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Table of Contents

Executive summary ....................................................................................................................................... 2 Introduction ................................................................................................................................................... 3 Vision ............................................................................................................................................................ 4 Goal ............................................................................................................................................................... 4 Mission: ........................................................................................................................................................ 4 Swot analysis of Cisco systems .................................................................................................................... 5 Internal audit ................................................................................................................................................. 5 Strengths ................................................................................................................................................... 5 Weaknesses .............................................................................................................................................. 5 Internal Factor Evaluation Matrix (IFE) ..................................................................................................... 6 Opportunities ............................................................................................................................................ 8 Threats ...................................................................................................................................................... 8 External factors evaluation matrix (EFE)................................................................................................... 9 SWOT Matrix ............................................................................................................................................. 11 Space matrix............................................................................................................................................ 15 BCG ( Boston consulting group )Matrix .............................................................................................. 17 Quantitative Strategic Planning Matrix (QSPM) ......................................................................................... 18 Strategic Alternatives ............................................................................................................................... 19 Advantages and disadvantages.................................................................................................................... 22 Recommend Specific Strategies for Cisco Inc .................................................................................. 25 Develop unified communication (UC) ................................................................................................ 25 Projected financial statement for recommended project ............................................................................. 26 Recommend Specific Annual Objectives and Policies............................................................................. 27 Annual Objectives ................................................................................................................................... 27 Sustaining Policies: .............................................................................................................................. 27 Recommend procedures for strategy review and evaluation ...................................................................... 27

CISCO SYSTEMS INC. ACQUISITION INTEGRATION FOR MANUFACTURING

Executive summary

Cisco Systems was founded in 1984 by Leonard Bosack and Sandy Lerner, husband and wife computer scientists at Stanford University who invented a technology to link their disparate computer systems together. Bosack and Lerner developed the first “multi-protocol” router – a specialized microcomputer that sat between two or more networks and allowed them to “talk” to each other by deciphering, translating, and funneling data between them. Cisco’s technology opened up the potential of linking all of the world’s disparate computer networks. In the past 15 years Cisco has acquired and integrated companies at a rate of approximately 8/ year. Cisco typically takes a “consume” approach to integrating acquired companies. Because of changing business conditions. Cisco has bought larger model. Cisco IT has adopted a new integration process. Called C5 (capture, consume, connect , combine, and consolidate).

The focus areas are     SWOT (strength.Introduction This report performs a strategic analysis on the Cisco system Inc. weakness. Cisco system is a information technology organization that provides network solution with potential of linking all of the worlds desperate computer network together This report develops the strategic analysis of Cisco systems through a focus on four foci of organizational analysis. opportunity and threads) analysis Quantitative Strategic Planning Matrix (QSPM) Space matrix Boston consultant group (BCG) .

(3) Cisco also believed in being open. Self-concept 8. Mission: Cisco system inc. Concerns for public image 9.(3) Also by opening up the potential for linking all of the world’s disparate computer networks together in much the same way as different telephone network were liked around the world(5)( 3). Products or Services 3. play and learn Goal  Employee retention  Follow-up on new product development and  Return on investment.Vision To change the way people work. Market 4. sensitive. Philosophy (beliefs vs. Technology 5. mission is to enable people(1) to make powerful connection(4) whether in business. and flexible his employees(6)(9)(7) 1. live. Customers 2. Concerns for Sustainability ( Profits & Growths) 6. honest. Concerns for employees . education philanthropy or creativity. Values) 7.They also strove to deliver wide range new products (2) expand it offering through internal and external(3) enhancing customers support(1) and increasing it presence around the world.

