CISCO's Supply Chain Management: Vietnam and Nigeria Analysis, 2019

This case study provides an analysis of Cisco Systems' supply chain management, specifically focusing on the relocation of a factory with 5000 employees from China to either Vietnam or Nigeria. The report includes an introduction to Cisco, highlighting its global presence and services. It delves into a comparative analysis of Vietnam and Nigeria based on factors such as economy, infrastructure, education, politics, and culture. The analysis leads to a recommendation for Vietnam as the preferred location, supported by justifications related to its favorable economic conditions, expanding infrastructure, and cultural alignment with China. The report concludes by emphasizing the importance of considering various parameters for business growth when making such strategic decisions.

Supply chain management of CISCO
2019

Cultural Awareness: 1
Table of Contents
Introduction......................................................................................................................................2
Introduction of Cisco.......................................................................................................................2
Case Study.......................................................................................................................................3
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Cultural Awareness: 2
Introduction
In this report the study about the supply chain is conducted in which as per mentioned
company “Cisco Systems” have to relocate their some employees to a different location now
according to given criteria of research is mentioned. Introductory part about the working of the
company is also mentioned in the report. This report also summaries some part of the supply
chain management.
Introduction of Cisco
In the sector of Networking Cisco is from one of the leading companies in the world. It
was founded in 1984 in San Francisco. Company has the business in almost 115 countries in the
world with over 35000 employees in government sector, universities; small or medium business
Cisco is providing its service regarding the networking around the globe. The networks servers
of Cisco are providing a connectivity to transfer the data, information between people and
organizations having the difference in their time, place and computer system they are using.
Cisco is maintaining 85% of the internet traffic of the globe apart from it they are also
controlling their all services online which include staff communication, travel expenses or
inventory management (Goerke, & Grayson, 2018).
Services of Cisco System: The product lines of the company are routers, switches, translators of
protocol, devices which are used for internet access, networking and all the software which are
used for management of networking. The links which are used for connectivity Local Area
Network (LAN) and Wide Area Network (WAN) Cisco is providing its services mainly in three
segments which are large organizations that includes corporation, government sectors, and
educational institutes; service providers including the internet providers, service providers, cable
and telephone companies; small or medium sized companies whose demands are including
operating networks, connection of internet ( David & Li 2018).
Background of company: Cisco was established on very low budget as the founders of the
company had appropriate source of investment due to which they had to mortgage their home as
well. The production of the company was begun from internetworking routers; it is a hardware
device which automatically makes a path or finds the path for flow of data of information in any
network. As routers of cisco support different protocols and standards of the data transmission

Cultural Awareness: 3
due to which they can connect easily with any network. Cisco became the first company in world
to provide a multiprotocol router commercially in year 1986 which was based on TCP/IP
protocol suite (Andreasen, Leung, Khouderchah, Iyer, & Stammers, 2018)
Culture and Values of Cisco System
 To have a change in world: The company is committed with the technology in order to
connect everyone with each other. Company is using its knowledge, time and solution for
revolution in world.
 Focus on customers: Company understands the challenges facing by their customers as
their own for transforming the business. They are providing the solutions of the queries
of their customers at the earliest without having them hassle.
 To create innovation: Company mainly focuses on the innovative ideas to transform the
technology in better way.
 To win together: In order to perform extraordinary tasks company is working smartly and
collaborating with the different teams.
 To Care and have respect for everyone: Company supports and have trust on every one of
its employee and customers.
 To perform right things: Company has transparent policies which help them to work in
correct and accurate manner with everyone (Garcia-Luna-Aceves, 2018).
Case Study
According to give case as Cisco system has to shift its 5000 employees to different
factory selecting one location out of two which are Nigeria and Vietnam. So in this study few
factors have to be considered and on that basis it will be decided to shift the employees for any
one of the above location (Truong 2018).
Location Economy Politics Infrastructure Education Competence Culture
Nigeria The economy
of Nigeria is
not that much
effective as
there are
As
Nigeria is
country
which is
rich in oil
Infrastructure
of Nigeria is
partially
huge with
availability
Education
system of
Nigeria is
divided in
4 sections
Nigeria has
the largest
economy of
Africa but
instead of
In Nigeria
many
religions are
followed as
there is

Cultural Awareness: 4
many flaws in
their
government
and judicial
system due to
which
corruption
rate in Nigeria
is very high
which leads to
boundations
in the
business and
labors over
there not have
freedoms of
work. Due to
lack in the
resources
even after
having little
independency
in judicial
corruption
rate in Nigeria
increasing.
Income Tax
rate is 24%
and corporate
tax rate is
30%, overall
production
after the
return in
democrac
y in
Nigeria
there was
some
improvem
ent
observe in
the
governme
nt of
Nigeria
but there
is clashes
in the
governme
nt of
Nigeria is
continue.
Which
leads to
violence
and
religious
tension it
mark a
question
on the
of roads, rail
roads,
airports and
networks of
communicati
on. Road
system of
country is
playing key
role in the
transportatio
n it covers
95% traffic
of the
country. Rail
roads are the
second
means of the
transportatio
n. Its rail
system is
consists of
3500
kilometers.
Kidergarte
n, Primary
education,
Secondary
education
and
Tertiary
education.
Nigeria is
having the
largest
population
in world
regarding
the youth
education.
that country
is facing
issues like
corruption
inefficient
managemen
t of
resources.
Apart from
this
advancemen
t of
administrati
on of public,
financial
managemen
t, and
improved
policies
helps the
countries
somehow in
reducing
poverty.
freedom to
adopt any
religions. In
Nigeria
Christian,
Muslim are
living
without any
issues. The
people of
this country
have belief
on deities,
spirits and
ancestor
worship.
Christmas,
Easter,
Ramadan
and Eid are
being
celebrated
every year
by the
people of
Nigeria with
joy and
happiness.
In the
country the
extended

