Assessing Brilliance in Innovation Case Study Example | Topics and Well Written Essays - 2500 words

Assessing Brilliance in Innovation - Case Study pillow slipIt would be within the next year that Enron would begin to go through some major financial difficulties. It will be argued here that the basic tenets of a successful partnership require three key aspects profit sustainability of innovation and good leadership.First, one should begin with a short history of Enron. In the baptistery of the Houston-based Enron Corporation, a multi-billion dollar institution encountered a crisis situation. The denial of die corporate executives Kenneth Lay and Jeffrey Skilling led to Enron making excuses such as blaming Arthur Andersen, its accounting firm, for its failure. An integral break up of understanding Enrons demise comes from learning a little bit about the company and how it grew over the years to its existing status. Houston Natural Gas merged with InterNorth, in July 1985, to form the Enron Corporation. Over the next fifteen years, Enron expanded rapidly, establishing many new b usinesses worldwide.The first sign of an innovative corporation is that it shows a profit. In about fifteen years, Enron grew from nothing to being Americas seventh largest company. Enron employed over 21,000 individuals in more than forty countries. Enrons executives transformed this company, without actually building a company that made meaning(a) business profits. By doing this, Enron executives could exaggerate the companys cash flow. To create these profits, Enrons executives also used many accounting procedures that seemed to confuse watchdogs-and, to take aim themselves look better, they blindsided everyone who thought that Enron was on top of the world, by creating hundreds of fake companies. To prevent anyone from seeing any loss from Enron, they would transfer their debt to the fake companies. By doing this, Enrons debt would seem a lot smaller than they actually were. exchangeable many large companies, Enron had its good and its bad side. In 2002 Enrons bad side was ex posed to the nation. So the question is raised, what did Enron make Enron didnt really make anything. Enron acted as the middleman in large natural gas and electricity deals. Enron always admitted it was hard to define their business in one sentence, but they finally came up with an explanation that they make commodity markets so that they could deliver physical commodities to their customers at a predictable price. Enron seemed to have trapped employees that worked with the company. The employees were forced to put their pension money into the Enron stock, which was overvalued. The employees at Enron were nevertheless doing their jobs, and in fact should not be held to blame.Such high turnover at the top of corporations such as Enron suggests that the real problem isnt a lack of innovation-its sustained innovation.1 Although many of the future business people attend curriculums that require business law classes, the Enron scandal has proven that corporate corruption is alive and well. Also, the company proved that it could not sustain its innovation over time, because its biggest innovation, mark-to-marketing accounting, was a fraudulent innovation. It was brilliant, in the sense that profits could be estimated and then banked upon, but it was also an amerciable practice to put profits on the books that were not truly there. In addition, Enron