Nobody Won Abstract When the Arthur Andersen LLP/Enron scandal surfaced in 2001‚ there was much confusion as to whom committed what crime and how many employees were actually involved. After the facts and criminal charges were final‚ the sequence of events makes sense; the union of two companies‚ the rise of the participating executives‚ and finally the end of the money ride. The leaders of both companies used dishonesty to make an abundant amount of
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named former Houston Natural Gas CEO Kenneth Lay as CEO of the newly merged company‚ and soon moved Enron ’s headquarters to Houston‚ Texas. After becoming the newly created top executive‚ Lay later became chairman of the board and hired Jeffrey Skilling as Chief Executive Officer. Under their leadership‚ Enron adopted an aggressive growth strategy. Andrew Fastow‚ Enron’s Chief Financial Officer‚ helped create the complex financial structure for the new Enron. (Reinstein‚ et all‚ 2002) Products
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chairman and CEO‚ hired the consulting firm McKinsey & Company to assist in developing a new plan to help Enron get back on its feet. Jeff Skilling‚ a young McKinsey consultant who had a background in banking and asset and liability management‚ was assigned to work with Enron. He recommended that Enron create a “gas bank” to buy and sell gas. Skilling‚ who later became chief executive at Enron‚ recognized that Enron could capitalize on the fluctuating gas prices by acting as a middleman
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entered into long-term fixed price contracts with its customers. Jefferson Skilling who had advised on this method joined the firm in 1990. By 1993‚ the company was the largest seller of natural gas in North America. In November 1999‚ was the creation of EnronOnline‚ a Web-based transaction system that allowed users to buy‚ sell and trade commodity products online with Enron on a global basis. In the late 1990’s Skilling argued that information was the key to dominating the trading market not assets
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MNGT 5590 Fall2‚ 2010 Final Exam Even though this is a take-home final exam‚ it is not an open book/open note exam. Please complete it using only the vast knowledge you have acquired from class/studying and retained in your brain. This stuff means something only if you have cognitively processed it and absorbed it. There are 2 parts to the exam – a case with questions and some general questions. Remember: • there is no credit given for filler • lots of credit for organized concise
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Kanban-an Integrated JIT System 1-0 INTRODUCTION Japanese are good at manufacturing. Just ask any global producers of automobiles‚ copiers‚ or personal electronics what happened in the 1980s. They will probably tell you how the Japanese captured a large share of the global-market by creating world-class standards in design‚ materials‚ and management. What is often overlooked is the attempt to understand how the Japanese industry succeeds at the services that support the manufacturing process (Krajewski
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White Collar Crime White collar crime is prevalent and brought to our attention more and more by the media since the mid to late 1990s. With the downfall of companies such as Enron‚ Tyco Toys and WorldCom MCI white collar criminals are facing lengthy prison sentences. Greed and personal vendettas are what have led our country to understand and gain more knowledge about these corporations and the corrupt CEOs that have brought them to their demise. “White collar crime is defined as various crimes
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Before filing for bankruptcy in 2001‚ Enron Corporation was one of the largest integrated natural gas and electricity companies in the world. It marketed natural gas liquids worldwide and operated one of the largest natural gas transmission systems in the world‚ totaling more than 36‚000 miles. It was also one of the largest independent developers and producers of electricity in the world‚ serving both industrial and emerging markets. Timeline Enron began as Northern Natural Gas Company‚ organized
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Co. to aid in developing Enron’s business strategy. They hired Jeffrey Skilling to develop the plan. Skilling had a background in banking‚as well as asset and liabilities. He create a “gas bank” in which Enron would buy gas from a group of suppliers and sell it to a group of consumers‚ contractually guaranteeing both the supply and the price‚ charging fees for the transactions and assuming the related risks. Thanks to Skilling‚ the company created both a new product and a new model for the industry
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Corporation ------------------------------------------------- Discussion 1 The parties we believe to be most at fault for the crisis in this case are a) the Audit Firm engaged in the Enron audit (Arthur Andersen); b) Enron Management (Kenneth Lay‚ Jeffrey Skilling‚ Andrew Fastow; and c) the SEC. The Public Accounting Firm: Arthur Andersen The auditor has the responsibility to evaluate the risk of material fraud‚ including: * Incentives and motives for fraud : Enron was a fast growing company with many
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