Blind pursuit for cool style led to the fickle Enron. How to Abandon the Bruise of your links of london charms Give an Outline of the Good Points and Myths of Abercrombie & Fitch
Two years before Enron's bankruptcy, Enron's executive committee had a meeting, deciding to choose a new business goal. "World Class Energy Company", original corporate target seems to fail the development of the company, which led to a new one: "The Coolest Company of the World". Under the direction of this aim, Enron expanded rapidly, even excessively, one of the evident examples would be the broadband business.
Skilling predicted taht the development of broadband services would become one of the company's most important business in 2000. However, in reality, the broadband business had encountered great frustration in early 2001, the loss of the second season of 2001 reached 109 million dollars which made the broadband apartment the largest loser. According to Enron`s practice, we can conclude that overexpansion and rapid development led to the company`s inability of facing economic downturn, and they resulted in the worsening of the company`s operation condition. In the end, the company went to bankruptcy.
Contempt of "Rules" indulged uncontrollable Enron.
When Skilling is in charge of Enron, he would proceed to change corporate culture which is a kind of culture that advocates freedom. He even encouraged the employees to take full advantage of the favourable condition within the rules and regulations of Enron. The employees were even handed extrodinary authority to make decision without higher approval. If one young manager chief expected to set foot in broadband service field, Skilling would let him freely take actions before informing such thing to the superior.
Gradually, the expansion of Enron was out of control. Skilling`s mindset not only seriously weakened the prestige of the middle managers, but affected their behavior as well. Even some people had a kind of anxiety: one's own career prospect would be full of obstacles if he or she did not give enough to the staff favored by Skilling.
Conceit led to pride Enron
During the rapid expansion of Enron, the whole company from top to bottom gradually created a psyche of "self-righteous". Richard Cook, was originally an engineer of Enron, once said: "I think Enron is fearless, our company can gain profit in any business." Professor Runer F Bobert in university of virginia pointed: The biggest reason of Anran's failure lied in lacking the spirit of modest. Analyst Carroll Corah ever suggested that people even can tell Enron employees from the way they walk. It seemed to be exaggerating, but it reflected that a strong sense of "self-approbation" was deeply rooted in Enron's culture. As so-called "Pride will have a fall", in such a cultural environment, the failure of Enron was not surprising.
Enron went bankruptcy, which would bring huge impact to different fields. However, Enron`s bankruptcy offered a brand-new visual angle for us. In fact, we have to admit: Enron`s culture problem led to a series of external crisis, which led to Enron`s gradually bankruptcy.