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Imagine that you are one of a few million Australians whose commute to university or work is a less-than-70-kilometre round trip. Each morning, you hop

Imagine that you are one of a few million Australians whose commute to university or work is a less-than-70-kilometre round trip. Each morning, you hop into a sleek little car and drive off to your destination. At night, you park safely in the garage and plug your vehicle into a standard household electric socket for bedtime. After repeating this pattern for months, you never use a drop of petrol or directly emit a gram of harmful greenhouse gas emissions. Moreover, charging your vehicle costs you about two dollars each day and consumes less energy annually than the refrigerator you use at home.

If you were one of the excited consumers lining up t purchase the Holden Volt, this scenario was not fantasy-it was your future, and the future that General Motors Holden envisions. In a move to reinvent the car for the needs of the twenty-first century. GM unveiled its first electric car during the company's historic 2008 centennial celebration in the USA. The Volt, with its emission-free driving, promised to become the ultimate green machine for eco-minded consumers everywhere.

While the cost of operating the aerodynamic electric compact is roughly equivalent to the price of a daily cup of coffee, the driving experience is priceless. The electric drive unit delivers solid horsepower, 0-to-80 kph acceleration in nice seconds and top speeds of 160 kph. Drivers who make longer trips than the battery's 80-kilometre range get an automatic recharge from Volt's petrol-powered generator. And although it runs on batteries, the Volt is no golf cart. The environmentally friendly four-door vehicle features a sporty-yet-sophisticated stance, aerodynamic design, closed front grille and more. The futuristic cockpit takes cues from the latest in design trends- the metallic- white centre control console could pass for a next-generation iPod.

How did GM go from being the world's largest manufacturer of petrol-guzzling Commodores and other big cars to an electric-car company? The dramatic shift was related to multiple threats in the organization's external environment. First, oil: wildly fluctuating oil prices caused drivers to moderate driving habits and substantially those with diesel engines. In Australian, the biggest-selling car in 2013 was the Mazda 3, with the larger Holden Commodore and Ford Falcon dropping significantly from their previous dominant market leadership positions.

Next, there is the philosophy of sustainability: Many leaders in business and government see environmental 'clean' technology as a way of striking a balance between the economic development needs of today as well as those of future generations. Another pressure comes from lobbyists: Powerful voices sounding the alarm on impending global catastrophe have demanded that manufacturers put the brakes on industry to save the plant. Finally, there is the competition: 'Green' is an important buzzword in business today, and vehicles like the Toyota Prius and the Tesla Roadster that leave a small carbon footprint are putting pressure on GM/ Holden to get out in front.

Whatever the economic, political and social forces driving big change at GM, leadership was determined to create a new culture of innovation and change. Whether it's the emission-free promise of the Volt, or other new vehicle that are low or free of emissions, the presence of exciting alternative-fuel vehicles sends a message to stakeholders that the car is still going to be an important part of society despite the pressures of global warming.

A major future factor driving change was that GM went through a cathartic change itself: having gone essentially bankrupt in the global financial crisis of 2018-10, Holden's US parent company was shaken to its core, and in such circumstances was finally able to make large-scale change, from its lineup of vehicles to its management structure and global strategies. And the Volt was slated to be an important part of its future.

1.What management strategies would be most effective in helping GM/ Holden adapt to uncertainty and change its external environment?

2.What obstacle does GM/ Holden face as it attempts to bring its corporate culture into alignment with the needs and challenges of the twenty-first century?

3.As GM/Holden continues its attempts to demonstrate good corporate citizenship, what complex issues and obstacles may frustrate its efforts?

4.With the Volt initially priced at around $60 000 in Australia - a figure well above the price of standard cars of similar size - will it succeed in attracting many buyers based on its features and benefits?

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