case indicates that when the decision is
made in such a large organization like General
Motors, many important factors are ignored that has an effect on the decision. Different types of the information are available at the different departments.
According to the engineering department, the volt
is not the wise investment. The reason is that Fuel Cell Model is not the
success. Making the large Lithium Ion batteries is difficult to work but it is not impossible. The complex
organizations must develop and think about the strategy that is powerful to
make the name in the market. For the attainment of their goals, the company must change their strategic
plans, accordingly. People do not care about the price if something is new and
fresh. If people get required benefit
from the product they will certainly pay for it whether the cost is high.
2. The rising fuel prices and growing concerns
about environmental pollution, as well as increasing research and product
introductions in the area of hybrid and eco-friendly vehicles were some of the
most important trends that favored Chevy Volt project. With the increase of global warming, people are interested in the form of energy that is the
substitute for the fuel. The improvement
in the technology makes the Lithium Ion batteries more affordable and
3. There are various impediments
that occur in the General Motors.
Impediments are the stop point for the
Chevy Volt project which means that they are not able to pursue their project.
One of the most important impediment is the lack of vision. The other one is
the lack of knowledge. The question arises, which type of the knowledge? The
knowledge about the technology that is being used in powering the vehicles. The
name of the technology is Lithium Ion. So far, only the fuel cells had been
developed by the GM they do not have developed the lithium Ion batteries yet. For
the acquiring this new type of the technology, it means that a huge investment is required. But the problem
is that this new huge investment does not
guarantee success to the organization. The current
financial situation of the GM must also be considered. Another most important
impediment is the fear of the company. This fear is about the failure of the
new technology and the related costs. These costs are associated with the
failure of the vehicle that is using the alternative technology. The failure,
risk and the fear involved in it is very great. The approach used in making
this type of vehicle is not favorable for the consumer of America.
4. (a) The case of the Chevy
Volt shows us that the well established strategic plan will not help the
organization to flourish during the period of
uncertainty and the complexity. The
organization will not go through the ambiguities
of the world whether the plans are well thought out or not. The small event has the unbearable and unpredictable effects on
the organization and the strategic plan does not help. The organization must be capable
of changing their strategic plan
according to the needs of the environment. The increase in the oil prices led
the people to use fuel cars. But due to the economic slowdown that occurs in the year 2008, the organization have
to maintain its sale and revenues because this economic slow down cause the oil
prices to decrease.
(b) When the prices decrease, the consumers become able to pay the
same amount for getting the same amount of the fuel. The collapse of the prices
of oil helps the fuel consumption. The
demand for the electric cars decreases.
The sales of the Chevy Volt are affected by this incident.
(c) According to my thinking, the
oil prices remain oil for the small period of time. When the economic
conditions are back on track, the oil prices become normal. The oil prices are
totally dependent on the demand and the supply conditions. When the demand
rises, the price will rise. But it is also limited by its supply. If the
production of the oil decrease, the price will very frequently increase.
5. For becoming successful, the
company must provide the same benefits as other energy cars. The price and the quality must remain stable. The venture is risky for
the GM because of its plan of the introduction and the high cost. The failure
cost will be very high. The cost of not pursuing the project cause the loss of
market share in the automobile industry.
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