4 weeks and the Zn diets to young adult rats for 5 weeks. Blood Hb concentrations were significantly higher in the group fed Fe-chelazome than ferrous sulphate, 149 and 128 g/l respectively (P

Shakespeares Star Crossed Lovers :: essays research papers

In Shakespeare’s play Romeo and Juliet, set in Verona, Italy, Juliet’s own happiness is put on hold due to her parents authority and the lack of control children had in the sixteenth century. John W. Draper’s excerpt â€Å"Shakespeare’s Star-Crossed Lovers† also supports my outlook on how Juliet’s life is being controlled by her parents. Juliet is a thirteen year old Capulet who’s family is in a lifelong feud with her love interest’s family, Romeo, a Montague.   Ã‚  Ã‚  Ã‚  Ã‚  In Act three, Scene five, Juliet is forced with a dilemma. Her parents have arranged for her to partake in the marriage of Country Paris. They told Juliet that she shall be wed on Thursday. â€Å"I will not marry yet; and when I do, I swear it shall be Romeo, whom you know I hate, rather than Paris† said Juliet to Lady Capulet (her mother). What her parents didn’t know was that she was secretly married to Romeo already. In her bedroom they argue about marriage. The Capulet’s don’t let her live her own life the way she wants. It’s like they are living through her or for her. Her opinion and happiness doesn’t seem to mean anything to her family. They are forcing her into a marriage with a man she has no affection towards whatsoever. She claims to love Romeo. Weather it’s real or not, we will never know, but if it’s what she wants and it will make her happy, I think they should back off of their daughter and let her live her life. If she makes a mistake it would be considered her mistake and misfortune. NOT her parents.   Ã‚  Ã‚  Ã‚  Ã‚  Draper explains how Juliet feels about her and Romeo’s fate of being together. â€Å"Nevertheless, over the play hangs a tragic fate....her ‘all-diving soul’ sees Romeo ‘As one dead in the bottom of a tomb.’ She described her case as ‘past hope, past cure, past help’ says Draper. He further explains in greater detail how Juliet feels about being put into this situation. He thoroughly explains how Juliet feels she has no control over her own life In this sixteenth century way of life. Although in Juliet’s decision since it is in fact her life, but considering the circumstances she was stuck with the awful fate her parents were controlling. Just think if Juliet’s parents only listened and didn’t push her, maybe Romeo and Juliet’s lives could have been spared.

Violence :: essays research papers

Violence What do all of these scenes have in common: a small figure jumping on another figure's head, a man stabbing a woman with a pencil in the hand, and a man punching another man in the face? Violence. What is the difference between these three scenes? One is a scene from a video game, another is from a new, popular movie, and one can be seen in real life. In a popular video game you have a little character named Mario who is supposed to rescue Princess Toadstool. In doing so he has to jump on certain characters' heads in order to kill them. It is scenes like this that the government wants to outlaw. How can the government limit the amount of violence a kid sees in his or her childhood because the only way is to remove the kid's eyes just so he or she couldn't see the violence? Of course the kid can still hear the violence, so what are they going to do, cut off the kid's ears too? After that, the kid would be safe from seeing and hearing violence. What could the kid do after that? Violence is just a part of human nature; it may be a part that civilized humans suppress in order to try to have law and order. Law and order are two things that just seem like guidelines from which a kid bases his or her rebellion. Just like in Columbine High School there was a small group of kids who were willing to break the law because there were restrict ions on what they could do. And because they were teased by some of the kids, and to them it might have felt like the whole school was coming down on them, they got their revenge in one way possible. Although we will never know exactly why, even though they left a note, they rebelled against the system like they did; we will never know because they are now dead from their suicide pact. From now on, I think that someone should take threats a little more seriously when it comes to kids like they are. In video games you could be, as the government puts it, trained like a killer just from video games. I don't believe that statement to be true, because if it were then we would have a 'holodeck'; from Star Trek.

