Planning for the Chevy Volt
Chapter 1: Planning for the Chevy Volt
Case Discussion Questions 1. What does the Chevy Volt case tell you about the nature of strategic decision-making at a large complex organization like GM? The Chevy Volt case indicates that strategic decision making at a large company like General Motors often does not take time to consider all the angles or facts that may influence the decision. In a large corporation, many different sets of information are held by different departments. Perhaps some information from the engineering department may suggest that the Volt is not a wise investment, as the previous fuel cell model, which is also an alternative energy vehicle, was not a success. However, all the facts surrounding the failure of the EV1 may not be available to those making the decision. It was also determined that making a large Lithium Ion battery was difficult, though nobody said it was impossible. Perhaps that statement was one department manager or engineer's opinion, not the general consensus. 2. What trends in the external environment favored the pursuit of the Chevy Volt project? There are a number of trends from external environment that encourage the Chevy volt project to occur. Sharply increasing of oil prices driven by growing demand in developed countries forces people to find cheaper alternative fuel or more fuel efficient cars. With increasing concern on global warming, people are interested in cleaner energy that can substitute the traditional fuel, which is the cause of greenhouses gases. The improvement in technology allowed the lithium ion batteries to be affordable by consumers and being more efficiency. Finally, electric cars or hybrids are already on the market and some of them were proved to gain attention from consumers such as Totota Prius. 3. What impediments to pursuing this project do you think existed within GM? Impediments that existed at GM, which may prevent the Chevy Volt project from being
Case Discussion Questions 1. What does the Chevy Volt case tell you about the nature of strategic decision-making at a large complex organization like GM? The Chevy Volt case indicates that strategic decision making at a large company like General Motors often does not take time to consider all the angles or facts that may influence the decision. In a large corporation, many different sets of information are held by different departments. Perhaps some information from the engineering department may suggest that the Volt is not a wise investment, as the previous fuel cell model, which is also an alternative energy vehicle, was not a success. However, all the facts surrounding the failure of the EV1 may not be available to those making the decision. It was also determined that making a large Lithium Ion battery was difficult, though nobody said it was impossible. Perhaps that statement was one department manager or engineer's opinion, not the general consensus. 2. What trends in the external environment favored the pursuit of the Chevy Volt project? There are a number of trends from external environment that encourage the Chevy volt project to occur. Sharply increasing of oil prices driven by growing demand in developed countries forces people to find cheaper alternative fuel or more fuel efficient cars. With increasing concern on global warming, people are interested in cleaner energy that can substitute the traditional fuel, which is the cause of greenhouses gases. The improvement in technology allowed the lithium ion batteries to be affordable by consumers and being more efficiency. Finally, electric cars or hybrids are already on the market and some of them were proved to gain attention from consumers such as Totota Prius. 3. What impediments to pursuing this project do you think existed within GM? Impediments that existed at GM, which may prevent the Chevy Volt project from being