cultural implication resulting from acquiring new companies 4. Market share leadership through innovation and acquisition coupled with share price increase 10. complexity of solving problem due to the large nature of the company and the need for highly specialized personnel 5. Just 8 years Cisco’s market value topped the significant $100billoin mark reaching that mark faster than any company in history 5. internet appliances. and frugality Weaknesses 1. time to market. limited skilled laborer 6. Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing 2. dial-up and other access solutions.5billon 9. Cisco relied heavily on outsourcing which sometime give irregularity 7. property Cisco focuses on developing and retaining it skill employees through training and high pay. Technology Leadership in website management told. Implication of leveraging it sales and distribution channel on an acquired company product volume . Strong and well established business principle which include the importance of customer satisfaction. Successful new product development that suited the need of his customers had led to it leadership in the industry 8.Swot analysis of Cisco systems Internal audit Strengths 1. Experience management team that was leading key business process conversion tasks Intellectual 3. Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues 2.at a compound rate of 89% from $28million to $8. 4. Effective business strategy by using acquisition and partnership to gain access to new technologies. 7. Mistake in production since Cisco sold many built-to order highly configurable product 8. Growth in revenue. Constant re-engineering of network engineers 3. 6. Strong financial position.

05 3 0.28 9 4 0.15 3 0.15 2 0.24 0.08 8 4 0.15 4 0.05 3 0. highly configurable products. time to 0.05 3 0. Successful new product development that suited the need of his customers had led to it leadership in the industry Market share leadership through innovation and acquisition coupled with share price increase Growth in revenue at a compound rate of 89% from $28million to $8.9.06 4 4 0. internet appliances. Just 8 years Cisco’s market value topped the significant $100billoin mark reaching that mark faster than any company in history Effective business strategy by using acquisition and partnership to gain access to new technologies.07 4 0. Cisco focus and developing and retaining it skill employees through training and high pay.5billon Weight Rating Weighted score 0. still remain centralized as at mid 1998 10.08 0.32 10 Strong and well established business principle which include the importance of customer satisfaction.28 5 0.03 3 0. Functional areas like customer support. finance. Making mistake. since Cisco sells many built to order. Strong financial position.09 .24 6 7 0. dialup and other access solutions. information technology. Technology Leadership in website management told.07 0.32 0. they were numerous opportunities to making mistake Internal Factor Evaluation Matrix (IFE) Strength 1 Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues Experience management team that was leading key business processes Intellectual property.06 4 0.

03 0.04 1 2 1 48 0. highly configurable products.07 2 2 0.04 2.03 3 cultural implication resulting from acquiring new companies 4 complexity of solving problem due to the large nature of the company and the need for highly specialized personnel 0.14 0.93 .04 2 0. and frugality Weakness 1 Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing 2 Constant re-engineering of network engineers which was time consuming Weight Rating Weighted score 0.12 0.14 0.04 0.02 0. They were numerous opportunities to making mistake 6 limited skilled laborer 7 Mistake in production since Cisco sold many built-to order highly configurable product 8 Implication of leveraging it sales and distribution channel on an acquired company product volume 9 Slow move to decentralization TOTAL 0. since Cisco sells many built-to order.06 0.03 1 0.06 2 0.08 0.market.08 5 Making mistake.02 1 0.07 2 0.

Rapid increase in the financial market between 1989-1998 9. 6. significant changes in telecom equipment market due to rapid advance in technology 4. Sprint selected Cisco to be the primary supplier of it new data and telephone network Threats 1. 3. Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed. structural and technical changes in new companies acquired Fierce competition due to the deregulation of the telecommunication industry.Opportunities 1. Increase in internet traffic between 1989-1998 3. Potential risk of negative market reaction to VCO/4K . Phone companies were beginning to replace their century old voice-only networks with new networks capable of carrying voice. 5. Growth in importance of the global internet and corporate intranets 5. Cisco partnership with Microsoft a key figure in network solutions 8. 8. The crippling declines of Cisco’s main competitors such as IBM and WANG 7. 2. 9. 4. 7. data and data 6. 2. Limited suppliers pose risk of continuity Consolidation in the US telecommunication industry could present a possible threat to telecommunication industry including Cisco Growing demand for skill laborer in the in many companies Cultural implications from acquired company Employees of acquired company worry of input not being accepted Hot job market in New England gives attractive alternatives for most of the experience engineers.

