Federal government and Business

February 13, 2013

The Collapse of Enron

The case is about the collapse of Enron Corporation who in the height of their career was named simply by Fortune mag as the most progressive company in the united states and was ranked 7th on the Fortune 500. At the topmost point of the business Enron applied 19, 1000 people and retained twelve-monthly revenues in surplus of $100 billion dollars dollars. Enron was formed in 1985 through a merger of Houston Natural Gas and InterNorth of Omaha, Nebraska; you’re able to send core organization was releasing natural gas to utilities. Through a series of legislative actions for both the government and express levels many restrictions had been removed that now allowed energy producers to complete openly, buy and sell by market rates, and make use of other's syndication networks. Enron created a good model in which the company will leverage its large network of sewerlines to set up a gas bank that would become an intermediary that would eventually reduce risk. Enron might sign contracts with manufacturers to buy all their gas on a certain fate at some price and other contacts with users to market them gas on a particular date for a certain selling price. Enron surely could make money within the idea that they will be able to sell the product for any slight superior to ensure against risk. The idea was so successful that Enron made the decision to maintain their expansion by extending the business style into other industries. This kind of idea was explained to an interviewer " if you have the same general [market] characteristic, what you just have to do is usually changes the units. Enron has a big investment in capabilities that could be deployed immediately into fresh markets, ” making the decision to expand into electricity, water, broadband, and pulp, newspaper, and wood. The company's primary goal was going to promote just how that they had been successful through deregulation and minimize government oversight specifically in the markets they did business in. Eventually hefty debt bothered the company which in turn...

Cited: Lawrence, Anne T., and James Weber. Organization and world: stakeholders, values, public coverage. 12th impotence. Boston: McGraw-Hill Irwin, 08. Print.


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