Enron Case Study

First, I will discuss will be the short history leading up to the fall of Enron. Most everyone knows that Enron is an electrical trading powerhouse. It rose to the top of its field basically by creating a monopoly to its competition. In January 1997, Jeffrey Skilling was named president and COO of Enron. In July of that year Enron paid $3.2 billion for Portland General Electric to combine the utility wholesale and retail electricity expertise with Enron’s natural gas and electricity marketing and risk-management skills. In August of that same year, they branched out beyond energy, introducing commodity trading of weather derivatives. In May 1998, Rebecca Mark, a rising star who helped cinch Enron’s $3 billion power plant in Dabhol, India, in the early ‘90s, is named the vice-chair. She is a rival of Skilling. In July that same year, Enron pushed into the foreign markets, paying $1.3 billion for the main power distributor Sao Paulo and $2.4 billion for Britain’s Wessex Wa...