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1) Cisco has done several things to distinguish themselves from the competition and gain a clear competitive advantage. First and foremost, John Morgridge created a positive working environment. When Lerner was demanding to be involved in day-to-day management decisions and creating constant tension because of her "disdain for managers," she was soon bought out after the IPO in 1990 (pg 2). Similarly, there was a "minimal hierarchy" within the company. Employees were treated as equals and no one …

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…well. Lucent does not have a good history of keeping employees after a merger. Cisco prides itself on keeping many of the other companies employees, training them and making them part of the Cisco family. Also, not purchasing INS hinders Cisco's business. This could result in lost revenue and lead to layoffs. Cisco has a moral obligation tom its employees and to the community to do all it can to keep as many people employed.