08 Weight Rate Rated score 3 0. 2 Increase in internet traffic between 1989-1998 3 significant changes in telecom equipment market due to rapid advance in technology 4 Growth in importance of the global internet and corporate intranets 5 Phone companies were beginning to replace their century old voiceonly networks with new networks capable of carrying voice.28 0.15 0. data and data 6 The crippling declines of Cisco’s main competitors such as IBM AND WANG 7 Cisco partnership with Microsoft a key figure in network solutions 8 Rapid increase in the financial market between 1989-1998 0.05 3 0.15 0.28 0.07 3 4 4 2 0.05 0.05 0.18 0.07 4 4 0.External factors evaluation matrix (EFE) Opportunities 1 Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed.28 0.07 0.06 0.32 9 Market share leadership through innovation and acquisition coupled with share price increase 4 0.32 Threats .08 0.10 0.

12 0.04 0.03 0.28 0.03 0.03 0.07 0.07 0.08 0.04 2.06 0.Threats 1 structural and technical changes in new companies acquired as the companies complain of changes being force on them 2 Fierce competition due to the deregulation of the telecommunication industry 3 Limited supply pose risk of continuity 4 Consolidation in the US telecommunication industry could present a possible threat to telecommunication industry including Cisco 5 Growing demand for skill laborer in the in many companies 6 Cultural implications from acquired company 7 Employees of acquired company worry of input not being accepted 8 Hot job market in New England gives attractive alternatives for most of the experience engineers.04 1 1 1 1 2 1 0.14 0.08 2 0.04 0.04 4 2 2 0.04 0.9 .03 0. 9 Potential risk of negative market reaction to VCO/4K Total Weight Rating Weighted score 0.

cultural implication 3). intellectual property Cisco resulting from acquiring new focus on developing and companies retaining it skill employees 4). still remain centralized as at mid 1998 9). Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing 2). nature of the company and 4).SWOT Matrix Strengths Weaknesses 1). Experience management team that was leading key business process conversion tasks 1). information technology. 7).limited skilled laborer $100billoin mark reaching that mark faster than any 6). the need for highly Just 8 years Cisco’s market specialized personnel value topped the significant 5). since Cisco sells many built to . Technology Leadership in website management told.complexity of solving through training and high problem due to the large pay.Cisco relied heavily on company in history outsourcing which sometime 5). Constant re-engineering of network engineers 3).Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues 2).Successful new product development that suited the give irregularity 7).Implication of leveraging it sales and distribution channel 8). Strong financial position. 6). finance. internet appliances. dial-up and other access solutions.Making mistake.Effective business strategy by using acquisition and partnership to gain access to new technologies.Functional areas like customer support.

Growth in revenue.5billon 9).need of his customers had led order. and frugality . time to market. they were numerous opportunities to making 8).Market share leadership through innovation and acquisition coupled with share price increase 10).at a mistake compound rate of 89% from $28million to $8. highly configurable to it leadership in the industry products.Strong and well established business principle which include the importance of customer satisfaction.

O2.S2. New Product development W-O Strategies 1).S8) S-T Strategies W-T Strategies .S3. 2).O6) 4.Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed.S7.Use advance technology in production thereby limiting the risk of making mistake.The crippling declines of Cisco’s main competitors such as IBM and WANG 7). Penetrations in to markets formerly served by IBM and WANG.O6) 5. (W8.O5.S4.Cisco partnership with Microsoft a key figure in network solutions 8). Produce unified communication (S4. (S1.O1) (S4.Sprint selected Cisco to be the primary supplier of it new data and telephone network Threats S-O Strategies 1.S5 O1) 2. Rapid increase in the financial market between 1989-1998 9).(W1. data and data 6).S9.W2. Merger with sprint (O9.S5.S7.O3) 2) Acquire the skill laborer of IBM and WANG(W6. Increase their present in the world through advert and sales over the internet (S6.O4) 3.Increase in internet traffic between 1989-1998 3).Opportunities 1).Phone companies were beginning to replace their century old voice-only networks with new networks capable of carrying voice. Stabilize production method by using acquiring new technology.O6) 3). significant changes in telecom equipment market due to rapid advance in technology 4)Growth in importance of the global internet and corporate intranets 5).

