Business Strategy Enron Case Study 09/08/12 Enron Case Study: From Company to Conspiracy 1. What is the History of Enron‚ and what current situation does it find itself in? Enron was created by a combination of companies. These companies were Houston Natural Gas and InterNorth. These companies were merged together in July 1985. CEO of Houston Natural Gas‚ Kenneth Lay became chairman and CEO of the combined company. This happened in February 1986. The company changed its name to Enron on April 10th
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CASE STUDY – UNIT 1 1. Andrew Fastow is a key person responsible for the downfall of Enron. When he became the CFO in 1998‚ he came up with the plan to make the company appear in great shape by using the mark-to-market accounting practice. The company would build an asset‚ such as a power plant‚ and immediately claim the projected profit on its books‚ even though it hadn’t made one dime from it. If the revenue from the power plant was less than the projected amount‚ instead of taking the loss‚ the
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This case study is extracted mainly from two major novels titled “What went wrong at Enron” by Fusaro P.C. and Miller R.M. and “The unshredded truth from an Enron insider” by Brian Cruver. The Vision Called Enron The history of Enron goes back to the 1920’s‚ when a pair of Houston pipeline companies was incorporated to carry gas along the coast of the Gulf of Mexico. In 1956 these companies merged under the name of Houston natural Gas (HNG). While these companies were working along the coast
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Glassdoor – an inside look at jobs & companies. http://www.glassdoor.com/Salary/Ford-Motor-Salaries-E263.htm (accessed on February 6‚ 2013). In Strategic Management: Competitiveness & Globalization‚ by R Kiley‚ David. Aol Autos. March 18‚ 2011. New Study: Lincoln and Toyota Are Most Reliable Auto Brands (accessed on February 9‚ 2013). Liker‚ Jeffrey Micheal‚ Connor. "Toyota recall: five critical lessons." Business Ethics. N.p.‚ 31 Jan. 2010. Web. 2www.business-ethics.com/2010/01/31/2123-toyota-recall-five-critical-lessons/
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Introduction Organisational behaviour is the study of individual and group dynamics in an organisational setting‚ as well as the nature of the organisations themselves. It examines employee behaviour‚ decisions‚ perceptions and responses. Whenever people interact in organisations‚ many factors come into play. Individual behaviours such as task behaviour‚ organisational citizenship‚ counterproductive work behaviours‚ joining and staying with the organisation‚ and work attendance (McShane‚ Olekalns
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people have difficulty with it Problem identification is not just the first step in decision making: it is the most important There are five most widely recognised concerns. Stakeholder framing: attention-based theory of the firm: states that‚ organisational decisions and actions are influenced mainly by what attracts management’s attention‚ rather than by objective reality. Mental mode: if an idea does not fit the existing mental mode of
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Running head: Enron and Ethics Enron: An Ethics Case StudyEnron: An Introduction The previous decades have seen the birth and meteoric rise of several corporate giants such as Microsoft and Apple‚ both of which have all but become household names in this day and age. Neither achieved their level of success overnight‚ especially not since they have long been known to be in direct competition with each other. On the contrary‚ both of them have had their share of scandals and controversies
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The collapse of Enron case study Q1. The key stakeholders involved in‚ or affected by the collapse of Enron are: employees and retirees‚ thousands of them lost their jobs and the investment; the executives: Kenneth Lay‚ Jeffrey Skilling and Andrew Fastow they sold significant blocs of company stock‚ have conflicts of interests; government figures‚ Lay had close personal tie with the Bush family‚ Enron’s efforts influence policy making; regulatory authorities: Commodities Futures Trading Commission
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Nakayama: What do you think are the most important lessons to be learned from the Enron scandal? Hanson: The Enron scandal is the most significant corporate collapse in the United States since the failure of many savings and loan banks during the 1980s. This scandal demonstrates the need for significant reforms in accounting and corporate governance in the United States‚ as well as for a close look at the ethical quality of the culture of business generally and of business corporations in the United
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MODELS OF ORGANIZATIONAL BEHAVIOUR Introduction Organizations achieve their goals by creating‚ communicating and operating an organizational behaviour system‚ as shown in the figure below: Management’s Philosophy Values Vision Mission Goals Formal Organization Organizational Culture Social Environment Informal Organization Leadership Communication Group Dynamics Quality of Work Life Motivation Outcomes: Performance Employee satisfaction Personal growth
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