The procedure of Asset light in the broadening procedure of Enron clarified that they were wanting to strip the advantages when they get the hang on the fundamental supply of power and gas. Their expansion in power and gas markets rested in the thought that the administration needed to wind up distinctly the market pioneer and give the wares at a much less expensive levy inside a short notice. Enron went into the modern part with a place of hazard Management Company for the merchants in the metal business, mash industry and the paper business. It needed to keep up the value dangers for these organizations with a specific end goal to make them support for a more extended timeframe.
1- Did the diversification make sense? Why? Why not?
2- Please appraise Enron’s key management systems and processes: what were their strengths, weaknesses?
3- Can you identify internal factors that led to the collapse?
4- Can you identify external factors that led to the collapse (What pressures did Enron’s management face in 1999/2000)?