Chambers' Challenges

MARKETSCisco is trying to simultaneously expand into markets ranging from video cameras to servers. No company has tried to pull off such an expansion before.

MANAGEMENTChambers set up a series of councils to help make management decisions more quickly. Insiders complain of growing bureaucracy and a lack of clear authority.

COMPETITIONCisco grew to dominate the networking market by trouncing smaller rivals. It's now on a collision course with Hewlett-Packard and IBM, larger and more powerful companies.

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