“ENRON” … Fast and Falling

“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.