1. Rebecca Gamboa Carole Gutierrez Maria Fernandez Joanne Gutierrez

2. Company Motto “Respect Integrity Communication And Excellence”

3. Early Beginnings  Formed in Omaha, Nebraska 1932.  Known as Northern Natural Gas Company.  Reorganization led to a holding subsidiary of InterNorth 1985.  Merged with Houston Natural Gas.  CEO Kenneth Lay changes the name to Enron.  Headquarters is relocated to Houston, Texas.

5. Labor Force Approximately 22,000 employees.

6. Power Plants Pulp and Paper Pipelines Electric utilities and distribution Broadband assets and bandwidth trading Principle Assets of Enron

7. Promising Future Ahead!

8. Built a strong corporation based on its reputation of being a risk taking corporation that resulted in a large growth of clients Praised for having a great compensation package for its employees including a large long- term pension fund. Among the 100 best companies to work for in America in 2000. Fortune magazine 1996 -2001 “America’s Most Innovative Company”

9. Scandal of 2001.

10. Financial Scandal Destroyed Reputation Unemployment Jobs in jeopardy Company Plummets Important documents destroyed Falsified financial documents WEAKNESSESWEAKNESSES

11. Chance of Redemption?

12. Opportunities  Merger of two natural gas pipeline company’s – Houston Natural Gas & InterNorth.  Bandwidth trading was $36 million, more than gas & electricity combined in 2000.  Energy trading gave great profits in 2001.

13. Unsuccessful Attempt.

14. Threats  Tried to monopolize the broadband trading.  Regarded competitors as uncompromising and did not want to work with them to create profit.  Did not engage in collaborative markets that competitors worked with.  Should have collaborated with stakeholders, to protect the market share, and to create new products

15. More threads:  Failed due to financers did not know about bandwidth or telecommunications.  Accounting irregularities.  No company trust.  Operated with great overconfidence and increased expectations with investors.

17. Present Solution & Recommendations

18. Solution/Recommendation 1 Enron could have structured their communication with their competitors instead of refusing to involve any communication whatsoever. Having brief communication would allow for the corporation to partake in healthy competition in such a way that allows them to expand and broaden their value of creating propositions for diverse industry players and competitors.

19. Solution/Recommendation 2 The accounting representatives should have followed the guidelines of the Generally Accepted Accounting Principles (GAAP ) rather than violating them. As a result, financial documents contained incorrect financial information regarding the corporation’s financial status. By complying with the guidelines the appropriate assistance could have been provided to help.

20. Solution/Recommendation 3 Each department within the corporation could have tried to maintain better communication with one another and its human resources department, to ensure that the proper courses of action were taken to ensure the best interest of the shareholders and employees whose pensions were invested in the corporations stock.

21. Conclusion Enron Corporation’s main area of concern stemmed from the accounting representatives overlooking some crucial strategies involving falsified financial documentation that could have prevented the falling out of this booming trading corporation and its practices.

22. References Cunningham, Gary E. and Jean E. Harris. (2006). Enron and Arthur Andersen: The case of the crooked E and fallen A. Global Perspectives on Accounting Education Volume 3. http://gpae.bryant.edu/~gpae/Vol3/Enron%20and%20Aurhur%20Andersen.pdf http://gpae.bryant.edu/~gpae/Vol3/Enron%20and%20Aurhur%20Andersen.pdf "Enron Scandal," Encarta Online Encyclopedia 2009. Retrieved on October 29, 2009 from http://encarta.msn.com http://encarta.msn.com Enron scandal. (2009, October 28). In Wikipedia, The Free Encyclopedia. Retrieved 19:14, October 30, 2009, from http://en.wikipedia.org/w/index.php?title=Enronscandal&oldid=322529264 http://en.wikipedia.org/w/index.php?title=Enronscandal&oldid=322529264 McLean, Bethany. (2006). Is Enron Overpriced? http://money.cnn.com/2006/01/13/news/companies/enronoriginal_fortune/index.htm?postver sion=2006011818 http://money.cnn.com/2006/01/13/news/companies/enronoriginal_fortune/index.htm?postver sion=2006011818 Schwartz, Andrew. (2003). Enron's Missed Opportunity: Enron's Refusal to Build a Collaborative Market Turned Bandwidth Trading into a Disaster. UC Berkeley: Berkeley Roundtable on the International Economy. Retrieved from: http://escholarship.org/uc/item/0k61f1nbhttp://escholarship.org/uc/item/0k61f1nb Ferguson Niall, The Ascent of Money, Video http://www.pbs.org/wnet/ascentofmoney/featured/watch-the-two-hour-the-ascent-of- money/24/ http://www.pbs.org/wnet/ascentofmoney/featured/watch-the-two-hour-the-ascent-of- money/24/ Wikipedia: Enron http://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/wiki/Enron