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? Due to a large complex organization, approval process needs to be get through many related departments and management levels when a company wants to do something such as raising new loan, launching new product and investing in new technology. As a result of many approval steps, if this decision making was not timely, the company might lose competitive advantage. From case study, the Volt was planned to introduce to the market in 2003.
The speaker is the artwork and the words on the advertisement. Persons looking for a full size truck with better fuel economy, someone who wants to help the environment, and persons, who are looking to save money, by spending less on gas, are the audience of this ad. This ad appeals to ethos. Ford has been making cars for years and is a trademarked and trustworthy company, giving the customer a peace of mind. Adding to their credibility is the motto found on the ad, “Built Ford Tough”, which automatically shows that Fords products are reliable and strong vehicles, so if you ever purchase a vehicle from Ford, you would expect it to be those things.
The narrator concludes that there are risks to this strategy because of the trade off between national preferences and global integration. Teaching Points: There are different global strategies (worldwide integration which Ford has chosen and multilocal strategies like Nestlé and Unilever adopt). Which is “right” remains to be seen; both are efforts to balance efficiency and responsiveness
Ford F-150 XL vs. Chevrolet Silverado 1500 WT As a Lee Stahl, a Chevrolet truck owner, once put it, “Chevys are the American Truck.” However, is the Chevy the American’s Truck or is it the Ford? Ford does have a staggering lead over Chevrolet in Americans driving trucks. Should that not make Ford America’s Truck? When choosing the Ford F-150 XL or the Chevrolet Silverado 1500 WT, many things should be taken into consideration such as affordability, drivability, and even future mechanical problems. In the battle of affordability, it is a draw.
The analysis is performed by given plant characteristic (production capacity and associated fixed costs) for existing facilities and planned facilities, profit margins given by car lines depending on manufacturing plant, demand for 3 different car models, and demand diversion amount associated with unsatisfactory demand for each model. A rigorous analysis by Microsoft Excel with Solver Add-in indicated that Giant Motor Company needs to implement the renovation plan and shut down its existing manufacturing facilities. From first plant, the company should produce 1.400.000 units of Lyra and 100.000 units of Libra and from second plant, the company should produce 1.000.000 units of Libra and 800.000 units of Hydra. Based on this production plan, the company shall achieve maximum total profit of 4.040.000 USD. MODELLING Assumptions and Limitations a) Production capacity given for facilities are constant since all factors that would lag production are ignored (physical and human factors).
Case Study Project 04/04/2011 An Analysis of Case Study 1.2 “Volkswagen struggles to get back on the road” Volkswagen (VW) – the people’s car. There is significance of meaning in this name that ties in not only with Volkswagen’s historic past, but also provides insight into problems that the company faces in our relative present. Our focus in this paper will be analysis regarding the subject of Volkswagen as presented in Case Study 1.2. This analysis will draw on the circumstances behind Volkswagen’s establishment and highlight concepts such as corporate governance and corporate mergers. We will explain how corporate governance has played a significant role in shaping Volkswagen, in terms of strength and weakness during the time this textbook was published; and to conclude, we will provide an update emphasizing how mergers have played a role in where Volkswagen is today.
Elon Musk (Co-founder & CEO of Tesla Motors) outlines his reasons for deciding to appeal to the higher / premium end of the auto market as “where customers are prepared to pay a premium” (2), but finishes saying that the company's eventual goal is to “drive down market as fast as possible to higher unit volume and lower prices with each successive model” (2). This plan can be seen in action with the successive release of the Tesla Roadster, Tesla Model S, and finally the Tesla Model X – each successive car is lower in price and broader in appeal. Before Tesla Motors appeared in the marketplace there was no brand major / successful brand that focused purely on electric cars,
Mass production along with advancements in technology proved to be greatly Ford’s advantage; this strategy gave Ford the ability to make automobiles in large quantities and make them affordable to many. Ford did not view the production of his automobiles as a luxury item that would be off limits or unaffordable to many he envision for the company Ford to be an affordable item that many could enjoy. This was done easily through mass production and allowed Ford to grow into a large and profitable company. The success of Ford Motor Company was because its’ strategy encompassed a new way of manufacturing called mass production, advancements in technology, the supply chain and most of all changes in lifestyle. By the 1920’s Ford had 50% market share and
He started Nissans evolution process by closing down inefficient factories, reduced Nissans workforce, curbed purchasing costs, shared operations and introduced new products. Ultimately, Nissan became on of the world’s most profitable automotive companies. Some may consider him a savior but he is undoubtedly a Visionary leader. There are traits that a visionary leader must posses and Ghosn possessed the following traits that allowed him to become such a leader: Visionary leadership requires management to acquire a global mindset. Ghosn illustrated this trait of open mindedness when he reinforced his global aspirations by making English, not Japanese, the official language of Nissan.
The following paper will show why even mature industries like automotive production needs to embrace a more intelligent failure culture instead of using the common planning and control obsessed management style bureaucratic organizations opt for. After outlining the importance for a paradigm shift to a new way of dealing with failure, the essay will lead the discussion by showing how the Swedish car manufacturer Volvo is already embedding this new way of thinking into their organization to become more flexible, push inter-firm learning, and keep a competitive edge. By doing so they try to walk on the thin line between economies of scale and a real innovative machine organization. Building on the