June 7, 2011
Closing Case Page 36
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?
Increase in oil price, Limit carbon emission goes green, and the cost of manufacturing lithium ion batteries was falling
2. What trends in the external environment favored the pursuit of the Chevy Volt project?
Toyota best selling hybrid Prius shows the customer demand for fuel efficient cars
3. What impediments to pursuing this project do you think existed within GM?
Cost is one of the most important hurdles in pursuing with Chevy Volt
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 ?
The strategy was based on analyzing the existing marketing situation and trends
b. What do falling oil prices mean for the potential success of the chevy Volt ?
Experts agree that gas prices will stay volatile. Supply is limited, and when the world economy recovers, demand will rise. That means a possible return to $4-a-gallon gasoline
c. Do you think oil prices will remain low?
5. What will it take for the Chevy Volt to be a successful car ? in light of your analysis, how risky do you think this venture is for GM? What are the costs of failure? What are the costs of not pursuing the project?
I think it wills success for the following factors
Its new models have cutting-edge designs that sell well, and its quality rankings and fuel economy rise, If every new model has dramatically better gas mileage in government testing than its predecessor, Proper advertising is done like GM products are appearing in hit movies, music videos, TV shows and other media. Cost of not pursuing the...