CISCO : DISCUSSION

Discussion Cisco realized various benefits as they continued diversifying. First, they reverted to horizontal collaboration by applying a matrix structure- this helped them divide and segment the various departments of the organization to bring out their best characteristics. This also enabled communication and increased interaction which promoted a centralized structure, thereby ensuring that all departments could rely on each other. The main aspect and benefit realized was communication. By enhancing its communication channels, Cisco was able to create an organizational culture that was not there before and which resulted in horizontal coordination. Cisco also accrued benefits by splitting up the vice presidents and allowing them to supervise and coordinate the various departments in the organization. In as much as the organization was centralized, there was also an aspect of supervision that ensured productivity. Another significant benefit associated with the split was the change aspect. The split helped the Company respond to change better, which made the process easier for Cisco; it enhanced teamwork and collaboration in the workplace and influenced communication positively (Velte, 2007). In as much as Cisco accrued some benefits, there were also some costs associated with the shift in strategies. For instance, the founders were forced out of the business when new management became part of the system. Secondly, the early organizational strategy promoted creativity instead of efficiency, which would have worked best in the dynamic environment the Company was in. It also hired new leadership, which cost the organization in terms of the profits and revenues generated. It is essential to note that this new management team needed to be paid, which is taken out of the revenues generated.