Essay

The Enron corporation was created out of the merger of two gas pipelines companies in 1985. When this company started it provided products and services related to natural gas, electricity and communication for its wholesale and retail customers. Enron company transported natural gas through pipelines to customers all over the United States. By this we can understand that this Enron Company was really a big company and it can win peoples heart by making a believe in them that this company is making a lot of profit. This company also marketed natural gas, electricity and other commodities globally. It also involved in the development, construction and operation of power plants, pipelines and other energy related projects all over the world including the delivery and management of energy to retail customers in both the industrial and commercial business sectors.    
The achievements of the company in early 1990’s was started by the CEO Jeffrey Skilling, Chairperson Ken Lay and CFO Andrew Fastow. These master minds transformed Enron from an old style electricity and gas company into a $150million energy company and Wall Street favorite and traded power contracts in the investment markets. From 1998 to 2000 alone Enron’s revenue grew from about $31billion to more than $100billion making Enron Corporation the seventh largest company in the world. How?? The income from wholesale energy represented 93% of 2000 revenues, the other 4% derived from natural gas and electricity. The other 3 % came from broadband services and exploration.   But with surprise it was that in that year the actual profit earned was not $100billion and not even near that since the profit was only $42million. the examiner found that despite Enron’s claim of $3billion in cash flow in 2000, the company had the cash flow of negative $154 million(-$154m). such a big game was being played around the company. Thus this essay highlights on the contribution of the corporate culture towards the collapse of...