Monday, May 25, 2020
The film GATTACA and the short story, Ã¢â¬Å"Nine Lives,Ã¢â¬ exemplifies the ethics of altering human life at the genetic level, through techniques of genetic engineering. Throughout GATTACA, the ability to create improved, even superior forms of human life as a positive development through eugenics is shown as well as arousing questions about the moral implications of such engineering. The main protagonist in GATTACA, Vincent Freeman, battles with the discrimination of being an Ã¢â¬Å"invalidÃ¢â¬ in a world of Ã¢â¬Å"validsÃ¢â¬ and comes to realize that he is not an inferior being in the midst of an altered humanity. In Ã¢â¬Å"Nine Lives,Ã¢â¬ a lone survivor of the ten genetically engineered clones of John Chow struggle come to understand itself in relation to unaltered humanity and its individuality for the first time in its life. A dystopian society is produced when unaltered humans and genetically engineered beings coexist and interact with one another due to nefario us social practices such filtering menial jobs only to Ã¢â¬Å"invalidsÃ¢â¬ in GATTACA and the emphasis in the value of clones and their worth to society as collective work group rather than focusing on each individualÃ¢â¬â¢s contribution to society. The film GATTACA exhibits the adverse nature of eugenics while Ã¢â¬Å"Nine LivesÃ¢â¬ stresses the importance of individualism instead of collectivism and fend off the need to be reliant on others to feel welcomed in society. GATTACA is well known for its use of eugenics in the film. The film is set in a Ã¢â¬Å"not tooShow MoreRelatedEssay about Future Concerns - Gattaca and Fahrenheit 4511562 Words Ã |Ã 7 Pagesfrom them. Texts such as the film Ã¢â¬ËGattacaÃ¢â¬â¢, directed by Andrew Niccol and novel Ã¢â¬ËFahrenheit 451Ã¢â¬â¢ by Ray Bradbury explore futuristic societies and the implications that become of their innovation. Although entertaining, texts such as these are didactic and must be taken seriously, as they co mmunicate messages to audiences regarding prevalent concerns and possible futures based on societyÃ¢â¬â¢s choices. Ã¢â¬ËGattacaÃ¢â¬â¢ (1995) directed by Andrew Niccol, follows the story of the underdog Vincent, who is challengedRead MoreComparison Of Frank Herbert s Seed Stock And Andrew Niccol s Gattaca1193 Words Ã |Ã 5 PagesThe societies in both Frank HerbertÃ¢â¬â¢s Ã¢â¬Å"Seed StockÃ¢â¬ and Andrew NiccolÃ¢â¬â¢s Gattaca are much different than society in the real world today. In Ã¢â¬Å"Seed Stock,Ã¢â¬ the sole purpose of the people that were sent to this alien planet was to survive and make the planet like Earth. In Gattaca, a personÃ¢â¬â¢s life revolves around their capabilities and potential due to genetics. In spite of this, survival is not the only thing that governs their life. Both Niccol and Herbert presented the idea that although survivalRead MoreDiscussion of Whether Gattaca Portrays A Realistic View Of The Future And Gene Manipulation1532 Words Ã |Ã 7 PagesDiscussion of Whether Gattaca Portrays A Realistic View Of The Future And Gene Manipulation Media. It controls a lot of what we think, what we believe and so changes our attitude and behaviour towards certain things. It has changed our thinking so much so that we believe almost anything and everything the media say and do. Without the media, life would not be as it is. Newspapers, magazines, television, internet, radio, the lot have very much altered our thinking. Read MoreDystopian Comparisons Essay1431 Words Ã |Ã 6 PagesIn the Book A Clockwork Orange, the short stories Harrison Burgeron, The Lottery and the movies Gattaca and the Truman Show by Anthony Burgess, Kurt Vonnegut, Shirly Jackson, Andrew Niccol and Peter Wier respectively. These pieces of literature(and cinematography) all have a society that controls and manipulates the individual or Protaganist. The society does this because it wants total control over both the individual and the society as a whole. A Clockwork Orange is futuristic look at EnglandRead MoreSymbolism on Gattaca Essay4547 Words Ã |Ã 19 PagesHollywood-esque Gattaca is a prophetic distopia concerning genetic discrimination in the early 21st Century. A true hero is one who is willing to commit body and soul to achieve a dream, discuss. Gattaca is a provocative science-fiction interpretation of the future of genomics. Andrew Niccols presents us with insight to a pessimistic view of genetic enhancement set in the not to distant future. The film takes us through the journey of Vincent Freeman, and Jerome Morrow who with the valueRead MoreGattaca2632 Words Ã |Ã 11 PagesGattaca Questions Part I Ã (Short Answer) 1)Ã Ã Ã Ã Ã Compare the genetic traits of Vincent and Anton. How are they similar? How are they different? They are tall, brunette and men. They are different because Jerome does not have a heart condition, where Vincent does. Also, I noticed that Jerome is right handed, and Vincent is left handed; this provides symmetry. 2)Ã Ã Ã Ã Ã What does the character Ã¢â¬Å"GermanÃ¢â¬ do for a living? GermanÃ¢â¬â¢s character helps invalids do what they are told they cannot by findingRead MoreStephen Jay Gould And Friedrich Nietzsche1443 Words Ã |Ã 6 Pageslife.Ã¢â¬ (Nietzsche 718) The same goes for hostility, it is in oneÃ¢â¬â¢s nature and religion is stripping us of our instincts. Another triumph is our spiritualization of hostility. It consists in a profound appreciation of the value of having enemies: in short, it means acting and thinking in the opposite way from that which has been the rule. The church always wanted the destruction of its enemies; we, we immoralists and Antichristian, find our advantage in this, that the church exists.Ã¢â¬ The only onesRead MoreDNA as Destiny4239 Words Ã |Ã 17 Pagesdarkly, to deny someone jobs, dates, and meds because their nucleotides dont measure up. Its a scenario Andrew Niccol imagined in his 1997 film, Gattaca, where embryos in a not-too-distant future are bioengineered for perfection, and where genism Ã¢â¬â discrimination based on ones DNA Ã¢â¬â condemns the lesser-gened to scrubbing toilets. The Gattaca-like engineering of defect-free embryos is at least 20 or 30 years away, but Sequenom and others plan to take DNA testing to the masses in just a yearRead MoreThe Process Of Pgd ( Preimplantation Genetic Diagnosis )2501 Words Ã |Ã 11 Pageswill never marry and start a family due to a simple lack of women. This idea and the increased competition between men for partners can be very distressing and fearful. Additionally, it places women in a unique position of pressure. We can take this story as a potential example of what social and demographic changes could occur if people had more control over the traits of their offspring and cultural pressures were allowed to have a bearing on the greater scale of human genetics. If PGD were freelyRead MoreMedia Magic Making Class Invisible2198 Words Ã |Ã 9 Pagesgives examples as to how the media portrays the poor in a demeaning way. For example, Mantsios says: Ã ¢Ã¢â ¬Ã âThe media routinely centers on the black urban population and focus on perceived personality or cultural traits that doom the poor. Women in these stories exhibit and attitude that leads to the trouble or a promiscuity which then leads to single motherhood, the men possess a need for immediate gratification that leads to drug abuse or and unquenchable greed that leads to the pursuit of fast moneyÃ ¢Ã¢â ¬Ã (Media
Tuesday, May 19, 2020
Ah, funding, what a topic. IÃ¢â¬â¢ve spent a lot of time searching for the simplest way to get money for starting a business because it takes money to turn ideas into reality. IÃ¢â¬â¢ve never been able to find the silver bullet. IÃ¢â¬â¢ve signed up for websites that supposedly connect you with Ã¢â¬Å"angelÃ¢â¬ investors, IÃ¢â¬â¢ve called the SBA for funding, IÃ¢â¬â¢ve gone to my bank, and I came up empty handed everywhere. I didnÃ¢â¬â¢t have the proven track record, credit history, or 2 years of profit required to get funded by these institutions. Which sucks because how is a small business start up supposed to show 2 years of profit? I was sleeping on a twin bed on the floor in my friendÃ¢â¬â¢s house when I was trying to get my business off the ground. But IÃ¢â¬â¢ve learned from experience what it takes to get actual money in my hand. Getting investments is a matter of knowing what youÃ¢â¬â¢re talking about. There are people with ideas and there are people with money. They make an excellent marriage but they donÃ¢â¬â¢t often hang out in the same circles. But when they do communicate, they are pulled toward one another because they need each other. The money person wants to feel like they are a part of something unique, exciting, beneficial, and potentially profitable. They might not have the mind to create it but they have the dough to finance it and the idea person needs the money to see their visions actualized. Of course, there are different circumstances and relationship types but letÃ¢â¬â¢s ultimately assume that you have theShow MoreRelatedThe Importance of Getting an Accounting Software Package for Your Business1113 Words Ã |Ã 5 Pages your business will function similar to a machine that been oiled well. It is not easy to do all these but if you are able to perform them well, your business is bound to function well. While it is no easy task to accomplish all these, perform these things well can help much in the smooth operations of your business. And one of the things you need to consider in making your business function well is getting an accounting software package that can meet the different needs of your business. GettingRead MoreShould We Pay The Minimum Wage?1705 Words Ã |Ã 7 PagesWhen deciding