Enron Case Study

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Enron was an American energy, commodities, and services company that was based out of Houston, Texas. Enron was created by the joining of two natural gas companies, InterNorth Inc . of Omaha, Nebraska and Houston Natural Gas. Enron had a rapid rise to become one of the biggest corporations in the United States at the time and also became one of the biggest business collapses in United States history. I will talk about how Enron came into existence and how it ultimately failed.
InterNorth was based in Omaha, Nebraska and specialized in natural gas pipelines and also was involved in plastics and also coal and petroleum exploration and production. It was formed in 1979 as a holding company for Northern Natural Gas Company, which was founded in 1931. They operated the largest natural gas pipeline in North America. InterNorth was looking to expand its holdings and pursued purchasing other companies. One of these companies was a smaller competitor named Houston Natural Gas.
Houston Natural Gas is a gas utility based in Houston, Texas. HNG's core asset was the largest intrastate gas pipeline network in the United States. The company also produced oil, gas, and coal; manufactured petrochemicals; and engaged in marine transportation and construction.
Kenneth Lay was the CEO of Houston Natural Gas and would later become the CEO of Enron after Samuel Segnar, CEO of InterNorth, stepped down. Kenneth Lay was born on April 15, 1942, in Tyrone, Missouri. He came from a poor family and always wanted to live a better life growing up. For having been raised with very little money and not having much he has a very impressive schooling background and work acomplishments. He attended the University of Missouri and received both a bachelor and masters...

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...es makes it hard to do so. We as a society want to see the economy grow and make money, but as we learned from the cases people want you to do it fairly. Its instinct to want more no matter what you’re doing, whether you want more money to buy that new sports car, or you want more money to set up a good foundation for your family, or if you want more money so you can give that money away to people that don’t have enough. People are always wanting more but if something sounds too good to be true there is a good chance that it is. Enron had a good idea and when it failed I think that they were trying to find a way to just buy time till their idea turned into a success but when they found out that they could make just as much money without even needing a successful idea, so greed sets in and they take the greedy way out, but in the long run the greedy way never works.

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