1) What does the Chevy Volt case tell you about the nature of strategic decision making at a large complex organization like General Motors?
The Chevy Volt case tells us that the nature of strategic decision making for a large complex organization like GM must think, develop, and create a powerful strategy in order to be new and known to the market. As years come, the management should think properly and change their strategy for them to attain their specific goals. Because nowadays, people tend to find something fresh or new and whether it cost a lot of money but, as long as they can get a lot of benefit from it, they’ll certainly pay for it.
2. What trends in the external environment favored the pursuit of the Chevy Volt project?
A number of trends were coming together to make this scenario likely. First, oil prices, and by extension, gas prices were increasing sharply. Second, global warming was becoming an increasing concern and it seemed possible that tighter regulative designed to limit carbon emissions would be introduced in the future. Finally, GM's major competitor, Toyota, with its bestselling hybrid, the Prius, had demonstrated that there was demand for fuel efficient cars that utilized new battery technology.
3. What impediments to pursuing this project do you think existed within GM?
The impediments to pursuing this project that existed within GM are the costs needed to fund this project, the difficulty in obtaining the technology to produce a large lithium ion battery for the car, and the fear of failing again at producing another electric car. Their first failure was the EV1 electric car introduced in 1990s.
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 nature of the strategic plans are effective and it was based...