Karyl Leggio & Marilyn Taylor
University of Missouri at Kansas City
Case Objectives and Use
Enterprise Risk Management at Great Plains Energy is intended for use in Finance courses including basic finance or those that focus on risk management. It may also be used in Strategic Management courses. In finance the case providesopportunity to examine a company’s early progress in establishing a corporate-wide enterprise risk management program and to identify potential risks that the firm confronts. Among the concepts that can be applied are: Enterprise Risk Management, risk assessment, and financial analysis.
In Strategic Management the case provides opportunity to undertake a basic strategic analysis and to assess the effectsof the changing regulatory environment on a firm’s choice of strategies as well as the opportunities and threats it faces. Among the concepts that can be applied are: mission/vision, Value Chain, core competences, and diversification.
This case reviews the early moves by Great Plains Energy (GPE) to establish a corporate-wide Enterprise Risk Management program. The corporateChief Risk Officer is CFO Andrea Bielsker. Andrea appointed Jana Utter in charge of coordinating the design and implementation of the ERM program. Utter faces a number of challenges. She has had to first conceptualize the program given the charge by the Board of Directors, then design a process by which she identifies the risks that the corporation faces, make recommendations regarding theprioritization of her efforts, and assist in designing measures for the risks for the various operating units as well as processes to mitigate them.
GPE was the holding company formed in October 2001 as the parent company for the regulated utility Kansas City Power & Light (KCPL, its largest subsidiary), and several unregulated subsidiaries including Strategic Energy (an energy management firm)and KLT Gas (a firm that identifies and develops gas sources). At year-end 2002, GPE’s assets were valued at $3.5 billion with annual revenue generation of $1.9 billion.
This case was prepared by Karyl Leggio and Marilyn Taylor, University of Missouri at Kansas City, and is intended to be used for class discussion rather than to illustrate either effective or ineffective handling of thesituation.
Presented to and accepted by the North American Case Research Association (NACRA) for its annual meeting, November 2003, Tampa, Florida. All rights reserved to the authors and NACRA. ( 2003 Karyl Leggio and Marilyn Taylor.
Caffe’ Appassionato: Building a Premier Specialty Coffee Company
Paula A. Wilson & Alva Wright Butcher
University of Puget Sound
Case Objectives and UseThis case is intended to be used at the undergraduate level in either an introductory accounting course or an introductory finance course. It could also be used in an entrepreneurial studies course. Financial data from other specialty coffee companies will provide a basis for an analysis of the market. Does the market appear to be saturated? Students will be asked to prepare pro-forma financialstatements, given projected costs, profit margins, and sales. They will also perform sensitivity analysis. How are the pro-forma financial statements impacted by variation in expected growth in sales, costs, inventory turn, etc.? When is the firm likely to break-even?
Neighbors and friends, Phil Sancken and Tucker McHugh, discovered in early 1990 that each had recently quit hisexecutive job and was interested in owning his own firm. They decided to focus on the specialty coffee industry. The odds against such a venture in Seattle were tremendous. Although Seattle already was home to several specialty coffee firms, Phil and Tucker felt that there was room in the market for different varieties of fine coffee. They tested the market with a small coffee cart and spent...