Teaching Enron StakeholdersEnron was a dream come true for many people, but it was also a nightmare waiting to happen for many others. I will examine the collapse of Enron from a management perspective. The three examples of Enron misbehavior that I will study are the Valhalla incidents, the California electricity trading, and the conflict of interest between Andy Fastow and his special purpose entities (SPEs). These are just some of the cases that led to the bankruptcy of the "World's leading company". In 1985, Houston Natural Gas merged with InterNorth, of Omaha, Nebraska, to form Enron, and Ken Lay was named CEO. The company was basically a natural gas producer and had control over huge reserves throughout the oil belt. The Valhalla trading scandal was the beginning of the end for Enron. Enron acquired the Valhalla trading group through merger. Valhalla did not produce oil, but bought and sold oil futures. He bought oil long if he thought the market would rise and short if he thought oil prices would fall (2). In January 1987, a security officer at Apple Bank in New York alerted Enron auditors to a strange series of transactions made by two of the company's oil traders: Louis Borget and Thomas Mastroeni. The bank security man said the $100,000 transfers came from an Enron account at Standard Chartered Bank in Britain's Channel Islands. The transactions from the Channel Islands were a wake-up call for banking security men because the islands are a source of secret offshore bank accounts and often the address of convenience for companies of a suspicious nature. The transfers, signed by Mastroeni, came from an American Enron account, then went to the Channel Islands and finally ended up in... middle of paper... were prevented, especially by the top management. Enron became a company focused on high stock prices and greed. Enron employees could do whatever they wanted to earn that extra million dollars for the company. It was only a matter of time before Enron collapsed. In my eyes Sherron Watkins is a hero of the immoral business world. Works Cited1) Swartz, Mimi with Watkins, Sherron. Power Outage: The Inside Story of Enron's Collapse. New York: Doubleday, 2003.2) "Enron: A Series of Abuses.?" NewsMax Wires March 21, 2002 3) Taylor, Chris. "California Intrigue." Time May 20, 20024) "Enron: Endless Possibilities and the 2000-2001 California Energy Crisis" March 23, 2006 5) www.investorwords. com