The Ture College Experience :: essays research papers

College is the stepping stone from High School to the real world. College is intended not only to teach us knowledge, but also to prepare us for the next part of life. Not all college students get this preparation though. Those students are the ones that live at home and commute to school every day. These students miss out on the entire college culture. Being a commuter myself, I almost feel left out. If it were not being in the rigorous architecture program which demands hours and hours of studio work, I probably would not have meet ten percent of the people that I have met. Walking into my design studio for class, I hear people talking about what happened the night before in Goodyear, the freshman dormitory on South Campus. I am always intrigued to know what goes on daily at the dorms. Being as intrigued as I was, I decided to spend one night with my friend to try to get a feel of dorm culture One of the main goals of an architecture program is to teach the future architects to observe well. Now being in this program for only a semester has changed the way I view things. One thing that I noticed, from an architectural standpoint, is that the dorms are probably the poorest designed spaces on any college campus. Even I.M. Pei, one of the best architects in the world, could not design a dormitory that was spacious and efficient. That dorm is none other than the easily navigated Governors Complex. The spacious double rooms are much smaller than my own room. I do not understand how people can survive for long periods of time crammed into a small room with another person without going clinically insane. Fortunately I did not stay in Governors, for if I did I would have spent most of the night trying to find my friend’s dorm room. Instead, I decided to spend the night at Goodyear Dorm with my friend from architecture. Aside from Governors, the Goodyear dorm was fairly easy to find my way around. I was impressed at seeing the double rooms in Goodyear compared to Governors. The rooms were much bigger but still not large enough. Sleeping is another story. The word dormitory was given to this building because it is where people are supposed to sleep. The irony in this situation is that good sleep is not possible in the dorms.

Cisco’s Strategy in Recessionary Times Essay

Executive Summary This report is an examination into the strategic management practices used by Cisco Systems, Inc., over the dot com bubble from 1997 to 2000 and an overview of Cisco as a company, and its acquisitions over the past 20 years. The report was created by Alex Quigley, Eoin McCrann and Daniel Ozac, as part of a continuous assessment deliverable as part of BSHCE3, Hons Degree in  computing at the National College of Ireland. It is supported by a PowerPoint presentation of the same name, in the attached appendix. Introduction The report will first review the literature used during the research of the topic and outline the types of information resources used during the reports generation and an overview of these findings. There is an attached overview of Cisco as a company (Appendix A) which outlines how it was founded, and its current market position, and a brief history. Next, we will take a high level overview of their strategy and then identify the key strategic tools used by the company and how they differed at the time from their competitors in this regard. Next we will look in detail at Cisco’s acquisitions over the past 20 years since the company formed, and how this particular strategy was affected by the crash. After this we will look at Cisco’s financials and how their strategy has enabled such large growth. The importance of their strategic choices in developing this financial growth, and finally some of the possible risks associated with the key strategic tools used by the company during this period. Finally, a conclusion and summary of our findings and an appendix for the resource references used during the research, and an appendix of financial information. Literature Review  From the outset the base for all our research started with the case study (Indu, 2010). This gave us a very good overview of the company and how it has, over the past 20 years, faced great triumph in the face of adversity, and bounced back, particularly after difficult times throughout the company’s history In particular during recessionary times such as the dot com crash and the recent global economic downturn. The course notes from BSHCE3 Strategic Management were used to identify the key strategic management tools. Wikipedia was also liberally used to identify and further expand on some of these tools, their founders and also  as a high level overview of Cisco as a company. Other online resources that proved very informative during research were CNN and in particular the money section of the website which maintains detailed information on a large number of companies, and the NASDAQ website which also maintains (as expected) detailed stock and financial information. It’s also worth mentioning that Cisco’s own website is very informative, with detailed financial and organizational structure. Strategic Overview From the case study delivered during class (Indu, 2010) it is clear that Cisco’s goal was to increase market share and maintain a sustained growth. Added to this continued improvement to customer and supplier relations. The company’s current mission statement states that; ‘Cisco’s mission is to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners.’ (Cisco.com) With a strong customer focus at the core of their business, another strategy employed by Cisco is to position themselves close to not only the customer but suppliers too. This closeness and strength of supplier relations allows Cisco to respond quickly to changing customer and in fact market demands and trends. One of the strategic applications to enable growth and innovation was the use of acquisitions. From 1993 to present day Cisco has acquired over 150 companies in a wide range of Information Technology and Networking sectors. This is facilitating gaining and maintaining competitive advantage. However, proving the strength of the management and effective adaptation, Cisco has been able to change their strategy when required and in 2000, after the dot com bubble burst, its highly successful strategy of procurement was abandoned and under the leadership of John Chambers, the  company was able to successfully tighten its purse string, downsize the business and successfully ride out the storm. This leads to another strategy employed by Cisco, and one that has not been helped employee relations, the choice to downsize during periods of economic or market downturn. This retrenchment again shows Cisco’s effective adaptation, but has led to issues with morale among employees. Ciscos core business is networks, communication and information technology. So it is no surprise that in parallel to providing companies with the tools and information systems seen as ‘strategically important’, they themselves view these systems as paramount to the company’s success. Examples of this are the ‘bug alert’ system implemented in 93 and even earlier, the FTP site a database to allow customers and developers improve existing components and systems. One defining factor in all Cisco’s strategic choices has been to stick to the knitting. As Peter Drucker stated; ‘Think through the overall mission of a business, and ask the question: What is our business?’ In Cisco’s case, their business through numerous acquisitions and strategic changes has essentially remained the same. Chambers believed that there are 4 key elements that a company needs in order to survive a recession; 1. Being realistic about the CAUSE of your challenges – don’t just blame a recession, focus internally as well, is there something you’re doing as well? 2. Try to determine the length and intensity of the downturn – then respond appropriately 3. Prepare for the upturn – Survive and thrive, gain market share 4. Expand customer relationships – customers can give insight into when the recession may end And this isn’t always the best strategy, as it does not allow for innovation internally within the organisation. The lack of intrapreneurship has led to poor company ratings in terms of ‘great place to work’ scores. In order for Cisco to get new products or enter into a new market, they generally have to purchase a new company rather than use organic growth or in-house smarts. Their competitors on the other hand employ strategies of organic growth and are less inclined to purchase companies in order to gain entry into different markets. However there have been some key acquisitions that allowed direct competition to Cisco, which will be discussed in more detail in the next section. Cisco through every recession have maintained large assets and cash. They saw it as vital in order to survive. This allowed them to make bold decisions when most companies are cutting back, and also respond immediately when the market begins to pick up again. Something competitors have had difficulty with. Acquisition Timeline As stated previously, Cisco’s core business has been a factor in the type of businesses acquired over the company’s history. From 1993 to 2000, there was a sustained level of acquisition, increasing year on year. During this time Cisco has acquired over 150 companies, most of which were US based. Figure [ 1 ]| However, it’s clear from ‘Figure 1’ above that after the crash in 2000, Cisco drastically decreased acquisitions with only one acquisition in 2001. In the two years previous to this Cisco had acquired an amazing total of 40 companies. And once again in 2008 the company slowed acquisitions to match the downturn in demand for their products. Although not as drastically as 2001. They used these times to focus on new emerging markets, and develop new technologies. Figure [ 2 ]| Most of these businesses were related to the area of Computer Networking, Lan Switching, Gateways and Routers. This is in keeping with Cisco’s strategy of ‘stick to the knitting’. Second to these is the VOIP technology sector. By 2004, Cisco had returned to its acquisition strategy and sustains this level for a number of years. What is interesting is if you map the NASDAQ composite index, which is heavily populated with IT related companies; it almost perfectly matches the acquisition timeline for Cisco, as can be seen  in ‘Figure 3’ below. Figure [ 3 ]| Cisco didn’t just acquire the companies and integrate the management of them into their