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Enron Mail |
John,
Jeff and I had many excellent meetings with your team and received a very= =20 good run down of their businesses. We went out to dinner with the key=20 players and I think they understand our new vision and they appeared to be= =20 fired up. As a follow-up to those meetings and our QBR, Jeff and I would= =20 like you to prepare a more definite business plan for the future. This will= =20 represent your way forward for the remainder of 2000 and then 2001. We wou= ld=20 like some additional pieces to your previously thoughts as well. Listed=20 below are a few of the issues that we would like you to address and include= =20 in your plan. Also listed below are key items that were included in your "w= ay=20 forward" pieces of the QBR.=20 Once this is done, we will present it to Mark Frevert and then the other CE= Os=20 in the wholesale group so that everyone knows where we are going and what o= ur=20 plan is to change this part of our company. Your vision of the future Present historical total earnings from the group as a whole and by individu= al=20 groups (on 2 pages only). Steps to grow your group to achieve our initial= =20 discussions of big earnings leaps. 2001 - $200 mm and how to become a real= =20 player in the business and get to a $500 mm business Timeline to accomplish your goals and vision Identify and address the leadership issues in your business. Identify not= =20 only how you think it should be organized and the resources that will be=20 required but also who else you need to get you there. =20 SWOT analysis as a group and by each business Specific obstacles that need to be addressed to achieve your vision and goa= ls Identify potential assets needed to accomplish the desired growth. Storage= =20 facilities and control of information keeps coming up as a possible way to= =20 gain a competitive advantage. Could we purchase and/or build key storage= =20 facilities and use info. like we do in gas. Could we buy space in the key= =20 areas around the world? EOL; Although I realize many people in your group may have a different vie= w,=20 EOL is a way to gain (or attempt to gain) a competitive advantage in an are= a=20 where we do not have it. Identify your plan and action steps to lever EOL= =20 and get people to really use it and put out many products and tight spreads= . =20 I also want to begin really monitoring the percentage deal flow for the=20 traders and they need to realize that we are doing so. How do we do 1,000= =20 trades a day on EOL? Resources - how do we attract top talent since we don't offer a piece of th= e=20 book? What kind of packages would it take to attract that talent? Could we= =20 attract younger talent and put with associates and analysts? What=20 compensation issues do we need to address? Technology - Could we uses satellite photos to monitor ships to see if=20 deliveries will be on time in low storage level areas? Is there other=20 technology out there that will help you? Information Technology - identify specific needs with prioritization. Is= =20 Project Thunderball the answer? Singapore - How do we make them real players and more effective in the=20 market? Do we have the right people and trading staff there? Should we team up with FPL and let them trade resid on EOL? Is this a way = to=20 jump back into the resid market? Please present and take Jeff and I through your plan by Sept. 13th. Thanks and if you have any questions about the process and what we are=20 looking for, please don't hesitate to discuss with both of us. Mike=20 Listed below are some of the specific goals and ideas from your QBR. Goals ? Become the #1 Global Products Trading Co both physically and financially = by=20 exploiting strengths in key products - Distillates - Petchems/Plastics & NGL=01,s - Gasoline & Components - Financial Crude ? Expand and control E-Space - EOL Trading & Marketing Teams ? Dominate ARB market - Establish strategic storage in key markets ? Develop Research group to support trading ? Capitalize on key acquisitions to strengthen and support trading activity The Way Forward (Petchems/Plastics) ? Establish step change in the business through EOL ? Trading Financial/Physical Naptha ? Strategic storage in Rotterdam, Singapore ? Strategic investments and/or offtake agreements ? Distribution market ? Explore financing arrangements, acquisitions ? Refine product portfolio - Refinery chemical streams ? Penetrate spot market The Way Forward (LPG=01,s) ? Begin trading S.E. Asian Market ? Restructure or exit Cremona ? Expand into Naptha Asia Pacific ? Access to USA import/export ? Offer all financial/physical products online The Way Forward (Products) ? #1 Physical ARB player ? Develop/Expand Transatlantic gasoline business ? Naptha supply S. America ? 4 - 6 new traders - Naptha, Resid. ? Expand EOL & Marketing The Way Forward (Crude) ? One new trader - Houston ? Penetrate the physical market - Structured offtake/supply agreements as trading bases ? Develop EOL Crude Team - New products (grades) - LLS, HLS, WTS, Bowriver ? Posting Plus (P+) ? Options - Increase counterparty base - Access to additional e-commerce platforms EOL/Marketing/Origination ? Build Marketing & EOL teams within the book ? Use origination to support commercial functions - Trading, Marketing & EOL ? Pricing - Tightest tradeable spreads ? New Products - Spreads, Option, Other Commodities ? New Counterparties - Key to liquidity & growth ? Drive Platform to become the Hub - Physical partner =20 - Synergistic Platforms ? Houston Street, Brent Broker, Red Meteor, eNymex ? ChemConnect, ChemMatch, Envera, Elemeca - Our own bricks & mortar - Shipping & operations Man Power Requirements ? Petchems - Two Aromatic traders - Two associate/analyst ? LPG=01,s - One analyst - EOL support ? Group - M & A Expert & Support =01) 2 - Research Group - 3 ? Total - min 30 people Man Power Requirements ? Crude Oil - One International Trader - Two to three associate/analyst ? Products - Two to four Resid traders - One to two Distillate traders - Two Naphtha traders - One Gasoline trader - Four to six associate/analyst
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