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Essay / Cypress Semiconductors - 1377
#1) Cypress's strategy in 1993 was to compete in high-volume memory chip markets through a competitive cost structure, rapid introduction of new products, and repositioning of the business for “growth”. Based on this new strategy, Cypress was determined to "compete in any market, with any competitor, at any price, while making good profits." The overall structure of the company was primarily mechanistic rather than organic. It was extremely formalized, focused on people and performance management. In terms of complexity, although the structure was slender, it appeared vertical rather than flat. According to Rodgers, the structure supported the two main strategic elements, focusing on precision and product development. It appears that the “Killer Software” that tied people to goals across all functional elements was detrimental to the company's innovation performance. Cypress' extremely strong culture was consistent with the company's defined core values, which emphasized aggression, winning, speed and intolerance of failure. In addition to focusing on technical expertise and excellent work history, Cypress closely vetted potential candidates to weed out cultural misfits. We detected an almost manipulative element in Cypress's culture, such as the protocol governing announced resignations, when managers had to follow specific instructions to avoid defections and retain other employees. There were a number of military-like symbols that defined Cypress's culture, such as "getting the grade," raiding recruiting events, and isolating the company from competition. Additionally, a number of symbols, legends, and rituals emphasize military-style culture, such as signing ceremonies when accepting job offers. Some aspects of...... middle of paper ......man Resources - Cypress excels at recruiting star performers but has devalued human resources, calling them "drones." Jack Welch's people management advice suggests elevating the human resources department to a more prominent position to help managers develop better leaders and develop career paths.#4) The "killer software" is a control system that works well to monitor productivity and focus the organization. on well-defined objectives. Existing business divisions, including finance, administration, sales and manufacturing, would benefit from this efficiency-driven approach. To counter the system's tendency toward negative feedback, the software should be modified to include positive feedback to reward meeting or exceeding goals. The software does not encourage creativity and innovation and therefore should not be used in the emerging business division..