Enron's incremental descent into bankruptcy: A strategic and organisational analysis

Long Range Planning

Volumn 36, Issue 2, 2003, Pages 133-149

  Chatterjee, Sayan ^a  

^a CASE WESTERN RESERVE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

MANAGEMENT; RISKS;

STRATEGIC MISTAKES;

STRATEGIC PLANNING;

CORPORATE STRATEGY;

EID: 0037397042     PISSN: 00246301     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0024-6301(03)00006-2     Document Type: Article

References (24)

1. Even these are now being questioned regarding their accuracy as they have been marked to market and not realised profits. See also Ann de Rouffignac, Enron pursues 'asset light' strategy in Electric Light & Power 9(2), 1 February (2001).
2. Rebecca Smith, and Kranhold Kathryn, Enron knew the foreign-assets portfolio had lost as much as half of its value, Wall Street Journal May 6 (2002).
3. Robert L. Bartley, Enron: First apply the law, Wall Street Journal Feb 11:A23 (2002).
4. Guy Doyle, Over Regulated, Over Optimistic, Over Here: US Power Companies Will Lead the Charge of Independents Into Liberalised European Markets, Financial Times World Energy Review Nov 5, 6: 5 (1998).
5. Gary Hamel, Reinvent Your Company Fortune 12 June (2000).
6. Wendy Zellner, Stephanie Anderson Forest, Emily Thornton, Peter Coy, Heather Timmons, Louis Lavelle and David Henry, The Fall of Enron, Business Week, December 17 (2001).
7. According to Ken Lay, 'developing nations, according to the World Bank, need to invest $70bn a year in new water facilities over the next decade. Add annual investment of $30bn in developed countries and you get a potential global investment market of $100bn'. A. Taylor, Enron Steps Into Global Water Market, Financial Times (London), Saturday July 25 (1998).
8. Public Citizen. Press Room. Enron's Failure in Water Ventures Highlights Dangers of Privatization to Consumers, Taxpayers, April 2, (2002). www.citizen.org
9. Financial Times World Energy Review, Financial Times (London), June 9 (1998).
10. Charles M. Studness, Converging Markets: The First Real Electric/Gas Merger, Public Utilities Fortnightly, October 1 (1996).
11. Richard S. Green and Michael J. Parish, Enron's End Run: Marriage of Convenience eyes retail market, Public Utilities Fortnightly, October 1 (1996).
12. For example see K. A. Froot, D. S. Scharfstein and J. C. Stein, Risk Management: Coordinating Corporate Investment and Financial Policies, Journal of Finance 8, 1629-1658 (1993).
13. Gregory Zuckerman, Enron Quietly Ran Risky Hedge Fund That Turned Over Millions in Trades, Wall Street Journal, April 11, (2002).
14. While I developed this conclusion based on my interviews with senior Enron executives and quotes such as 'make the non-recurring recurring', this conclusion can also be corroborated by published sources, for example see: Erick Schonfeld, The Power Brokers, Business, January (2001).
15. Brian O'Reilly, The Power Merchant, Fortune, April 17 (2001).
16. Wendy Zellner, Christopher Palmeri, Peter Coy and Laura Cohn, Enron's Power Play, Business Week, February 12 (2001).
17. Rebecca Smith and Mitchell Pacelle, 2002: Enron Will Try to Reorganize It self As a Small Firm With a New Name, Wall Street Journal, May 2.
18. David Arnett, Enron Unloads PGE, Independent Energy, December (1999).
19. Clayton M. Christensen, The past and future of competitive advantage, Sloan Management Review, Winter (2001).
20. Mark J. Kroll, Leslie A. Toombs and Peter Wright, Napoleon's tragic march home from Moscow: Lessonsin hubris, Academy of Management Executive 14(1), (2000).
21. Gary Hamel as quoted in Simon London, Inside Track, Financial Times.com. December 4, (2001).
22. Max Bazerman and David Messick, Ethical leadership and the psychology of decision making, Sloan Management Review, January (1996).
23. For Example, see John R. Emshwiller, Enron's "SPE" Transactions Raise Questions on Roles of Executives, Wall Street Journal, Monday, September 30, 2002.
24. Matt Marshall, Wed, Enron VC units had some bad habits, Mercury News, December 5 (2001).