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Executive summary

Its revenues made up US $139($184) billion, assets equaled $62($82) billion, and the number of employees reached more than 30,000 people in 20 countries around the world.

While Enron Corporation was so highly praised by the outside observers, internally it had highly decentralized financial control and decision-making structure, which made it practically impossible to get coherent and clear view on corporations' activities and operations. Of course, the problem was not exclusively due to poor managerial performance, all the departments of the corporation were involved in the ruining corporate ethical values and principles, but executives and managers bear primary responsibility for the absence of corporate culture, clear accountability and transparence of the company. If operations management worked properly, in its full force, and if it was given possibility to work in such a way, there could be a chance of escaping the tragedy.

Enron Corp brief history

Enron Corporation was one of the largest global energy, services and commodities company. Before it filed bankruptcy under chapter 11, it sold natural gas and electricity, delivered energy and other commodities such as bandwidth internet connection, and provided risk management and financial services to the clients around the world.

Enron was based in Houston, Texas, and was founded in July 1985 (though company with Enron name emerged still in 1930 (Swatz, Watkins, 2003)) by the merger of InterNorth of Omaha in Nebraska, and Houston Natural Gas. Enron Company quickly developed from merely delivering energy to brokering energy futures contracts on deregulated energy markets. In 1994, the company started to sell electricity, and in 1995, it entered European energy market. By the middle 2001, Enron employed about 30,000 people globally (McLEan, Elkind,2003).

Questionable accounting methods and techniques provided Enron with possibility to be listed as seventh largest United States company and was expected to dominate the market which the company virtually invented in the communications, weather and power securities (Bryce, 2002). But instead the corporation became the largest corporate failure in the global history and an example of well-planned and institutionalized corporate fraud. Enron became wealthy due to its pioneering marketing and promotion of power and communications bandwidth services and risk management derivatives, including such innovative and exotic items as weather derivatives.

In 1999, Enron launched an initiative of buying and selling access to high-speed Internet bandwidth, and also Enron Online was launched as a Web-based trading site, making Enron e-commerce company. In 2000, the reported revenues of the company made $101 billion. It had stakes in almost 30,000 miles of gas pipelines, either owned or accessed 15,000 miles of fiber-optic network and had stakes in global operations on generating electricity (Thomas, 2002).

In the result, for five years in a row, from 1996 to 2000, Enron was named "America's most innovative Company" by Fortune magazine, and headed the list of Fortune's "100 best companies to Work for in America" in 2000. Enron reputation was undermined by rumors on bribery and political pressure with the objective of securing contacts in South and Central America, Philippines and Africa. The Enron was blamed to use its connections with Clinton and Bush administrations to express pressure in their contracts. The events were followed by a series of scandals involving irregular accounting methods bordering on fraud which involved Enron and Arthur Andersen accounting firm and led Enron on the verge of undergoing the largest bankruptcy in economic history in November 2001 (Emshwiller, Smith, 2001).

Since Enron was always considered a blue chip stock, the bankruptcy was a disastrous and unprecedented event in the global financial world. Enron's downfall was definite when it was found out that a considerable share of its profits resulted from deals with so-called special-purpose entities, limited partnership under control of Enron. It resulted in the possibility of not reporting many of the company's losses in its financial statements. The final plan of Enron's bankruptcy included creation of three new businesses which would be spun off the company.

The reorganization process started in 2003 with the creation of three companies - CrossCountry Energy, Prisma Energy International, and Portland General Electric. CrossCountry Energy was sold to CCE Holdings L.L.C., with the money to be used for the repayment of the debts, while Prisma Energy International and Portland General Electric should emerge as independent companies descendant of Enron (Swatz, 2003).

Operations management scope of functions

To understand the reasons of this bankruptcy and the level of managerial implication in the quality performance of the company, particularly that of operations management, it is necessary to outline the main functions of operations management and impact it should have of functioning of the organization.

The principal task of operations management is effective transformation of inputs into "desired outputs" of the company (Shafer, 1997). The outputs are traditionally understood in manufacturing and profit-making context within the organizations. But recently it has been recognized that operations management is a discipline which is not limited with such narrow functions; it can be deployed in practically any area where the organization aims at achieving its objectives (Barnett, 1996). For instance, non-profit or public sectors have to learn to optimize their internal operations and processes in the situation of limited resources; service companies come to conclusion that by reappraising their delivery process they can revolutionize and significantly improve their approach to manufacturing companies and their marketplace. Robin Wood (2001) gives the example of such operations management implication in Daewoo company, which understood that it can specialize and differentiate its product by adding definite bundle of benefits to its product which includes additional supporting services. Operations sector is the heart of these changes that are made by leading companies to improve their performance and increase customer base.

