The value of generating change
An Enron case study

Page 1: Introduction

There is little doubt that energy is central to our lives. Indeed, it is impossible to imagine our offices, schools or homes without energy. In today’s complex, competitive international market-place, it is essential that energy is provided in the most efficient way possible. Evolving industrial and consumer energy needs require dynamic supply and service organisations prepared to create...
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Page 2: Energy liberalisation and privatisation

In the UK, until the mid 1980s, the electricity and gas sectors were government-owned and controlled. British Gas was the vertically integrated monopoly entity responsible for gas transportation and supply; the Central Electricity Generating Board the monopoly entity responsible for electricity generation and high voltage transmission. Twelve Regional Electricity Boards, each with a regional...
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Page 3: Enron makes the change

Enron first experienced and made the transition from a protected to a competitive market with natural gas in the USA. In the early 1980s, buying and selling gas in the USA was a very complex process, involving a vast network of independent pipelines which distributed gas from the producer’s gas field to the final end user. The logistics of this were complicated and costly. When the...
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Page 4: The importance of entrepreneurship

Entrepreneurship involves being creative and taking intelligent risks in order to create purposeful change. It means taking the lead rather than following others. Enron thrives in dynamic marketplaces where customers have choice. They can choose whether they want power now or later, whether they value fixed or flexible prices, whether it is practical to invest in solar panels or whether they...
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Page 5: Corporate structure

Enron’s organisational development follows a pattern suited to a dynamic organisation. The organisation initially started out as a pipeline company. However, it has evolved into production, operating, marketing and finance groups. These groups are organised in small business units which compete independently and focus on their individual businesses, yet keep an eye out for synergies.As Enron...
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Page 6: Conclusion

In most companies a good idea is a fragile thing. Enron’s President, Jeffrey K. Skilling, says: “like a lighted match, easily blown out by the cold winds of rigid management” Traditionally, large companies find it harder to embrace change than small, entrepreneurial companies. Enron, however, is an exception. Enron looks for markets which are undergoing change, finds out as...
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Related: Travis Perkins
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