MGCR 222 Lecture Notes - Lecture 2: Cypress Semiconductor, Moral Hazard, Adverse Selection

• School: McGill University
• Department: Management Core
• Course: MGCR 222
• Professor: Ferguson

Document Summary

Niche producer: a producer that creates a specialized product for a specialized type of person. Moore"s law: computer processing power is going to double every 18 months. It held for something close to 40 years. Cypress is going to identify one of the needs in the market, they are going to pile a bunch of engineers on a problem in order to create solutions for companies. Critical task: identify profitable niches, solve hard engineering problems related to creating a product for that niche, move quickly to market. Organizational design seeks to balance: the need for coordination with, the need for individual motivation and effort. Coordination: ensuring efficiency by having the right people do the right job at the right time; minimizing duplication of effort. Motivation: ensuring that the individual contributes (to the best of her ability) to the firm, even if she does not naturally see it as in her self-interest.