Planning for the Future in ChevronTexaco.

Essay by fordguyUniversity, Bachelor'sA+, August 2005

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ChevronTexaco's planning processes is a long and cumbersome one. Since ChevronTexaco is a multi-national, multi-faceted corporation; this paper will only discuss the planning processes for North American Retail Marketing. Often the planning process begins very early. For example, planning for this year, 2005; was conducted early in 2004, if not even started in 2003. Also, the process of planning has several levels, such as; long-term (10 year strategic plan), mid-term (5 year marketing plan), and short-term plans (fiscal 2005 capital deployment plan). Each planning process takes hundreds of man-hours to complete. This paper will evaluate the planning process and discuss several issues that relate to the process, such as ethics, legal, and corporate social responsibility.

Planning Process

As stated above, there are a myriad of planning processes; this paper will discuss the short-term planning or for example, capital planning for fiscal year 2006. In order to have the capital budget in place by the start of the year, planning is already underway.

Planning is defined as "the management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue in the future (Bateman and Snell, 2004). ChevronTexaco utilizes situational analysis and benchmarking to review up to five previous years as to the amount of capital spent on building new assets, capital spent on neutralizing old assets, and the capital spent on operating the existing assets. Also, ChevronTexaco will forecast their planned growth for next year and the years beyond. Those forecasted costs along with the projected costs of operating the existing assets and the cost associated in the retiring and attrition of the older, obsolete assets; are used to set a baseline, or a forecast, for the amount of monies needed to be requested from the...