Enrons Incremental Descent into Bankruptcy: A Strategic and Organisational Analysis

Enronʹs senior management has become the byword for all that is bad with corporate America. Yet there has been hardly any in-depth analysis of what contributed to the strategic mistakes that resulted in the companyʹs downfall. This paper is not about the cover-ups but an analysis of the antecedents of these strategic mistakes. The paper demonstrates that the core successes of Enron were rooted in its ability to manage risks in complex transactions. Yet these very risks that ultimately brought Enron down. In short, this article is about what we can learn about managing risks in the increasingly complex business environment.