Chevrolet Volt Case

What does the Chevy Volt case tell you about the nature of strategic decision making at a large complex organization like GM?

The Chevy Volt case indicates that strategic decision making at a large company like General Motors does not take time to consider all the angles or facts that may influence the decision. In a large corporation, many different sets of information are held by different departments. Perhaps some information from the engineering department may suggest that the Volt is not a wise investment, as the previous fuel cell model, which is also an alternative energy vehicle, was not a success. However, all the facts surrounding the failure of the ill-fated EV1 may not be available to those making the decision. It was also determined that making a large Lithium Ion battery was difficult, though nobody said it was impossible. Perhaps that statement was one department manager or engineer's opinion, not the general consensus.

What trends in the external environment favored the pursuits of the Chevy Volt project?

There are several trends in the external environment that favor the Chevy Volt becoming a success. Consumers are becoming increasingly aware of alternative energy products and are becoming more interested in them as markets for products continue to grow, in other areas. Global warming is becoming an increasing concern. Products such as solar powered outdoor landscaping are being increasingly purchased by consumers. With fuel prices still relatively high, consumers are looking for more fuel efficient vehicles. The Volt offers extreme fuel efficiency. Electric cars or hybrids are already on the market, so consumers are aware of them and are becoming more interested in them.

What impediments to pursuing this project do you think existed within GM?

The impediments that existed at GM, which may