Chevy Volt Essay

Closing Case Planning for the Chevy vanadium1. What does the Chevy Volt case tell you about the nature of strategicalal decision making at a large complex cheek like GM? From the Chevy Volt case, we can see that GM is a large complex organization and has a lot of processes to discombobulate any decision in changing their strategic plan. Moreover, they sticked to the past visitation that they had experienced. Therefore, they moved too slow and sinked the opportunity to change or adapt themselves to the external trend or a better opportunity.2. What trends in the external environment favored the pursuit of the Chevy Volt fox? Gas determine was increasing precipitantly beca expenditure of growing acquire in developed countries including China and India Global Warming become a substantial concern so peck trend to use the railcar which put forward less Carbon Dioxide. The cost of Manufacturing lithium ion batteries was falling and new applied science make them more powerful Demand for burn efficient car like Prius (Toyota) that utilize new battery technology3. What impediments to pursuing this aim do you think existed within GM? GM already fagged a huge investment in developing fuel cells numerous decision makers in GM didnt want to suddenly fuddle gears and focus on lithium ion batteries instead Technology in a large lithium ion battery production was baffling Failure in the past was the experience that GM still remembered and was afraid to invest in new project4. The plan for the Chevy Volt seems to be found partly on the assumption that inunct worths would remain high and so far in late 2008, oil prices collapsed in the wake of a sharp global economic slowdowna. What does this tell you about the nature of strategic plans?The nature of strategic plan is effective to the current situation simply when the external environment or trend change, strategic plan should be changed and adapt to the external factor as well.b. What do falling oil p rices mean for the potential success of the Chevy Volt? If the gas price fall, the Chevy Volt which use lithium battery might non be sold as much as when the gas price is high.c. Do you think oil prices will remain low? No, I think oil price will keep increasing because people in every country consume more energy which use oil to produce energy while the world has limitation of resources including oil. Therefore, when demand is greater than supply, the price will be impossible or difficult to decrease.5. What will it take for the Chevy Volt to be a in(predicate) car? In light of your analysis, how risky do you think this casualty is for GM? What are the costs of failure? What are the costs of not pursuing the project? The external factors which let the Chevy Volt to be a successful car is increasing gas price, trend of global warming, falling cost of lithium ion battery manufacturing and higher demand for fuel efficient car. However, if GM invests in the Chevy Volt project, the r isk sure enough occurs if the project isnt successful as expected. For example they move drawn-out than their competitors or the competitors can offer the better benefit or instruction execution to the customer perception and preference. While the cost which occurs when GM doesnt act this project will be the opportunity cost that they will miss the opportunity to overcome their competitors as well as being the take of new venture car.