Enron Stakeholder AssignmentEnron was a dream come true for many people, but it was also a nightmare waiting to happen for many others. I'm going to look at Enron's collapse from a management perspective. The three examples of Enron's bad behavior that I will study are the Valhalla incidents, the California electricity trade, and the conflict of interest between Andy Fastow and his special purpose entities (SPEs). These are just a few cases that led to the failure of the “first world company”. In 1985, Houston Natural Gas merged with InterNorth, of Omaha, Neb., to form Enron, and Ken Lay was named chairman and CEO. The company was primarily a natural gas producer and controlled huge reserves throughout the oil belt. The Valhalla trading scandal marked the beginning of the end for Enron. Enron acquired the Valhalla Business Group through the merger. Valhalla did not produce oil, but bought and sold oil futures. He bought oil long if he thought the market would rise and short if he thought oil prices would fall (2). In January 1987, a security guard at Apple Bank in New York alerted Enron auditors to a strange series of transactions carried out by two of the company's oil traders: Louis Borget and Thomas Mastroeni. The bank's security officer said the $100,000 transfers came from an Enron account with Standard Chartered Bank in the Channel Islands. Transactions from the Channel Islands have been a red flag for bank security officers because the islands are a source of secret offshore bank accounts and are often a convenience address for suspicious businesses. The transfers, signed by Mastroeni, originated from an American Enron account, then went to the Channel Islands and then landed in the middle of paper...... were prevented, notably by senior management. Enron became a company focused on high stock prices and greed. Enron employees were allowed to do whatever they wanted to earn that extra million dollars for the company. It was only a matter of time before Enron collapsed. In my eyes, Sherron Watkins is a hero in the unethical business world. Works Cited1) Swartz, Mimi with Watkins, Sherron. Power Outage: The Inside Story of Enron's Collapse. New York: Doubleday, 2003.2) “Enron: A Scheme of Abuse? NewsMax Wires, March 21, 2002<http://www.newsmax.com/archives/articles/2002/3/21/60605.shtml>3) Taylor, Chris. “California intrigue.” Time May 20, 20024) “Enron: Endless Possibilities and the 2000-2001 California Energy Crisis” March 23, 2006 < http://www.users.cloud9.net/~bradmcc/EnronCalifCrisis.html>5) www.investorwords. com