Chevy Volt Essay Example
Chevy Volt Essay Example

Chevy Volt Essay Example

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  • Pages: 3 (563 words)
  • Published: November 29, 2016
  • Type: Case Study
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The Chevy Volt case illustrates the challenges faced by large corporations such as GM. Effective strategic decision making necessitates a leader's vision to attain profitability and sustainability, the primary business goals. However, conflicts among management committee members can hinder the assessment of whether their chosen course is beneficial. Conversely, smaller companies with fewer decision makers and less complexity can swiftly adapt to external shifts, granting them a competitive edge.

The Chevy Volt project benefited from various external factors. Firstly, it capitalized on the shift in consumer behavior caused by increasing oil and gas prices, presenting a significant opportunity to meet consumer needs. Secondly, the escalating concern about global warming motivated individuals to reduce their consumption habits, a crucial aspect of this matter. Lastly, the decline in manufacturin


g costs of lithium-ion batteries and their enhanced power contributed to reducing both the overall cost of the Chevy Volt and its maintenance expenses.

GM faced a major obstacle with the absence of a distinct vision among its managers. At first, the advancement of the Chevy Volt initiative was impeded by GM managers' reluctance. They were hesitant to move forward due to their past negative encounter with the underperforming EV1 and other factors that eroded their confidence during that period.

Regularly updating a strategic plan is crucial for maintaining or gaining a competitive advantage because the factors influencing the plan are constantly changing. The decrease in oil prices has a positive impact on the potential success of the Chevy Volt as an external factor that benefits the project and provides a competitive advantage. If oil prices continue to decline, consumers may lose interest in

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the Chevy Volt. I believe that oil prices will not remain low because they are determined by supply and demand dynamics. Oil supply is limited and controlled by manufacturers, while demand continues to increase due to economic expansion. Hence, it is unlikely for oil prices to stay low.

5. The success of Chevy Volt depends on several factors. First, the performance of Chevy Volt directly affects consumer acceptance in the future. This factor is crucial to the success of Chevy Volt. Second, the energy situation and the price of fuel impact the success of Chevy Volt. The cost of energy can directly influence consumer behavior and attitudes towards cars that use alternative power sources like lithium batteries or hydro power. Finally, technology plays a significant role as Chevy Volt utilizes a new energy source - the lithium battery. Since this type of battery is relatively new to the market, it may not be perfect initially and may require further development. If the lithium battery can successfully replace oil energy, it will contribute to the overall success of Chevy Volt.

The moderate risk level of the Chevy Volt project is attributed to several favorable factors in the present market, including growing consumer interest in cars that utilize alternative power, as evidenced by the recent success of the Toyota Prius. Consequently, the overall performance of this project will determine its outcome. In case of failure, the potential cost would be limited to the expenses incurred during development and may indirectly impact other company projects due to a set budget allocation for development purposes. However, not pursuing this project could prove more expensive than its failure

because competitors who have already embraced alternative energy technology would surpass the company if alternative energy vehicles achieve success in future.

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