S4.Limited supply pose risk of continuity 4). 3).Train and retain key employees of acquired company (T3.T6.Consolidation in the US telecommunication industry could present a possible threat to telecommunication industry including Cisco 5).Potential risk of negative market reaction to VCO/4K 1).S9) 2).S3) Effective management of new company acquire (W3.T7) .Hot job market in New England gives attractive alternatives for most of the experience engineers.S5.Continue producing new product and constant innovation to outbid competitors (T2.S7.W4.S3.S2.1). structural and technical changes in new companies acquired 2).Shortage of skill laborer in many companies 6) Cultural implications from acquired company 7). 9).Employees of acquired company worry of input not being accepted 8). Fierce competition due to the deregulation of the telecommunication industry.

Space matrix Financial Strength (FS) 1. Government deregulation in the telecom industry 4. Growth in importance of the global internet and corporate intranets 5 1. Crippling decline of some competitors like IBM 3. significant changes in telecom equipment market due to rapid advance in -1 -2.0 13 Industrial Strength (IS) 1. 4. internet appliances. Fierce competition due to the deregulation of the telecommunication industry. Cisco revenue grow at a compound annual rate of 89% from $28million to $8.0 3.0 2.0 -6 access solutions.5 billion between 1989-1998 2. Cisco market value topped to a significant $100billion mark in just 8 years 3.0 -2. Market share leadership through innovation and acquisition coupled with share price increase 4. 3. Growing demand for unified . Cisco offers customers and “end to end” network solution an option which many companies were actively considering Environmental stability(ES) 1. Rapid increase in the financial market between 1989-1998 2.0 -1.0 -1.0 2.0 11 Competitive Advantage(CA) 1. Cisco partnership with Microsoft a key figure in network solutions thereby exerting competitive pressure 3. Increase in net income of 76% from 1994-1998 4. By 1998 Cisco become number one or number two position in 14 of the 15 market it serve 2. Technology Leadership in website management told.0 4. dial-up and other -1.0 technology 2.0 -2.0 3. Cisco return on asset increase by 15% from 1994-1998 Rating 4.0 -5.

75 = -1.5 DIRECTIONAL Vector Coordinate: X-axis:2.5) Y-axis: 3.75+ ( -1.75 .25 0.-10 FS average 13/4 IS average 11/4 CA average -6/4 ES average -10/4 = 3.25 + (-2.25 = 2.5 = -2.5) = = 1.

Forward. Horizontal Integration Market Development Product Development Diversification (Related or Unrelated) BCG ( Boston consulting group )Matrix . Our company has a strong competitive position it’s in a market with rapid growth. It needs to use its internal strengths to pursue the following strategies      Market Penetration Backward.SPACE matrix tells us that our company should pursue an aggressive strategy.

Quantitative Strategic Planning Matrix (QSPM) Strategy 1: develop unified communication Strategy 2: merge with sprint through forward vertical integration .

05 3.Strong and well established business principle which include the importance of customer satisfaction.08 4 0.05 1. 6.16 0.05 0 0.08 0 0 2 0.05 2 0. Effective business strategy by using acquisition and partnership to gain access to new technologies. Effective leveraging it distribution channel was one of the key drivers behind the significant grow in Cisco’s revenues 2.Market share leadership through innovation and acquisition coupled with share price increase 10.07 3 0.21 3 0. Cisco focuses on developing and retaining it skill employees through training and high pay.Technology Leadership in website management told.03 1 0.03 . and frugality Weaknesses 0.Successful new product development that suited the need of his customers had led to its leadership in the industry 8.05 2 0.10 1 0. internet appliances 7.06 3 0. dial-up and other access solutions. Experience management team that was leading key business process conversion tasks 0.21 3 0.1 0. Just 8 years Cisco’s market value topped the significant $100billoin mark reaching that mark faster than any company in history 5. Intellectual property.21 0.06 1 0.06 3 0.5billon 9.18 0. Strong financial position.16 0. 4.18 1 0.10 2 0.32 2 0.07 3 0. time to market.03 1 0.Growth in revenue at a compound rate of 89% from $28million to $8.06 0.Strategic Alternatives Key Internal Factors Weight Strategy 1 AS TAS 0 Strategy 2 Strengths AS 1 TAS 0.21 0.

