If you look at the Enron case study with questions and answers, you will get to know numerous advantages along with disadvantages. At the beginning time of the century, there were severe power shortage problems faced by people. At that time, they were met with finding a solution to such issue and got the help from Enron Development Corporation. They firmly believed that they could solve the entire power shortage problem by constructing a gas-fired power station. And after that, it sold electricity and natural gas and delivered energy and commodities like bandwidth internet connection to people. Also, they provided risk management and financial services to the clients all around the globe.
Survival of Enron Company:
The continuation of the corporate company usually depends on the ability of the business to concentrate and shape its operational resources to meet up the anticipations of its shareholders, valuable customers, and mainly the workforce. Regardless of the financial sectors, the business operates in; the ability of chief operations manager of this company to accomplish those tasks as mentioned earlier depends on their better understanding that it is indispensable in making global trades.
In a nutshell, the operations manager is an essential component of the organization, because it carries out many vital functions of the organization. The primary job of an operations manager involves handling every day running and functioning of the business.
Enron formulated questionable accounting methods and techniques in the communications, weather and power areas and that was expected to dominate the global market in 2002. But unluckily, it became the colossal failure in corporate history. It is also an example of planned corporate fraud. The company became wealthy only due to its revolutionary marketing and promotion of power energy, internet bandwidth services and risk management components, like exotic and innovative items as weather components. Earlier in 1999, they launched an easy option of buying and selling access to high-speed internet connection and launched a web-based trading site for people. It was an E-commerce company managed by Enron Development Corporation. In the succeeding year, the reported revenues of the company reached 101 American dollars. At that time, it had stakes in nearly 30,000 miles of gas pipelines and owned around 15,000 miles of fiber-optic networks. It also had stakes in worldwide operations on generating electricity. All the activities carried out by Enron are usually listed under Enron case study with questions and answers.
Eventual fall of Enron:
The ultimate failure of Enron was due to the poor leadership of top management and corporate domination problem that lead to the disintegration of the company. A single person cannot take the sole responsibility for the failure but a group of top management and an ineffective management system. Before its fall, Enron shielded robust analysis by using accounting, media, and lawyers and created an image. Workers relished in great benefits working in lustrous workplaces at comparatively better pays when compared to the industry standard. But the result is a great fall and failure.
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Workers followed the rules blindly, the accounting rouse imaginatively planned, and reviewers were unable to get to the heart of the fraudulent matter. One can know about the success and fall of Enron only by reviewing Enron case study. But, the good news about Enron is that it has opened a period of augmented government regulation and examination on large corporations. The public is progressively protected as a result of this vast industrial collapse. Even though it is ill-fated that many people were hurt by such fraud, many other have educated a great lesson from such failure.
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