Enron Company Scandal: Causes of the Bankruptcy

Modern age can be characterized by a great level of rivalry. With this in mind, it is possible to say that great effort should be made by a person or organization to remain successful and survive. Additionally, clear structure and organization are the main actors of successes. Enron Scandal can serve as good evidence to prove this statement. This term is nowadays used to describe the situation connected with Enron Corporation. It is an American energy company, which is situated in Houston. Texas. Though, some drawbacks in its activity led to its bankruptcy. There are several main reasons for its collapse.

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First of all, it is its complicated mechanism of management at the time of its bankruptcy. A company was not able to align a clear and well-organized system of its functioning. Moreover, some drawbacks of corporate culture also led to a decrease in the efficiency of the company. Additionally, relations within the company and between its partners were also complicated. With this in mind, the given an example can be taken as a good case for analysis and understanding the importance of basic knowledge of the main issues of organizational behavior for the officials of the company.

Taking these facts into account, it is possible to suggest the following research questions, which will be able to help to understand the peculiarities of the Enron Scandal and the issue of organizational behavior better. The first research question is connected with the investigation of the main aspects of the companys management and analysis of its efficiency. Investigation of this issue can show weak points of the work of the company and help to understand where the main ideas of organizational behavior could be used. Moreover, the financial aspect of the functioning of the company should also be investigated. It is vital to see whether there were some objective conditions for a companys bankruptcy and analyze the main reasons for the decrease in the financial state of a company.

The last suggested research question can be connected with the issue of interpersonal relations within the collective and corporate governance. The thing is that very often, some improvement of relations within the collective can lead to an increase in the efficiency of the company. That is why it is vital to analyze this aspect of the work of the company to see possible areas of implementation of the issues of organizational behavior.

It is obvious that the topic for investigation was chosen, not accidentally. There is no use denying the fact that Enron Corporation was a very powerful and influential company that had high incomes and was not supposed to have any difficulties. That is why it becomes very important to understand the main reasons for its collapse and determine whether some issues of organizational behavior could be useful under such conditions or not.

Nevertheless, there are several main reasons for the investigation of the above-mentioned issue. Analyzing the main reasons for the collapse of Enron Corporation, it is possible to understand the peculiarities of the functioning of any company better. Additionally, knowledge of the main aspects of organizational behavior and the main ways of its implementation can be obtained. With this in mind, it is possible to suggest that investigation of the given issue will promote the development of a knowledge base and a better understanding of some main aspects of management and people relations.

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