Enron’s Demise ~ Where There Warning Signs?

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Case Study Analysis ~ Enron’s Demise ~ Where There Warning Signs?
Janise Baldwin
Management Decision Making-Summer 2013
C. Forest Guest
July 14, 2013

Executive Summary
Enron is a company which headquarters is located in Houston, Texas. Enron was first headed by Samuel F. Segnar. Enron was the result of InterNorth’s acquisition of Houston Natural Gas in 1985. Under the new terms of this acquisition, the company was headed by Kenneth Lay on the first day of 1997. Enron offered employment for 20,600 employees in four major segments over the U.S., South America. Asia, and Europe. It operates in four segments which include transportation and distribution, whole sale service, retail energy services, and broadband services.
I have
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Enron became a threat to themselves. They grew too quickly.
My Findings
I find that Enron is a company that could have been very capable of success. They had a skillful talent pool that is very capable of achieving success if done in the ethical way. I find that these executives should have counted things like investments in merchant assets like power plants and natural gas pipelines as being long term. It seems that Enron was using their skills to inflate their profits and the stock prices. In 2000 and in 1999, Enron made sold approximately $632 million and $192 million but counted no gains or losses on these sales (Rankine, G., 2004). I find this to be another example of being deceitful in reporting their revenue in order to keep their business ratings, profits, and stock prices up.
I also find that Enron are being successful at reorganizing themselves in order to pay off their debts to society and other businesses. Enron Creditors Recovery Corp. distributed approximately $100 million to creditors in May 2011, bringing the total amount recovered to date to $21.738 billion. There are a limited number of pending litigation and collection matters and contingent liabilities that continue to affect the timing of the closure of the Enron
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