We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Examining a Business Failure - Essay Example

Comments (0) Cite this document
Summary
Examining a Business Failure Name of Institution Date Examining a Business Failure It is agreeable that running a business, whether large or small, is very risky and the possibility of failure is relatively high…
Download full paperFile format: .doc, available for editing
Polish This Essay92.1% of users find it useful
Examining a Business Failure
Read TextPreview

Extract of sample
"Examining a Business Failure"

Download file to see previous pages In simple terms, business failure can be defined as a situation whereby a company or an organization ceases operations due to inability to make profit or because it can no longer be able to bring in sufficient revenue that can cover the expenses it incurs. Studies have shown that business failure can be caused by the following factors: increased competition; poor implementation of strategies; outdated technology; poor management; poor leadership; financial problems; and economic challenges (Hatch, 2006). In order to have a better understanding of business failure, this paper will discuss the failure of Enron Corporation. Enron Corporation was one of the leading players in the energy market; actually, in the year 2001, it was the United States ’ seventh Largest Corporation in terms of revenues (Mclean and Elkind, 2003). However, it suffered a catastrophic collapse as a result of financial scandal (famously known as Enron Scandal) which involved its accounting firm (Arthur Andersen), Enron’s management and leadership. The scandal involved fraudulent accounting procedures and practices which occurred during the 1990s and the beginning of 21st century. These fraudulent activities included manipulation of the Enron’s stock price. This scandal eventually led the Corporation to file for bankruptcy in December 2001 (Fox, 2003). Robbins (2004) argues that whereas events leading to business failure of an organization often take different dimensions, the contribution of the organization’s management, leadership, and organizational structures towards the failure cannot be ruled out. As a matter of facts, he notes that this contribution is usually central to business failure in any given organization. So, how did Enron’s leadership, management, and organizational structures contribute to the failure of the organization? Fox (2003) observes that the trials relating to Enron scandal showed that, indeed, the Corporation’s leadership contributed to its failure. Enron executives were charged with criminal acts that include insider trading, money laundering, and fraud. What became clear was that the Corporation’s leadership only focused on influence, greed, power, and profits and paid little attention to the Corporation’s Code of Ethics (Mclean and Elkind, 2003). Their focus made them to make wrong and deceiving decisions, as well as conspiring with Arthur Andersen auditors to engage in illegal accounting activities and methods. Jeff Skilling, Ken Lay and Andrew Fastow are the most notable top-level leaders of Enron whose behaviours greatly contributed to the collapse of the Corporation (Fox, 2003). For example, Andrew Fastow who was the Corporation’s chief financial officer engaged in improper partnerships, fraud, and money laundering activities. Jeff Skilling engaged in conspiracy, insider trading, made false financial reports, and in fraud. Ken Lay made misleading statement and got involved in fraudulent activities (Mclean and Elkind, 2003). As leaders of the Corporation, Fastow, Skilling, and Lay were expected to adhere to and uphold Enron Code of Ethics that called for integrity, excellence, communication, and respect. However, they engaged in activities that challenged the Corporations ethics code’s foundational values. The top leadership as well as the Corporation’s senior management contributed to the failure by attempting to create a conglomerate in the energy industry that was aimed at increasing the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Examining a Business Failure Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Examining a Business Failure Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/management/1452346-examining-a-business-failure
(Examining a Business Failure Essay Example | Topics and Well Written Essays - 1250 Words)
Examining a Business Failure Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/management/1452346-examining-a-business-failure.
“Examining a Business Failure Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/management/1452346-examining-a-business-failure.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Theories of Entrepreneurship Failure
The purpose of this study was to answer these questions by studying whether individuals who were already entrepreneurs had more motivation to start a new venture again, over those who did not have experience. Also, the authors wanted to know whether serial entrepreneurs had a “higher probability” of moving into entrepreneurship from employment.
60 Pages(15000 words)Essay
Why M&A's failure is a topic of key strategic relevance
Why Do Mergers and Acquisitions Occur and Reasons for their Failure? Student’s Name: Sahil Khanna Student Number: Course Name: BSc Management Supervisor: Santi Furnari Date of Submission: Number of Words: 10,227 Executive Summary After gathering literature review and interviewing a couple of merger and acquisition experts, this study concludes that internal factors that contributes to a failed merger and acquisition includes: having an unclear or undefined organizational vision and mission, the presence of cultural clashes resulting to organizational miscommunication, and the lack of business integration.
51 Pages(12750 words)Dissertation
Examining a Bussiness Failure
The top management of the company undertook fraudulent corporate governance practices that led to the downfall of this corporate behemoth in 2001. The company was believed to have undertaken major manipulations in the account books and generate false figures that not only led to the downfall of this company but also raised serious questions about the credibility of the top management of the organizations.
4 Pages(1000 words)Research Paper
Examining a Business Failure
Decision-making and leadership theory could have predicted and explained the failure of Chrysler LLC in that the company attempted to shift from one system of decision making to another. This was without going through a transition phase for all the employees of the company to understand the entire process and how it was expected to work against the competition in the motor vehicle industry in the United States.
3 Pages(750 words)Research Paper
Risk management Failure
The disaster is arguably the largest marine oil spill – approximated at between 8 and 31 percent more impact – in terms of the area affected and the volume of coverage, compared to the earlier Ixtoc I spill (Robertson and Krauss 2010). The impacts of the explosion and the sinking of the oil rig included the loss of eleven lives and the flow of sea-floor oil gusher for 87 days, before it was controlled on the 15th of July 2010 (Robertson and Krauss 2010).
6 Pages(1500 words)Essay
Business Failure
Now, moving on specifically to the business failure that took place in the case of Chrysler and Daimler. Initially, to begin with both the corporations had been functioning successful. Which was exactly why, when the amalgamation took place it became clear to the managements that they will definitely thrive on this occasion (Cook 1998).
5 Pages(1250 words)Essay
Examining a Business Failure
Enron came into existence in the year 1986, after the merger of Houston Natural Gas and InterNorth. Kenneth Lay, the Chairman and CEO, was at the helm of
4 Pages(1000 words)Essay
Examining the success/failure of online banking in nigeria
The dissertation employs a qualitative research approach to attain the stated objectives. The data and information for the study has been collected from secondary and primary resources including related available literature and
6 Pages(1500 words)Essay
What are the patterns of business failure in the UK What are the main explanations for why businesses do not survive Which explanations are the most and least convincing
Evidence of failures is spread across both industries and the globe (Deloitte, 2008). According to recent statistics from the UK, in 2007 around 12,000 companies faced failure in England and Wales. In 2008, the number of business failures rose to
12 Pages(3000 words)Essay
Examining Insurance Policies Part 3
Premises liability coverage provides a person with a paid legal defense when sued on property damage or bodily injury that arises in operating the aircraft contrary as described on Mike’s policy. The insurance carrier is responsible for paying all
3 Pages(750 words)Essay
Let us find you another Essay on topic Examining a Business Failure for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us