on pay rate you have to take into consideration as to where your business is located, are the cooks getting minimum wage or higher, are the hostess getting paid server minimum wage plus tip outs or are they getting the normal minimum wage amount same with bussers, also with management you have to consider people are coming to work for you from somewhere else either in hopes of making more money or to better themselves. Either way you will have to know if you can afford to do what youRead MoreEssay on The Best and Worst College Degrees1030 Words Ã |Ã 5 Pagesto Universities, the majority donÃ¢â¬â¢t even know what they want to be the rest of their lives once they get to college. Common sense would tell us that people would go into the field that paid them the most money, this is not always true. So what are the most popular fields to go into when getting out of high School? We did a little res earch and some comparative analysis, and this is what we came up with. Engineering: Research shows that the third most popular degree in demand is engineering. ThisRead MoreWorking Group And Employees Training1299 Words Ã |Ã 6 Pagesrelated to business. making into company training that makes gets greater, stronger, more complete employees in the direction of in the long run living goals can also get business started greater complex business pleasure. A more pleased worker is likely to not go longer and be more tendency to produce while on limited stretch of time. Carter writer there are a great number of starting points of connected information about training and development for directors of work to control of business trainingRead MoreWhy Owning A Vineyard Is The Right Thing For You And Help You1268 Words Ã |Ã 6 Pagesthere arenÃ¢â¬â¢t many of us who havenÃ¢â¬â¢t toyed on this idea. But anyone who works in the industry will tell you starting your own winery wonÃ¢â¬â¢t be an easy thing to do and the romantic images are hardly a reality. But if something is dream it doesnÃ¢â¬â¢t mean it is impossible. It is possible to start your own winery, you just need to make sure you focus on all the right things and plan your business venture well. This guide will help you consider whether owning a vineyard is the right thing for you andRead MoreCustomer Segmentation : Sustainable And Green Businesses837 Words Ã |Ã 4 Pagessustainable and Green Businesses are businesses that focus on having business that oriented in green products and services. Before starting their business, the company has to get money to fund the business that focus in improving good environment but at the same time have to make profit. The business also can using clean technology and energy efficiency company, which means that they are also taking part in helping climate change. By having business in organic products will also help community to be aware inRead MoreÃ¯Æ'Ë Prepare a Feasibility Report for Starting a Restaurant1174 Words Ã |Ã 5 Pagesfor starting a Restaurant. Restaurant : A restaurant is a place thatÃ¢â¬â¢s offers well prepared food at a certain price that suits to the customers. Before starting a new business many corporation or institute write and make a business plan. In this way we have to make a business plan for starting a restaurant. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. This business planRead MoreTerracycle: Outsmarting Waste1048 Words Ã |Ã 5 Pages Upon what basis did Szaky make decisions throughout the development of the venture? Tom Szaky is an entrepreneur, known for starting TerraCycle, a company that makes consumer products out of waste. Although the environment and the venture itself changed a lot throughout the development, Szaky always remained true to himself. He believed that a waste management business could make a profit and promote environmental protection at the same time. However, gut instincts and being in the right placeRead MoreAn International Food Market That Only Hires Individuals Who Are Unemployed Will Help Combat The Social Issue Of Unemployment1729 Words Ã |Ã 7 PagesThis business evaluation will look at whether or not creating an international food market that only hires individuals who are unemployed will help combat the social issue of unemployment in New Zealand. Unemployment is a huge issue in New Zealand and something needs to be done about it. The idea is to create a market that offers a starting point to the unemployed citizens where they can develop their skills, gain exper ience and finish with a reference and CV. The concerns of two key stakeholdersRead MoreNotes On Exchanging Cash The Outside Exchange Market ( Forex ) Essay923 Words Ã |Ã 4 Pagesrecords expected for retail monetary pros: standard part, little bundles and micro parts. Learners can start with a micro record for as small as $50. Before you begin bouncing in you should familiarize themselves with the business and wording of the Forex market, and if you ve starting now been trading stocks online it should be not hard to start. The accompanying is a rundown of terms you should learn. PIP: The most modest value change that a given swapping scale can make. Since most significant
Thursday, May 14, 2020
Sample details Pages: 5 Words: 1421 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? Mission, Vision, and Values Paper Strategies for Competitive Advantage Mission, Vision, and Values Paper A mission, vision, and values are an essential part of a company and its success. These contribute to the companys ability to reach its goals and objectives. Once these things have been put into place, the organization can develop a strategic plan to guide them in the decision making process. Company Background- General Motors Corporation General Motors Corporation (GM) was founded in 1908. Based in Detroit, it is the worlds largest automaker, and has been the global industry leader in sales for 76 years (General Motors, 2008a) with the United States being its largest national market, followed by China, Canada, the United Kingdom, and Germany years (General Motors, 2008a). Today, the company employs about 284,000 people worldwide and manufactures cars and trucks in 33 countries. In 2006, the company sold 9.1 million cars and trucks globally under its many brands, which include Buick, Cadillac, Chevrolet, to name a few (General Motors, 2008a). GM has ventured into partnerships with many automobile manufacturers around the world. The company is currently the majority shareholder in GM Daewoo Auto Technology Co. of South Korea (General Motors, 2008a). GM has collaborated with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan with product, powertrain, and purchasing (General Motors, 2008a). The company has also collaborated with DaimlerChrysler AG, BMW AG of Germany, and Toyota Motor Corp. on advanced technology and ventured in vehicle manufacturing with several automakers, such as Toyota, Suzuki, and Renault SA of France years (General Motors, 2008a). GM currently sells its genuine parts and accessories under many brands including GM Goodwrench, and ACDelco brands (General Motors, 2008a). With all of GMs success in the past, the company is facing challenges during this time of economic hardship. The companys market valu ation has decreased to $5.9 billion and its stock prices are at its lowest in 50 years (Lowenstein, 2008), which is evident with a closing price of $9.69 on July 10, 2008 (Yahoo Finance, 2008a). The skyrocketing price of oil seems to be the immediate cause of GMs problems, decreasing the sale of its sport utility vehicles and trucks (Lowenstein, 2008). The automaker is potentially looking at more layoffs and speculation of a possible sale of Buick and Pontiac (Lowenstein, 2008), however GMs vice president states that Hummer is the only brand the automaker is considering selling at this time (Yahoo Finance, 2008b). Mission/Vision Statement The mission/vision of GM is Ã¢â¬Å"to be the world leader in transportation products and related servicesÃ¢â¬ (General Motors, 2008b). Through continuous improvements driven by teamwork, integrity, and innovation, the company has earned its customers trust and enthusiasm. With all the competition and the advancement of hybrid and alternati ve fueled vehicles, GM should look to being a leader of innovation. With this in mind, the mission statement could read GM will become the world leader in quality, innovative, and cost efficient products. The mission is for GM to become the auto industry leader in sales and market share in the global market. Company Values GM has six core values in which employees are to use in conducting daily business practices (General Motors, 2008c). These core values consist of continuous improvement, customer enthusiasm, innovation, teamwork, and individual respect and responsibility (General Motors, 2008c). These values must portray an image to the companys consumers that it values their needs and wants. With this said GM should add customer value and thinking green to its core values. This measure would show the company is focused on achieving high levels of customer satisfaction by providing innovative products that offer customers more choices with alternative fueled vehicles. Thinki ng green will show the company is concerned with doing right by the environment How Mission, Vision, and Values Aid in Reaching Desired End State Mission/Vision In order for GM to achieve its vision, the company understands that many issues must be addressed in order to attain its many goals. In order to become a more sustainable company, GM recognizes the importance of integrating economic, social, and environmental objectives into its daily business objectives and future endeavors. The future success of the company partly depends on technology, innovation, and partnerships (General Motors, 2008b). With technology, GM can efficiently address climate changes and fuel efficiency through its products. By accelerating the development and deployment of new technology, GM is able to improve its existing technology. Innovation provides the company with the tools needed to develop new ways of operating as a company. With increased competition in the global industry, innovation is critical in the future success of the company. In order to continue being responsive to the stakeholders needs and concerns and create a sustainable future, GM understands the importance of continuing to build strong relationships its employees, industries, governments, markets, and communities (General Motors, 2008b). Values GM is based on is six fundamental values.