Planning for the Chevy Volt

Closing case: Planning for the Chevy Volt

1. What does the Chevy Volt case tell you about the nature of strategic decision making at a large complex organization like GM?

From the case we can see that strategic decision making at a large complex organization like GM has to be decided by several divisions before they can execute so it takes time and may affect at time the company launch new project to the market it may be changed. Moreover the large organization concerned about their past failure to keep improve the quality of product so they would spend more time and may miss the opportunity for some market situation.

2. Why trends in the external environment favored the pursuit of the Chevy Volt project?

Base on the information there are 3 factors effect this project. First is oil price which GM foresees that its price will increase sharply due to demand of developed nations like China and India. Second, global warming concerned so the trend of using oil fuel will be reduced to less carbon monoxide which cause greenhouse effect.

3. What impediments to pursuing this project do you think existed with GM?

For GM already invested in huge amount on fuel cells so they need to come up with final product which related with this innovative. This can also agree by decision makers in company since they don’t want to suddenly switch gears but focus on lithium ion batteries instead. However the failure in the past obstructs the project by slow down the process to make sure every steps go smooth without any problems again.

4. The plan for the Chevy Volt seems to be based partly on the assumption that oil prices would remain high, and yet in late 2008, oil prices collapsed in the wake of a sharp global economic slowdown.

a. What does this tell you about the nature of strategic plans?

It can be inferred that strategic plan won’t be applied in every situation, for example strategic plan A may suitable to be used in booming economic situation but you need to change...