Enron Case An American Energy Company - 1604 Words

ENRON CASE Introduction â€Å"Organizational behaviour is a field which deal with the study of human behaviour with respect to individuals, structure and group of organization† (kinicki 2012). The study of organizational behaviour came in to importance to have an positive effect to the organization. The reflective essay focuses on the organizational behaviour concepts which lead to the downfall of Enron Company on 2001. Enron is an American energy company which is based on Texas. The company was run by Kenneth Lay and Jeffrey Skilling. The company was able to hide billion dollars of debt by projecting fake financial report and by some loopholes. Andrew Fastow was the chief financial officer of Enron at that time and he was able to mislead the directors of Enron by showing fake documents. After the bankruptcy case was filed, the company share went down from $90 to $1. The Enron failure was the largest bankruptcy in the history of US at that time.â€Å"Enron Debacle caused by greed, political connecti ons, and unethical actions resulted in a bankruptcy that shattered the lives and retirement savings of many employees† (Premeaux 2008, p, 14). In this essay we discuss four major OB concepts which were responsible for Enron scandal. Ethics The choice of doing things the correct way is termed as Ethics. It basically is to decide which is good and which is bad. To build an ethical culture in any organization, leader should always be trustworthy, they should encourage fairness among staffs,Show MoreRelatedEnron Case Study Analysis1699 Words   |  7 PagesBusiness Strategy Enron Case Study 09/08/12 Enron Case Study: From Company to Conspiracy 1. What is the History of Enron, and what current situation does it find itself in? Enron was created by a combination of companies. These companies were Houston Natural Gas and InterNorth. These companies were merged together in July 1985. CEO of Houston Natural Gas, Kenneth Lay became chairman and CEO of the combined company. This happened in February 1986. The company changed its name to Enron on April 10thRead MoreEnron Essay1433 Words   |  6 Pagesthe Enron Accounting Scandals Name: Do Minh Tam Class: MEP 100 Lecture: Karen Bird Date: December 24, 2010 Introduction Background From the 1980s until now, there have been a lot of accounting scandals which were widely announced on by media. The result of this situation is many companies were bankruptcy protection requests, and closing. One of the most widely reported emulation of accounting scandals is Enron Company. Enron Corporation is one of the largest energy companies in theRead MoreEnron And The Enron Scandal1588 Words   |  7 PagesEnron was a corporation located in Houston, Texas and in just fifteen years the US energy trading and utilities company grew to become one of America’s largest and more successful cooperation’s. Enron suffered a major fall. After being one of the most successful corporations Enron became the biggest company to file bankruptcy in history. In this research paper it will discuss about the history of Enron, the fraud committed and who is to blame. The historical development of white collar crime in theRead MoreEnron Scandal1477 Words   |  6 Pagesï » ¿Current issue: Scandals in auditing Enron Scandal 1. Introduction Accounting scandals are political or business scandals which arise with the disclosure of financial misdeeds by trusted executives of corporations or governments. These days, not too often, these scandals are splashed as headlines across media. Why? Because there are complex groups of stakeholders who might be seriously affected by the scandals. Enron scam was the most remarkable scandal in 20 centuries by their institutionalizedRead MoreThe Ethics Of The Enron Case1407 Words   |  6 PagesThe Enron case is a very popular case to show how the profession of accounting is vital to make the corporate world of business flow reliably. Enron was recognized as one of the world’s major electricity, natural gas, communications and pulp and paper’s company. However Enron was found to record assets and profits at inflated, fraudulent and non-existent amounts. Debts and losses were found to be excluded from financial statements along with other major transactions between Enron an d other companiesRead MoreAgency Theory : Relationship Between Agents And The Business Essay1550 Words   |  7 Pageslevels of risk. Enron, was the world’s largest energy company in 2001. Enron forerunner, Northern Gas Company was incorporated in Delaware on April 25, 1930. From this date through July 1985, Enron had hundreds of purchases and new sub-entity constructions when they acquired Houston Natural Gas Inc. (Kastantin, 2005). On April 10, 1986, the company changed its name to Enron Corporation. Enron was an interstate and intrastate natural gas pipeline company, then later in 1989 Enron started trading naturalRead MoreBusiness Failure Paper1045 Words   |  5 Pagesfailure of one of the largest energy companies in the world, Enron Corporation. I will discuss the leadership, management, and organizational structure of the company and how this failure could have been prevented. Company Overview Enron Corporation was an American energy company in downtown Houston, Texas. Enron employed