History
ACKNOWLEDGEMENT
I would like to acknowledge and extend my heartfelt gratitude to the following persons who have made the completion of this case study report possible, firstly to my course instructor Sir Butt for his vital encouragement and support, my friend Wajeeha who really helped me by correcting me with some of my queries about some portion of the case and last but not the least thanks to my family for their outmost support. One again thanks to my PROFFESSOR Sir Butt who gave me the opportunity to learn the subject in a practical approach and who guided me and gave me valuable suggestions regarding the project report.And to Almighty Allah who made all things possible.
HISORY OF THE CASE
Enron was created by a merge between Houston Natural Gas and Internorth. Houston's Natural Gas's CEO Kenneth Lay headed the merger of the two companies. Kenneth Lay became the CEO of Enron. Enron was originally solely involved with the distribution and transmission of electricity and gas in the United States. In the merger, Enron incurred a large amount of debt, and as a result of deregulation, no longer had exclusive rights to its pipelines. The company had to find a way to generate profits and cash flow. Kenneth Lay hired Jeffrey Skilling to work for Enron as an accountant. Skilling suggested the practice of buying gas from a network of suppliers and selling it to consumers at a fixed price with a contract. Enron was interested in the expansion, building, and operation of pipelines, power plants, and other infrastructure worldwide. After just a year of operation Enron merged with a company called Spectrum Seven, a company whose chairman and CEO is the former president of the United States, George W. Bush. In 1999, Enron tried to expand their company by creating the Azurix Corporation, a water utility company. Overall the Azurix Corporation proved unsuccessful financially. The Azurix Corporation, due to their failure to make an entrance into the market, went under. By
I would like to acknowledge and extend my heartfelt gratitude to the following persons who have made the completion of this case study report possible, firstly to my course instructor Sir Butt for his vital encouragement and support, my friend Wajeeha who really helped me by correcting me with some of my queries about some portion of the case and last but not the least thanks to my family for their outmost support. One again thanks to my PROFFESSOR Sir Butt who gave me the opportunity to learn the subject in a practical approach and who guided me and gave me valuable suggestions regarding the project report.And to Almighty Allah who made all things possible.
HISORY OF THE CASE
Enron was created by a merge between Houston Natural Gas and Internorth. Houston's Natural Gas's CEO Kenneth Lay headed the merger of the two companies. Kenneth Lay became the CEO of Enron. Enron was originally solely involved with the distribution and transmission of electricity and gas in the United States. In the merger, Enron incurred a large amount of debt, and as a result of deregulation, no longer had exclusive rights to its pipelines. The company had to find a way to generate profits and cash flow. Kenneth Lay hired Jeffrey Skilling to work for Enron as an accountant. Skilling suggested the practice of buying gas from a network of suppliers and selling it to consumers at a fixed price with a contract. Enron was interested in the expansion, building, and operation of pipelines, power plants, and other infrastructure worldwide. After just a year of operation Enron merged with a company called Spectrum Seven, a company whose chairman and CEO is the former president of the United States, George W. Bush. In 1999, Enron tried to expand their company by creating the Azurix Corporation, a water utility company. Overall the Azurix Corporation proved unsuccessful financially. The Azurix Corporation, due to their failure to make an entrance into the market, went under. By