Enron Company The Shell Game - 855 Words

Enron was a business conglomerate during the 1990s, formed by the merger of smaller oil and energy companies. Houston executives Kenneth Lay (Chairman), Jeffrey Skilling (chief executive officer (CEO) and Andrew Fastow (chief financial officer (CFO) parlayed their new mega-company into a favorite Wall Street company, bragging of record profits with negligible losses. During the 1990s, the three senior executives changed Enron from a traditional gas and electricity company into a $150 billion energy corporation. For instance, from 1998 to 2000 only, Enron’s returns rose from approximately $31 billion to over $100 billion, making the company to be the seventh biggest conglomerate of the Fortune 500. Unidentified to nearly everybody, this picture was the result of one of the largest swindles in financial history (Ferrell, Fraedrich Ferrell, 2013). One of the key issues presented in the case was the shell game. Not every person knows this, but prices of stock are based on how flourishing a company appears, not the amount of money it has in the bank. Enron’s top executives, helped by appropriate deregulation of the power-utility industry, spin this dodge into a gold mine. They apparently posted profits founded on how much a particular business enterprise could generate, not how much it was essentially worth, and covered losses through offshore â€Å"shell† companies. The company’s accounting firm, Arthur Andersen LLP, was mature and well esteemed; not even a single person supposedShow MoreRelated Propaganda and Its Effect on America Essay1698 Words   |  7 Pagesimplying that God was on America’s side. [ Haraoka ]   Ã‚  Ã‚  Ã‚  Ã‚   Another example of propaganda was an article about the success of Enron, a company that shortly after was proven to destroy important documents and crash in the stock market. [â€Å"Propaganda† Pg. 1, sec. 19]   Ã‚  Ã‚  Ã‚  Ã‚  Enron Named Most Innovative for Sixth Year â€Å"HOUSTON -- Enron Corp. was named today the ‘Most Innovative Company in America’ for the sixth consecutive year by Fortune magazine. ‘Our world-class employees and their commitment to innovativeRead MoreEnron Is An Energy Trading, Electric Utilities And Natural Gas1454 Words   |  6 Pages Enron is an energy trading, electric utilities and natural gas formed in 1931. It was merged to Houston’s Natural Gas Company in 1985 by Kenneth Lay. It was the most innovative company for 6 years until it came crashing down in a terrible scandal known as the Enron Scandal which led to the suspension of Arthur Anderson. Enron’s stock price decreased rapidly and abruptly collapsed and filed for bankruptcy. Unfortunately, in 1987 Enron merged with Valhalla. The problem began because tradersRead MoreEnron : Ethics And Law1828 Words   |  8 PagesEnron – Ethics and Law Essay Mike Towle MBA 6070X Professor Louis Benedict October 17, 2014 TOWLE 2 The Enron Jeffrey Skilling and Ken Lay knew was one they kept to themselves and a few chosen colleagues. The rest of the world saw a global oil company on the cutting edge of its business and paving a path that other American firms could follow. In its trail, investors were getting rich, employees found reward and satisfaction, and the community it called home thought itRead MoreEnron: An Ethics Case Study1834 Words   |  8 Pagesï » ¿Running head: Enron and Ethics Enron: An Ethics Case StudyEnron: An Introduction The previous decades have seen the birth and meteoric rise of several corporate giants such as Microsoft and Apple, both of which have all but become household names in this day and age. Neither achieved their level of success overnight, especially not since they have long been known to be in direct competition with each other. On the contrary, both of them have had their share of scandals and controversiesRead MoreThe Report On Climate Change Dictates5048 Words   |  21 Pagesbetween maintaining current business models that prioritizes immediate profit and short-termism in capitalizing on fossil fuel market while it remains feasible from an economic standpoint and from a return on energy investment perspective. (RoEI). Companies that promote short-termism in reaping maximum profit from the sustained growth in oil production may be caught off guard and suffer from potential climate change mitigation scenarios that could have drastic implications on the industry, such as theRead MoreTeaching Notes Robert Grant - Strategy 4th Edition51665 Words   |  207 PagesChallenge 62 7 Organizational Restructuring within the Royal Dutch/Shell Group 70 8 Harley-Davidson, Inc., January 2001 77 9 Online Broking Strategies: Merrill Lynch, Charles Schwab and E*Trade 83 10 11 12 Emi and the CT Scanner [A] [B] 88 Rivalry in Video Games 98 Birds Eye and the UK Frozen Food Industry 109 1 CONTENTS 13 14 15 16 Euro Disney: From Dream to Nightmare, 1987–94 116 Richard Branson and the Virgin Group of Companies in 2002 125 General Electric: Life After Jack 131 AES Corporation:Read MoreA Research Study On Global Warming5887 Words   |  24 Pages â€Æ' Abstract Oil majors are caught in a dilemma between being reactive or proactive in facing the rising urgency of climate change mitigation. Action on global warming mandates leaves oil companies no choice but to divest their assets in the carbon-intensive oil industry and shift their interest to low-carbon energy portfolios, their corporate strategies will have to either gamble on maximizing short-term profits in oil production while facing increasing climate change risks, or adapt their strategiesRead MoreTriple Bottom Line10664 Words   |  43 Pagessupporters contention that the overall fulfilment of obligations to communities, employees, customers, and suppliers (to name but four stakeholders) should be measured, calculated, audited and reported—^just as the financial performance of public companies has been for more than a century. This is an exciting promise. One of the more enduring cliches of modern management is that if you can t measure it, you can t manage it. If we believe that ethical business practices and social responsibilityRead MoreScams and Fraud in Stock Market5370 Words   |  22 Pages What is stock market? A stock market or equity market is a public market (a loose network of economic transactions, not a physical facility or discrete entity) for the trading privately of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded . The size of the world stock market was estimated at about $36.6 trillion US at the beginning of OctoberRead MoreHe Corporate Social Responsibility : Tesco Study Case3615 Words   |  15 Pages We will treat the interest for a company to deal with responsible actions and activities, and the main breaks found by certain authors. The subject is treated in relation with marketing strategies and tries to persuade the readers that CSR is a good solution to gain competitive advantage. Executive summary: Several organizations such as governments, activists or the media, want to make the general public aware about the social consequences of the companies activities, by publishing different