The survival of commercial company depends on ability of the organization to focus and shape its operational resources to meet the expectations of its stakeholders: customers, employees and shareholders, expressed in organizational strategy (Russel, 1995) . Irrespective of economic sectors the company operates in, the ability of operations management of this company to fulfill those above-mentioned tasks depends on their understanding that it is necessary to make trade-offs. They cannot avoid the situation of working under constraints and have to understand their capabilities and constraints to provide significant inputs into strategic decision-making process involving further resources of the organization.

Operations managers in the organizations are not empowered to make strategic decisions, but they play important role in shaping the organization's strategy and contribute to the strategic thinking ( Pasternack, Viscio, 1998). Operations managers should be able to translate strategic aims and objectives into clear operational objectives and actions and to implement, design and improve the products of the company themselves and the processes of their delivery. They have to know how changes incorporated to external factors influence the operation and how changes in one aspect of the operating system influence other aspects.

Also, operations managers need to know how technological changes impact organization's capability of delivery, and to incorporate their conclusions into strategic process (Peters, Waterman, 1982). Therefore, the heart of operations thinking includes the ability to think dynamically and systematically across time and space (Miller, 1998). Besides traditional tasks of operation management, new perspectives and objectives emerge connected with the emergence of new trends and developments of operations management, such as total quality management, shop floor control, global supply chain management, manufacturing planning software, and others.

Total quality management has become one of the most important developments of the operations management. The quest for higher level of products and services quality is caused by the globalization of markets, on the one hand, and increasing litigation over service or product failure. The relationship between quality and market share performance is doubtless. Those firms that fail to understand the issue of quality find themselves on the bottom of their industry hierarchy. A significant share of the responsibility for quality standards rests on the operations manager. Global supply chain management is another very important component of operations management. The world economy is becoming more global than ever. Looking for lower production costs, more flexibility and local risk reduction, companies are seeking to outsource and produce services and products on global scale (Heizer, 2004). Operation managers are responsible for fulfilling the task. Project management is yet another task of the operations management department. Operation managers bear responsibility for numerous projects which range from considerable capital projects to specific ones such as installation of new information system.

Effectively managing projects involves fulfillment and delivery them in timely manner and within the budget (Stevens, 2001). In a word, operations management is indispensable component of the organization, since it fulfills numerous important functions of the company. Operations manager handles daily running and functioning of the organization.

The implication of poor managerial performance for the collapse of Enron Corporation

Now it is necessary to find out and analyze whether operations management of Enron Corp performed all the functions mentioned above and what was the quality of their activity.

The Enron did have operations management department, which, according to their official source, fulfilled the following functions: setup accounts and notify utilities, agency agreement from customer, verify the format of invoice, setup invoice data transfer, test algorithms of invoice and file transfer to the customer, determine the reporting requirements of the customer (Enron Energy Services, 2000). As it is seen from the source, the functions of very operations management department are very limited. There are other management departments which perform the functions of operations management stated above: operations facility management, commodity management, energy asset management, financial operations, and capital management. Though, most of functions performed by these departments, according to the source, are purely executive and lack integration, systematic vision, responsibility, control and creative aspect. Besides limited scope of functions assigned to operations management in Enron Corporation, another important point concerns the quality of their performance and overall corporate culture and atmosphere created within corporation. As it was mentioned above, ideally, the functions of operations management include creating ethic values, integrity, competence and clear accountability within the organization. Enron's management failed to comply with these tasks.

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Sunroom enclosures are visually appealing due to their unmatched style and design. There are four different kinds of enclosures that you can choose from conservatory, curved, cathedral, and straight. Finding the right design for you and your home is very important. Then you are ready to choose your materials, color, and more.