21 0 1 4 1 0.21 3 0.Cisco relied heavily on outsourcing which sometime give irregularity 7.cultural implication resulting from acquiring new companies 4.Constant re-engineering of network engineers 3.1.07 0.00 0 0 1 0.28 0.Poor manufacturing strategy which was highly dependent on outsourcing many manufacturing activities such as board stuffing and board testing 2.03 0.04 0.07 3 0.04 .04 0.04 0.21 0.04 1.03 0.06 0.complexity of solving problem due to the large nature of the company and the need for highly specialized personnel 5.02 0 0 0 0 0 0 0 0 0. information technology. still remain centralized as at mid 1998 SUBTOTAL 0.Mistake in production since Cisco sold many builtto order highly configurable product 8. finance.04 0 3 0 0 0.Implication of leveraging it sales and distribution channel on an acquired company product volume 9.06 2 0.limited skilled laborer 6.03 0 0 1 0.12 1 0.Functional areas like customer support.

05 0.14 0.28 3 0.2 0.08 3 0.07 0.Consolidation in the US telecommunication industry could present a possible threat to 0. Growing demand for unified communication solutions was at the budge of accessing new areas in the internet filed. 2.07 3 0.Limited suppliers pose risk of continuity 4.21 2 0.04 0 1 0 0 0.07 1 0.Phone companies were beginning to replace their century old voice-only networks with new networks capable of carrying voice.06 1 0.14 0.05 3 0.24 0. data and data 6.21 0. Fierce competition due to the deregulation of the telecommunication industry.Cisco partnership with Microsoft a key figure in network solutions 8.05 3 0.05 0 0 1 0.Sprint selected Cisco to be the primary supplier of it new data and telephone network Threats 0.21 5.Key External Factors Weight Opportunities Develop unified communication AS TAS 0. 4.16 1.07 0.16 2 0.Increase in internet traffic between 1989-1998 3.24 3 0.15 Diversify production AS 1 TAS 0.structural and technical changes in new companies acquired 2.significant changes in telecom equipment market due to rapid advance in technology .04 .08 2 0.Rapid increase in the financial market between 1989-1998 9.15 4 0. 3.04 1 0.07 3 0.07 0.04 0.18 0.07 0 2 1 1 0. 7.04 1 0.07 4 0.05 1.Growth in importance of the global internet and corporate intranets 0.The crippling declines of Cisco’s main competitors such as IBM and WANG .06 3 0.

73 (Attractiveness Score: 1 = not acceptable.Cultural implications from acquired company 7. 2 = possibly acceptable. Cisco with it strong financial position.Potential risk of negative market reaction to VCO/4K SUBTOTAL SUM TOTAL ATTRACTIVENESS SCORE 0.06 1 0.27 3.04 1. 3 = probably acceptable.Employees of acquired company worry of input not being accepted 8.06 1 0. 4 = most acceptable. UC allows an individual to send a message on one medium and receive the same communication on another medium.03 0 0 0. Otherwise. 0 = not relevant) Advantages and disadvantages Develop unified communication (UC) What is unified communication: in its broadest sense UC can encompass all forms of communications that are exchanged via the medium of the TCP/IP network to include other forms of communications such as Internet Protocol Television (IPTV) and Digital Signage Communications as they become an integrated part of the network communications deployment and may be directed as one to one communications or broadcast communications from one to many.Hot job market in New England gives attractive alternatives for most of the experience engineers 9.03 0 0 1 0 0 0.telecommunication industry including Cisco 5.03 0. high technology.00 0 0 0 0 3.03 0. If the sender is online according to the presence information and currently accepts calls. For example. efficient management team with high skill employee coming from different companies acquired do not only have the financial ability but also the skill needed to produce and market unified communication.04 1 0 0 0.Growing demand for skill laborer in many companies 6. . one can receive a voicemail message and choose to access it through e-mail or a cell phone.06 0. it may be sent as a non-real-time message that can be accessed through a variety of media. the response can be sent immediately through text chat or video call.

