S.W.O.T Analysis of Enron Essay

2130 Words Jan 16th, 2008 9 Pages
S.W.O.T. Analysis of Enron

MBA 503

University of Phoenix

05/10/06

Describe the Situation "Enron is now officially out of the energy business. They are now in a new business: confetti." —Jay Leno http://politicalhumor.about.com/library/blenronscandal.htm It is a shame that one of the most powerful companies has now gone out of business, had reputations destroyed and used millions of tax payers dollars on court costs; all due not having good business ethics. This paper will show a S.W.O.T. analysis of Enron with their strengths, weaknesses, opportunities and Training.
Strengths
Enron employed the best of the best. Employees had great pride in their company and wanted to see it grow and flourish, they
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(Skilling)
• Nonrecurring transactions such as Enron Broadband Services' video-on-demand venture with Blockbuster accounted for "a fairly small amount" of EBS revenues. (Unnamed conspirator) • Enron reaped huge energy trading profits in California and concealed those earnings in undisclosed reserve accounts. Skilling also knew by late January that Enron may not be able to collect hundreds of millions owed it by California utilities.
• Skilling knew the sale of projected future revenues from the Blockbuster deal amounted to $53 million of EBS' quarterly revenues of $63 million.

• Analyst conference (Jan. 25, 2001) • "Enron Broadband Services and Enron Energy Services are "strong franchises with sustainable high earnings power." (Skilling) • EBS was performing poorly and EBS personnel had recommended shutting down or selling its network; EES was a struggling business owed hundreds of millions by California utilities that it could not collect.

• Analyst call (March 23, 2001) • Enron was "highly confident" of its income target of $225 million for Enron Energy Services. (Skilling)
• EBS was "coming along just fine" and it was not laying off employees but rather "moving people around inside EBS" (Skilling) • EES's management privately was predicting it would take a year or more for

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