24: MIPS L5 Spoiled Startup

NOTE: For today and Thursday, we study the MIPS and Sun Microsystems cases, respectively, as well as several key readings,. These classes provide an opportunity to summarize many of the key concepts we have learned throughout the semester. We will study two companies that started at roughly the same time, in the same industry, yet had very different approaches and outcomes. Consider how the different approaches led to their success (or not).

Read “Level 5 Leadership Download Level 5 Leadership,” taken from Jim Collins’ book, Good to Great (HarperCollins 2001: ISBN 0-06-662099-6), and available at on the course web site (Files/Readings). Good to Great is about building robust, enduring companies. As you read this chapter, think about its applicability to the leaders we have observed in case studies this term. Think about its applicability to other leaders you have encountered in other aspects of your life. Do you agree with Collins’ argument?

Read the brief 1-page article, “The Spoiled Startup” located on the course web site (Files/Readings). In addition, view the brief video from the Wall Street Journal, in which Carly Fiorina – former CEO of HP and well-known business leader – echoes several principles of the article: https://on.wsj.com/307tR2h.

Read the “MIPS Computer Systems" (SB-112) case. Consider the following study questions as you analyze the case:

• What is the condition of the company in May 1987? What factors contributed to this condition?
• Was the $8 million revenue goal an effective mission for the company? Explain.
• Describe the culture of the company.
• Which, if any, of the lessons discussed in The Spoiled Start-up could have been avoided, or at least mitigated, the problems now facing MIPS?
• Why did Bob Miller leave a prominent position at Data General to join a startup company like MIPS?
• What do you think of Bob Miller’s philosophy of role models and commitments? How far should the philosophy of commitment be carried? For example, suppose a sales representative, without authority to do so, makes an outrageous promise to a customer. Do you keep the promise?
• Put yourself in Bob Miller’s shoes. What specific actions will you take during the next two weeks? Two months? (Hint: A look at MIPS’ Balance Sheet in Exhibit 5 provides insight into at least one specific action).

DUE:

Following the guidelines in the Case Method Overview (found in Canvas Files), write a concise 2-page essay addressing the question below:

Briefly describe the condition of MIPS at the time of the case. Which two (2) of the lessons discussed in The Spoiled Start-up do you feel would have been most likely to avoid, or at least mitigate, the problems now facing MIPS? Explain.

Submit your essay on Canvas before class on Tuesday. All work must be your own, subject to the University’s Code of Academic Integrity.