Cypress Semiconductor: A Federation of Entrepreneurs Harvard Case Solution & Analysis

In the year 2011, Cypress Semiconductor was doing well. Almost 32 percent had grown to $884 million, and coupled with price reduction efforts that were diligent, their proceeds before taxes were up almost 23 percent. In the previous two years Cypress had removed its debt and built up a substantial cash position. However, the semiconductor business proved to be a barbarous one requiring initiation and both continuous cost reductions. Cypress was a moderately small player, contending with businesses like Samsung that was more than 40 times its size. Cypress creator and CEO, T.J. Rodgers reflected on the challenge of fighting big competitors in a rough environment by saying, "It is all about execution however if you have not completed what you said you were going to do it does not matter if you have a good plan or not." In Rodgers' perspective this meant that to be successful Cypress needed to continue to be constant in driving prices out and be able to generate a flow of new inventions.

His solution was to manage Cypress as "a federation of entrepreneurs." This case details the history of the company and its own philosophy and practices that it uses to encourage innovation within its organization. The case provides an extensive report of the approach, people of Cypress information systems, and management including settlement and hiring processes. The center is on Cypress's approach and observation to spark innovation and launch successful new ventures.

PUBLICATION DATE: January 30, 2012 PRODUCT #: OB84-PDF-ENG

This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP

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