BUSS 444 :Enron case

442603

Hoang Phuong Thao

442352

Nguyen ThuyDuong

442356

Nguyen ThiHuong

Outline

Introduction

Body

1. Does Enron succeed in leveraging its human capital? If not, why?

2. How does Enron control its employees’ performance and

behaviors? If Enron fails, why?

3. What is the impact of the general environment on Enron’s

strategies and performance?

Conclusion

Question 1: Does Enron succeed in

leveraging its human capital? If not, why?

Does Enron succeed in

leveraging its human

capital? If not, why

Human capital is

regarded as the real

source of economic

growth, and in the

context of organization,

human capital.

Question1: Does Enron succeed in

leveraging its human capital? If not, why?

The first point to mention is that the management team of

enron contains the one

Question1: Does

Enron succeed in

leveraging its

human capital? If

not, why?

In another point, Enron's high

reward structure and Peer

review committee are the two

factors

Question 2: “How does Enron control its

employees’ performance and behaviors?

If

Enron fails, why?”

- Enron has a Risk

Assessment and Control

which is responsible for

examining, overseeing the

deals and giving the approval

for them.

- Procedures of getting

authorization in Enron are

simpler and easier.

Question 2: “How does Enron control its employees’

performance and behaviors? If Enron fails, why?”

- Policies mean valueless to the employees

Result of management’s perception about the importance

and necessity of control

- Example

Question 2: “How does Enron control its

employees’ performance and behaviors?

If Enron fails, why?”

Enron has a problem

with ethical matters

and the way they run

the business

* Their transactions

are judged as unjust

and on arm’s-length

basis

* Fas tow shows

evidence of dishonest

Question2“How does Enron control its

employees’ performance and behaviors?

If Enron fails, why?”

- Enron reward system is slipshod

- Rewards should be clearly linked with the performance and

desired behaviors

- Example

Question3:

What is the impact of

the general

environment on

Enron’s strategies and

performance?

What is environment

analysis?

Environmental analysis is an

important part for every

successful strategy since it

lays the foundation

Example for Enron

Question3: What is the impact

of the general environment on

Enron’s strategies and

performance?

analyzing these

environment factors

- producing environmental

analysis is likely a must for

Enron to ensure the

success of the deals

- Example for Enron:

regarding the power plant

at Dabhol

Question3:What is the impact of the general

environment on Enron’s strategies and

performance ?some extents

demonstrate the

impact of

environmental analysis

on the strategy and

performance of Enron

1. the power plant at

Dabhol

they did not research

carefully about authority

and legal factors in India

Question3: What is the impact of the

general environment on Enron’s

strategies and performance?

2. When the plant came into operation, Enron was shocked by

the energy bills problem.

Question3: What is the impact

of the general environment on

Enron’s strategies and

performance?

The third international deal

- Enron encountered the

issue of contaminated

water

- labor union issues and that

the British Government

Conclusion

1. Human capital is regarded as the real source ofeconomic growth, and in the context oforganization, human capital is the foundation thatsomehow decides the success or failure of theorganization.

2. Environmental analysis is an important part forevery successful strategy since it lays thefoundation for how the strategy is conducted andimplemented

3. Enron has a problem with ethical and businessmatters. Enron has a Risk Assessment and Controlwhich is responsible for examining and giving theapproval for them.