The Chevy Volt Case Study

1031 Words5 Pages
Planning for the Chevy Volt Pamela Abstract This paper explores the discussion questions regarding General Motors and the Chevy Volt vehicle. The questions focus on the strategic decisions that were made to launch the Chevy Volt and the implications surrounding the near bankruptcy of General Motors. In play are external and internal factors that led to the near collapse of General Motors. The internal factors included, but are not limited to, GM’s unwillingness to change their strategic plan in an environment that no longer supported their product. The external factors included oil prices and gas prices that were increasing sharply (Hill and Jones 2010). With the constant threat of global warming, consumers were becoming more concerned with the carbon dioxide that the large SUV’s emitted into the air. It was important for GM to position themselves alongside their competition and manufacture a vehicle that would be more fuel efficient and environmentally safe. The Chevy Volt, which has a large lithium battery and a gasoline engine that kicks in is the brainchild of two men, Bob Lutz and Larry Burns (Hill and Jones 2010). Planning for the Chevy Volt The Chevy Volt case is definitely an example of GM’s resistance to change their strategic decision making in a changing environment and uncertain economy. As stated, GM was comfortable manufacturing the gas-guzzling SUV’s and failed to strategically plan in the wake of increasing oil prices and the effect that these vehicles were having on the environment. As a result of the increase in gas prices, the SUV’s that they manufactured were no longer economically feasible for consumers. In a large organization like GM, there was certainly resistance from some of their managers to not produce the Chevy Volt. This is an example of cognitive biases. A specific cognitive bias that GM displayed was
Open Document