more than 22,000 workers and was one of the largest companies dealing with electricity, natural gas, and communications. In the year 2000, Enron claimed revenues of over $100Read MoreEnron s Financial Fraud And Corporate Fraud1700 Words   |  7 Pagescollapses was occurs in United States. Includes Enron, Global Crossing, Worldcom, Healthsouth, AIG and Lehman Brothers scandals. In the American capital market, the investors abandoned a number of large listed companies leads to the bankruptcy for those companies. The corporate frauds not only deceive investors, but also make oneself paid a heavy price. At the same time, it not only harm the capital market, but also caused a significant impact on American that resulted in regulation changes. These purposeRead MoreJaclyn Givens. Kathy Osburn. Management 101. 5/8/17. The1400 Words   |  6 PagesJaclyn Givens Kathy Osburn Management 101 5/8/17 The Enron Era â€Å"Just as character matters in people, it matters in organizations,† says Justin Schultz, a corporate psychologist in Denver. The Enron scandal had a big exposure in 2001 confirming the big secret to the increase in billions. In July 1985, Enron formed the merger of Houston Natural Gas and Omaha-based Inter North. The Enron corporation was an American energy company based in Houston Texas. The corporation’s catastrophe in 2001 signifiesRead MoreEnron Of Enron And Enron1387 Words   |  6 PagesEnron was formed in 1985 from the merger of two gas companies from Texas and Nebraska. Enron became the first company with all-American network of gas pipelines. In 1997 Enron bought power generating company Portland General Electric Corp. worth $ 2 billion. Before 1997 ended, the management turned the company into Enron Capital Trade Resources which became the largest American companies that trade in natural gas and electricity. Revenue increased dramatically from $ 2 bill ion to $ 7 billion

Montessori - the Human Tendencies - 1810 Words

The Human Tendencies â€Å"The love of activity, the yearning for freedom, the urge for obedience, the impulse to confirm to laws which are at the heart of all creation – these qualities make man the unparalleled work of Nature† (Montessori, M., From Childhood To Adolescence, 1973) Discuss the eight human tendencies as developed by Dr. Montessori and her followers. Show how children show these tendencies during the three main stages of development. Discuss how you think knowledge of human tendencies helps us when educating children. Give examples to support your answer ******************************** One of the greatest discoveries made by Dr. Montessori was that all humans love certain tendencies of behaviour patterns. No matter†¦show more content†¦As they grow they enjoy knowing where they live (their address, country and continent on a map). They also like to know where they stand with regards to social roles. They demand very clear guidelines and rules. Order: This is the human tendency to create orderly surroundings which is apparent in nature and which we have brought more thoroughly into our homes, business and everyday life. [pic] Children under 6 years of age have a very strong sense of order. They like to be neat or have things in order. It does not matter if it his toys, clothes, shoes, everything should be in the right place according to his mind. As they grow they lose some of the order but they still shine through with order in their homework. Eg. Mathematics, Chemistry etc. People prefer order to chaos and confusion. Order brings predictability and security. Order is essential to proper orientation. Work/Activity: This is a human tendency, to be active and seek satisfaction form work. People generally like to stay busy. For children, movement can be enjoyed for its own sake, rather than always having a goal or end product in mind. Even children who have very little to play with will find ways to be active through games, songs, dance, and pretend play. Humans feel worthwhile through their work. Work leads to a feeling of accomplishment and self-respect. [pic] Maria Montessori believed that it was through work that a child constructed his true self,Show MoreRelatedHuman Tendencies, Montessori Essay1872 Words   |  8 PagesThroughout history, humans have relied on their ingenuity and adaptability for survival. Regardless of race, country, or culture, people follow similar patterns of exploration, inventiveness, and creativity. After years of careful observation, Maria Montessori was able to identify the importance of tendencies that compel human beings to construct and refine the world around them. The practical application of the Montessori Method is based on human tendencies to explore, move, share with a groupRead MoreEssay about Montessori Math Rationale1119 Words   |  5 Pagesespecially interested in mathematics. Rather than find them boring and absurd, they find them interesting and absorbing. It is a fact that most children in our Montessori schools manage to achieve great enthusiasm while working with mathematics. Is the preparation of their minds that allows them to reach this pleasure. Maria Montessori, London Lectures, 1946, p 41 Mathematics has always been a difficult subject for students. Many children have developed phobias and barriers towards mathematicsRead MoreMontessori