Planning for the Chevy Volt

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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. With other managers’ arguments, this car was launched in 2010 after Toyata’s Prius and Telsa’s Silicon Valley. 2. What trends in the external environment favored the pursuit of the Chevy Volt project? There were five trends in the external environment favored the pursuit of the Chevy Volt project. First, oil prices were increasing because of growing demand in developed nations and limited new supplies. Second, global warming was an increasing concern. Many regulations limiting carbon emissions would be launched soon. This would affect gas-consumed automobiles. Third, the cost of manufacturing lithium ion batteries was dropped and new technology was going to be more powerful. Forth, there was demand for this type of car after Toyota’s Prius became the best selling hybrid. Last, GM’s start-up competitor has announced a new sport car with a lithium ion which urged the company to revise the Volt project. 3. What impediments to pursuing this project do you think existed within GM? First impediment is GM’s investing in developing fuel cells for many billions so many managers don’t want to change their focus. Second, the critics said that it was difficult to produce a large lithium ion battery. Last, there was a sale failure with an electric car named EV1 in 1990s. 4. The plan for

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