This website uses cookies to ensure you have the best experience. Learn more

Business Failure Paper

921 words - 4 pages

IntroductionIn it's hey day, Enron, was the worlds top electrical, communications, pulp and paper, and natural gas company. Unfortunately, in late 2001 the company started to unravel. Enron was on the brink of bankruptcy and even an attempt to be bought out by a smaller company called Dynegy, could not save Enron. The company was in financial ruin as their stocks dropped from over 90.00 dollars to practically nothing. A scandal was revealed that involved the companies own accounting firm, Arthur Anderson, and Enron. It was discovered that in 1990 accounting procedures were irregular, which included stock prices being manipulated. Looking into the background of Enron's troubles, leadership and management issues were a part of this scandal. This paper will identify the failures of the management and leadership of this company, how correct and positive organizational behavior and leadership of the management team would have effected the configuration of the now disgraced company. (, 2009)Enron's Failure as a CompanyThe team of executives at Enron wanted to establish a company that would raise funds for the shareholders. In spite of this, the discovery of lower stock prices made the team take aggressive measures towards their accounting methods. In order to make the companies shares more pleasing, the team of executives counted on a boost of new capital funds and at the same time, cover up any risk to new backers. After Enron started the new accounting process, the necessity to continue the scam amplified with each financial year. Regardless, the company wanted to keep advancing forward. (TIME Magazine, 2009)The Failure of the Companies LeadershipDuring the duration of Enron, the corporation's governance did not implement their responsibilities. The Audit Committee should have been judgmental on the work of the auditors, but due to the continued increase in stock earnings, the call for an investigation within Enron's accounting practices were not founded. The Board was lenient with supervising management and accepted information from the executive team at face value. The Board was content with Enron's success. (TIME Magazine, 2009)The Failure of the Companies ManagementUnfortunately, the employees of Enron were caught up in the downfall of the company and suffered also. The corporation had over 100 employees in the accounting and legal staff. It appeared that all employees were working with support of the managing team, which in turn was backed by the executives. As with management and leadership, the methods that the employees used were not in doubt because incentives were high. Employees were receiving big salaries which were helping to hide the big corporate debt and increase any earnings reported. The employees were behind the company and did not cause any problems regarding the methods that were being used. (CNN, 2009)Corporate Structure and Enron's ImpactCustomarily, with some state law restrictions, the structure of...

Find Another Essay On Business Failure Paper

failure Essay

1073 words - 5 pages Life is made up by success and failure. No one is always successful and no one is always a failure. Therefore, it doesn't make much difference whether people are successful or not. The most important thing is simply how people face failure. When someone fails in his attempt in doing something, he often feels upset. Some people may yield to failure and flinch from it. But others will stick to and achieve the final success. However, according to

Failure Essay

1147 words - 5 pages , seeds, and the diamonds, highlight Willy’s failure in a successful society. The wire recorder shows Willy’s failure to succeed in the business world. The seeds symbolize Willy’s failure to raise his sons, with proper moral and values. And lastly, the diamonds symbolize Willy’s failure to obtain wealth for his family. All three symbolize Willy’s failure in different aspects of his life. Everything that Willy ever thought was distant from reality and lived in a fantasy of illusions. Hence, Willy was a man who lacked success till the end of his life.


839 words - 3 pages "We don't pay the price for success, we pay the price for failure." This quote is a great example of the way I felt many times throughout my junior year of high school. Learning from mistakes is how people get through life. Sometimes people learn the difficult way, not realizing that these hardships could be avoided. Not only did I make mistakes in school, and at home, but with my friends as well. I have learned so much because of the mistakes


3590 words - 14 pages good example of how e-procurement is reshaping U.S. manufacturing. Another case study indicates the challenges faced by ChangAn Auto Co. Ltd., and how the company addressed these challenges in its respective business segments. We analyze how e-business systems can support and enhance a company's core business processes. The paper concludes with a brief recommendation of the planned implementation of an e-business system for our

Business Failure

1031 words - 4 pages . Insufficient systems to monitor the organization's compliance to ethical standards can have disastrous consequences.Tyco neglected to establish preventive and corrective control procedures for effective corporate governance in their overall business plan. Misconduct and greed at the corporate level eventually resulted in destructive consequences for the company. The organizational structure at Tyco did not have a system of proactive compliance