Eduacation Approach Essay884 Words   |  4 Pagescontinue to utilize a child’s natural curiosity, unyielding ingenuity and thirst for knowledge. Montessori education creates that environment for children by allowing them the freedom to not only gain knowledge in a natural progression, but also provide a basis on which to continue to grow no matter where future educational paths lead. The Montessori educational approach began in 1907 with Maria Montessori. The method was originally created to benefit disadvantaged youths in the area around Rome, ItalyRead MoreDefining Auto Education Of Maria Montessori Essay1266 Words   |  6 PagesDefining Auto-Education of Maria Montessori means the human ability to self-construct knowledge in the brain without external extensions or guidance. The main idea of the Montessori Method is recognition of the fact that no person is ever educated by another. He must do it himself or it will never be done. The young possess unusual sensitivity for absorbing and learning from his environment. He has a deep love and need for purposeful work. Math Materials supports Auto-Education of a child with theRead MoreGod Is Necessary For Human Existence1079 Words   |  5 Pagestimes, humans have attempted addressing issues such as, our instinct to survive, curiosity to know beyond themselves, fear of the unknown, pursuit of happiness, etc. Ea rly Mesopotamian societies attempted to answer questions such as Who are we?, Where are we?, How did we get here? Many of those questions were driven by their instinct to survive, interaction with the nature around, fear of the known and unknown threatening their existence and found solace in God. God is necessary for human existenceRead MoreMontessori Creative Imagination1275 Words   |  6 PagesMontessori believed that the imagination be encouraged through real experiences and not fantasy. She felt very strong that this powerful force was not wasted on fantasy. It was important to allow a child to develop their imagination from real information and real experiences. Montessori believed that young children were attracted to reality; they learn to enjoy it and use their own imaginations to create new situations in their own lives. They were just excited about hearing a simple story of aRead MoreClassroom Is A Balance Of Freedom And Discipline1559 Words   |  7 Pagessensitive p eriods and human tendencies of the 6-12 year old child. The guide creates this balance by first preparing the environment so that it serves the needs of the children. The environment is responsive, stimulating, organized, and inviting. The work is beautiful, well cared for and sequentially placed on the shelves. When preparing the environment the atmosphere is also taken into consideration. Social graces, collaboration and cooperation are all fostered within the Montessori classroom. ThereRead MoreMaria Montessori : Education Of Children And Developed A Clear Concept Of A Planned Environment1489 Words   |  6 Pages â€Æ' While Maria Montessori expressed multiple convincing theories regarding the education of children that included ideas such as sensitive periods, the role of independence and a planned environment in the classroom, some theories contradicted each other and in practice. She compiled her beliefs into a Montessori Method that described how to teach young children in a way that fulfilled their full potential. McClure’s magazine recognized Montessori as a â€Å"wonder worker in education† (Tozier, 1911)Read MoreHow John Locke Inspired Maria Montessori1459 Words   |  6 Pagesorder to fully understand Locke, it is necessary to realize that his aims and methods were largely determined by the place and time in which he lived, and by the schools in which he attended. John Lockes theories center around the case that the human mind, at birth is a Complete, but receptive, blank slate.† It is the experiences placed upon this blank slate throughout life that determine a child s characteristics and behaviors. Locke rebelled against the traditional theories of original sin andRead MoreMontessoris Sensitive Periods and Their Effect on Child Development2292 Words   |  10 PagesChildren are the central factor in Montessori education, for it is through the child that we can understand man and society. This means that from the moment of birth a child must be observed and paid special attention to in all his stages of growth, physical and mental. Montessori believed that there were three stages of growth i.e. birth to six, six to twelve and twelve to eighteen years. The first stage is regarded as the absorbent mind and ‘formative period’ (Montessori, 2007a). It is divided into

Define each of the five business organizations Free Essays

