Issues in Management Essay Example | Topics and Well Written Essays - 1750 words

Issues in Management - Essay Example Investigation was carried out before Houston offered to purchase the company. Although the deal failed, Enron assets were made the largest corporate bankrupt in the history of United States’ corporations. The collapse of Enron serves as a lesson for managers and all sub-versions of company management controls. The meteoric rise and down fall of the company astonished groups of people thereby becoming a dream for researchers to unveil what led to such misfortunes; however, the entire ordeal has ever since remained a nightmare for all former and current stakeholders of the company. The company’s downfall is associated with individuals born with greed and in atmospheres on corporate arrogance. However, many people kept on buying stock; thus, making it buy risk deals. After some time, Enron was then bought from the union of Houston Natural gas. In the union process, the company incurred huge debt and lost its rights to pipeline. To revive its operations, the company decided to initiate new ideas and formulate new strategies that would help to generate cash flow and good profits. On the other hand, to regain its stability, the company hired Jeffrey Skilling, a young consultant with good skills in banking and liability management who created gas bank whereby, Enron could buy gas from suppliers and sell it to consumers. This activity brought about huge profits and created new product as well as new paradigm for the company. Under the leadership of the young consultant, the company’s finance corporation soon dominated the market with many contracts and good access to suppliers. The number of customers was also seen to multiply. Its gained market power was utilized on predicting future prices with accuracy. Skilling begun to change the culture of the company to much its transformed image as a trading business entity. For instance, he