This paper will show how external and internal issues affect the managemet functions of the Enron Corporation. Enron’s business strategy was to control all of the enery supplies without owning all the power plants. as a substitute, Enron would use contracts to have power over the services in which other companies had invested their hard earned money. The paper will describe how the management functions which consist of controlling, leading, organzing and planning are utilizrd by Enron. Enron Corporation is the world leading electricity, natural gas, pulp and paper and communication company. Stakeholders and employees lost large sums of money in the Ernon scandel. The top ...view middle of the document...
As an energy trading company which buys electricity, oil, natural gas, gasolene and other energy sources from producers with the intent of reselling them to industiral companies and utilities their business was extended globally. There main source of making their income is by purchasing their commodities at low prices and the resell them at high prices. As an organization achieving the high performance standards in the context of a competitive and complex global environment, Enron found themselves in the globalization with its complex economic networks of competition, resources supplies, and product markets transcending national boundaries and circling the globe.
Due to the fact that globalization compel economic liberalization between the rich and poor it forced the lowering of wages of less-skilled workers by shifting jobs to lower wage countries. Moving from individuals to countries, globalization benefits the rich at the the expense of the poor. (Gale, 2008).
Enron was contracted to start business in India, therefore the methods to share global knowledge would be that the organization uses written and live communication in the development program of that country. They should deploy best-practice teams to codify best practices that could be shared, also transfer people from one county to the other permanently or temporary on assignments to transfer knowledge. (Yip, 2003). If Enron was able to transfer knowledge from their country to others it would be a key source of them, because more business would be gathered and the best workers would be employed to them. Their employment strategy was very lucrative as Enron employs the best; they would seek out the highly educated executives in the country and employ them. These executives in turn will take the business to the highest level no matter what happens or who they hurt on their way because they were paid to do so.
As a model of globalizaton, Enron was huge in America, Canada, all over Europe, India and the South America. This corporation’s operations was extended into every sector of every economy worth owning a piece of by using all the tricks in the corporateglobalizer’s handbook. They have taken the advantage of every opportunity globalizationhas presented to them. (Business Journal 2007) Technology Kerry
Enron Energy desired to be the top energy trading company and in 1999 began the steps toward their goal. The company organized a plan to merge with two large technology companies to save Enron millions of dollars every year. Partnering up with Computer Sciences Corporation was one of Enron’s first steps toward implementing the best energy service technology and saving money. Once the contract was signed, CSC was now providing Enron with administrative duties such as “meter reading, billing and collection, and customer inquiries” (Computer Sciences Corporation, Press Releases, 1999). Enron organized this new partnership by moving 320 employees from...