The limited liability partnership is a company wherein two or more persons undertake to contribute to a common fund money or property and divide the profits among themselves. There is at least one limited partner and one general partner. A business may also be run by means of franchising which allows a business organization to transfer the rights and privileges of the business to another for a consideration. We will write a custom essay sample on Define each of the five business organizations? or any similar topic only for you Order Now Such consideration is called franchise fee. In case of joint venture, it is a business organization between two corporations where the participants deviate from traditional matters on corporate management in terms of voting, control and selection of employees, and arbitration proceedings. In case of license, the government will act upon any business application filed by a business organization or an individual and provide such license to enter into business endeavors. Lastly, for sole proprietorship, an individual chose to run the business on his own and without any help from other persons. Week 2 Discussion Question 2 What legal and ethical issues must a business consider when deciding whether or not to do business globally? The ethical issues that a business organization must consider when deciding whether or not to do business globally are integrity of business endeavors, setting mission and vision properly and as well as propriety of core values. Doing business globally includes the adaptation of the culture, values, customs and economic conditions in other countries. Hence, the business organization must see to it that the core values of the company are universal and ethical in nature. On the other hand, the legal issues that should be considered is about laws involved in having business outside the country and as well as treaties involved in the same. The laws of other countries will affect the success of the business done globally. Lastly, the issues on taxation must also be considered by the business organization doing business outside the country. How to cite Define each of the five business organizations?, Papers

Environmental Analysis of BHP Billiton †MyAssignmenthelp.com

Question: Discuss about the Environmental Analysis of BHP Billiton. Answer: Introduction Strategic planning and performancemanagement go hand in hand.Performance management is primarily role of employees and is about setting and achieving the goals and objectives set as well as, removing the hindrances for achievement of goals post identification. The process of setting goals is where strategic planning comes into picture. Strategic or tactical planning is the method using which--the individuals working in the organization, on the organizations behalf, define a set of objectives to achieve (Slack, 2015). Without proper strategic planning, no enterprise can become successful today (Haines, 2016). Also, the strategic plan needs to be supported by a clear vision and an equally apt performance management system to reap benefits. The report conducts the environmental analysis of BHP Billiton which is a behemoth organization in Australia. The report presents internal and external analysis of operating environment of BHP Billiton. That shall shed light on some of the strategies in use in the organization which affects their environment of functioning. About BHP Billiton Headquartered in Melbourne, Australia, BHP Billiton or simply BHP, is the worlds largest diversified resources organization. It was formed as a result of merger between BHP Limited and Billiton PLC. The organization follows a dual listing structure where both sections operate individually as separate trading public companies but is a single business entity with all their assets combined. It has a mineral exploration, technology, freight and transportation as well as logistics operation. Internal Analysis of BHP Billiton An organizations internal environment analysis revolves around aspects, proceedings, necessities and objects inside the organization. All these factors collectively influence the organizations performance, mainly leadership type, culture, organizations mission and vision etc. Post conducting an internal analysis, the below listed factors and their influences were deduced. Resources A resource of any organization would be a single productive unit. The unit could be for the purpose of supporting any activity or a means in itself to realize a targeted outcome. A resource could be financial, human, material or non-material resource (information). For an organization such as BHP Billiton, whose primary activity is extraction and production of minerals (iron ore), petroleum or gas. BHP has several mineral resourcing activities worldwide, these act as its material resources as well as assets important to BHP. Without them, BHPs existence would be questionable as there would be no mineral to extract or produce. All the labourers and other employees are their human resources. They ensure smooth functioning and are vital to the bigger picture of performance of the organization itself. All the money that supports BHPs operations are its financial resources. Together all these resources support operations of the organization and contribute to its success. Capabilities The quantity of production is the capability of BHP Billiton. High produce means the capability is high and low production means lesser capability. In case of BHP Billiton, its capabilities are mostly influenced by availability of mineral resources. Not only that, the processes in use, logistics used, employee skills, policies that influence their productivity everything is interrelated (Sykes and Trench, 2016. p-22). Competencies What led BHP to its success is mainly the knowledge and skill it acquired over years of its operations