own structure. For the most part these companies were allowed to continue as individual entities, and keep their existing structure and organisational managers. Competitors Acquisitions Hewlett Packard One of Cisco’s competitors is HP, the computer hardware and software giant. In 2008, HP acquired Colubris Networks. Colubris Networks provide organizations with advanced wireless networking solutions that unify and integrate with existing network infrastructures, as well as security and management systems. This was an attempt by HP to try and take market share of Cisco’s strong hold on network infrastructure, and in this case the wireless LAN market. In 2009, HP purchased 3COM, the digital electronics manufacturer best known for its computer network infrastructure products, for $2.7 billion. This was a huge strategic move from HP to strengthen their position in the market which Cisco has been controlling. HP realized there were large gaps in its product line, mainly network switching, which would take too long to fill organically and needed a quick-fix. HP wanted to take on Cisco in this sector, and 3Com wanted to expand outside of China. This acquisition meant the Introduction of low-cost switches, which was a competitive advantage that Cisco was unable to match. Juniper Networks Another of Cisco’s direct competitors, Juniper networks, a networking equipment manufacturer based in Sunnyvale, California. In contrast, Juniper had no acquisitions between 2006 and 2009, and instead focused all their efforts on internal innovation and organic growth. However in 2010 they acquired Ankeena Networks for $100 million. This was a  move to directly compete against CSICO’s video conferencing market position. Ankeena Networks deliver new media infrastructure technology, and their technology is designed to help service providers deliver a better video experience on both fixed and mobile devices. Also in 2010, Juniper purchased Blackwave Networks in order to support Ankeena networks. Blackwave networks key business is to provide video storage and delivery. Both of these purchases were seen as Juniper bulking-up its video delivery capabilities in order to take on Cisco in this area. Polycom As with Juniper acquisitions in 2010, Polycom’s core business is in the area of video conferencing and in particular Telepresence and supporting infrastructure equipment. Between 2008 and 2010 they did not acquire any companies. In 2011 they acquired HP Visual Collaboration, a network and video management company for $89m. This move was in response to Cisco’s hostile $3.3bln takeover of Tandberg. The purchase was to strengthen Polycom’s position and ensure that they are strong enough to compete with Cisco. Strategic Tools A number of tools exist to assist organisations in developing strategies and insight on what industries and areas their business should focus on. Some of these are outlined below. SWOT Analysis A planning method used to determine the internal factors: strengths, and weaknesses, as well as the external factors: opportunities and threats, facing a project or organisation. The SWOT analysis helps project managers or organisations with the decision-making process. It is especially useful when considering entry into a new market, or when releasing a new product. It can be used to develop a strategy to help distinguish your organisation from your competitors. Porter’s 5 Forces A technique used to determine the intensity of competition within your market. The five forces are: threat of new entrants, threat of substitute products, and bargaining power of suppliers, bargaining power of buyers and the intensity of competitive rivalry. It is used to show the relative attractiveness of a particular market, and as such helps with the decision-making process for project managers and organisations. PEST Market Analysis Tool A tool used to help understand market growth or decline. PEST is an acronym for Political/Legal, Economic, Socio-Cultural, and Technological. Like SWOT and Porter’s 5 Forces, PEST is used to analyse or review a strategy or position at a given time and then help with the decision-making process. Other Other tools include Management by Objectives (MBO), TOWS Matrix, Internal Analysis, Value Chain and BCG Portfolio Model, but for this report we will focus on the three tools above, and how they relate to Ciscos management strategy. Strategic Tools on Cisco SWOT Analysis The SWOT analysis outlines internal strengths and weaknesses and external opportunities and threats. Strengths  In terms of internal strengths, Cisco is in a very good market position for its main core products (networking equipment) and is seen as the market leader in this area. Cisco has number of alliances with major players in the market, including Microsoft and IBM. Cisco also maintains a very strong balance sheet every year, ensuring a large supply of cash is available. Weaknesses Conversely, its main weakness is the high cost of its products, when compared to its competitors (e.g. HP and their low-cost range of network switches). This is not a major problem for Cisco however, as their focus is on reliability and customer satisfaction, not beating prices with competitors. Other weaknesses include the lack of a presence in the consumer market and the lack of