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The Nature of Decision Making in the GM Organization
The Nature of Decision Making in the GM Organization

The Nature of Decision Making in the GM Organization

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  • Pages: 2 (567 words)
  • Published: December 18, 2017
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The Chevy Volt case tells me the nature of strategic decision-making at a large complex organization like GM can be difficult and challenging due to having to convince other managers to agree with the ideas for new strategies. In the case, it states that the two persons, GM’s vice chairman and the head of RD&D had already proposed to make the Volt in 2003 but were turned down by the other managers.

However, in 2007 with the changes in the external environment, the other managers agreed to back the project for the Chevy Volt. With the chevy volt case, we came across the point of realizing that strategic decision making entails serious processes of analyzing from raw facts of ideas to reviewing previous transactions and activity-based decisions. Aside from it, we’ve come to know also that decision-making is at the heart of what organizations do. Managers must contend with high levels of uncertainty, multi-functional teams, and changing competitive landscapes.

Besides making short-term tactical decisions, there is a growing need for long-term, strategic decision-making. What trends in the external environment favored the pursuit of the chevy volt project? The trends in the external environment that favored the pursuit of the Chevy Volt project are surging oil prices, Telsa Motors introducing their lithium ion sports car to the market, increasing concern for global warming which may lead to tighter regulations designed to limit carbon emissions, the costs of manufacturing lithium ion batteries was falling, and Toyota’s best selling hybrid calle

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d the Prius.

The rise of oil prices leads to increased gas prices and as a result consumers' demand for fuel-efficient cars increased which was proven by the number of Prius sold by Toyota. What impediments to pursuing this project do you think existed within GM? The impediments to pursuing this project that existed within GM are the costs needed to fund this project, the difficulty in obtaining the technology to produce a large lithium ion battery for the car, and the fear of failing again at producing another electric car. Their first failure was the EV1 electric car introduced in the 1990s.

The plan for the Chevy Volt seems to be based partly on the assumption that oil prices would remain high and yet in late 2008, oil prices collapsed in the wake of a sharp global economic slowdown. What does this tell you about the nature of strategic plans? The strategy was based on analyzing the existing marketing situation and trends. What do falling oil prices mean for the potential success of the Chevy Volt? Experts agree that gas prices will stay volatile. Supply is limited, and when the world economy recovers, demand will rise. That means a possible return to $4-a-gallon gasoline.

Do you think oil prices will remain low? No. What will it take for the Chevy Volt to be a successful car? in light of your analysis, how risky do you think this venture is for GM? What are the costs of failure? What are the costs of not pursuing the project? I think it will have success for the following factors Its new models have cutting-edge designs that sell well, and its

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quality rankings and fuel economy rise, If every new model has dramatically better gas mileage in government testing than its predecessor, Proper advertising is done like GM products are appearing in hit movies, music videos, TV shows and other media.

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