supported by strong leadership. If it needs to be listed though, they would be policies and regulations for their employees, strategies to support core objectives, varied and rich resources, financial policies in place to support overall operations in every sphere External Analysis of BHP Billiton The report shall conduct micro and macro environmental analysis to present the external analysis of BHP Billiton. For micro-environment analysis, Porters five forces analysis was conducted and for macro-environmental analysis, PESTLE analysis was conducted. Porters five forces analysis sheds light on the competitive factors in internal factors such as buyers, suppliers, threat from new entrants, threat of substitutes and existing competition. Bargaining power of buyers supply of natural resources is limited and demand is huge. The threat is moderate to low in this case for BHP Billiton. The organization could pass along any price increases here. Substitutes are, more or less, unavailable in large quantities reducing the bargaining power of the buyer. BHP focusses on maintaining a long-term relationship, impact of any price increase is thus much reduced Bargaining power of supplier BHP on the other hand, is quite affected by factors such as labour negotiations, material availability, energy prices, shipping costs etc. Since substitutes are more or less not there, suppliers have a strong bargaining power Threat of new entrants Natural resources are limited both in their capacity and supply. This automatically reduces the threat of new entrants for BHP Billiton. Demand from China for iron ore has reduced after drop in commodity prices. This also prevents new entrants from entering the market BHP Billiton has strong financial support and impressive infrastructure in place after years of operation. For any new entrant, it would take quite some time to match that. Presence of BHP Billiton is on choicest of locations across the globe for mining activities. A new entrant would not be much of a match to BHP Billiton. Threat of Substitutes The raw materials do not have much of substitutes in market. This is the reason for a low level threat in this department for BHP Billiton. Since the natural resources portfolio is quite diversified for BHP Billiton, it is holding quite a strong position Competition Among existing competitors though, rivalry is strong. There is intense competition to gain access to the reserves of resources across the world among rivals. Along with that retaining the human resources who are well trained has added to increase in salaries and wages. Despite such heavy competition, the industry in itself is quite lucrative because of the potential for making profits. This is also one of the reasons why even though the prices decrease, the competitors shall still stand in a favorable position. Major instances of mergers and acquisitions also strengthened BHP Billitons position. To compliment the understanding of macro-environmental factors, a PESTLE analysis was also conducted. These factors also have an impact on choice of strategies by BHP Billiton. Political This factor is in favour for BHP Biliton on its home ground only. It enjoys great support from Govt. of Australia as they contribute hugely to economy. Due to its worldwide spread though, it is always at risk from political forces at play in different countries it has its operations in. the key drivers such as the operating license, pipeline of projects, growth opportunities and all the infrastructure as well as related assets. Changes in government and policies and regulations always directly and indirectly affects its profits. Example Chile imposed a 5% royalty tax on the mining activities. The tax was applicable on operating taxable income from mining activities (Ebert and la Menza, 2015. p-108). Economic Any changes to cost of energy, exploration, labour, operations etc. hits BHP Billiton. The increases could affect the organizations plans of further growth and expansion and ultimately the profits 9Hecking and Panke, 2015. P-30). Also, the global economy stability is another susceptible point for BHP Billiton. Rise and fall of global commodities affect the demand. Once the demand is less, supply could alternatively, increase and impact price. Example, China economy contributes to approx. 16% of BHP Billitons revenue. Recently, the demand had decreased owing to fall in commodity prices which impacted the revenues of BHP Billiton (Zhang et al., 2017. p-248). Social - All the stakeholder relationships and operations are vulnerable to socio-cultural factors for BHP Billiton. The factors need BHP to give financial support to local groups and facilitate natural resources for building of infrastructure such as roads. New projects need approval of societies, activities of this kind could impact profit or cost of development for BHP Billiton. Example in Chile, BHP has worked on improving workers conditions in their copper mines. Technology All operations are mostly dependent on technology and related innovations. BHP invests heavily on upgrading their technology for exploration purposes. They affect strategy building for new projects and acquiring infrastructure (assets). Environmental factors BHP Billiton is essentially an exploration organization and is