Ã With these values, the company has adopted and endorsed principles, such as the GM Environmental Principles and the Global Sullivan Principles (General Motors, 2008c). These principles are consistent with the companys values and serve to inform its strategies. The company states, Ã¢â¬Å"These strategies drive our behaviors and actions, which produce the results that matterÃ¢â¬ (General Motors, 2008c). Components of the Strategic Management Process Needing to be Analyzed Strategic planning involves the decisions and actions needed to formulate and implement plans designed to achieve the companys goal s (Pearce Robinson, 2005). It encompasses long-range planning, with an increased emphasis on environmental forecasting and external considerations in formulating and implementing plans. There are multiple opportunities available to GM to deal with the current trends and threats in the automobile industry. In order to deal with them, the company must clearly identify its strengths and weaknesses. The auto industry as a whole faces issues with the rising fuel costs, as well as political and environmental issues with the rage of going green. As competition increases, there will be an even greater demand for oil. Although GM has a global presence and continues to expand in other markets, the company can reduce more operational costs by eliminating vehicles that are to similar and brands that are not selling. The company can use the savings to invest in further development and production of alternative vehicles that are more fuel-efficient. Strategy Effects on Leadership, Culture, an d Stakeholders There will be numerous affects on the GMs leadership, organizational culture, and stakeholders after implementing the new strategy. Leadership will have to devise an effective method of getting the work done effectively and efficiently to make the new strategy work (Pearce Robinson, 2004). This will entail a plan to organize and educate all staff throughout the organization about accomplishing the mission, roles of leadership, and specific values that will guide the everyday activities. Leadership will also have to assess the competition and address the needs of their customers. In addition, commitment must be gathered amongst the organization and stakeholders to embrace change and implement strategies that allow the organization to be competitive. The stakeholders will face the decisions to accept or reject the new strategy. The organizational culture should be established to provide meaning, direction, and a basis for action (Pearce Robinson, 2004). The organiz ation would benefit if leaders promote and identify key themes and dominant values within the organization to reinforce competitive advantage they seek to maintain and build (Pearce Robinson, 2004). Conclusion GM and the automobile industry as a whole is experiencing tough times, however, there are many opportunities available to GM. The company now has an opportunity to expand market share and once again be the leading automotive manufacturer. The company must look at the trends and threats as new strengths and opportunities by developing and implementing a strategic plan that best positions GM to deal with the threats within the auto industry. References General Motors. (2008a). About GM: Company profile. Retrieved July 10, 2008, from https://www.gm.com General Motors. (2008b). Sustainability and GM: Vision and Strategy. Retrieved July 10, 2008, from https://www.gm.com General Motors. (2008c). 2005/06 corporate responsibility report. Retrieved July 9, 2008, from https://www.gm.com Lowenstein, R. (2008). Siphoning G.M.s future. New York Times, p. A.21. Retrieved July 10, 2008, from ProQuest database. Pearce, J. Robinson, R. (2005). Strategic management: Formulation, Implementation, and control (9th ed.).[University of Phoenix Custom Edition e-Text]. New York: McGraw-Hill. Retrieved July 10, 2008, from University of Phoenix, rEsource,Ã MBA/580- Strategies for Competitive Advantage Web site. Yahoo Finance. (2008a). General Motors Corporation (GM): Historical prices. Retrieved July 12, 2008, from https://finance.yhoo.com/ Yahoo Finance. (2008b). GM reassures dealers only Hummer brand is for sale. Reuters. Retrieved July 10, 2008, from https://biz.yahoo.com DonÃ¢â¬â¢t waste time! Our writers will create an original "Mission Vision Values" essay for you Create order
Wednesday, May 6, 2020
INTRODUCTION Anthropogenic CO2 release into the atmosphere has led to increasing temperatures in the atmosphere and in the ocean (CITA). Greater amounts of CO2 is causing the oceans to become more acidic (Caldeira Wickett, 2003; Ross et al., 2011). Oceans capacity to absorb CO2 from the atmosphere is making them become more acidic (Caldeira Wickett, 2003; Portner, 2008) OceansÃ¢â¬â¢ average surface temperature are predicted to rise up to 1.5 C by 2050 and 3 C by 2100 (Donelson et al., 2011; PONER MAS CITAS), simultaneously oceansÃ¢â¬â¢ surface pH will decrease from a level of 8.1Ã¢â¬â8.2 by 0.3Ã¢â¬â0.5 units by 2100 (pH 7.6Ã¢â¬â7.9) and 0.7Ã¢â¬â0.77 units by 2300 (pH 7.33Ã¢â¬â7.5) (Caldeira Wickett, 2003; Donelson et al., 2011). These variations in theÃ¢â¬ ¦show more contentÃ¢â¬ ¦Elevated temperatures aggravate oxygen limitation by leading to a higher demand of it from species and by reducing its solubility causing fish with larger individuals to be more thermally sensitive to oceansÃ¢â¬â¢ warming (Neuheimer et al., 2011; PÃ ¶rtner, 2008; PÃ ¶rtner Knust, 2006; Rodnick et al., 2004). In addition eggs and larvae of some fish species have been observed to have narrower thermal windows. In larvae this is due to their small body size, higher metabolic rate, and lower energy reserves (PÃ ¶rtner Farrel, 2008; Rijnsdorp et al., 2009). If all size groups are affected within a population, abundance, recruitment success and productivity can be negatively affected (Neuheimer et al., 2011; PÃ ¶rtner Knust, 2006). Some species have the capacity to acclimate to changes in temperatures. Acclimation is the organismsÃ¢â¬â¢ capacity to modify phenotypical traits that alter their physiology, behaviour or morphology to fit the environmental conditions (Donelson et al., 2011). According to Agilleta (2009, in Donelson et al., 2011) there are two types of acclimation, reversible and developmental. Reversible acclimation refers to the controlled responses to daily or seasonal environmental fluctuations; while developmental acclimation involves the permanent
Schizophrenia Xavier Pizarro December 3, 2016 Monroe College Psych. Of Abnormal Behavior Abstract This essay will be tackling the topic of Schizophrenia and how it not only effects people but the many different treatments they can choose from and have to continue to go through for a majority of their lives. It will also show some statistics and some facts you may or may not know but hopefully it will open up some doors you havenÃ¢â¬â¢t been through and answer any potential question you might have about this mental disorder. Although I may not have any personal experience with the mental disorder I will be covering in depth what this disorder is and the weight it carries on the people who have it so that you may have a more better idea of the reality of schizophrenia. Schizophrenia Definition Schizophrenia is a disorder Ã¢â¬Å"that affects a personÃ¢â¬â¢s ability to think, feel and behave clearly.