The advantages and disadvantages of producing unified communication are mention below Advantage:  Gain competitive advantage through new product development: In today’s competitive world. And thus sales is bound to increase generating large profit giving him large portion of the market  Improve brand awareness and confidence with his customers: many customers are brand loyal. retain existing customers and increase profitability.  Retain existing customer base and increase profitability: unified communication will help cisco gain new customers. In order it retain current customers. so that competitor cannot catch-up and this also discourages new entrants into the market who cannot meet the pace of production. With cisco introducing a new product (unified) that meet the need of customers. Introduction of new products or new product features has become a main source of competitive advantage. Like cisco introducing unified communication it might reduce the sales of other related product like data communication. companies do not compete on price or delivery alone.The high demand for unified communication also serve as a potential profit sources so is highly recommended cisco produce it.  Retain market share: cisco can retain its current market share by introducing products with newer & improved features like unified which was in high demand. . Disadvantage  Might cannibalize sales of previous product: Having a new product take sales away from an existing product is not usually an attractive situation for a firm. Also the cost of acquiring skill laborers and research and development cost are high which may not be easy to implement  Customers might not like the features of the new product: product development involves a risk of whether the consumers will like the new features that have been developed/added to the new/existing product. many will be become loyal to that brand and in effect loyal to the whole cisco brand  Raise the barriers to entry cisco can raise new barriers to entry through new product development by constantly keep releasing new products at regular intervals. So developing unified communication which is new and in high demand can give Cisco that competitive advantage.  Would require expensive redesign of new product: unified communication needs extensive and expensive redesign of the overall engineering system which is which will not really be easy to implement. Customer’s needs keeps changing with time. cisco must constantly adapt to meet the changing requirements.

and Assurance Wireless. and a global Tier 1 Internet backbone. instant national and international push-totalk capabilities. Advantage:  Reduce cost of leveraging it distribution channel and transport cost  Capture upstream profit that usually accrues only to sprint. Boost Mobile. merging with sprint will only worsen the situation   Clashes of culture between cisco and sprint employees can occur. 6 in its 2010 Green Rankings. including the first wireless 4G service from a national carrier in the United States. reducing the effectiveness. listing it as one of the nation’s greenest companies. For example cisco need to build excess upstream capacity to ensure that it downstream operation( sprint) have sufficient supply under all condition  Increase bureaucracy. especially at management levels this may have an effect on motivation. Cisco will gain experience in developing lower cost and better products that enhance customer satisfactions  Increase public aware and confidence. its served more than 52 million customers at the end of 2011 and is widely recognized for developing. Newsweek ranked Sprint No. And the motivation for work May need to make some workers redundant. this will increase Cisco public awareness and built confidence among his consumers of other product of the reliability and quality of Cisco products Disadvantages  Capacity balancing issues. Cisco already has complexity in solving problem due to it large nature ( 25 different companies). the highest of any telecommunications company.  Reduce competition. leading prepaid brands including Virgin Mobile USA.Merging with sprint through forward vertical integration About Sprint Nextel Sprint Nextel offers a comprehensive range of wireless and wire line communications services. Merging with one of the largest dealer of network equipment. engineering and deploying innovative technologies. Capacity balancing issues . Cisco merging with sprint will give it the competitive advantage over it competitor since sprint was a major consumer of network and communication products giving Cisco greater sales over his competitors  Lead expansion of core competencies in businesses: They would gain advantage in one of the world’s biggest consumer of network product which also has a good reputation for providing services that enhance customer satisfaction. offering industry-leading mobile data services.