Sunroom enclosures are not made all of the same. The different designs and styles give you an option to determine which one will look best with your homes design and style. Straight enclosures work best if you are enclosing your patio. They are normally constructed of aluminum on the inside and outside and they may have wooden beams that make up the ceiling. There are a wide range of different ways that a Straight sunroom enclosure can be built. Solid or glass roofs are one option that you will have, as well as aluminum or wooden framing. If you want your enclosure to mess with your house that has vinyl siding, then you can even have the enclosure vinyl sided if you so choose. The options and designs are endless.

Curved Eave sunroom enclosures feature a more symmetrical look that gives added visual appeal. One side of the enclosures wall curves up to form the ceiling and roof. Glass that has a special coating is used to help make the room more energy efficient.

A Cathedral enclosure has a vaulted or sloped roof with a beam that runs down the center. Many different materials are commonly used, including aluminum. The aluminum makes up the outside and inside walls with a roof that is insulated to help make the entire room more able to handle the different weather situations. There are big ranges of different windows to choose from for your sunroom, including windows that can be raised and lowered or fixed windows. It is entirely up to you. Doors are an important part of your room and you can choose to use French Doors or sliding doors, whichever you prefer.

Conservatory enclosures feature glass panels that make up the roof that come together at a bean in the center. This is the most light-filled of the sunroom choices. There are many different styles that you can find in this style, including the Georgia, Mediterranean, Pavilion, Victorian, and Edwardian. These are made to be energy efficient with the glass choices and the thermal panels. You will also be able to add details like finials, molding, and windows.

Choosing the design of your sunroom enclosure will take you some time and thought, but you will be amazed at the extra floor space and the added value that it can add to your home.

Adam Peters is the editor of different articles published at http://www.allsunrooms.com with reference to DIY . A website with tips on sunroom enclosures.

Caring for both trees and shrubs is basically done in a very similar manner. The one major difference though, is that a tree usually only has one trunk, whereas a shrub can have several stems or trunks. And the planting of both trees and shrubs can be a little different too, so let's discuss the best way to plant shrubs in your home landscape.

It wasn't all that long ago that getting shrubs that were not only beautiful but also hardy was difficult to do. But today, there are many more varieties available including hybrids that greatly expand the choices for most do it yourself home landscapers. You can now find appropriate shrubs that provide outstanding color, bloom in various seasons, cover spots that grass simply won't grow in, and accomplish other purposes in your landscape design, no matter what region of the country you live in.

Shrubs stake out the middle ground in landscaping designs, as they are larger than flowers and yet smaller than trees. So they aid immeasurably in providing a varied and balance landscape theme. They can help soften the lines of a home, they can act as a decorative background for flowers, and they can even hide some things that you don't want to be seen. On top of that, they add character and shape to a yard, allowing you to trim and cultivate them as you wish. They also tend to be able to grow and reach maturity very rapidly, and last a long time.

To plant shrubs, it's usually best to choose early spring as the most favorable time. This gives the shrub a good long stretch of favorable weather in which to get well established. If you happen to live in parts of the country that are more mild year-round, you may be able to extend that planting season even into the wintertime. But generally speaking, for most parts of the country, springtime is when you want to start thinking about planting your shrubs for the next year.

The main reason for planting failure is dry roots and there are steps that can be taken to solve that After getting your shrub from the nursery, be sure to water it as soon as you can. It's often best to keep them in shade at least at first, mulch the ground around them, and you may even decide to prune back the shrub at this point, depending on the age of the plant. The older the shrub, the more it will need to be pruned back initially. That's why you often come out ahead of the game if you just buy less expensive, smaller shrubs to begin with. And although some plants like forsythia and azaleas can be moved while they are in flower, you should wait to move most shrubs until the flowering is done.

For some shrubs, who lose leaf moisture in the wintertime, you will need to be sure to water in the fall before the ground freezes. These include azaleas, rhododendron, and certain broadleaf evergreens.

Some folks are very hesitant to prune shrubs, but actually this helps keep them young and vigorous. Try to prune out the older branches first, and cut as close to the ground as you can. Many shrubs need pruning almost every year, especially if they have dead branches left over from wintertime, such as hydrangeas, deutzias, and privets. Others just need to head their flower heads pruned off after blooming like azaleas, magnolias and rhododendron.

With just a little bit of time and attention as mentioned above, you can insure that your shrubs stay looking beautiful year in and year out, and always reflect well on your landscaping design.

Thad Pickering writes on many consumer related topics including home improvement. You can find free landscaping ideas and front yard landscaping ideas by visiting our Home Improvement website.