HI! Thanks for the very interesting question.
Too much attention has been focused on Enron’s accounting practices
that the main argument for its collapse, the viability and market of
its products has not been mentioned on a scale at par with the more
controversial bookkeeping issue.
The following article from the Houston chronicle provides a summary of
product failures, which contributed to the collapse of Enron.
“Among Enron's most glaring failures is the Dabhol power project in
India, which ran into trouble before construction even started.”
“Enron poured $1.2 billion into the project, which was halted after a
change in India's ruling party.”
Another was the water and wastewater business called Azurix which ran
into stiff competition from other multinational companies.
“Azurix contributed a sizable share of the $1.01 billion in losses
that Enron announced in its disastrous third-quarter earnings report
last year.”
It also acquired Portland General Electric for its fiber optic
ventures. It would be the starting point for trading broadband network
time.
“The market for broadband access, however, was too thin to trade
profitably, and the business became a heavy drain on the company.”
“The myth of Enron”
http://www.chron.com/cs/CDA/story.hts/topstory2/1227589
But some analysts have a different view and it would be an injustice
to your research if I do not include them. According to them it was
the greed and the audacity of Enron’s bosses to hype up their company
and their lifestyle which really crippled the company. The products
were good and now different companies shall be reaping the benefits.
The next article cites different highly respected professionals and
financial publications about their views on Enron’s collapse and the
energy markets. The document is in PDF file so you will need the Adobe
Acrobat Reader to read it. In case you haven’t installed it yet here
is a link so you could download The Adobe Acrobat Reader
(http://www.adobe.com/products/acrobat/readstep2.html).
“At this point, the facts suggest that Enron’s collapse is primarily a
financial – and not an energy-related – story about a single company.”
“The business fundamentals that drive competitive bulk power markets
have not changed in the wake of Enron’s fall. Significantly, contracts
are being written, other suppliers are taking over, and there have
been no price spikes or supply interruptions to customers. Clearly, it
would be a mistake to let Enron’s problems derail competitive
electricity markets.”
“Don’t Let Enron Derail Competition”
http://www.eei.org/issues/news/pdf/Enron_Quotes.pdf
Search terms used:
Reasons “Enron collapse” product
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
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Regards,
Easterangel-ga |
