Movie Analysis Essay on Enron: The Smartest Guys in the Room

Introduction

Enron is a company based in Texas which faces current financial crises. Enron film: The Smartest Guys in the Room, there is a window in the scandal that became a main legislative action as it associated with standards and financial oversights. In 2001, Enron Company, after ten years, filed for bankruptcy of questionable economic activity. The failure of the company was the largest corporation struck by bankruptcy and worked as an eye-opener experience that pushed for the ethical evaluation of accounting standards by the American government for financial reporting. The film described the tragedy as a result of individuals who positioned themselves to experience significant failure, .and the event of Enron was pride.

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What Caused Failure

The company shareholders and analysts stated it was challenging especially on financial statements. The business environment was unethical since there were limitations in the accounting plan statement. Fastow with other executive members was said to have made the together the balance sheets.

Revenue recognition was one issue that made Enron and others that offered their services like companies who supplied energy to the company are said to have enjoyed the company's benefit. The issue jeopardized and contributed to the failure of the company. Also, the accounting market to another led to Enron failure. The false listing of gas suppliers not receiving money from the company was the primary reason for the accounting market (Gillespie, 2004).

Also, when skilling entered the firm, market to market trading was introduced to Enron. He ordered Enron to adapt to trading, especially in accounting.

Ways to Prevent

Excellent communication internally, and the company was one way to prevent failure. Poor communication led to company scandal thus failing. The downfall of the Enron company was due to lack of proper communication channels though after improving on this sector, Enron was able to operate normally without failure after the management of the company excluded the weakness.

Also, the firm should set tight rules to improve the company's growth. Enron management, after the scandal, the company decided to set regulations. The tighter rules and rules led to the proper running of Enron. Research shows that the United States intervened as the organization was about to collapse and set up rules to constitute the company's financial progress (Gillespie, 2004). More job opportunity creation and the right incentives would have encouraged the growth of the company if the regulations were set on time.

What a Manager Could Do Differently

The manager should have handled the issues in acute and close management. In an organization, every individual holds a significant part to play in the growth of a firm. To ensure the proper functioning of a company, the manager should ensure the effective running of the business. As a manager in Enron, I would keep a close relationship with my employees to make an excellent follow up of the activities as well as making sure every person performs the assigned task perfectly. Organizations should use advanced technologies to ensure proper management as well as ensuring the company is advanced.

Why the Films Are Important To Characters

Our society today needs to unquestionably and believe in rich people. Trollope and Dickens made the phony billionaires, Mr. Melmotte and Merdle would have appreciated lay and skilling as they understood the dizzying plutocrat's attractions who seem to be heading for the stars (Parker, 2005).

Bethany McLean's triumph was not in her toughness in investigations. It showed desperately quality required in all journalism kinds: a refusal to take individuals at their estimation. The movie has annoying characters about our prosperity of Enron. Middle-class people are spending and borrowing more as well as unworried about the future as the increasing prices buy us trouble. In the US, the company's less fortunate pensioners are making ends meet by looking for different ways.

Conclusion

In conclusion, the failure of Enron's company was due to bad management from the firms. Also, greed contributed to the company's failure as people contributed their ideas without direct consultation from the board. These failures from Enron Company serve as a lesson to organizations or individuals on how to prevent a company from collapsing due to lack of cooperation and poor management.

References

Gillespie, Daniel T. "The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron." Academy of Management Executive 18.3 (2004): 163-165

Parker, Larry M. "The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron." Research in Accounting Regulation 18 (2005): 353-356