1. MANAGING MNCs PROJECT ONPRESENTED BY: Ayush Siddhartha 0121PG072SUBMITTED TO: Prof. J.S. Subramanian

2. CISCO SYSTEMS in CALIFORNIA, U.S. 3. HISTORY & INTRODUCTION TO CISCOIndustry :Networking equipmentFounded :San Francisco, California, U.S. (1984)Founders:Leonard Bosack, Sandy LernerHeadquarters: San Jose, California, U.S. Key people:John Chambers (Chairman & CEO)Employees:66,639 (2013)Website:www.cisco.com 4. TARGET MARKET SEGMENTSCommercialEnterpriseService ProviderConsumer 5. ORIGIN OF CISCOCisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, that designs, manufactures, and sells networking equipment. The stock was added to the Dow Jones Industrial Average on June 8, 2009, and is also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ-100 Index and the Russell 1000 Growth Stock Index. 6. PRODUCTS & SERVICES CORPORATE MARKET BORDERLESS NETWORKS COLLABORATION DATA CENTER & VIRTUALIZATIONIP NEXT GENERATION NETWORKS (NGN) BROADBAND & FLIP VIDEO ROUTERS & SWITCHES 7. COMPANYs GROWTHChart is based on the closing prices. The highest price was touched at about $36 in July 2008. In the end a trend of decline can be observed. 8. COMPETITORS Allot Communications LTD. B.O.S. Better Online SolutionsBlack Box Corporation EZchip Semiconductor Limited Extreme Networks, Inc. F5 Networks, Inc. Juniper Networks, Inc. Riverbed Technology, Inc. Electronics for Imaging, Inc. 9. STOCK PRICES ANALYSIS CLOSING PRICES 30252015CLOSING PRICES Linear (CLOSING PRICES)1050 10/6/200810/6/200910/6/201010/6/201110/6/2012The above graph shows the movement of stock price of Cisco in the last 5 years. With many fluctuations in the recent years, a bullish trend is observable in the graph through the trend line plotted. 10. CISCOs MARKETING Nand Kishore Badami is Director and Head of Marketing at Cisco for the India and SAARC regions. He will bear functional responsibility for market management in all segments and lines of businesses, including thought leadership, digital marketing, business analytics, partner marketing, events and solution launches. Additionally, Kishore will focus on demand generation programs to accelerate Cisco's position in the India and SAARC market. 11. Industry Trend: Networking & Communication Devices 12. SWOT Analysis 1. Geographically Diverse Business 2. Economies of scale lower cost and increases margin 3. Diversified into many segments and tapping sophisticated markets 4. Market leading position brings many benefits 5. Robust financial performance 6. Known for its strong R & D division Strengths7. A culture that experiments produces better long term values 1.Declining storage networking marketWeaknesses2. Weak presence in BPO technologies/markets compared to global leaders 1.Expansion through Strategic Alliances and Acquisitions 2. Smart grid infrastructure could increase demand 3. Wi-Fi Home Calling and mobile broadband 4. Data intensive applicationsOpportunities5. Data Mining 1. The use of cloud servers is lowering sales and especially profits margins for cisco's core business. 2. Open Source Competitors 3. High competitive rivalryThreats4. Virtualization 13. CISCO in INDIACisco India commenced operations in 1995; India, as a region, is part of the APAC theater India headcount is nearly 11,500 (including NDS) Cisco has seven sales offices in the region - New Delhi, Mumbai, Bangalore, Chennai, Pune, Kolkata and Hyderabad. The Cisco Global Development Center is in Bangalore; this is the largest outside of the US. 14. CONTINUED. The Cisco ASR 901 Router developed by Cisco's engineering team in India received the NASSCOM Innovation Award 2012 for innovation in creating a unified platform to serve the needs of 2G/3G/4G mobile backhaul and Carrier Ethernet applications. Cisco India has won two Aegis Graham Bell Awards for 2012. Cisco has joint Development Centers with Wipro Technologies and Infosys Technologies in Bangalore; HCL Technologies in Chennai and Zensar Technologies in Pune. 15. CONTINUED. Cisco Capital was launched in 2005 to offer flexible leasing and financial services to customers and partners. Currently, there are 187 Active Cisco Networking Academies across 24 states & union territories in India with 20,148 Active Students, 34% of which are women students. Overall, 80,683 Students (27% female) have been impacted since the program inception and there are 21,550 Cisco certification ready graduates through the program. 16. India Market Share LeadershipCore Technologies: Router: 65.4%; Switch: 68.7% Total LAN: 67.7% (CY Q1'13, IDC LAN Tracker, May 2013) Advanced Technologies: WLAN: 51.2% (CY Q1'13, IDC, Jun 2013) Security: 33.4% (CY Q4'12, Frost & Sullivan, Apr 2013) Enterprise Telephony: 33.1% (CY H2'12, Frost & Sullivan, Apr 2013) IP PBX: 48.9% (CY H2'12, Frost & Sullivan, Apr 2013) 17. Key Customers Across India Corporate - Ford India, Dr. Reddy's Laboratories, Tata Group, Mahindra & Mahindra, Larsen & Toubro, Gas Authority of India, Indian Oil Corporation, Le Royal Meridien, Taj Group of Hotels and Hindustan Lever Service Providers - Tata, Reliance, Bharti, VSNL, BSNL, MTNL, SIFY and IDEA CellularBanking and Financial Services - HDFC Bank, State Bank of India, Punjab National Bank, United India Insurance Corporation, New India Assurance, National Insurance Corporation, Life Insurance Corporation, Bank of Baroda, Bank of India, IDBI Bank, ICICI, IDRBT, Vysya Bank and Yes Bank. 18. CONTINUED. Government - State Governments of Gujarat, West Bengal and Andhra Pradesh, Lok Sabha (Parliament) Library, Supreme Court, National Highway Authority, CDAC and APDRP (Accelerated Power Development and Reform Programme) IT Services - Infosys, Wipro, Digital GlobalSoft, IBM, Adobe, Intel, Cognizant Technologies, Tata Consultancy Services, Texas Instruments, Tesco, Unisys, US Technologies, Mahindra, First India Insurance, Symphony Technology, Thomson Reuters and HCL IPCC (IP Contact Center) vCustomer, Phoenix, Nirvana, Manjushree, TransWorks. 19. FINANCIAL ANALYSIS RATIOS DATEJul 2013201320122011201020092008Earnings/Share1.871.841.641.401.401.171.43Profit Margin, %20.5420.5417.4615.0219.4016.9820.36Return on Equity, %17.9016.8815.6713.7317.5415.8723.44Return on Assets, %10.369.878.767.459.579.0013.710.762.531.992.313.212.790.0012.3011.0510.4212.9916.0814.910.00Price/Book2.081.841.782.122.902.600.00Debt/Equity0.220.220.320.340.280.270.19Interest Coverage21.0820.2618.0513.4616.110.000.00Book Value, $11.0611.069.588.597.756.705.82Dividend Payout, %33.0633.1918.6510.170.000.000.00Price/Sales Price/Earnings