The Management Failure Of Tyco International

1402 words - 6 pages Week, 2002). Managers have to be aware of legal, ethical, and socially responsible planning. By implementing a plan in regards to these characteristics, a manager can avoid future failure. After the company’s fall, they had to rebuild with a strategic plan. A person of interest in the rebuilding of the trust in Tyco was Michael Useem, a sociologist who interviewed Kozlowski during his greater days before the fall of Tyco (Business Week

ERP implemention failure at the Hershey Company

1321 words - 5 pages , it causes a significant problem for that company. There are many famous information system failures throughout history such as Snap-On’s order-entry system failure which caused company to lose $50 million in the first half of 1998, or FoxMeyer’s failed implementation of ERP which drove the company into the bankruptcy. The information systems failure that is going to be focus of this paper, is the Hershey Foods Corporation’s failure at

Analysis of the Failure of Fire Control

1455 words - 6 pages , processes and structures to make decisions that ensure longer-term sustainability”. (Vice President, Business Advisory Services, IFC). This mandate is valid not only for the business actors but also for the Public Sector whose role, it is to create Public Value, through developing resonable policies while meeting various stakeholders needs and responding to the increasing demand of accountability, fairness and trasparency. This paper focuses

Ethical Accounting Failure: The Enron Scandal

1381 words - 6 pages According to Croxford” Ethical accounting failure has continued to occur in multinational companies in spite of the increased legislation, enhanced corporate governance programs, and greater attention on business ethics by the academic community.” (Croxford, 2010) According to his research, (Croxford, 2010) believed “that accounting professional was discriminated against based on their age, culture, gender, and education.” Multinational

The Failure of the Drug War

1839 words - 7 pages 2006, the Mexico City daily Reforma reported." ("Murders Topped 11,500 in Mexico Last Year, Newspaper says" web)"A total of 11,583 people were murdered in Mexico last year,"("Murders Topped…" web)The facts speak for themselvesThe toll risesDrug trafficking exists heavily and will only get worse" U.N international drug control program, Illicit drug business generates ad much as 400billion dollars in trade annually, " (Kallen 58)If they can

Market Failure of the Taxicab Industry

2763 words - 12 pages (The Nielsen Company) and changing consumer behavior that expect services to be “on demand” (Sheth, Sisodia and Sharma). By allowing customers to request a ride easily through their smartphone application, these firms are filling the void left unfilled by the taxicab industry which still relies outdated methods and technologies. • Price that matches the product: At the core of the current failure of the taxicab industry is simply that current

Similar Essays

Examining A Business Failure Paper

1122 words - 4 pages failure of Enron's business principles.ReferencesGudinkunst, A. (2002). Enron- A study of failures Who, How, and Why? The Faculty Network. Retrieved January 15, 2010 from, K. (2002). Lessons from the Enron Scandal. Retrieved January 17, 2010, from, M. (November 2007). The Law of

Business Failure Essay

964 words - 4 pages The company being analyzed in this paper will be Enron. Enron was involved in electrical, communications, pulp and paper, and natural gas. Regrettably in 2001 the company was on the brink of bankruptcy and even the offer to be purchased by Dynegy could not save the organization. Enron was in financial ruins when their stock dropped from $90.00 dollars per share to less than a dollar per share. As the organization crumpled a scandal was revealed

Examining A Business Failure Essay

1023 words - 4 pages University of PhoenixOrganizational LeadershipLDR/531February 15, 2010Organizations today must stay in focus in order to stay competitive and successful. There are times when an organization fails due to various reasoning's. Today's paper will focus on examining a business failure. The business of discussion in this paper will be WorldCom. Organizational behavior theories will be discussed. Also there will be a discussion on what role did

Business Failure Due To Cultural Differences

1016 words - 4 pages consultant,” (Chung, 2009, p.1). “The Japanese bow is one of the most well-known forms of greeting. The bow symbolizes respect and humility and is a very important custom to observe when doing business with the Japanese,” (Understand and heed, 1991, p.1). Simple understandings, such as the many discussed in this paper, make the difference in a business’ success or failure in foreign countries. Every country has different customs and beliefs that