Planning for the Chevy Volt Essay Example for Free

Planning for the Chevy Volt Essay What Does the Chevy Volt Case Tell about the Nature of Strategic Decision-making at a Large Complex Organization like General Motors? Chevy Volt issues show how strategic decision-making at the leading complex company, for example, General Motors can be hard and exceptionally challenging. This is because they need more time to make sure that you have convinced other stakeholders to support the ideas for new work strategies (Holstein, 2009). In the case it showed that General Motors’ vice chairman and the head of RDD had agreed to make this in 2003, though other managers let them down; but later, in 2007, other managers joined their hands for Chevy Volt project’s success. The strategy is based on the assumption of reducing the emission of carbon and urges the citizens to avoid the produce of carbon in the environment (Holstein, 2009). The External Environmental Trends That Favored the Pursuit of Chevy Volt Project The external environmental trends that favored the Chevy Volt Project are lowering the oil prices. Introduction of lithium-ion sports cars by Tesla Motors in the market, concern for global warming issues which can end up to the tighter laws put in place to control the emission of carbon, falling costs for manufacturing batteries made of lithium-ion and selling of Toyota hybrid Prius indicated that clients demanded for vehicles that use fuel but do not produce carbon that affects the environment, causing environmental degradation ((Holstein, 2009). Impediments of Pursuing Chevy Volt Project Which Existed Within General Motors The factors that prevented the outcome of this project within General Motors are the finance and lack of enough support, needed towards the project, being afraid of failing once more at producing the non-working electrical vehicles and the issue in acquiring new technology to manufacture more lithium-ion battery. Finally, the total cost to promote the project was extremely high. The lack of agreement between General Motors’ managers for having different opinions hence ending up disagreeing. Chevy Volt Planning Seems To Be Based On The Assumptions Of Oil Prices Going Up, While In Late 2008, The Oil Prices Reduced And Even Weakened International Economic. The Nature of Strategic Planning The idea was mainly based on the existing trends and the market situation at that particular time. The strategic plan should focus on the present and future. Good company planning should be realistic and easy to carry out, specific and easy to track the outcome against the plan. Before making a decision, a good planning mechanism should be put in place to avoid future interruption ((Holstein, 2009). Strategic Planning Should Be Based On the Present and the Future The falling of oil prices means potential success of Chevy Volt. Specialists believe that the oil prices will remain high because supply of the commodity in the market is low, while the economy tries to recovers, the plea of the product rises and hence the return of a gallon gasoline. Will The Oil Prices Remain Low As Claimed By The Experts? No. Experts believe that the oil prices will remain high as the world economy grows. What will it take for the Chevy Volt to Be Successful? In order for the Chevy Volt to be successful, there should be introduction of new models and designs of vehicles that are being sold in the market and their ranking in the market and rise in fuel and production of competitive vehicles in the field of vehicle manufacture as compared to other companies producing the same product. It is necessary to make sure of proper marketing of its product through advance advertising of General Motors’ products in the best TV movies and even through celebrity shows to continue marketing of the new products. Proper advertising is done to the General Motors’ products, through appearing in hit movies, music videos, TV shows and other media (Gavarone, 2011). The choice of effective method of distribution depends on the market demand. The Analysis of How Risky Is It to Invest or Venture In General Motors When the new commodity does not sell in the market as expected or flops. Chevy Volt launching tends to be more expensive as it requires more finance and for General Motors to enjoy the benefits or return it will take several years. It can lead to disappointment because less return produced by the company at the selling time (Gavarone, 2011). The Costs of Failure of General Motors Decline in sales may be a result of recession in demand as compared to the previous years and hence losing clients to other companies. It may lead to the closure of General Motors due to poor management and production of new products in the market which could not be sold hence ending up in large loses (Gavarone, 2011). It failed as the company was unable to produce enough sales because of high prices and ignoring state’s rules and regulations. It may lead to the loss of more customers to other companies doing the same project becoming more successful. The Costs of Not Pursuing the Chevy Volt Project General Motors will fail if new brand of the car is the same with the one they have replaced. The cost of failure will be unusually high. This is due to the new product’s flop in the market and losses incurred during selling the new product that fails in the market (Gavarone, 2011). References Gavarone, G. (2011). Integrated marketing communications plan for the Chevrolet Volt. St.Bonaventure, N.Y: Jandoli School of Journalism and Mass Communication, St.Bonaventure University. Holstein, W. J. (2009). Why GM matters: Inside the race to transform an American icon. NewYork: Walker.