Enron’s Organizational Behavior
Enron Corporation, in just fifteen years, went from being a small gas company in Texas, to become the seventh largest business group of value in the U.S. employing 21000 people in more then 40 countries: owning power plants, gas distributors and units that provide services to consumers and businesses. It was named the most innovative company of the United States for six consecutive years, between 1996 and 2001 by Fortune Magazine; In November 1999 they launched "Enron Online" a system of global transactions on the Internet that allowed customers to see real-time market prices and make transactions online, instantly. In two years, that electronic commerce platform realized 6000 transactions daily with a value of 2,500 million dollars. It was expected that it would remain dominant in their business areas but it became the largest corporate fraud wanting bankruptcy protection from Europe then the United Sates by Dec. 2, 2001.
It became a giant market maker, being the largest marketer of energy products, becoming one of the world's largest energy company being able compete with names like Shell and Exxon as in the markets of Europe, which released turned into a massive financial strength at the United Kingdom.
Along with this aggressive expansionary policy, they encouraged the participation of its employees in their activities; giving them an annual bonus in options that amounted in part to their base salary. Executives and managers received larger amounts. At the end of 2000, all managers and employees of Enron had the option to exercise million shares. The owner receives the option to purchase a specified number of shares at market price the day that the option was issued. That price is called a fixed strike price; this option can not be exercised for a few years. If the share price rises during that time, the option can produce a good profit; obtaining a potential benefit.
Understanding how a company of this magnitude came to...