Business Failure Paper

1045 WordsSep 27, 20105 Pages
RUNNING HEAD: Enron’s Failure Enron’s Failure Stacey A. Weinert University of Phoenix Abstract This paper will discuss the business failure of one of the 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. By the end of 2001, it was reported that Enron Corporation’s financial was sustained by a…show more content…
There was no respect for the leaderships nor was there responsible decision-making with the organization. The chief executive officer of the company wanted to make profits at all cost. Enron’s employees believed they were only valued based from what profit they were earning for the company Enron recruited certain types of people. The company wanted go-getters and would do anything to close the deal no matter what. They wanted people who wanted to make money. This reminds me of a popular film named The Firm. Tom Cruise played the part of young lawyer who just graduated law school. One of the top firms in the country recruited him. The salary was low, but he took the job. He was then slowly exposed to the corruption within the firm and by then it was too late to get out. What Could Enron Have Done to Prevent Business Failure? The Enron Corporation could have prevented its business failure. First, the company should have performed traditional auditing practices. This would have allowed the board of directors to see the current state of the business, therefore enabling them the opportunity to fix the problem before it got to out of hand. Second, the organization needed to practice good ethical standards. The company needed rules of acceptable conduct. Although these rules may have changed, the company would have continued to practice in an ethical manner. Third, in business every
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