continuously facing pressure from environment conservationists. It si extremely vulnerable to regulations and policies related to environment. They have hence adopted policy of zero-harm as well as sustainable development. The responsibility to adhere to environmental policies is strategically connected to the license of operation. Legal This also acts as a crucial factor of risk for BHP Billiton. As in the past, they have already faced legal liabilities for causing damage to environment. Example Southwest Copper Operations at Arizona. This, along with other lawsuits faced by BHP Billiton had impacted the financial resources heavily. All of this indirectly also affected the strategic decisions for future investments. Business strategy of BHP Billiton BHP Billitons strategy is based on diversification. Be it diversification of geography, market and even commodity. They stress on owning and making use of large assets which have a long life, low running costs, could be up scaled as per their three targets of geography, commodity and market. This is the only way they have been successful in delivering excellent quality and gaining margins again and again through various economic as well as commodity cycles over decades. Their low cost as well as diversified assets of Tier-1 type makes their cash flow resilient by minimizing their vulnerability to exposure to any single commodity or currency. It is also beneficial as it allows prediction and enhanced financial gains (Grant et al., 2014.). They have also invested on building an extremely well trained and skilled workforce over time. Mostly they recruit from host countries itself. Then, they train them to become high caliber performers who reflect their organizations values. This they b elieve also gives them an edge over their competitors. They continuously strive for development and growth of their assets to suit the needs of their customers. Competitive Advantage of BHP Billiton BHP Billitons competitive advantage mostly is thrived by its low-cost asset base most of which, is diversified. That makes its cash flow quite resilient to exposure to single currency or commodity. This is beneficial for organization as it continues to expand and diversify its business portfolio. Also, it quickly adapts to meet the changing need of the customer. They have been successful in building a capability to assist different nations in their every type of stage of economic growth. The fact that its organization structure is also so simple is a plus point. The structure provides it with scalability (Donovan, Hartley and Billiton, 2016. p-14). Along with that, they have robust processes which are standardized as well as controlled. This makes it simple for the staff to handle operations. Conclusion With a lot of challenges related to price suppressing policies, risks of evident geopolitical nature and unpredictable policy formations in major economies, global economy has mostly been resilient mostly showing good performance. All of them has helped in robust performance in key commodities by BHP Billiton. BHP Billiton has been successful in having positive quarter performance in 2017 as well. BHP Billiton is favoured with good demand in Asiatic regions, specially China and India. Owing to population growth and elevated living standards, energy demands, minerals, petroleum, fertilizers etc. demands are supposed to increase. Technology is also expected to improve leading to rise in potential of opportunities as well as threats. Along them, environmental policies owing to climate changes and corresponding market responses shall also occur. BHP Billiton believes that, with correct placement of their assets along with correct commodities they shall enjoy an edge in their strategic choices. The report already portrays how well till now BHP Billitons strategies of diversification and low cost scalable assets have been beneficial in their journey over decades. Their outlook has been positive and extremely flexible to adapt appropriately with the environment demands. References Haines, S., 2016.The systems thinking approach to strategic planning and management. CRC Press. Slack, N., 2015.Operations strategy. John Wiley Sons, Ltd. Ebert, L. and La Menza, T., 2015. Chile, copper and resource revenue: A holistic approach to assessing commodity dependence.Resources Policy,43, pp.101-111. Zhang, M.M., Bradley, C.F., Collins, A.F. and Saunders, M.H., 2017. Economic structural changes in China: challenges and opportunities.International Journal of Economics and Business Research,13(3), pp.246-257. Sykes, J.P. and Trench, A., 2016, August. Using scenarios to investigate the long-term future of copper mining and guide exploration targeting strategies. InAusIMM International Mine Management Conference, Brisbane, Australia(pp. 22-24). Grant, R., Butler, B., Orr, S. and Murray, P.A., 2014.Contemporary strategic management: An Australasian perspective. John Wiley Sons Australia, Ltd.. Hecking, H. and Panke, T., 2015. The global markets for coking coal and iron oreComplementary goods, integrated mining companies and strategic behavior.Energy Economics,52, pp.26-38. Donovan, J., Hartley, P. and Billiton, B.H.P., 2016. Investigating the market manipulation hypothesis in iron ore.AusIMM Bulletin, (Jun 2016), p.14.