DILUTED Estimated Cost and profit for the projected year Prior Year Projected year as at December 31st 1996 (000 $) 1997 (000 $) 1998 (000 $) $10000 $15000 $15000 500 100 500 50 50 1200 8800 3080 5720 $.80 $.  Attract customers for cisco Inc.25 .  Developing unified communication will help retain or increase cisco market share which he already has a huge market share  Developing unified communication will help cisco penetrate in different segment of the market that was not previously served.59 600 70 500 50 20 1240 13760 4816 $8944 $.82 600 70 500 50 50 1270 13730 4806 $8924 $. which will result in an increase in sale not just of unified communication but also of other product produce by cisco Sales of product EXPENSES INCURED: Soft ware development cost Re-engineering on network equipment Salaries.  Developing unified communication which is new and in high demand can give Cisco that competitive advantage.60 $.Recommend Specific Strategies for Cisco Inc Develop unified communication (UC) Reasons:  Growing demand for unified communication solutions give a profit potential for cisco Inc. BASIC NET INCOME PER SHARE.90 $. of extra skill laborers Depreciation and amortization Other expenses Total expenses INCOME BEFORE INCOME TAX PROVISION FOR INCOME TAXES NET INCOME NET INCOME PER SHARE.

331 19.000 300 560 55.212 2007 13.250 12.200 35.100 11. plant and equipment Investment in associates Other receivables and financial assets Total Non-Current Assets Inventories Trade receivables Current tax receivables Other receivables and financial assets Cash Total Current Assets Total Assets Liabilities Non-current financial liabilities Other non-current liabilities Deferred tax liabilities Non-current tax payables Non-current provisions Total Non-Current Liabilities Current financial liabilities Trade payables Other current liabilities Current tax payables Current provisions Total Current Liabilities 13.010 1.200 2.Projected financial statement for recommended project Prior Year 2006 Assets Intangible assets Property.800 4.142 105.600 550 5.436 4.070 12.300 3.277 5.350 920 2.500 4.550 500 5.497 449 28.360 5.370 105.740 2.500 40.528 398 4.000 5.680 5.100 35.200 3.350 109.800 41.000 2.950 4.580 51.180 3.995 834 2.780 5.650 480 28.500 2.260 11.594 2.160 2.050 34.809 187 387 54.000 10.650 53.150 5.270 Projected Year 2008 13.400 19.153 1.900 200 400 53.000 850 2.500 5.000 250 500 54.160 2009 13.100 5.530 400 5.150 5.350 19.900 12.351 39.997 34.248 5.700 .100 900 2.660 12.550 51.400 5.400 39.945 4.550 19.512 51.500 460 28.997 12.910 106.168 3.700 550 29.

The best strategy can be used in the graph shown below.961 58. Ensuring that any alternatives are given due cost benefit consideration prior to award Informing our customers of more sustainable alternatives Recommend procedures for strategy review and evaluation It is far more imperative for every company to review their strategy and evaluate their them.100 1.250 2.750 105.000 1.870 41.040 60.321 105.578 39.010 106. including Health and Safety.160 17.270 17.010 Recommend Specific Annual Objectives and Policies Annual Objectives To keep increase sales at a minimum rate of 15% by reviewing and structuring their marketing strategy and to update unified as new changes present Sustaining Policies:    Ensuring that they deal with all their consumers and potential customers fairly and ethically and in accordance with their procurement policy.000 42.750 41.709 1. Encouraging the appraisal and monitoring of our employee’ performance to ensure that their sustainability risks.630 109. ethical. social and economic impacts are understood and managed. environmental.000 59.380 61.212 17.Equity Share capital Share premium Reserves Total equity Total equity and liabilities 16. .

Review underlying based on strategy Prepare revised Internal Factor Evaluation Matrix Prepare revised External Factor Evaluation Matrix Compare revised to existing Internal Factor Evaluation Matrix Compare revised to existing External Factor Evaluation matrix Do significant differences occur? YES NO Measure Organizational Performance Compare planned to actual progress toward meeting stated objectives. Take Corrective Actions Do significant differences occur? YES NO Continue present course .