Message-ID: <2761564.1075840875576.JavaMail.evans@thyme> Date: Thu, 3 May 2001 16:12:00 -0700 (PDT) From: christie.patrick@enron.com To: cbartlett@hbs.edu Subject: Enron Online case Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Christie Patrick X-To: cbartlett X-cc: X-bcc: X-Folder: \ExMerge - Kitchen, Louise\'Americas\Mrha\OOC X-Origin: KITCHEN-L X-FileName: louise kitchen 2-7-02.pst Hi Chris! Thanks for the message and the great experience at Harvard last week! Harvard's hospitality was the best!! I'm travelling right now and only have a minute, but I've passed along your request to Louise and will follow up with her and the totality of your request on Monday. ( I also told Louise she was a "star in absentia" at Harvard last week!!!) Take care and we'll speak soon! Best! --Christie. ---------------------- Forwarded by Christie Patrick/HOU/ECT on 05/03/2001 01:02 PM --------------------------- Christopher Bartlett on 05/03/2001 09:33:48 AM To: christie.patrick@enron.com cc: Subject: Enron Online case Christie: Following up on my message of last week, I have now finished the minor edits required to clarify the Enron Online case (correcting the stock price, clarifying the "One to Many" versus "Many to Many" models of trading, etc.). The one piece that remains for me to insert is some information that will allow the students to make some estimates about the economic risk involved in this bold move. I know that wholesale services contributed about 89% of Enron's total profit in 1999, but it is unclear what extent of this was provided by the traditional trading activities that subsequently were enhanced by Enron Online. My suspicion is that it is the majority of the sales volume, and perhaps the majority of profitability, but if we could give some clue to that in the case, it would be helpful. This might simply be that "trading activities constituted the majority of wholesale services profits" or "the vast majority" or "over 80%" or whatever you think would give the students some sense of quantification. The alternative might be to provide data that was disguised and could be footnoted as such. For example, we could identify that trading contributed "over $750 million to Enron's net profits" with that number footnoted as a disguised figure. The other thing that would be very helpful would be again to provide some data on the profitability of operations in 1999 versus the profitability in 2000 when Enron Online became a dominant part of its activities. Once again, we could include broad-level generalizations or disguised data. It's your choice, but it will give the students a sense of the size of the issue facing them. If it is helpful to talk about this in person, please feel free to call me on 617-495-6308 today (Thursday); or tomorrow (Friday) in the afternoon at 802-457-1880. Once again, thanks so much not only for the cooperation on the case, but also for the terrific organization you did in getting your executive team up here for last week's classes. I think you probably realized that it was a "home run" with the students, who are still talking about it. Best wishes, Chris