Analysis of Cisco Systems
After
several meetings we had as a group, it was decided that we would choose 6
different dotcom companies with dissimilar backgrounds to examine the
general features of the companies and study factors, which lead to the
volatility of the share prices.
Cisco
Systems was the company that I chose to study.
I began by doing research on the company’s history through the
Internet, where I discovered much useful information on the infrastructure
of the company. The section
related to the volatility of their share price was much more difficult to
find on the Internet as it involved out-dated news and magazines.
Much time was spent scrutinising articles related to the topic,
however majority of the articles were found to be useless. The effectiveness of their homepage was examined by
purchasing a product online, it was swift and easy, it took around ten
minutes for the whole transaction to complete and the product arrived
within 2 days as guaranteed.
Writing of General Part
After
the analysis of the individual company we had several more meetings to
discuss the layout and the structure of the report. We had split into
groups where Ada, Edward, Per and I were assigned to do the general parts
in order to accomplish the whole project.
To find out more about several uncertainties we went to Dr. Stefan
(Managerial Economists Lecture) to discuss the volatility of the stock
market and the reasons behind it. We
also discussed what an economic bubble is and whether the dot.com bubble
has already burst.
We had further meetings between our groups and it was
decided that Ada and I should do research on the history of the bubble.
We then did more research in libraries and over the Internet where
we found many similarities between the bubble back in the early 90’s and
the dotcom bubble in the present day.
We had also looked for graphs related in the 90’s bubble in order
to support the facts.
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