innovation. Cisco’s growth and new product line comes from acquisitions rather than internal innovation and organic development. Opportunities Opportunities in the market include cloud computing, smart-grid technology, the home consumer market and the area of video conferencing thanks to its acquisition of Tandberg. Threats  The main external threat to Cisco is the unstable global economy. Chambers was initially very optimistic about the economic recovery; however he has recently toned-down his statements and has admitted that recovery may take longer than initially expected. Other threats include cheaper alternatives and their direct competitors: Hewlett-Packard, Juniper and IBM. Figure [ 4 ]| Porter’s 5 Forces Porter’s 5 Forces model helps to determine the level of a number of factors. Once established, this helps to determine the relative attractiveness of a particular market or sector. Threat of New Entrants: MEDIUM Large enterprises will generally only enter the market by acquiring specialist companies, and small companies will not really be able to compete due to the infrastructure and resources required. Any small, successful start-up will generally be acquisitioned by a larger one. Because of these factors the threat of new entrants into Cisco’s core market (design and manufacture of networking equipment) is medium. Bargaining Power of Suppliers: LOW Cisco generally uses short-term contracts with its suppliers. This allows them to easily adjust their output depending on supply and demand. Cisco also uses a multitude of different suppliers across the globe. Their main focus is on reliability and customer satisfaction rather than competing on price. For these reasons the suppliers have a low level of bargaining power. Bargaining Power of Buyers: HIGH In terms of networking equipment and video conferencing facilities, there are a wide range of suppliers for customers to choose from. These include Hewlett-Packard, Juniper, and Polycom. There are also cheaper alternatives in the market. This gives the customers much more bargaining power. Threat of Substitute Products: LOW Organisations rely on networking equipment such as hubs, switches and routers. They are vital to networks and will not be replaced by substitute products. Therefore the threat to Cisco is low. Intensity of Competitive Rivalry: HIGH The sector is very competitive with HP and Juniper seen as Cisco’s main rivals. Cisco’s entry into the videoconferencing and Telepresence market has increased this rivalry. Cisco is still seen as the market leader. PEST Market Analysis This market analysis used to help understand market growth or decline and help to influence the decision-making process. Political & Legal  Political and legal considerations for Cisco include regulations regarding customer and employee data privacy and security. Given the market they operate in, their products need to adhere to many different standards and certifications. These include ISO, IEEE, IETF, ITU and Wi-Fi Alliance. As Cisco is an international organisation operating in many different countries across the globe, they must be aware of differing national laws and regulations. A major strategy of theirs is the acquisition of other organisations. They must therefore be aware of the laws and regulations governing this process in different countries and continents, e.g. the acquisition of TV software developer NDS had to be approved by the European Commission. Economic The current economic outlook is poor, with low growth and uncertainty about when it will end. There are high unemployment rates across the globe, low inflation rates and increased labour costs. Current rates of interest are also important. These are all factors that Cisco will consider with any new  venture. Socio-Cultural Demographics, language, culture, customs and religion are not really a huge concern for Cisco. One socio-cultural issue that may relate to them is the current trend of technical people leaning more towards open-source software and hardware products. This may have a negative impact on some areas that Cisco operates in, as Cisco IOS is closed-source. However Cisco does work with over 40 open source software projects. Another area that Cisco will consider is the green and renewable energy sectors. Cisco’s recycling and emissions and energy consumption reduction programs have worked well and even resulted in them becoming certified. Cisco is also one of the driving forces behind making purchases from women, veteran and minority-owned companies. Technological Cisco spends nearly $5.3 billion on research and development per year, ensuring that they stay at the cutting-edge of technology. In terms of innovation Cisco generally â€Å"stick to the knitting†, i.e. they stick to their core competencies and acquisition other organisations when moving into new areas. Areas of technological growth include video and teleconferencing, telepresence, unified communication, big-data, cloud computing and smart grid (overlaying a digital network onto the existing electrical network). Figure [ 5 ]| Financial Overview Looking at Cisco’s finances provides and insight into invest psychology. Going back to 1993 (Figure 6) we can see that Cisco had strong earnings growth. Cisco really suffered during the recession in 2001 as they