In 2011, Cypress Semiconductor does well. Their 2010 revenue rose 32 percent to $ 884 million, and in conjunction with the effort cost reduction, profit before tax increased by almost 23 percent. In the previous two years, Cypress has eliminated its debt and created a large cash position. But the semiconductor business was tough, requiring a permanent cost reduction and innovation. Cypress was a relatively small player, competing with companies such as Samsung, which was more than 40 times its size. Cypress founder and CEO, TJ Rogers reflected on the challenge of fighting the major competitors in the difficult conditions, saying, "It's all about performance because if you have not done what you said you were going to do it no matter if you have a good plan or not. "According to Rogers, this means that to be successful Cypress was to continue to be relentless in exile costs and be able to generate a stream of innovations. His solution was to manage Cypress as a "federation of entrepreneurs." This case is a detailed history of the company and its philosophy and practice, which he uses to promote innovation within their organizations. Cases gives a comprehensive account of the approach Cypress, people management, including recruitment and compensation procedures and information systems. focuses on Cypress policies and practices to encourage innovation and launch new successful businesses. "Hide
by David Caldwell, Charles A. O'Reilly Source: Stanford Graduate School of Business 24 pages. Published: 30 January 2012. Prod. #: OB84-PDF-ENG