XEL Communications was founded in September of 1984 by Bill Sanko. XEL designs and manufactures more than 300 individual products that enable network operators to upgrade existing infrastructures and cost-effectively enhance the speed and functionality of their networks while reducing operating expenses and overhead costs. XEL is located in the outskirts of Denver, Colorado. Customers drive the demand for XEL products, and the company's productivity is 2 new products per month. In addition to their domestic business, products are sold in Canada, Mexico, Central and South America. The company has plans to infiltrate the Brazilian markets in the near future. The company is in the midst of the international stage of international development, and is moving towards the multinational stage of international development.
The company is facing problems in the rapidly growing environment and marketplace where it has its niche. Product life-cycles are getting shorter: products used to enjoy a 30-40 year lifecycle, but now the lifecycle is only 3-5 years tops.
This represents a simple, unstable dimension in the environment. The company is able to cope with this by having a horizontal, matrix style structure, with an incidence command system in place to deal with the ever-changing environment and marketplace. There is also a need for more resources to help with the rapid growth that XEL is experiencing. Profits have risen three-fold over the past three years prior to the dilemma, and the company is running out of human resources to hire in the Denver area.
The vision statement is used in all aspects of decision making and problem solving within the organization. It became a living symbol of the XEL culture and the degree to which XEL embraced and empowered its employees. This shows that the company uses a more horizontal, or organic, approach to management and decision...