Business Management/Leadership

Change Management in Enron

Introduction

Enron is a defunct energy company which d for bankruptcy in 2001 Before that , it was a large successful company with estimated 12 ,000 employees and named Fortune 's America 's Most Innovative Company ' for six consecutive years . Despite being at one time the world 's largest electricity , natural gas , communications and company , now the company is infamous for its accounting fraud which was revealed at the end of 2001 . It was found that its financial conditions were sustained by corporate fraud and corruption . The case

of Enron is studied world-over , and it led to a lot of changes in the legal system of doing business , making reporting requirements more stringent . Due to this Enron has been selected

History of Enron

Enron was formed in 1985 as a result of the merger between Houston Natural Gas and InterNorth . This also resulted in the largest natural gas pipeline owned by a company . In 1989 , Enron opened its Gas Bank which allowed consumers buy long term supplies at a fixed price

In the 1990s , Enron expanded its operations , reaching places like the UK , South American , Europe and India . It also realized the potential of other energy commodities , by expanding its focus beyond the natural gas Its other companies include Enron Online , Azurix , Dabhol Power Company Enron International and LJM . The broadband services were launched in 1999 under Enron Online . In 1999 , LJM was created which was for the purpose of buying Enron 's poorly performing assets . By 2000 , the share price of Enron was up to a record high of 90 , and Enron was receiving a lot of positive attention as the seventh largest energy company in the world . In October 2001 , Enron posted its first quarterly loss . However even as the stock price fell , the company 's founder , Kenneth Lay emphasized how the company was bound to grow and its stock price would recover . This was one aspect which resulted in such large losses , a reduction in shareholder equity of over 1 billion . Finally , at the end of year 2001 , Enron was forced to for bankruptcy

Change Implementation

The change implementation plan is a 8 stage process . Before this is explained the company analysis using SWOT is given which will be incorporated in the change process to increase its effectiveness

SWOT Analysis

Strengths

At the time of its bankruptcy , Enron was the seventh largest energy company in the world and the largest in the U .S . Besides its credibility its public perception was also positive . Its size also resulted in price and service advantages

Weaknesses

The internal weakness of the company is the management which lacked ethical and moral responsibility associated with their positions . Their goal was personal achievement rather than organizational profit . Also the corporate culture was more short term result oriented rather than using strategies which will profit the long term , irrespective of the short term

Opportunities

Enron has an established name in the energy sector and can use it to its...