Ã¢â¬ People with Schizophrenia often have trouble perceiving reality correctly and will claim to often hear or see things that are not truly there. The exact one cause of this disorder is not entirely known but it is believed that it takes a combination of ones genetics and environment to trigger the mental disorder. It is also believed that taking mind-altering drugs also increases the chances of schizophrenia and if you start younger it further increases the chance of experiencing symptoms like delusions and hallucinations. Living with a mental disorder like schizophrenia can lead to living a veryShow MoreRelatedSocial Stigma Associated With Mental Illnesses1725 Words Ã |Ã 7 Pagestreating people with schizophrenia by heavily sedating them with meds humane, and does it give them a fair shot at life? I believe that in todayÃ¢â¬â¢s day and age in society, there is a negative social stigma associated with mental illnesses, specifically Schizophrenia, and that not a lot of time, thought, or effort goes into getting these people the help they so desperately need, to ensure that they can still live a healthy life. When it comes to the treatment options for people with Schizophrenia, thereRead MoreSymptoms And Symptoms Of Antipsychotic Medication1497 Words Ã |Ã 6 Pages Because schizophrenia manifests itself as a blend of a thought disorder, a mood disorder, and an anxiety disorder, a mixture of antipsychotic, antidepressant, and antianxiety medication is used to treat it. One main type of antipsychotic medication is traditional, such as chlorpromazine, haloperidol, and fluphenazine. These medications have been present since the 1950 s, and they are most effective for treating positive symptoms because they block the dopamine receptors. Dopamine is a neurotransmitterRead MoreExplo ring Schizophrenia Essay1397 Words Ã |Ã 6 PagesExploring Schizophrenia A disease that leads to more suicide deaths than AIDS, SIDS, and MS combined is present in one in one hundred people globally. Schizophrenia is prone to lead to long-term disability, unemployment, drug and alcohol abuse, and family trauma. Ten percent of all patients commit suicide. Schizophrenia is an infamous disease attacking the American population. What is schizophrenia, how is it caused, what does it do, and who does it effect? OneRead MoreSymptoms, Causes, And Treatments Of Schizophrenia1702 Words Ã |Ã 7 PagesSymptoms, Causes, and Treatments of Schizophrenia Cassidy Echalico Florida State College at Jacksonville Symptoms, Causes, and Treatments of Schizophrenia Schizophrenia is a stigmatized disease that labels victims as crazy. One percent of people develop schizophrenia in their lifetime; more than two million Americans suffer from schizophrenia in a given year (Spearing, 1999). Although schizophrenia affects men and women equally, it often appears earlier in men than in women; Men are generally affectedRead MoreA Beautiful Mind Is A Movie Based On The Life Of Mathematician1310 Words Ã |Ã 6 Pagesthe life of Mathematician Dr. John Nash. Through Dr. Nash, I will explore the causes, effects, and treatment of paranoid schizophrenia. To begin to understand this disorder of paranoid Schizophrenia we need to know how this debilitating mental disorder works. Schizophrenia is a long-lasting, severe and disabling mental disorder. Normally, schizophrenia victims experience non-existent external voices. At times people suffering from this condition may find themselves to be extremely jumpy and sometimesRead MoreSarah and Angela The Many Misconceptions and Misunderstandings of Schizophrenia Misunderstood with1200 Words Ã |Ã 5 PagesAngela The Many Misconceptions and Misunderstandings of Schizophrenia Misunderstood with the assistance of popular stigmas and stereotypes, schizophrenia and its severity is often degraded and overlooked by the public. Wrongly feared and shunned, individuals with schizophrenia have too commonly been judged throughout human history and even today. Many aspects of the disease are failed to be truly understood and represented, from the effects of the disease to the availability of treatment. FavoredRead MoreJohn Forbes Nash, Jr.1739 Words Ã |Ã 7 PagesPrize in Economic Sciences. In 1959, while he was teaching at Massachusetts Institute of Technology (MIT), he displayed some symptoms of Paranoid Schizophrenia. He suffered from hallucinations and delusions. Once he said that he has encrypted messages from outer space. People thought it was a joke, but they didn t know that he was suffering from Schizophrenia. After his illness, he resigned from MIT and went to Europe. When he came back, he mostly hanged around Princeton campus and wrote about himselfRea d MoreHow Schizophrenia Affects The Lifespan1595 Words Ã |Ã 7 PagesHow Schizophrenia affects the Lifespan 3 How Schizophrenia affects the Lifespan Schizophrenia is a mental illness that inhibits a personÃ¢â¬â¢s ability to think clearly, manage their emotions, make their own decisions, and associate with others. It is a complicated, long term illness that affects one percent of Americans. Even though Schizophrenia can occur at any age, it is more common forRead MoreSymptoms of Schizophrenia Essay1657 Words Ã |Ã 7 Pagesmental illness during the course of their lifetime (Saha, Welham, Chant, McGrath, 2008). Schizophrenia continues to develop new challenges today and continues to be a complex mental illness. It is a brain disorder that can happen to anyone occurring in any culture, affecting men and women equally and all areas of functioning, including thought, emotion, perception, and behavior. Most commonly, schizophrenia strikes a person between his or her late teens and early 20s. Nonetheless, it can affectRead MoreSchizophreni A Mental Disorder Essay1427 Words Ã |Ã 6 PagesIntroduction Schizophrenia is a mental disorder that often appears in someoneÃ¢â¬â¢s early adulthood stage, but it can emerge at any point of time in life. This disorder affects the brain and is considered as psychosis, which is a type of mental illness that makes people with it unable to differentiate between reality and imagination. The first person to identify schizophrenia as a mental illness was German physician Dr. Emile Kraepelin in 1887 and categorized it as dementia that occurs early in life
Questions: 1. Relationship between Strategic Management and Leadership at McDonald? 2. Application of Management and Leadership Theory to support McDonalds decisions? 3. Assessment of the current leadership requirements of Mc Donald? Answers: Introduction Leaders in an organisation are known for applying strategies aimed at leading the entire organisation to higher level of success. Strategic management and leadership are closely integrated terms as they imply the attainment of organisational goals through the leaders applying their leadership abilities in strategically managing organisational resources. The leaders are required to apply different important leadership styles aimed at achieving the strategic organisational goals in a positive manner. However, a combination of both the management and leadership approaches need to be considered by the leaders so that they can ensure the positive accomplishment of organisational goals. It is not only the consideration of appropriate leadership styles, but their appropriate application is also quite crucial from the point of view of accomplishing organisational goals in a highly efficient manner (Northouse, 2012). This report is aimed at analysing different important aspects related to leadership and management at McDonald so that the strategic organisational goals are positively accomplished. In accomplishing the analysis, the focus will initially be towards understanding the relationship that exist between strategic management and leadership at McDonald and this is followed by an application of management and leadership theories in supporting organisational decisions. The analysis will also include an assessment of the leadership requirements at McDonald, and finally, there will be a critical analysis in relation to planning and developing leadership skills within organisation. 1.Relationship between Strategic Management and Leadership at McDonald a. Link between strategic management and leadership and impact of leadership styles on McDonald Martin (2006) stated that strategic management is the process of identifying the major organisational objectives, policies and plans that will help the organisation in attainment of the long-term profit levels. Strategic leadership is necessary for the attainment of the strategic objectives because the strategic leadership tactics involves the use of proper vision and motivational skills to ensure timely attainment of the strategic objectives. DuBrin (2008) stated that strategic leadership is the process of taking responsibility for the future and the present strategic objectives of the organisation. Thus, the primary goal of a strategic leader is to evaluate the business conditions, analyse the external and internal business environments and lead the employees as per the changing global trends. As per Forbes, the market share of Mc Donald in USA, has decreased to 22.1% due to the high saturation of the market and the presence of the large number of competitors like KFC, Burger King etc. Thus in order to increase the market share Mc Donald has adopted the following strategies: Internalisation and focus on sale of products in emerging markets (Cameron, 2012) Offering a wider variety of food for attracting of more customer segments Innovating the interiors of the stores and making the stores more visually attractive Introduction of the niche products like Chicken McBites in the global market Sperry (2013) stated that the leadership style determines the way in which the strategies of the organisation are to be achieved. For the strategic development of Mc Donald, the retail food chain needs to adopt different leadership styles suiting the different strategic situations within the company. The major focus of the leaders within Mc Donald should be on the adoption of the situational, persuasive and participative leadership style. In the present context, Mc Donald operates based on democratic leadership style. The open culture within Mc Donald has helped the food chain to maintain work flexibility and reduce the communication gap between the employers and the employees. However, Schein (2010) argued that in order to fulfil the strategic objectives concerning the global expansion and the innovation with the product line, Mc Donald will required in corporation of innovative leadership, adaptability skills and persuasive leadership style. b. Evaluation of adoption of leadership styles in different situations Cameron (2012) stated that apart from the democratic leadership style, the leaders within Mc Donald should adopt different situational leadership style to solve the strategic goals. For focus on internalisation and emerging markets, the management of Mc Donald should adopt the global and charismatic leadership style. For attainment of success in the emerging markets, the management at Mc Donald needs to adopt a global leadership strategy. Wood and Brotherton (2008) stated that a global leader should have prior industry experience, global strategic thinking, good forecasting ability, flexibility and should be highly sensitive to cultural diversity. Mc Donald has also adopted innovative strategy with respect to introduction of new products within the existing product line. McDonald has strategized to introduce new products like McBites, which are comparable to chicken popcorns of KFC (Goodridge, 2006). The innovation strategy needs to be implemented long with a process of change management within Mc Donald. Thus, the adoption of persuasive leadership style is necessary in this context. The adoption of these skills will help the management of Mc Donald to persuade the employees in adoption of the changes within the organisation. Apart from these leadership styles, Mc Donald should also adopt the participative leadership style within the organisation because adoption of participative leadership within the internal employee relations will help Mc Donald to maintain open culture and open communication within the retail food stores. Moreover, the participation of the employees decision with regard to the new strategies and new produc t development will encourage the employees and make the employees feel important within the organisational context (Sindell and Hoang, 2001). 