EE204: Business Management for
Electrical Engineers and Computer Scientists

Company Culture

Read

  1. Organizational Culture, Values and Fit in the Workplace: Making the Right Job Choices (HBS course materials)
  2. Cypress Semiconductor: A Federation of Entrepreneurs (HBS course materials)
  3. Vinod Khosla article about Steve Jobs

Case Summary

In 2011, Cypress Semiconductor was doing well. Their 2010 revenues had grown 32 percent to $884 million, and coupled with diligent cost reduction efforts, their profits before taxes were up nearly 23 percent. In the preceding two years Cypress had eliminated its debt and built up a large cash position. But the semiconductor business was a brutal one demanding both continual cost reductions and innovation. Cypress was a comparatively small player, competing with firms like Samsung that was more than 40 times its size. Cypress founder and CEO, T.J. Rodgers reflected on the challenge of fighting large competitors in a tough environment by saying, "It's all about execution because if you haven't done what you said you were going to do it doesn't matter if you have a good plan or not." In Rodgers' view this meant that to be successful Cypress had to continue to be relentless in driving out costs and be able to generate a stream of new innovations. His solution was to manage Cypress as "a federation of entrepreneurs."

Discussion Questions

  1. What is Cypress's culture?
  2. How does Cypress's culture facilitate or inhibit innovation?
  3. What is your assessment of the "Federation of Entrepreneurs" concept?
  4. What is Cypress's hiring process, and what is your reaction to it, as a manager and as a job candidate?
  5. Assess the strengths and weaknesses of Cypress's employee evaluation and compensation systems.
  6. Describe TJ Rogers's leadership. Consider the Vinod Khosla article. Do Rogers and Steve Jobs share similar traits?
  7. How successful has Cypress been over the past 3 decades?
  8. Is Cypress somewhere you would want to work? Why or why not?
  9. Referring to the worksheets in the article on values, translate your worksheet responses to this survey.