were unable to predict economic downturn and net sales fell by almost 30 per cent. Chambers was forced to write off inventory of $2.2 billion, and 8,500 people were made redundant. Figure [ 6 ]| Reorganisation The reorganisation of its operations after the crisis in 2001 was followed by  strong growth. By looking at the Cisco’s last year’s financial statements (Figure 7) we observe that their bottom line, in other words, Net Income was pretty stable and year over year, has known a continued growth from 2003 onwards, except the last couple of years, starting with 2008 when the net income declined to 2009 and got back pretty much as the same level in 2010 and once again declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding this time the 2010 level. Figure 7| Technology Bubble The orange line on the graph represents earnings per share growth and as we can see since 1993, the average operating earnings growth rate has averaged 24.5% a year. The black line represents the monthly closing stock prices. As we can see at the beginning the earnings in price track each other very closely and then between 1997 and 2000 we observe that Cisco stocks became overpriced which matched the other trends in the technology market during the dotcom bubble. It climaxed on March 10, 2000, with the NASDAQ peaking at 5132.52 in intraday trading before closing at 5048.62. (Jesse Colombo, 2012). We can clearly see how during this period Cisco became disconnected from growth and earnings. The price collapsed as a consequence. However, since 2002 – 2003 Cisco stocks has traded more in line with its operating earnings growth (Appendix A, Earnings Growth). Price Earnings Ratio Although Cisco is trying to ensure a dominant position in all of its markets (and reflected in last quarterly results) their earnings were above expectations. This doesn’t give a clear picture of the potential for continued growth for investors. Price Earnings Ratio demonstrates investor psychology in the (Figure 7). It illustrates value in relation to the company’s earnings and is strictly related their yearly financial statements translated into net income. The higher the price earnings ratio the more the market is willing to pay for the company’s earnings. Conversely, a low P/E may indicate a â€Å"vote of no confidence† by the market or it could mean this is a sleeper that the market has overlooked. Known as value stocks, many investors made their fortunes spotting these â€Å"diamonds in the rough† before the rest of the market discovered their true worth. (Ken Little. 2012). Looking closer at earnings growth rate for the time frame 2003 – 2012, we observe that Cisco is averaging at almost 20 per cent stock growth a year (Figure 8) and since 2003 there was a time when the P/E ratio was much higher. Figure 8| By looking below at the P/E graph (Figure 9) we can see that by Fiscal Year End 2003 was nearly 40, by Fiscal Year End 2004 it dropped to 28 and then by Fiscal Year 2005 again to 21. We can see a continuous drop, in 2012 was just over 10 and currently the P/E ratio is around 12.0 based on the closing price of March 28th 2013. Figure 9| Finances over the Last Decade Looking at Cisco’s financial statements for 2003 – 2013 and the historical stock price trends, we can see that Cisco had an accelerated earnings growth. The graph below (Figure 10) outlines this cyclical nature. Figure 10| They had a growth rate of 89 per cent in 2003, 43 per cent in 2004 but by 2009 there was a 19 per cent decrease. This was during the global economic downturn and reflected in their financial statement. Despite that, it’s clear that the company was very profitable. Their earnings increased 24 per cent and are forecasted to reach 20 per cent by the end of the fiscal year 2013. Financial Observations Below are observations on Cisco’s last Financial Results for Q2 2013 released  February 13, 2013. Cisco reported so far a very strong FY 2013 earnings, maintaining their leadership positions in key areas of IT infrastructure such as Switches and Routers, while the firm’s financial strength in terms of cash flow allow them to catch up and surpass other companies in areas such as Wireless, where it wasn’t initially a market leader. Figure 11| The data above, (Figure 11) illustrates Q2 net sales of $12.098 billion, with an increase of 5% year over year. GAAP net income and GAAP earnings per share, for the second quarter of fiscal 2013, included total tax benefits of approximately $926 million or $0.17 per share (Julie Bort, 2013). Product revenue grew 3% while services revenue grew an impressive 10%. Cash flow from operations was well over $3 billion and the company continues its prodigious free cash flow production, which according to Frank Calderoni the CFO, Cisco: â€Å"Cash is King. It enables us to make bold moves.