2.Application of Management and Leadership Theory to support McDonalds decisions a. Identification of selected management and leadership theories and their impact on strategy of Mc Donald Goodridge (2006) leadership theories show cases the different types of leadership styles that should be adopted by the management of the organisation for the attainment of the strategic goals. Lussier and Achua (2009) stated that transformational leadership theory states that the leader should be in charge of identifying the strategic objectives, vision and the creative changes that should be incorporated within the organisations. The adoption of the transformational leadership style within Mc Donald will help the management of Mc Donald to create future strategies and growth visions. The international expansion strategies and the product line expansion strategies are a result of the transformational leadership theory. London (2001) stated that transactional leadership theory involves motivating and providing necessary directions to the followers for achievement of the strategic goals. However, Northouse (2012) stated that in transactional leadership it is employees are motivated by reward and punishment and it is the duty of the sub ordinates to follow all the orders of the leaders without questioning the capability of the leaders. Thus, adoption of transactional style endangers the internal relationship between the employees and the superiors. In Mc Donald, the management avoids adoption of transactional style since open communication culture is generally followed in Mc Donald. Mc Donald highly depended on adoption of the participative leadership style and allowed the suggestions of all level of employees in terms of decision-making. However, as per Forbes, the strategic failure of Mc Donald marketing strategies like-the text message discount coupons, Food chain finder app and the introduction of the McVeggi for the vegetarian customer segment, questioned the leadership strategy within the retail food chain. London (2001) stated that in this context high degree of participative leadership strategy threatens the attainment of the organisational objectives since participative style does not encourage work schedule. The charismatic leadership theory states that leaders adopting this style are able to influence and persuade the employees to work according to their wish without being aggressive. Thus, Mc Donald should suitably adopt the persuasive or charismatic leadership style so that the open culture can be maintained and the organisational objectives can be achieved effectively. Martin (2006) in this regard added that as per the contingency leadership theory, the leaders should possess two major types of qualities namely maintaining a good rapport with the employees and secondly the leaders should be capable of planning, scheduling and role assignment so that the organisational objectives are attained within the given deadline. In context of achieving the above stated objectives, Mc Donal d should also resort to adoption of the contingency leadership style. b.Leadership Strategy supporting direction of Mc Donald The internalisation and product diversification strategy of Mc Donald requires high degree of flexibility, situational decisions and good degree of forecasting power in terms of the leaders and the management of Mc Donald. Thus, Morrill (2010) stated that adoption of Global and situational leadership style is favourable for the food retailer at the present context. The adoption of the situational leadership style will help the management of Mc Donald to change the product introduction decisions, pricing decisions and selection of the target market as per the changing business environment. Further, the adoption of the global leadership style will help the management of Mc Donald to effectively expand in the international markets. The Global leaders generally exhibit high degree of forecasting ability and have prior market experience. For expansion in the emerging markets like China, Asia and Japan, the leaders within Mc Donald requires to have customer preference of the respective mar kets. This will help them to determine the demand for the Mc Donald products and frame the pricing strategies accordingly. 3. Assessment of the current leadership requirements of Mc Donald a. Current leadership requirements in Mc Donald The overall restaurant industry is currently yielding low profit margins and loosing the market share due to the cheaper rate of the food items offered in the emerging restaurants of the developing countries. The restaurants in the developing countries are generally getting the low labour cost and thus are able to adopt low pricing strategy in terms of the food items offered by these restaurants. Mc Donald in 2013 faced the same problem, which triggered the necessity of adoption of a new leadership style within Mc Donald. At present, Mc Donald uses democratic leadership style. The democratic leadership style is good for the organisation because the open communication can be maintained within Mc Donald. However, Morrill (2010) stated that democratic leadership would not help Mc Donald to attain the strategic objectives, which are set by the fast food retail chain. Thus, keeping the current context in mind the Mc Donald requires the following leadership qualities for the attainment of the strategic goals: High degree of flexibility and situational handling of the functions Situational leadership strategies Employee management and motivational skills High degree of creative skills b. Future leadership requirements in Mc Donald In terms of determination of the future leadership strategy, it may be recommended, Mc Donald in future should adopt the persuasive leadership style. The adoption of the persuasive leadership style will help the management of Mc Donald to interact freely with the employees and conduct the objectives within the given schedule and timeline. There are situations within Mc Donald that requires emergency attainment of marketing objectives. In such situations it is necessary for the management to adopt the persuasive leadership style so that using the charisma and the good communication skills the leader can motivate the employees and help them to attain the organisational objective within the given time schedule. Moreover, London (2001) stated that the company has franchisees on a global basis, hence the management of Mc Donald should be able to manage and co ordinate the functions of all the franchisees successfully. In this regard, Mc Donald should adopt centralisation strategy and tran sformational leadership style in future. High cultural diversity is also present within the employees of Mc Donald. Thus, it is necessary for leaders at Mc Donald to adopt a participative leadership style so that decisions can be obtained from all levels of employees. Moreover, the adoption of the participative leadership style will ensure the presence of open communication and a congenial environment within the organisation. Morrill (2010) thus stated that future strategic success of Mc Donald would largely depend on the adoption of the people leadership style. Employee satisfaction is a key factor to implement the internalisation policies within Mc Donald. Thus, the future leadership strategies should focus on employee developmental programs like training and development and mentoring programs (London, 2001). Conclusion In this report, a critical assessment has been carried out with respect to different important aspects related to leadership and the performance of analysis has indicated significant level of findings. It has been analysed that there has been positive existence of relationship between strategic management and strategic leadership in McDonald, as they aim at accomplishing organisational tasks and responsibilities in a positive manner. With respect to the current and future strategic objectives of Mc Donald, the adoption of situational leadership styles like persuasive leadership, charismatic leadership and democratic leadership strategies should be successfully incorporated within the food chain. There are different leadership styles that are being practiced