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Chevy Volt

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Chevy Volt
Closing Case 1: “Planning for the Chevy Volt”

1. From the case of Chevy Volt, it shows that in the large corporation such as GM, there is much complexity than the small company. The strategic decision making is required the vision of the leader of the company in order to drive the company into the profitable and sustainable way which is the goal of business. However, people in a group of management committee do not always think the same and it is hard to judge at the first place whether the direction they choose is good or not. On the contrary, the small company that has less complexity and less the number of decision maker, sometimes it helps in the decision making that the company direction can be changed fast enough to handle the change in external factors in order to create the competitive advantage.

2. The external factors that favored the Chevy Volt project are - The increasing in oil and gas prices. Consumer behavior changes due to this factor, so it is the time of this project to go to serve the consumer needs. - Global warming. People are more concerned about the global warming problem, so they try to reduce their consumption that is the cause of this problem. - The reducing in cost of manufacturing lithium ion batteries and the more powerful of battery. This factor helps reducing the cost of Chevy volt and maintenance cost as well.

3. The impediment that existed with GM is the vision of managers. The main reason that stalled Chevy Volt project at the first place is the vision of GM managers. They did not agree on the project because the failure of EV1 in the past that did not sell well and the other factors that make them not confident with Chevy Volt project at that time.

4. A) From this case, it shows the nature of strategic plan is that it should always be updated in order to remain or even create the competitive advantage. Because, the factors that has an effect to the strategic plan always

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