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Investigating General Motors Chevy Volt Project

What does indeed the Chevy Volt circumstance tell you about the nature of tactical decision making at a huge complex group like GM? In a complex business such as GM, it would appear that decisions regarding Chevy Volt project were come to without giving thorough plan outlay to the look groups in the business. There was a lot of thing that put the business at stakes from the incorrect strategic decision undertaken. All areas of the project were done at the individual and subjective level. Take including the proposal shown by Larry Uses up and Bob Lutz concerning Chevy Volt to the top management reveals a missing hyperlink of strategic management that should have been a transformational make. Yet the unhappy state of affairs is that proper formulation and its own execution also were all affected upon, which took place when the Chevy Volt concept car was launched.

This implies that managerial level function, their engagement and leadership were not collaborative in a sense so far as implementation processes goes. As well as it, shareholder values and business plan also weren't emphasized after when decisions were made, which shows up that the responsibility attached with managerial role and their knowledge were all taken for granted that put the company in the threshold of your gamble and a joke.

Explain briefly the changes in the external environment that made it favorable to attempt the Chevy Volt Task?

As we relate to the given circumstance, rising fuel prices, new environmental restrictions, new entrant for inexperienced concepts autos and stiff competition give abundant data to the changes in the external environment. There may be some relevancy that microenvironments also were emphasized after in context of Porter five makes model and SWOT research. Thus, the Chevy Volt project can significantly foster the CSR of GM, which is advantageous.

As a inexperienced principle car, the Chevy Volt scores a point so far as cost saving for users goes in context of growing olive oil prices then. However, what is crucial can also be exemplified in framework of lasting development process that the Chevy Volt can impact, let say limiting carbon gas emission in the backdrop of global warming and greenhouse result and most essentially presents a wider socio-economic relevancy and impact.

What internal obstacles do you think existed within GM that were unfavorable to the pursuit of the Chevy Volt task?

Cost factor also is one unfavorable point that existed, considering that GM have already invested billion of us dollars for the introduction of Lithium-Ion battery power, which did not registers with the very best management. The relevant cause for that also can be emphasized in framework of the internal obstacles at GM as can be viewed according of top management who had been skeptical of Chevy Volt job, particularly when the 'EV1' Cross model, a renewable strategy electric car that operate on conventional gasoline cell created by the company way back in the 90's did not be successful and was a utter loss in term of tool and brand image.

Besides authority in the business also have it defects, and were not wholly involved. In other words, strategy planning, its formulation and lifecycles that assured the outcome of task was a lacking links, which will be the internal obstacles that are unfavorable for the pursuit of Chevy Volt task.

The plan for the Chevy Volt seems to be based partially on the assumption that petrol prices would remain high, and yet in late 2008, olive oil prices collapsed in the wake of a sharp global financial slowdown:

What does this inform you of the type of strategic strategies?

Chevy Volt project which is partially based on the assumption of fuels prices is rather skeptical. Plan outlay in framework of rising oil prices, and environment sustainability only will not in a sense constitute total business plan layout. External environment analysis like the macro and micro-economic factors also should have been concentrated, so an alternative plan design to build up new innovation for its benchmark cars model that run on fuel and that which should meet the tighter regulation in the future. Yet that had not been the case, which we feel posit the defects in the nature of tactical plan pertaining to Chevy Volt, and reveals the 'uncertainty' of such development course, which in the other circumstance economic factor should have been given more emphasis for strategy, wherein economic theory of demand and supply also should have been earned contention in regard of decision and strategy.

How do slipping oil prices have an impact on the Chevy Volt project?

The Chevy Volt task strategic plan was predicated on factor that stored rising essential oil prices in contention to market its electric car model for profitability. That's true to some extent. Yet, buying an automobile is long-term investment for buyers. That factor also should have been given anticipated importance. Besides, investment created by GM in the Chevy Volt task also posed huge cost factor. Running a business framework, Chevy Volt is less competitive and cost already incurred for the task means that the company has to compromise with its standard to foster a profitable outcome from situation of spiraling petrol prices.

Thus, falling essential oil prices can affect Chevy Volt task in conditions of profitability straight from the sale of electric vehicles. However, such marketing principles pose many hazards and doubt, which in simple financial sense can be justified in context of source and demand guideline appropriate to economics, be it for petrol prices or the Chevy Volt car models and its needs in situations when olive oil prices would stay high.

