Lessons Learned from the Collapse of the Enron, the Giant
Lessons Learned from the Collapse of the Enron, the Giant
o It must be very significant for a company the size of Enron to lose $50 billion in market capital over a period of ten months. It is also significant that a company of this stature can get away from their auditors and shareholders without anyone noticing that there is something seriously wrong. How is it possible that bankers, stock analysts, auditors and Enrons own board failed to comprehend the risks involved in this trading giant's methods. To blame Skelling; the president and COO of Enron since 1997, is also surprisingly. Why will a person build a company to a $50 billion giant based on lies and betrayal?
If it was not significant enough to be America's seventh-largest corporation, Enron has ties to both the ruling and opposing political parties in America. The involvement of senators from the Republican and Democratic Party plays a role in Enrons failure. They were the people that turned a blind eye on Enrons troubles before the firm's bankruptcy. If they have spoken out sooner about what they knew, some investors could have been more careful. Enrons financial contributions to the Bush campaign and the Republican Party kept them from protecting Enron's employees and investors.
If you look at the top management of Enron it looks like they were hiding their ideas and risks from each other without noticing that the company was on a downward path.
Enron failure came as a surprise to everyone. If a company of this stature can fail to be successful how transparent were they actually. It is important that the rest of the world take notice of these happenings. No company can be cheating at the top, and get away with it forever.
If any company do not make use of proper market research, you and bound to fail.
Enron failed for a number of reasons. Enron's top management was in competition with each other, keeping everything secret. Arrogant is the word associated with Enron if you look at there web-page (enron.com). In Enron's lobby a banner with attitude spells out "the worlds leading company": Greed was evident from the start of the company, and the culture were talked about how much money they would make. Compensation plans were used to enrich the executives rather to generate profits for shareholders. In Enrons energy services division, which managed the energy needs of the large...