Enron : The World 's Largest Energy Company

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Introduction and Company Background – ALI - DONE Enron was incorporated as an energy company in 1985. Headquartered in Houston, Texas, Enron was the world’s largest energy company by the end of 2001, responsible for 25% of the world’s contracts for energy trading. Enron was a strong company, holding a steady position in Fortune’s 100 best companies to work for and a sign in the company’s lobby that read “WORLD’S LEADING COMPANY”. Being an employee of Enron definitely had its perks as well. “Employees at Enron’s headquarters had access to an on-site health club, subsidized Starbucks coffee, concierge service that included massages, and car washes, all for free. Those employees with Enron Broadband received free Palm Pilots, free cell phones, and free wireless laptops” (Jennings 233). It appeared as though the company had everything going for them, but it wouldn’t be long before the company took a turn for the worse. In late 2001, “a week following credit agencies’ downgrading of its debt to ‘junk’ grade, Enron filed for bankruptcy,” the largest recorded bankruptcy in the United States ($62 billion) at that time (Jennings 233). Enron was the result of a merger of Houston Natural Gas and Internorth. The company benefitted from being the first mover in their market, setting an internal growth strategy at an aggressive increase in revenue of 15% per year. “It became the largest energy trader in the world, with $40 billion in revenue in 1998, $60 billion in 1999, and
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