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The Enron Corporation

Looking at the big picture among corporations Enron was one of the newest energy companies around, yet one of the largest if not the largest. The Enron Corporation was formed in 1985 when InterNorth (Omaha, Nebraska) and Houston Natural Gas (Texas) gas pipeline companies merged. The unification of both companies created the largest natural gas pipeline in the United States. The pipeline ownership of both companies added up to 60,000 kilometers (37,000 miles) of pipes. The companies first CEO was Kenneth Lay and both companies decided to leave the main base area in Houston, and it was in1986 when the company first got its name. After the merger, the company had a rapid growth spur that took the company from being a simple gas pipeline to being an international energy trader. In 1989 Enron started to trade gas commodities (chemicals, coal, fiber-optic bandwidth, metals, and paper) and electricity in 1994. In less than ten years of its existence Enron became the largest electricity company in the United Kingdom and United States. As profit started to pile up they started to spread their land wealth internationally. Enron put a gas pipeline in Argentina, and an electric utility headquarters in Portlan


According to Enron’s ex-employees, Enron’s fall was a long time in coming. Much of the credit of Enron’s success was given to top executive, Jeffrey Skilling. Skilling was described by ex-employees of being somewhat of a money hungry leader with no regard for anyone, but profit for the company and himself. Employees said Jeffrey imposed a “growth –at-any-cost culture” (pg. 1 The pride and fall of Enron) on the company. Apparently Skilling started to seclude himself from all other executives and started to override all powers. In past interviews with Skilling’s employees only one idea seemed to come out from all the employees. Executives were taught to take an aggressive attitude towards the market. Jeffrey knew that he wanted the company to be on top, so he wanted his executives to think of big ideas that could expand the company and create new markets where they could be leaders. He did not care where or how profit came as long it did. Enron’s competitiveness even showed in the process of hiring a new employee. Enron gained the reputation of not hiring “softies” (pg.4 The pride and fall of Enron). Skilling wanted any new employee coming in to come in with the same aggressive mindset executives imposed. They wanted employees that were not afraid to bend the rules a little all in the idea of progress at any cost. Prove that Enron’s executive mismanagement was coming happened in 1987 in one of the company’s office in Valhalla, New York. It was discovered in this office in New York that employees were falsifying transactions to increase their own bonus. Instead of firing these workers Chief Chairman Ken Lay decided to quiet the situation and keep the employees to avoid a big scandal. The employees were in charge of the company’s trade and six months after the first incident the same employees created bigger errors in transactions, which may have caused trading competition to grow suspicious. According to Enron executives if trading partners that had no clue of foul play by Enron would have found out they would have ask to be recompensed with money. On the down side the falsification of documents proved that Enron had made great profit when in reality they had no money to cover their mess, so Enron finally fired their employees. In the aftermath of the event the company reported an $85 million, but some inside sources say it was about $136 million. No matter who was in charge everyone had the same idea and that to make money and drop those who don’t want to join their cause.

d, Oregon. T

Some topics in this essay:
Employees Coalition, According Enron, Exchange Commission, Apparently Skilling, Kenneth Lay, Portland Oregon, Employees Andersen, Andrew Fastow, Andy Fastow, Enron Enron, gas pipeline, price share, top executives, enron employees, company reported, andersen firm, fall enron, pride fall enron, ex-employees created, former employees, accounting files,

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Approximate Word count = 1721
Approximate Pages = 7 (250 words per page double spaced)


  

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