by the leaders and they are aimed at handling different situations in a highly efficient manner. The analysis also leads to identification that there are certain important management and leadership theories that could be applied i n efficiently managing the leaders role within McDonald. The development of efficient leadership strategy has also been carried out with a view to support organisational direction in an efficient manner. The analysis also leads to identification of the current leadership requirements that must be addressed by the leader, and there is also an identification of the future major requirements that are also required to be considered by the leader in performing their role efficiently in future. Finally, there has been the planning being carried out with respect to development of leadership skills for a specific requirement of addressing employees within organisation and it is evaluated that the leader is required to consider large number of methods in ensuring the efficient development of leadership skills within McDonald. References Cameron, K. (2012), Positive Leadership: Strategies for Extraordinary Performance, Berrett-Koehler Publishers. Corporate Social Responsibility: Challenges, Opportunities and Strategies for 21st Century Leaders DuBrin, A. (2008), Essentials of Management, 8th ed., Cengage Learning. Goodridge, D. (2006), Relationships Between Transformational and Transactional Leadership with the Motivation of Subordinates, Concordia University (Canada). London, M. (2001), Leadership Development: Paths To Self-insight and Professional Growth, Psychology Press. Lussier, R. and Achua, C. (2009), Leadership: Theory, Application, Skill Development, 4th ed., Cengage Learning. Morrill, R.L. (2010), Strategic Leadership: Integrating Strategy and Leadership in Colleges and Universities, Rowman Littlefield Publishers. Mello, J. (2014), Strategic Human Resource Management, 4th ed., Cengage Learning. Martin, B. (2006), Outdoor Leadership: Theory and Practice, Human Kinetics. Northouse, P.G. (2012), Leadership: Theory and Practice, SAGE Publications. Okpara, J. and Idowu, S. O. (2013), CSR, Sustainability, Ethics Governance, Springer Science Business Media. Schein, E.H. (2010), Organizational Culture and Leadership, 4th ed., John Wiley Sons. Sperry, L. (2013), Effective Leadership: Strategies for Maximizing Executive Productivity and Health, Routledge. Sindell, M. and Hoang, T. (2001), Leadership Development: Management Development, American Society for Training and Development. Wood, R.C. and Brotherton, B. (2008), The SAGE Handbook of Hospitality Management, SAGE.
Tuesday, May 5, 2020
Accounting scandals are political or business scandals which arise with the disclosure of financial misdeeds by trusted executives of corporations or governments. These days, not too often, these scandals are splashed as headlines across media. Why? Because there are complex groups of stakeholders who might be seriously affected by the scandals. Enron scam was the most remarkable scandal in 20 centuries by their institutionalized, systematic, and creatively planned accounting fraud. The scandal also brought into question the accounting practices and activities of many corporations in the United States. The scandal also affected the greater business world by causing the dissolution of the Arthur Andersen accounting company. This report will reveal the whole story of Enron scam and auditors role from the situation in more depth. It will also include the current situation of those responsible for the fraud. 2. Background of U. S in 1990s The 1990s of U. S were a time of prosperity and this prosperity period is originated from growth in IT corporates and in accordance with increase in productivity as technology develops with IT. We will write a custom essay sample on Enron Scandal or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In the mid- to late-90s, societyÃ¢â¬â¢s expectations of what the Internet could offer were unrealistic. Many investors foolishly ignored the fundamental rules of investing in the stock market and instead, investors and entrepreneurs became preoccupied with new ideas that were not yet proven to have market potential. Furthermore, they ignored the blatant signs that the bubble was about to burst. (IT Bubble in 90s) There are two main reasons for the bubble; with investors` optimistic expectation, there were a lot of Ã¢â¬ËWindow dressingÃ¢â¬â¢ in accounting. As Enron collapsed, the growth of the tech sector proved to be illusory, and bubble started to sober. 3. Enron- who are they? Enron Corporation is an energy trading, communications company which was formed in 1985 based in Houston, Texas. Enron marketed electricity and natural gas, delivered energy and other physical commodities. Company branched into many non-energy-related fields as well, including such areas as high-speed Internet bandwidth, and financial and risk management with 21,000 employees at mid-2001. The company reported revenues of $101 billion in 2000. It has stakes in nearly 30,000 miles of gas pipeline, owns or has access to a 15,000mile fiber optic network and has a stake in electricity generating operations around the world. 4. Enron- what they did? The Enron fraud case is extremely complex. There are several main characters who are spearheading the Enron scam. One of them was Jeff Skillng. Jeff Skillng, who was a consultant in Mckinsey, took charge in consulting Enron. He found problems and also potentiality of Enron and he proposed the idea of Ã¢â¬Å"gas bankÃ¢â¬ to Enron, which is a system that is combining financial system and gas supply and demand system, and taking the margin from the two system(as bank does). This was an ideal idea in theory and Enron asked him to take charge for this business, and later he became the president of Enrons trading operations. Also, he convinced federal regulators to permit Enron to use an accounting method known as mark to market. Using this method allowed Enron to count projected earnings from long-term energy contracts as current income. This was money that might not be collected for many years. It is thought that this technique was used to inflate revenue numbers by manipulating projections for future revenue. The problem is that it doesn`t match realised profit and real cash flow. especially, Enron`s main trading was long term future contract which is hard to make valuation for the future. Use of these techniques made it difficult to see how Enron was really making money. The numbers were on the books so the stock prices remained high, but Enron wasnt paying high taxes. When the telecom industry suffered its first downturn, Enron suffered as well. Eventually, the house of cards began falling. When Enrons stock began to decline, the Raptors began to decline as well. On August 14, 2001, Enrons CEO, Jeff Skilling, resigned due to family issues. Enron chairman Ken Lay stepped in as CEO. 5. One example of fraud Enron`s Ã¢â¬Å"too much Off-Balance Sheet TransactionsÃ¢â¬ Enron used Ã¢â¬Å"off-balance-sheetÃ¢â¬ technique for anytime, for many purposes, because it would enable Enron to present itself more attractively as measured by the ratios favored by analysts and investors. Skillng used securitisation to supply more liquidity and also to clean up the assets that is hardly generating income from it. He also hided most of the debt by securitisation. So, Enron needed Special purpose entities(SPE) for the securitization purpose. JEDI was one of the SPE. California PERS and Enron invested by $25000m each. As soon as the JEDI established, Enron started to sell energy related stock to JEDI and it grew JEDI by 23% per year on average. It made Skillng`s ECT business bigger and bigger. 6. Consequences for the stakeholders The key stakeholders affected by the collapse of Enron were its employees and retirees. Stakeholders and mutual funds investors lost $ 70billion market value. Banks were also affected by the meltdown of the company. Not only the stakeholder and bondholder lose out, the confidence in the company also fell. This was the major setback for the company. The actions of Enron management left a deep scare for its 4000 employees which lost out their jobs and also impacted others around them. Some blamed Arthur Andersen; EnronÃ¢â¬â¢s accounting firm and some blame the board of directors for insufficient oversights. The damage was so big that it was likely to take years for the court to sort the wreckage. The company did not think of its future and took many bad steps just to earn money. The CEO should have looked into the company matters long time ago and took action so that hundreds of jobs could have been saved. The companies who were associated with the big firm were affected on a very large scale. This was the biggest bankruptcy of a firm with $63. 4 billion in assets. 7. Auditors in this scandal, and their role The external auditing body of Enron company was Arthur Anderson LLP, formerly one of the Ã¢â¬Ëbig 5Ã¢â¬â¢ accounting firms, providing auditing, tax, and consulting services to large corporations. Andersen definitely Knew Enron Was in Trouble but they overlooked at it and even conspired with Enron to manipulate the financial statements. They knew Enron was in trouble as early as Feb.Ã 2001, a company memo showed, and Andersen debated dropping the collapsed energy firm all together, Reuters reported. Additionally, Andersen knew in mid-August of a senior Enron employees concerns about improprieties in the energy companys accounting practices. Andersen confirmed that a memo dated Feb. 6 recounted a meeting between Andersen executives about whether Andersen should retain the now-b ankrupt Enron as a client. Auditors are responsible directly under the law especially the international standards to report directly to the shareholders on the status of the companyÃ¢â¬â¢s or a bankÃ¢â¬â¢s account at a particular point in time. They heavily misconducted as auditors as they received money and hided about Enron`s truth. 