Planning for the Chevy Volt
Question 1
The nature of strategic decision making at a large complex organization like GM appears to be done without having a thorough plan outlay to the planning groups or the business development unit within the company. There were several areas that put the company into the situation of making inappropriate strategic decision. The project was initially proposed by top two managements. Due to lack of thorough analysis and plan, they could not convince other managers in order to pursue this Chevy Volt project. This implied the missing link of strategic leadership that should have been a transformational force. In addition, the shareholder’s wealth creation had not been properly addressed and the well-defined business plan had not been emphasized and communicated when decisions were made. This implied that the management’s responsibility and expertise were all taken for granted that put the company in the threshold of a gamble betting on the success of this project. The accountability of management was disappeared.
Question 2
The external environment trends that favor this project were the rising oil price, economic slowdown that made people to be more cautious about spending, the falling costs of manufacturing lithium ion batteries that help make the car price become more affordable, and global warming concern together with going-green concept. The Chevy Volt project could help promote the CSR of GM, which is favorable to the image and brand. These trends had signified that the external environment had been changed.
As a green concept car, the Chevy Volt makes a point as far as cost saving for users goes in context of rising oil prices. However, what is crucial also can be exemplified in context of sustainable development process that the Chevy Volt can impact. Limiting carbon gas emission in the backdrop of global warming and greenhouse effect can significantly present a wider socio-economic relevancy and impact.
Question 3
Cost is the most critical hurdle
The nature of strategic decision making at a large complex organization like GM appears to be done without having a thorough plan outlay to the planning groups or the business development unit within the company. There were several areas that put the company into the situation of making inappropriate strategic decision. The project was initially proposed by top two managements. Due to lack of thorough analysis and plan, they could not convince other managers in order to pursue this Chevy Volt project. This implied the missing link of strategic leadership that should have been a transformational force. In addition, the shareholder’s wealth creation had not been properly addressed and the well-defined business plan had not been emphasized and communicated when decisions were made. This implied that the management’s responsibility and expertise were all taken for granted that put the company in the threshold of a gamble betting on the success of this project. The accountability of management was disappeared.
Question 2
The external environment trends that favor this project were the rising oil price, economic slowdown that made people to be more cautious about spending, the falling costs of manufacturing lithium ion batteries that help make the car price become more affordable, and global warming concern together with going-green concept. The Chevy Volt project could help promote the CSR of GM, which is favorable to the image and brand. These trends had signified that the external environment had been changed.
As a green concept car, the Chevy Volt makes a point as far as cost saving for users goes in context of rising oil prices. However, what is crucial also can be exemplified in context of sustainable development process that the Chevy Volt can impact. Limiting carbon gas emission in the backdrop of global warming and greenhouse effect can significantly present a wider socio-economic relevancy and impact.
Question 3
Cost is the most critical hurdle