Analyze the Enron Corporation scandal

Enron 's Grandeur : What Went Wrong

Running Head : Enron 's Grandeur

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How can Enron Corporation , one of the biggest companies in the world , suddenly collapsed with claims of bankruptcy after being named America 's Most Innovative Company ' for six consecutive years ? What went wrong and who were responsible for its downfall ? With Enron 's huge investment in all its 30 business offerings , products and services worldwide , what could have been the impact of such calamitous stroke in the world market ? These are some of the

controversial issues that this will address

Enron 's Early Beginnings

Enron was established in 1931 as a Northern natural gas company with its office in Omaha , Nebraska . In 1979 , the company was reorganised after being sold to InterNorth , Inc , a holding company . Six years later , the new Enron bought the Houston Natural Gas (HNG , which merged the company to InterNorth , Inc

Since the merging would need a bigger place for its operations the head office was transferred to Houston , Texas in 1985 with HNG CEO Kenneth Lay taking over of the merged company HNG /InterNorth , Inc . after the departure of former InterNorth CEO Samuel Signar a few months after the merger . Mr . Lay took this as an opportunity to repackage the company under his sole slate . Initially , the company was named Enteron ' or may be spelled in camel case as EnterOn ' but later shortened to Enron since the longer name would mean in Greek as intestine . The company logo with the tilted E ' was designed by Paul Rand , a famous American graphic designer

Originally , Enron 's business dealings were involved in electricity and gas distribution and transmission in the various states in the US At the same time , the company was also subcontracting the construction and development of infrastructure , power plants and pipelines in other countries globally . Other companies were formed as Enron continued to prosper in its operations . In 1998 , Azurix Corporation was formed involving the company in the water sector and registered under the New York Stock Exchange in 1999 , although it didn 't last that long since it was announced in April 2001 that its assets need to be sold

With Enron 's clean slate records in the early part of its popularity , it has gained much praise as a great company that almost all would want to be part of . Its labor and workforce practices were beyond expectation with long-term benefits , pensions and good working and competitive environment among its more than 21 ,000 employees . Its diverse 30 product offerings ranging from telecommunications , oil LNG transportation , broadband , principal investments , risk management for commodities , shipping and freight , streaming media , water and wastewater , computer chips , etc . would make an indication that the company is steadily growing and has no taint of failing

Enron claiming to have a and one of the world 's manufacturers and providers of electricity natural gas , pulp and and communications , etc , no doubt that Fortune Magazine will truly recognize the company as America...