8. Ramifications It is not easy to implement rigorous standards without changing Incentives. This situation can be seen in South East Asian countries like: Singapore, Thailand, Hong Kong, China. Each country can implement its own accounting standards, but did not implement the substantial institutional changes required to make these standards effective. According to various studies conducted in this area, new standards did not result in better-quality financial reporting.9. Conclusion: In search of better standards and ethics The ENRON Scandal is considered to be one of the most notorious within American history; an unofficial blueprint for a case study on White Collar crime. Enrons behaviour has confirmed that the treatment of off-balance-sheet dodge, American accounting standards are too lax. It is time for another effort to realign the system to function more in shareholders interests. Comp anies need stronger non-executive directors, paid enough to devote proper attention to the job. Enron Scandal free essay sample Enron Corporation was an American energy company based in the Enron Complex in Downtown Houston, Texas. Enron traces its roots to the Northern Natural Gas Company, which was formed in 1932, in Omaha, Nebraska. It was reorganized in 1979 as the leading subsidiary of a holding company, Inter North . In 1985, it bought the smaller and less diversified Houston Natural Gas. The separate company initially named itself HNG/Inter North Inc. , even though Inter North was the nominal survivor. It built a large and lavish headquarters complex with pink marble in Omaha (dubbed locally as the Pink Palace), that was later sold to Physicians Mutual. However, the departure of ex-Inter North and first CEO of Enron Corp Samuel Segnar six months after the merger allowed former HNG CEO Kenneth Lay to become the next CEO of the newly merged company. Lay soon moved Enrons headquarters to Houston after swearing to keep it in Omaha and began to thoroughly re-brand the business. We will write a custom essay sample on Enron Scandal or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Lay and his secretary, Nancy McNeil, originally selected the name Enteron, but, when it was pointed out that the term approximated a Greek word referring to the intestines, it was quickly shortened to Enron. The final name was decided upon only after business cards, stationery, and other items had been printed reading Enteron. Enron traded in more than 30 different products, including the following: * Products traded on Enron Online * Petrochemicals * Plastics * Power * Pulp and paper * Steel * Weather Risk Management * Oil and LNG transportation * Broadband * Principal investments * Risk management for commodities * Shipping / freight * Streaming media * Water and wastewater It was also an extensive futures trader, including sugar, coffee, grains, hog, and other meat futures. At the time of its bankruptcy filing in December 2001, Enron structured into seven distinct business units. Early history As Enron rose to become the largest seller of natural gas in North America by 1992, its gas contracts trading earned earnings before interest and taxes of $122 million, the second largest contributor to the companys net income. The November 1999 creation of the Enron Online trading website allowed the company to better manage its contracts trading business. In an attempt to achieve further growth, Enron pursued a diversification strategy. The company owned and operated a variety of assets including gas pipelines, electricity plants, pulp and paper plants, water plants, and broadband ervices across the globe. The corporation also gained additional revenue by trading contracts for the same array of products and services it was involved in. As a result, Enrons stock rose from the start of the 1990s until year-end 1998 by 311% percent, a significant increase over the rate of growth in the Standard amp; Poor 500 index. The stock increased by 56% in 1999 and a further 87% in 2000, compared to a 20% increase and a 10% decline for the index during the same years. By December 31, 2000, EnronÃ¢â¬â¢s stock was priced at $83. 3 and its market capitalization exceeded $60 billion, 70 times earnings and six times book value, an indication of the stock marketÃ¢â¬â¢s high expectations about its future prospects. In addition, Enron was rated the most innovative large company in America in Fortunes Most Admired Companies survey. Special purpose entities Enron used special purpose entitiesÃ¢â¬âlimited partnerships or companies created to fulfill a temporary or specific purposeÃ¢â¬âto fund or manage risks associated with specific assets. The company elected to disclose minimal details on its use of special purpose entities. These shell firms were created by a sponsor, but funded by independent equity investors and debt financing. For financial reporting purposes, a series of rules dictates whether a special purpose entity is a separate entity from the sponsor. In total, by 2001, Enron had used hundreds of special purpose entities to hide its debt. The special purpose entities were used for more than just circumventing accounting conventions. As a result of one violation, Enrons balance sheet understated its liabilities and overstated its equity, and its earnings were overstated. Enron disclosed to its shareholders that it had hedged downside risk in its own illiquid investments using special purpose entities. However, the investors were oblivious to the fact that the special purpose entities were actually using the companys own stock and financial guarantees to finance these hedges. This setup prevented Enron from being protected from the downside risk. Notable examples of special purpose entities that Enron employed were JEDI, Chewco, Whitewing, and LJM. Launching Internet-based trading operation In 1999, Enron launched EnronOnline, an Internet-based trading operation, which was used by virtually every energy company in the United States. Enron president and chief operating officer Jeffrey Skilling began advocating a novel idea: the company didnt really need any assets. By pushing the companys aggressive investment strategy, he helped make Enron the biggest wholesaler of gas and electricity, trading over $27 billion per quarter. The firms figures, however, had to be accepted at face value. Under Skilling, Enron adopted mark to market accounting, in which anticipated future profits from any deal were tabulated as if real today. Thus, Enron could record gains from what over time might turn out to be losses, as the companys fiscal health became secondary to manipulating its stock price on Wall Street during the Tech boom. But when a companys success is measured by agreeable financial statements emerging from a black box, a term Skilling himself admitted, actual balance sheets prove inconvenient. Indeed, Enrons unscrupulous actions were often gambles to keep the deception going and so push up the stock price, which was posted daily in the company elevator. An advancing number meant a continued infusion of investor capital on which debt-ridden Enron in large part subsisted. Its fall would collapse the house of cards. Under pressure to maintain the illusion, Skilling verbally attacked Wall Street Analyst Richard Grubman, who questioned Enrons unusual accounting practice during a recorded conference call. s Though the comment was met with dismay and astonishment by press and public, it became an inside joke among many Enron employees, mocking Grubman for his perceived meddling rather than Skillings lack of tact. Peak and decline of stock price In August 2000, Enrons stock price hit its highest value of $90. At this point Enron executives, who possessed the inside information on the hidden losses, began to sell their stock. At the same time, the general public and Enrons investors were told to buy the stock. Executives told the investors that the stock would continue to climb until it reached possibly the $130 to $140 range, while secretly unloading their shares. As executives sold their shares, the price began to drop. Investors were told to continue buying stock or hold steady if they already owned Enron because the stock price would rebound in the near future. Kenneth Lays strategy for responding to Enrons continuing problems was in his demeanor. As he did many times, Lay would issue a statement or make an appearance to calm investors and assure them that Enron was headed in the right direction. Corporate governance Healy and Palepu write that a well-functioning capital market creates appropriate linkages of information, incentives, and governance between managers and investors. This process is supposed to be carried out through a network of intermediaries that include assurance professionals such as external auditors; and internal governance agents such as corporate boards. On paper, Enron had a model board of directors comprising predominantly outsiders with significant ownership stakes and a talented audit committee. In its 2000 review of best corporate boards, Chief Executive included Enron among its top five boards. Even with its complex corporate governance and network of intermediaries, Enron was still able to attract large sums of capital to fund a questionable business model, conceal its true performance