Cultural Awareness: 5
the burden of
the tax is
5.2% of the
total income.
Public debt in
Nigeria is
23.4% of
GDP.
governme
nt of the
Nigeria
family
system are
still in the
system.
Vietnam The personal
income tax is
35% and
corporate
Income tax
rate is 22%.
Overall tax
burden in
Vietnam is
18% of the
total domestic
income.
Public debt is
54% of the
total GDP.
The country is
transforming
itself towards
the corporate
sectors, due to
which the
small business
get supports
Vietnam
is a law-
governed
state; the
political
system in
the
country
was
introduced
by the
formation
of
Democrati
c Republic
of
Vietnam.
All the
power
regarding
the
selection
of
The
infrastructure
of Vietnam is
classified in
rail roads,
highways
and airports.
The railways
of Vietnam is
not quite
impressive
because of
the long term
war with
china due to
which it get
damage and
need to re-
innovate but
the highways
of Vietnam
are very
good.
Education
system of
country is
controllin
g by the
ministry
of the
education
and
training
and the
system is
classified
in five
categories
including
pre-
school,
primary
school,
secondary
school,
high
Vietnam is
sixth
wealthiest
country with
respect to
GDP
southeast
Asian
countries
and in word
Vietnam
stands at
47th
Position.
The country
majorly
influenced
by the china
in its culture
and it is one
of the oldest
cultures in
the world.
Here 3-4
generations
can be seen
under one
roof in a
family.

Cultural Awareness: 6
for
developing
themselves.
The labor
market of the
country is
now very
flexible. To
control
inflation rate
in Vietnam
government
have
tightened
price controls
for the natural
resources,
pharmaceutic
als, education,
health
(Vuong,
2019).
governme
nt belongs
to people
of
Vietnam,
which can
be
accessed
across all
over the
state.
Country is
also having
an
international
airport.
school and
higher
education.
Analysis report
According to above study of both country Vietnam and Nigeria by considering every perspective
including Economic, infrastructure, cultural, education, politics status countries for shifting the factory.
By the complete research Cisco should select the Vietnam for shifting the factory. The reasons for the
following statement are mentioned below (Nguyen, Nguyen, Vu, & Le, 2018):
 The economy of the Vietnam is good rather than Nigeria, as it is on 47th number in world by the
factor of GDP. Although if we consider the Taxation policy for the corporate sector it is less than

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Nigeria. If we compare the labor policies and freedom that is also flexible in Vietnam but in
Nigeria there is corruption and the labor freedom is not good (Meagher, 2018).
 The infrastructure of Nigeria is good than Vietnam but is not expanded. Vietnam has expanded
infrastructure in transportation and also a direct connectivity with China through highway.
Vietnam also controlling the international airport.
 If we consider the education system both the countries have almost same statistics.
 One of the most important factor which should be considered for shifting the factory in Vietnam
i.e. culture of Vietnam, according to given situation the factory is in China and the culture of the
Vietnam is influenced by the China only. So the employees of the china factory can adopt
themselves with the culture and environment of Vietnam which is almost same.
Conclusion
Here in this report by considering the strength and weakness of both the countries and
considering all the major parameters of country that affects or responsible for growing business for any
industry is essential case is defined with the solution for transferring the employees to different location.
Also the brief description of company is also studied.

Cultural Awareness: 8
References
Al, S., David, Y. E., & Li, J. (2018). U.S. Patent No. 9,954,909. Washington, DC: U.S.
Patent and Trademark Office.
Andreasen, F. S., Leung, K. K., Khouderchah, M., Iyer, J. R., & Stammers, T. P.
(2018). U.S. Patent No. 9,973,961. Washington, DC: U.S. Patent and Trademark
Office.
Garcia-Luna-Aceves, J. J. (2018). U.S. Patent Application No. 10/091,012.
Goerke, T., & Grayson, M. (2018). U.S. Patent No. 9,860,768. Washington, DC: U.S.
Patent and Trademark Office.
Joseph, R. A. (2018). Class, state, and prebendal politics in Nigeria. In Africa (pp. 44-63).
Routledge.
Meagher, K. (2018). Taxing times: Taxation, divided societies and the informal economy
in Northern Nigeria. The Journal of Development Studies, 54(1), 1-17.
Truong, V. D. (2018). Tourism, poverty alleviation, and the informal economy: the street
vendors of Hanoi, Vietnam. Tourism Recreation Research, 43(1), 52-67.
Vuong, Q. H. (2019). The financial economy of Viet Nam in an age of reform, 1986-
2016. Routledge Handbook of Banking and Finance in Asia, 201-222.
Williams, G. (2019). State and society in Nigeria. Lagos mainland. Malthouse Press.

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