† Gross margins have been very stable around 62% lately for Cisco, exhibiting the strength of the brand versus its competition. According to the analysts, Cisco’s Services business is a key differentiator between it and its competition, and because the margins are higher on Services than Products, the company’s total gross margin should continue to improve slightly (Tim Travis, 2013). According to John Chambers, Cisco chairman and chief executive officer: â€Å"Cisco delivered earnings per share this quarter and record revenue for the 8th quarter in a row in a challenging economic environment. We continue to drive the innovation, quality and leadership our customers expect, and we remain focused on consistent returns to our shareholders†. Strategic Risks Innovation Momentum According to Forbes magazine Cisco lost its â€Å"innovation momentum† and that’s because they relied more on external acquisitions for new product  development: the reliance on external rather than internal sources of innovation, e.g., the purchase of start-ups with promising products. The problem with this strategy, however, is that it is costly, destructive, and unsustainable. It is costly because the would-be acquirers end up buying start-ups that fail to produce any marketable products. It is destructive because it eventually distances would-be acquirers from their end customers. It is unsustainable because it often ends up fuelling bidding wars, as the owners of these smaller companies demand higher and higher premium to compensate them for the risks they assume. (Panos Mourdoukoutas, 2012) Acquisition Strategy Over the period 1993-2013, Cisco acquired one hundred and fifty six companies. Some of the latest acquisitions are Meraki (2012) operating in the Wired and Wireless Cloud networking market, SolveDirect (2013) operating in the Cloud Services market, Intucell (2013) operating in the Mobile Software market†¦etc. By relaying your company strategy only on acquisition you forget to cultivate innovation and creativity across your own organisation and we believe that Cisco strategy in the long run might bounce back as a failure and affect their core competencies. Core Competencies By definition the core competencies differentiate an organization from its competition. The Core Competencies create a company’s competitive advantage in the marketplace and typically, a core competency refers to a company’s set of skills or experience in some activity, rather than physical or financial assets. If we look at the case study (Indu, 2010) and where Cisco stands today within the IT market, we realise indeed that their resources in terms of reputation, brand, financial assets and products are still strong, but in terms of capabilities and talent which help to sustain innovation as a key differentiator between market leaders and their rivals, they have chosen the wrong path. New Markets There is no doubt that Chambers is a successful CEO. This can be seen in Cisco’s last year’s financial statements but since Cloud computing technology has gone mainstream and greater use of mobile telephony networks. Cisco has been unable to innovate, launch and grow new markets for services or applications. According to Forbes Magazine, Chambers has reorganized the company 3 times – but it has been much like rearranging the deck chairs on the Titanic: â€Å"Lots of confusion, but no improvement in results† (Adam Hartung, 2012). Strategic Vision Another risk to be noted is the â€Å"Where to go vision† – distraction and lack of a long-term vision adopted by Cisco is a major risk for the company. In one of his statements, Chambers said: â€Å"I don’t make my decision on the next quarter or on the next year. I make my decision three or five years out so I do not adjust my strategy based on what’s the spending is going to be next quarter or three quarters.† With instability shown in the financial markets for the last couple of years and the prolonged economic recession along with low consumer confidence there is a disjoint with Chambers strategic statements. Consumer Market Penetration Cisco’s growth has been based on a strategy of acquisitions. The main reason behind this was the penetration or expansion of new market opportunities. Cisco have made several ambitious moves into the markets for enterprise tablets, video conferencing and consumer products. Some of these decisions have been ineffective in competing in these markets. In some cases, due to excessive prices and faster development and deployment cycles of competitors. In today’s competitive tech environment those who are slow in bringing innovation and new products to the market will fail to succeed. An example of reinventing the wheel could be Cisco’s Flip camcorder which they acquired in 2009 from Pure Digital. The product failed and the $590 million investment was lost. Customers’ needs are constantly changing and want their technology suppliers to offer those sophisticated services and equipment. Like other tech giants, Cisco is struggling to adapt to changing market conditions and demand in terms of technology and products. Building Revenue Erik Suppiger, an analyst with JMP Securities in San FranCisco, said Cisco â€Å"did a good job managing costs, and keeping their margins up, but there’s a lot of concern about what they can do to build revenue. Building a cloud and wireless business eats into your traditional product lines. If you have a wireless laptop, you don’t need a desktop computer connected to your office network† (Quentin Hardy, 2013). It seems that Chambers, who has led Cisco for 18 years, is well aware of this problem, in one of the latest interviews he said: â€Å"We’d gotten too fat. And when you get fat, you’re slow in decision-making. It had been so easy to say we’re the best in our industry, we don’t need to change, but that’s exactly how you disappear† (Charlie Rose, 2012). Although Cisco reported Q2 earnings more than Wall Street expected, Chambers warned of â€Å"a challenging economic environment.