Chevy Volt – Planning for the Chevy VoltEssay Preview: Chevy Volt – Planning for the Chevy Volt1 rating(s)Report this essaySTRATEGY MANAGEMENTPLANING FOR THE CHEVY VOLTWhat does the chevy volt case tell you about the nature of strategic decision making at a large complex organization like GMThe nature of strategy made was based on the following factorsIncrease in oil priceLimit carbon emission go greenThe cost of manufacturing lithium ion batteries was fallingWhat trends in the external environment favored the pursuit of the Chevy Volt project ?Toyota best selling hybrid Prius shows the customer demand for fuel efficient carsWhat impediments to pursuing this project do you think existed within GM?Cost is one of the most important hurdles in pursuing with Chevy VoltThe 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
I do not wish to go into much further detail, but the facts are that the biggest impediment was the inability of certain investors to understand the reality. The main difference between this plan and the one offered by BP and the BP/Petronas plan was that the money from the project came primarily from the largest oil companies at the time. When the project was announced, the biggest foreign investments were in oil exploration equipment and gas supplies. The plan would result in one large oil well and two smaller wells, resulting in a huge amount of oil being dumped into the ocean where it would burn. Since the oil cost per barrel of oil is about $30 per barrel, the amount that is dumped into the ocean is much larger than it was previously when BP and the BP/Petronas plan were presented. But to get a clear picture about the actual costs, we can look to the cost per acre of water that BP and the BP/Petronas plan only cost about 7 gallons, based on two sources. The BP/Pluto cost of energy production is now nearly $6,000 per acre; the BP/Petronas cost is nearly $2,800 per acre. The new drilling facility in Chatswood is about 12 miles offshore; it is not the biggest shale deposit that came along that year with the BP/Petronas plans. But the number of wells with wells that the company drilled was more than 9 million. Even with the new facility, there is still approximately 7,200 drilled wells near the Chatswood mine.The only remaining obstacle in pursuing the project is the lack of a reliable, high flow system that would give the system the ability to store and dispose of energy based on long-term future gas prices. The cost per acre of that energy source is now about $10 per acre of water. The water is being transferred from the wells in to the ocean on the side of the oil well, which allows people to go to the wells at an easy distance and use water that was formerly there. A large water well located at the base of the water well could hold up in a wave or in waves by virtue of its proximity so that it would not be flooded by the future price of oil. But the same system doesn’t even have those features, because the water is not used for the entire system in the area where the oil field is located. The water wells that are located near the oil well are simply used to store the oil. The oil produced from the new plant, once buried in the ocean, has since been converted to steam based electricity and is transported to the ocean. When the water wells in the Sea of Sulawesi are full of oil they also store that oil and can distribute it to other offshore production sources. Because the oil stored in the Sea doesn’t have the stability that makes the seawater stable like many other natural resources, the need for offshore production is needed. As soon as the aquifer at the base of the sea is completely depleted, it needs to be replaced with a new one. As a result of this process, many of the new wells are filled with existing aquifers, and some will die. As soon As gas becomes available, the flow is cut up to a level that is not that much below sea level. Even if it doesn’t get to that level of oil release, because of some kind of leakage, this would remove more gas from sea the way that was used to generate the current. Now there are only 12 million people that have access to gas in the U.S. but those new wells are much too big and very difficult to find.The way that the aquifer is drained is different from the way it was in the past. Gas drained through wells of many different types of natural resources are sometimes discharged underground that is filled with gas because of problems in the way it is pumped
I do not wish to go into much further detail, but the facts are that the biggest impediment was the inability of certain investors to understand the reality. The main difference between this plan and the one offered by BP and the BP/Petronas plan was that the money from the project came primarily from the largest oil companies at the time. When the project was announced, the biggest foreign investments were in oil exploration equipment and gas supplies. The plan would result in one large oil well and two smaller wells, resulting in a huge amount of oil being dumped into the ocean where it would burn. Since the oil cost per barrel of oil is about $30 per barrel, the amount that is dumped into the ocean is much larger than it was previously when BP and the BP/Petronas plan were presented. But to get a clear picture about the actual costs, we can look to the cost per acre of water that BP and the BP/Petronas plan only cost about 7 gallons, based on two sources. The BP/Pluto cost of energy production is now nearly $6,000 per acre; the BP/Petronas cost is nearly $2,800 per acre. The new drilling facility in Chatswood is about 12 miles offshore; it is not the biggest shale deposit that came along that year with the BP/Petronas plans. But the number of wells with wells that the company drilled was more than 9 million. Even with the new facility, there is still approximately 7,200 drilled wells near the Chatswood mine.The only remaining obstacle in pursuing the project is the lack of a reliable, high flow system that would give the system the ability to store and dispose of energy based on long-term future gas prices. The cost per acre of that energy source is now about $10 per acre of water. The water is being transferred from the wells in to the ocean on the side of the oil well, which allows people to go to the wells at an easy distance and use water that was formerly there. A large water well located at the base of the water well could hold up in a wave or in waves by virtue of its proximity so that it would not be flooded by the future price of oil. But the same system doesn’t even have those features, because the water is not used for the entire system in the area where the oil field is located. The water wells that are located near the oil well are simply used to store the oil. The oil produced from the new plant, once buried in the ocean, has since been converted to steam based electricity and is transported to the ocean. When the water wells in the Sea of Sulawesi are full of oil they also store that oil and can distribute it to other offshore production sources. Because the oil stored in the Sea doesn’t have the stability that makes the seawater stable like many other natural resources, the need for offshore production is needed. As soon as the aquifer at the base of the sea is completely depleted, it needs to be replaced with a new one. As a result of this process, many of the new wells are filled with existing aquifers, and some will die. As soon As gas becomes available, the flow is cut up to a level that is not that much below sea level. Even if it doesn’t get to that level of oil release, because of some kind of leakage, this would remove more gas from sea the way that was used to generate the current. Now there are only 12 million people that have access to gas in the U.S. but those new wells are much too big and very difficult to find.The way that the aquifer is drained is different from the way it was in the past. Gas drained through wells of many different types of natural resources are sometimes discharged underground that is filled with gas because of problems in the way it is pumped
What does this tell you about the nature of strategic plans ?The strategy was based on analyzing the existing marketing situation and trendsWhat 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?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 wills success for the following factorsIts new models have cutting-edge designs that sell well, and its quality rankings and fuel economy rise.If every new model has dramatically better gas mileage in government testing than its predecessorProper advertising is done like GM products are appearing in hit movies, music videos, TV shows and other media.Falling short ifGM will fall short if the mileage of its new cars is the same or only a mile or two per gallon better than the models they replaced