through a series of accounting and financing maneuvers, and hype its stock to unsustainable levels. Risk management Before its fall, Enron was lauded for its sophisticated financial risk management tools. Risk management was crucial to Enron not only because of its regulatory environment, but also because of its business plan. Enron established long-term fixed commitments which needed to be hedged to prepare for the inevitable fluctuation of future energy prices. Enrons bankruptcy downfall was attributed to its reckless use of derivatives and special purpose entities. By hedging its risks with special purpose entities which it owned, Enron retained the risks associated with the transactions. This setup had Enron implementing hedges with it. Enrons aggressive accounting practices were not hidden from the board of directors, as later learned by a Senate subcommittee. The board was informed on the rationale for using the Whitewing, LJM, and Raptor transactions, and after approving them, received status updates on the entities operations. Although not all of Enrons widespread improper accounting practices were revealed to the board, the practices were dependent on board decisions. Even though Enron extensively relied on derivatives for its business, the companys Finance Committee and board did not have comprehensive backgrounds in derivatives to grasp what they were being told. The Senate subcommittee argued that had there been a detailed understanding of how the derivatives were organized; the board would have prevented their use. Financial audit Enrons auditor firm, Arthur Andersen, was accused of applying reckless standards in their audits because of a conflict of interest over the significant consulting fees generated by Enron. In 2000, Arthur Andersen earned $25 million in audit fees and $27 million in consulting fees (this amount accounted for roughly 27% of the audit fees of public clients for Arthur Andersens Houston office). The auditors methods were questioned as either being completed solely to receive its annual fees or for their lack of expertise in properly reviewing Enrons revenue recognition, special entities, derivatives, and other accounting practices. Enron hired numerous Certified Public Accountants (CPA) as well as accountants who had worked on developing accounting rules with the Financial Accounting Standards Board (FASB). The accountants looked for new ways to save the company money, including capitalizing on loopholes found in Generally Accepted Accounting Principles (GAAP), the accounting industrys standards. One Enron accountant revealed We tried to aggressively use the literature [GAAP] to our advantage. All the rules create all these opportunities. We got to where we did because we exploited that weakness. Andersens auditors were pressured by Enrons management to defer recognizing the charges from the special purpose entities as their credit risks became clear. Since the entities would never return a profit, accounting guidelines required that Enron should take a write-off, where the value of the entity was removed from the balance sheet at a loss. To pressure Andersen into meeting Enrons earnings expectations, Enron would occasionally allow accounting firms Ernst amp; Young or PricewaterhouseCoopers to complete accounting tasks to create the illusion of hiring a new firm to replace Andersen. 54] Although Andersen was equipped with internal controls to protect against conflicted incentives of local partners, they failed to prevent conflict of interest. In one case, Andersens Houston office, which performed the Enron audit, was able to overrule any critical reviews of Enrons accounting decisions by Andersens Chicago partner. In addition, when news of SEC investigations of Enron were made public, Andersen attempted to cover up any negligence in its audit by shredding several tons of supporting documents and deleting nearly 30,000 e-mails and computer files. Revelations concerning Andersens overall performance led to the break-up of the firm, and to the following assessment by the Powers Committee (appointed by Enrons board to look into the firms accounting in October 2001): The evidence available to us suggests that Andersen did not fulfill its professional responsibilities in connection with its audits of Enrons financial statements, or its obligation to bring to the attention of Enrons Board (or the Audit and Compliance Committee) concerns about Enrons internal contracts over the related-party transactions. Audit committee Corporate audit committees usually meet for just a few times during the year, and their members typically have only a modest background in accounting and finance. Enrons audit committee had more expertise than many. It included Robert Jaedicke of Stanford University, a widely respected accounting professor and former dean of Stanford Business School; * John Mendelsohn, President of the University of Texas M. D. Anderson Cancer Center * Paulo Pereira, former president and CEO of the State Bank of Rio de Janeiro in Brazil * John Wakeham, former United Kingdom Secretary for Energy * Ronnie Chan, a Hong Kong businessman * Wendy Gramm, former Chair of U. S. Commodity Futures Trading Commission Enrons audit committee was later criticized for its brief meetings that would cover large amounts of material. In one meeting on February 12, 2001, the committee met for an hour and a half. Enrons audit committee did not have the technical knowledge to properly question the auditors on accounting questions related to the companys special purpose entities. The committee was also unable to question the companys management due to pressures placed on the committee. The Permanent Subcommittee on Investigations of the Committee on Governmental Affairs report accused the board members of allowing conflicts of interest to impede their duties as monitoring the companys accounting practices. When Enron fell, the audit committees conflicts of interest were regarded with suspicion. Accounting scandal of 2001 Enron scandal After a series of revelations involving irregular accounting procedures bordering on fraud perpetrated throughout the 1990s involving Enron and its accounting firm Arthur Andersen, Enron stood on the verge of undergoing the largest bankruptcy in history by mid-November 2001 A white knight rescue attempt by a similar, smaller energy company, Dynegy, was not viable. As the scandal unraveled, Enron shares dropped from over US$90. 00 to just pennies. Enron had been considered a blue chip stock, so this was an unprecedented and disastrous event in the financial world. Enrons plunge occurred after it was revealed that much of its profits and revenue were the result of deals with special purpose entities (limited partnerships which it controlled). The result was that many of Enrons debts and the losses that it suffered were not reported in its financial statements. Enron filed for bankruptcy on December 2, 2001. In addition, the scandal caused the dissolution of Arthur Andersen, which at the time was one of the worlds top accounting firms. The firm was found guilty of obstruction of justice in 2002 for destroying documents related to the Enron audit and was forced to stop auditing public companies. Although the conviction was thrown out in 2005 by the Supreme Court, the damage to the Andersen name has prevented it from returning as a viable business. Enron also withdrew a naming rights deal with the Houston Astros Major League Baseball club to have its name associated with their new stadium, which was formerly known as Enron Field. Details about the Scandal: The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure. Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth. Several years later, when Jeffrey Skilling was hired, he developed a staff of executives that, through the use of accounting loopholes, special purpose entities, and poor financial reporting, were able to hide billions in debt from failed deals and projects. Chief Financial Officer Andrew Fastow and other executives not only misled Enrons board of directors and audit committee on high-risk accounting practices, but also pressured Andersen to ignore the issues. Shareholders lost nearly $11 billion when Enrons stock price, which hit a high of US$90 per share in mid-2000, plummeted to less than $1 by the end of November 2001. The U. S. Securities and Exchange Commission (SEC) began an investigation, and rival Houston competitor Dynegy offered to purchase the company at a fire sale price. The deal fell through, and on December 2, 2001, Enron filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. Enrons $63. 4 billion in assets made it the largest corporate bankruptcy in U. S. history until WorldComs bankruptcy the following year. Many executives at Enron were indicted for a variety of charges and were later sentenced to prison. Enrons auditor, Arthur Andersen, was found guilty in a United States District Court, but by the time the ruling was overturned at the U. S. Supreme Court, the firm had lost the majority of its customers and had shut down. Employees and shareholders received limited returns in lawsuits, despite losing billions in pensions and stock prices. As a consequence of the scandal, new regulations and legislation were enacted to expand the accuracy of financial reporting for public companies. One piece of legislation, the Sarbanes-Oxley Act, expanded repercussions for destroying, altering, or fabricating records in federal investigations or for attempting to defraud shareholders. The act also increased the accountability of auditing firms to remain unbiased and independent of their clients.