Enron Case Study Analysis
Phylicia Perser
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 1986. The whole purpose of Enron was to take advantage of the deregulation of the energy industry. They wanted to create the largest pipeline in the nation to have leverage in Washington. Over time Enron made great strides in the Gas and Energy industry. They started a program called Gas Bank, they began construction of the Dabhol Power project in India in 1996. (That project went under due to an overly involved government). They also had a trading business, called Enron Capital & Trade Resources. They also purchases Portland General Electric Co around 1997. In 1998 they purchased Wessex Water. From this they spun off a firm in 1999. In 2000, the Energy Financial Group named the 6th largest energy company in the world. The current situation the company finds itself in is the fact that all of the illegal business they were doing is now out in the open, and they are on a downward spiral to bankruptcy and possible an end to the company.
2. What is the strategy that Enron is using in order to survive or beat competitors? Enron was a striving company up until 2001. Enron was one of the fastest growing businesses of its time. Expanding over a few years a great amount of space and business branches. Enron came up with ways of locking in long-term supplies at fixed prices for people. The companies trading strategies created a great profit for them. At one point it was 90% of the firms profit. Also Enron had their own website, EnronOnline. It became
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 1986. The whole purpose of Enron was to take advantage of the deregulation of the energy industry. They wanted to create the largest pipeline in the nation to have leverage in Washington. Over time Enron made great strides in the Gas and Energy industry. They started a program called Gas Bank, they began construction of the Dabhol Power project in India in 1996. (That project went under due to an overly involved government). They also had a trading business, called Enron Capital & Trade Resources. They also purchases Portland General Electric Co around 1997. In 1998 they purchased Wessex Water. From this they spun off a firm in 1999. In 2000, the Energy Financial Group named the 6th largest energy company in the world. The current situation the company finds itself in is the fact that all of the illegal business they were doing is now out in the open, and they are on a downward spiral to bankruptcy and possible an end to the company.
2. What is the strategy that Enron is using in order to survive or beat competitors? Enron was a striving company up until 2001. Enron was one of the fastest growing businesses of its time. Expanding over a few years a great amount of space and business branches. Enron came up with ways of locking in long-term supplies at fixed prices for people. The companies trading strategies created a great profit for them. At one point it was 90% of the firms profit. Also Enron had their own website, EnronOnline. It became
References: Enron Case Study power wall.MSNBC.com Enron Creditors Recovery Corp. Research online