† Distinction Considering Cisco’s latest acquisitions (Intucell, Jan 2013; Solve Direct, March 2013) in mobile software and cloud services, there are signs of progress. However, it is unclear whether Cisco will succeed before Chambers retires in two to four years. His greatest achievement may be building software and services that are distinct from its existing core competencies and product line. Conclusion After in depth analysis of Cisco’s strategic management practices it is clear the company is not without its faults. People in the business community do not agree with some of the strategic decisions made by chambers and this has in some cases lead to a lack of confidence in the company’s progress. It’s also worth mentioning the workforce have ranked the company low in terms of ‘great place to work’ scores. Acquisitions prevent entrepreneurship, and  the lack of solid competition has meant that it is unclear whether Cisco would be able to cope with less of the market share if another big player offering cheaper products was to gain momentum. However, Cisco is a large company with a huge workforce, a substantial stockpile of cash and assets, strong share price and excellent revenue. So for the time being, Chambers and Cisco, have put their critics in their place. References Jim Duffy. (2009). HP’s 3Com acquisition: An inside look. Available: http://www.networkworld.com/news/2009/111309-hp-3com-haas.html?nwwpkg=hp. Last accessed March 2013. John Dix. (2009). HP puts the net pedal to the metal. Available: https://www.networkworld.com/news/2009/091409-haas.html. Last accessed March 2013. wikipedia. (2013). HP puts the net pedal to the metal. Available: http://en.wikipedia.org/wiki/List_of_acquisitions_by_Hewlett-Packard. Last accessed March 2013. wikipedia. (2013). Juniper Networks. 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(2013). 12 Years After The Bubble Cisco Is Ripe For The Taking: Update. Available: http://seekingalpha.com/article/1183801-12-years-after-the-bubble-Cisco-is-ripe-for-the-taking-update. Last accessed 30th March 2013. Hardy, Quentin. (2013). Cisco Struggles to Adapt, Even as Profit Rises. Available: http://www.nytimes.com/2013/02/14/business/Cisco-tops-expectations-with-rise-in-profit-of-44.html. Last accessed 1st April 2013. P, Indu . (2010). Cisco strategy in recessionary times. Under the direction of Vivek Gupta Cisco Overview Cisco Overview Appendix A In 1984, a small group of computer scientists, namely Leonard Bosack, Sandy Lerner and Richard Troiano, created an Internet Operating System in San Jose. This OS was loaded into a box for routing and facilitated the communication between two computers. It’s interesting to note that ‘In search of Excellence’ (1982, Peters and Waterman) states that one of the key themes for a successful company are to stick to the knitting. In other words stay with the core business. Cisco, since 1984 have done just that. Their popularity grew and they implemented an FTP site to allow customers and developers to access a DB of bug information. By 1990 the company had gone public and had sales in the region of $70m with a net income of almost $14m. They had massive amounts of support centre calls, and supplied routers to the biggest players in the telecom world at the time. By 1992, ‘Fortune’s second fastest growing company in the US, had achieved sales of almost $340m, and had branched out to Europe and beyond. In 1993 they again showed strong customer focus by creating bug tracking systems, to support large corporation who used their products. In 1993 the company completed their first large scale acquisition of Crescendo communications for $95m and the following year New Port solutions for $93m. These were the first in a long list of acquisitions for Cisco and by the mid 90’s the company had a strong brand signature, excellent customer focus and a global footprint. By 1999, the company had revenues of over $12bn. This surge continued and in 2000 market capitalization grossed over $450bn. The company acquired over 40 companies over these 2 years, and demand was so high the production of equipment could not meet the customer demands. Customers began to look elsewhere, and at the same time the cracks in the IT market began to show. Cisco began stock piling, which was not in keeping with their practices, and in the ensuing recession, the company were forced to downsize, with 8500 job losses, and reported loses of almost $2.7bn, a complete reversal of the growth and fortunes up to that time. Figure 12 Figure 12 With John Chambers at the helm, the company drastically slowed down acquisitions, reduced the number of suppliers and resellers and began to steadily grow the company once again, and by 2009 emerged as a pioneer in data management with 75% of the world’s data being managed in some form by the company. One of the few companies to successfully withstand economic slowdown, Cisco, at present sits at number 64 of the fortune 500 list, with total equity of $51bn and 73k+ employees worldwide. Appendix B Earnings Growth Earnings Growth Acquisitions