“ENRON”
… Fast and Falling
Photo by http://brasslantern.org/enron/enron.gif
Background:
Ken
Lee is a man who came from plural life family, since he was young, he was
dreaming about world business. Enron was a company of energy. It located in
Houston, Texas, USA. It founded in 1985. It was growing fast to be one of the
world class business in case of energy. It traded oil, electricity and natural
gas. They created an interesting commercial to attract people. People attracted
to this business, such as customer, shareholder partners or even politics. They
made people believe that if they are not buying Enron stock, Enron would think
that they are Enron’s enemies. Some said, they were smart, and there is an
Enron documentary film called “The Smartest Guys In The Room”.
Problems:
The
main problem of Enron is “bankruptcy”, a company suddenly falling as fast as it
grew, and a lot of employee lost their jobs. They are several reasons why this
happened. It is believed that, it was because of business proactive and high
risk. There were two kinds of Enron business which are investment and trade,
and these two had common reason to help Enron was falling fast.
Some
of Enron’s investments, there were no connection to the main business which is
energy business. It created unnecessary dept to them, and they trading were not
sincere much to do business, because they did gambling with investment.
Enron’s
trading had a high risk. It had a great idea to be the lead of trading as a
middleman for trading energy. It was true that it created a high revenue, but
it was a direction to high dept and liabilities.
The
writer group of “The Smartest Guys In The Room” said, it was because of greed,
which basically human tragic story.
Theories:
According
to J Brinkman (2003), “Enron executives' attention was clearly focused
on profits, power, greed and influence”. Enron did a good job to gain a
lot of money, but it showed that money was basically that they desire so much.
It was not the company’s false, but it was human greed false.
According
to W. Bratton (2002), “Enron
flew high when its stock price peaked at close to ninety dollars in August 2000,
and it was America's seventh largest firm by market capitalization. Enron also came
in number one when it fell.” Enron was success to get a lot of stock price, and it grew
fast, but when it fell, it fell fast too.
Conclusion:
To be concluding, Enron was falling
fast, it was because of growing too fast. This business showed the bad idea of
business idea is to get a lot of money. A lot of money always comes with the
high risk. You need to plan and managing your plan to not make yourself effect
with impact. To business, it needs to be faithful, Enron showed the bad
attitude towards partnership. From the trust, it changed to be no trust. This
is why, when they fell, they were falling fast.
