STRATEGIC-PLANNING FOR A JOINT VENTURE

A critical issue confronting business management of contract companies that are formed as joint ventures, or are created by consortia, is how to successfully manage strategic planning and budget preparation, especially when government agencies regulate and approve the planning process. This article describes the development and implementation of a strategic planning and budgeting process used by the Thums Long Beach Company, an oil producing enterprise, formed as the agent for five major oil companies, and under contract with the City of Long Beach, California. The article illustrates how Thums successfully used strategic planning to meet management challenges that resulted from 1. the different objectives set by the State, the City, and the Company, 2. anticipated expiration of its contract within the next decade, and 3. the changes in oil market prices.