Do you think petrol prices will remain low?

There is not a reason to feel that oil prices will stay low, because it happened in times when demand for the merchandise was low in the market. Rising oil prices defines the simple monetary basis of the law of demand, which will depend on market equilibrium for a product in influencing the inflation and deflation of particular product.

Thus, it's very likely and in simple monetary sense that after the demand for essential oil increases, prices is also more likely to surge accordingly. Besides there are no substitute product as far as fuel runs and in the case of Chevy Volt cars the situation is normally, wherein alternative product can be emphasis in framework of interior combustion engine vehicles which pouts competition in a good situation so far as car model goes.

a) What are the external conditions that need to be there for the Chevy Volt to be always a successful car?

For the success of the Chevy Volt Task effective online marketing strategy needs to be created. Marketing aspects also should capitalize on the inner and external causes that influence the merchandise within the industry and against its competitor for the competitive factor. From our understanding, the Chevy Volt is a high-tech car. Hence, external analysis from operational and business perspective should focus on the competitive framework of the industry and factors such as; enhancements, socio-economic, and environmental impact that identifies value added product, and the opportunistic cost that comes with it.

Thus, a lot of development in the development process of the automobile should be fostered as you factor to benchmark against competitors and competitors on the market, which is crucial for success for a profitable final result and goals successes. Section of it also should focus on the tactical marketing aspects that give the car and its own salient feature to reach people through advertisement and recognition created in that respect are interrelated and need to be present for the Chevy Volt to be always a successful car.

Given its long presence in the market GM may not lack competency and skills, however, its proper planning and decision making is stifled by strong amount of resistance from its professionals. This can be due to the complexity of the organization and producing problems associated with proper decision making.

What could you suggest for GM to make its strategic planning and decision making effective and relevant?

To facilitate effective proper, it is advised that GM managers should look at the following:-

Response to your competition that the marketplace posed and requirements.

Management Responsibility in decision undertaken.

Knowledge posting as a basis for job formulation and success.

Cost factor analysis.

Collaborative leadership as a way to make a deal against redundant formulation process.

Do away with subjective and unreasonable reasoning and decisions.

Transformational change should be initiated.

Management and supervisors involvements in virtually any given jobs.

Business plan and layout should be effectively defined for just about any major results and long-term results.

Apart from these point and set of suggestion, we believe that proper group in the business should be given ample hands to empanel for proper plan layout, given that there are huge stakes for just about any given undertaking. In the end, tactical group are expert panel. Yet, decision being reached is more or less subjective. Hence, a collaborative method of management thinking, authority and strategy formulation ought to be the core social basis in the company, which can effectively and relevantly drive the tactical planning and decision making in the course of goals accomplishments.

In light of your research, what are the expenses of inability in this task for GM?

The cost of failure as far as Chevy Volt car concerns is huge and great, as far as operation and financial consequences should go. Less participation from the professionals also taken to fore the price and its result to directly strike the company that helped bring it to the stage of total shutdown of its operations. Since the company has already been in the threshold of individual bankruptcy, the Chevy Volt job that didn't impact the business strategic goals and its achievements posed the full total effect of bankruptcy of GM and huge financial consequences as an aftermath, because the business is already on the process of huge general population personal debt facilitated by the government to save itself from bankruptcy.

Thus, it is suggested that either the plan need to be charted out to bring into result the following:-

Capitalize on the ability and expertise the company posits.

Effective strategic management of functional process and strategies.

Top Management engagement.


Collaborative approaches to leadership.

Cultural and structural upgrade of the organization echelon and tactical management panel and categories.

Standardization of managerial role, decisions and business plan layout.

Capitalizing on the opportunities and menace.

Facilitate a active authority culture.

What are the costs for GM of not pursuing the project?

There are huge and direct effects as far as Chevy Volt project concerns, since it isn't pursued in any way. Take for example the following cost factors:-

The huge opportunistic cost lost in between.

Operational and business capacity that proceeded to go for a toss.

Marketing research that has not been capitalized effectively and effectively for result end result.

Change factor and organizational learning.

Cost element in term of direct financial assets to buyers, and stakeholders.

Resource accumulation.

Brand image and individuality.

Corporation competencies that have not been capitalized

Sustainable development plans

Corporate Social Responsibility

Economic repercussions.


Business process and steps.

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