Enron An American Organization - 2262 Words

Enron Corp. was an American organization based in Houston which had its interest in Natural Gas, Electricity, Communications, Pulp and Paper. It was formed after the federal deregulation of natural gas pipelines, by merging Houston Natural Gas company and InterNorth by Kenneth Lay in 1985. This company grew at a very fast pace, from a pipe line company in the 1980’s to become the world’s largest energy trader. Enron was named ‘America’s Most Innovative Company’ by Fortune for six consecutive years. Before it filed for bankruptcy on Dec 2, 2001, Enron was considered a very big player in the market, which claimed revenues of $111 billion during 2000. Definition of Key Terms SPE:- Special Purpose Entities SEC:- U.S. Securities and Exchange Commision Rise and Fall of Enron The Beginning Enron was formed in 1985 after the deregulation of natural gas pipelines. it was formed from the merger of Houston natural gas and InterNorth. During the merger, Enron suffered a lot of debt, and due to the deregulation had no longer exclusive rights to its pipe lines. In order to survive, it had to come up with something fast, which was both effective and efficient. Kenneth Lay, the CEO of Enron, hired Jeff Skillings, a young consultant who had a background in banking and asset and liability management and assigned him to develop a strategy in boosting Enron’s business. He came up with a revolutionary idea to boost Enron’s credit, cash and profit woes. Skilling proposed that EnronShow MoreRelatedFailure Of Responsible Management : Enron Corporation1645 Words   |  7 Pageswhich failure of responsible management. The Enron Corporation is an example, because Enron event is the typical case for organization failure of responsible management In the end of 2001, Enron scandal has been disclosure, Enron stock prices slumped, and its financial tricks was exposed. The Securities and Exchange Commission (SEC) began survey of company s records. Enron’s auditor ‘Arthur Andersen ‘destroys relevant documents. (Ailon, G. 2011) Enron was bankruptcy in December 2001, and became theRead MoreEnron Accounting Scandal1096 Words   |  5 PagesEnron was originally a pipeline company in Houston, Texas in 1985. Enron became a company that was able to profit by providing deliveries of gas to utility companies and businesses. As the deregulation of electric power rose, Enron diversified the business and entered into an energy broker, which traded electricity and other types of commodities. Enron employed several highly qualified PHDs in mathematics, physics, and economics. Enron continued to enter into contracts with customers and utilizedRead MoreEnron, An American Energy Company1587 Words   |  7 PagesEnron Leadership One of the best examples recently seen relating to bad leadership is what took place within Enron. Throughout the late ‘90’s, Enron, an American energy company, was considered one of the country s most innovative companies; while the company continued to build power plants and operate gas lines, it became better known for its unique trading businesses (npr.org, 2014). It can be described as the ideal company for the dotcom-driven stock market boom of the 90s; Enron threw itselfRead MoreJaclyn Givens. Kathy Osburn. Management 101. 5/8/17. The1400 Words   |  6 PagesJaclyn Givens Kathy Osburn Management 101 5/8/17 The Enron Era â€Å"Just as character matters in people, it matters in organizations,† says Justin Schultz, a corporate psychologist in Denver. The Enron scandal had a big exposure in 2001 confirming the big secret to the increase in billions. In July 1985, Enron formed the merger of Houston Natural Gas and Omaha-based Inter North. The Enron corporation was an American energy company based in Houston Texas. The corporation’s catastrophe in 2001 signifiesRead MoreBusiness Failure Paper1045 Words   |  5 Pagesthe largest energy companies in the world, Enron Corporation. I will discuss the leadership, management, and organizational structure of the company and how this failure could have been prevented. Company Overview Enron Corporation was an American energy company in downtown Houston, Texas. Enron employed more than 22,000 workers and was one of the largest companies dealing with electricity, natural gas, and communications. In the year 2000, Enron claimed revenues of over $100 billion. ByRead MoreThe Sarbanes Oxley Act Of 20021525 Words   |  7 Pagesdeceptive to give false data, people even in real companies will attempt to cover their misfortunes by reporting false data. Taking after many years of monetary frauds and outrages including executives and officers at a portion of the biggest organizations in the United States, Congress established the Sarbanes-Oxley Act of 2002 (Cheeseman, 2013). Congress ordered the Sarbanes-Oxley Act of 2002 (SOX Act) to shield customers from the fraudulent exercises of significant partnerships. This paper willRead MoreEnron Case : An American Energy Company1604 Words   |  7 PagesENRON CASE Introduction â€Å"Organizational behaviour is a field which deal with the study of human behaviour with respect to individuals, structure and group of organization† (kinicki 2012). The study of organizational behaviour came in to importance to have an positive effect to the organization. The reflective essay focuses on the organizational behaviour concepts which lead to the downfall of Enron Company on 2001. Enron is an American energy company which is based on Texas. The company was run byRead MoreUniversity of Phoenix Organizational Culture1133 Words   |  5 Pagesshared basic assumptions that dictate the behavior of individuals within an organization. Culture determines which practices are appropriate and which are not, effectively developing standards, guidelines, and expectations for individuals within an organization. Although they work hand in hand, there is a definite distinction in the beliefs and the values that make up organizational culture. The beliefs of an organization ar e assumptions of the way things are, while values are an assumption aboutRead MoreEnron : The Smartest Guys1384 Words   |  6 PagesEnron: The Smartest Guys in the Room Organizational Movie Paper Enron Corporation’s failure in the year of 2001 has become a depiction of unethical corporate behavior for years to come. After having watched Enron: The Smartest Guys in the Room; I found many organizational communications course concepts could be brought to our attention within the documentary. To further our understanding, I will offer my insight as to how class-related concepts connect with the documentary by discussing how EnronRead MoreManagement Planning Paper on Arthur Andersen1221 Words   |  5 PagesThe company supplied tax, consulting services and auditing for the large business, and itself had a position in the Big Five accounting firms. In 2002, this firm was found guilty for auditing an energy corporation, Enron and it surrendered back its rights of auditing. This led to Enron s bankruptcy and loss of 85,000 jobs. Any type of business development requires constant planning. The expression planning refers to defining the goals of the business and shaping the potential plans of action.